Dedication to Dedicated

M&M Transport gets about 85 percent of its business from routes covered by long-term transport contracts

About 10 years ago, Mark Warsofsky decided to focus his M&M Transport on dedicated routes and steer away from truckload common carrier business. Based in Worchester, Mass., he found enhanced profitability in New England by signing customers for long-term contracts.

The strategy has paid off as the company has steadily grown to about $60 million in revenue with 310 tractors and 950 trailers. Contrary to what happened to many other fleets, M&M grew about 9 percent in 2009 and remained steady in 2010, Warsofsky says.

Mark Warsofsky of M&M Transport says building dedicated trucking business will be tough as large carriers increase their presence in contract bidding.

Over the years, M&M has added several major chain retailers as clients, as well as manufacturers such as a corrugated box maker, paper mill recycler and potato chip producer. The routes cover New England and the Midwest, plus Arizona from a terminal in Phoenix. About 85 percent of the business is dedicated.

The strategy, however, is being challenged as bigger carriers are jumping into the market to compete for the contracts, Warsofsky says. The result is lower rates as carriers undercut them, he says.

Warsofsky’s reply is to concentrate on reducing costs on everything from office supplies to insurance and stressing customer service. He overhauled his dispatch system to reduce empty miles, which he estimates at less than 6 percent of total miles. The carrier aims to get more business from existing customers, as well as seek new shippers. “As part of our long-term relationships with our customers, we provide better customer service,” he says. “We keep overhead down.”