Rick O’Dell wants quality at Saia Inc.
It’s not a revolutionary desire as president and CEO of the trucking company [Nasdaq: SAIA], and it’s probably not something that would get his shareholders overly excited in that simplest of phrasing. But, when you define quality as meeting customers’ needs and working to solve their problems, then it becomes far more important in anyone’s mind.
“Some people would tell you that quality costs more, and to some extent, that’s right, but sometimes you can be more efficient when you can do it right the first time,” O’Dell says.
A lot goes into a freight shipment, and one small mistake along the line can cost you money. If freight is damaged, it could require a reship. If it’s late, that may result in a fine from the shipper. A mistake in the warehouse might result in a missed shipment or one that’s not as streamlined as it could be.
It’s all part of the reality in running a $849 million trucking company.
“To the extent that you can take those defects out, not only can you make the customer happy but you’re also more efficient,” he says. “When our on-time service is at high levels and the phone doesn’t ring in customer service and I don’t have to spend time explaining why their freight is not already delivered — there’s a price for having quality, and there’s a price for poor quality too — it’s called rework.”
To be as efficient as possible to maximize revenue, O’Dell focuses on knowing what customers think, adapting his business to meet their needs and working to resolve their problems when they come up.
