You Get What You Pay For

You Get What You Pay For

Copyright 2002, Traffic World Magazine

Your reporting of the Computrex and STI bankruptcies has been accurate and thorough, and I compliment you for that. Notwithstanding this, the underlying tone of your and Michael Stroh's articles seems to paint a picture of negativity which I believe gives an incorrect impression.

As unfortunate as they were, these bankruptcies should not taint an entire industry any more than the demise of Kmart will spell doom for all retailers.

Most of the major freight bill-payment companies are fiscally sound, well-managed businesses. Not all rely solely on the float for net income. Those that live by the float can die by the float.

As in any financial transaction, prospective clients should be very careful in investigating and contracting with freight bill payment companies. Financial stability should be confirmed and regular audits conducted. References should be checked carefully.

Unfortunately, in the entire logistics industry today, there is a tendency on the part of prospective clients to try to negotiate rates for services that simply are noncompensatory. Just as unfortunately, there are providers that are desperate or uninformed enough to agree. I agree with Bob Delaney's comments, quoted in your STI story: you get what you pay for.

Careful examinations will reveal that most freight bill payment companies are fiscally and operationally responsible. They provide a valuable service that should not be diminished by the failure of two firms with unique problems.

Clifford F. Lynch

C.F. Lynch & Associates

Memphis, Tenn.