We issued a press release last week that details our expansion to Tulsa and us now being last mile delivery providers for Amazon and Wayfair. Check out the news below!
On Time Logistics expands to Tulsa
Springdale-based logistics provider doubled its workforce in 2016
SPRINGDALE, Ark.—The Springdale, Ark.-based logistics and warehousing provider On Time Logistics experienced several major growth spurts in 2016, allowing them to open an office in Tulsa, Okla., and to nearly double their workforce.
OTL has served as an agent in Tulsa and Little Rock since 2015 but the growth and demand in the Tulsa market made it necessary for them to open an office under their own DOT license, said Tim Ward, director of sales and marketing. OTL opened its own office in September 2016 in Tulsa and they offer warehousing and last mile delivery services, and are working to offer courier services in the near future. They continue to offer courier and warehousing services at their location in Springdale.
Their location in Tulsa allows them to serve not only that region for last mile deliveries and warehousing services, but the Oklahoma City area as well, Ward said. This fills a void that existed in the market for white glove and last mile deliveries.
“We’re meeting a big need,” Ward said.
On Time Logistics also developed two major relationships in 2016 that contributed to their company’s overall growth. They are now one of the only last mile delivery providers in Northwest Arkansas for both Amazon.com and Wayfair.com.
These contracts required the company to double its workforce to 15 drivers and 10 independent contractors. While the expansion has been profitable, it’s also challenged the logistics provider to change how it does business. For example, they are now truly a 24-hour service provider with deliveries coming at various hours throughout the day and night.
Much of their recent growth can easily be attributed to the drastic rise in e-commerce.
“The retail market is moving to an online model and it’s really bolstered our business. We’re seeing a real paradigm shift,” Ward said.
According to the Census Bureau of the Department of Commerce, the estimate of U.S. retail e-commerce sales for the third quarter of 2016 was $101.3 billion, an increase of 4.0 percent from the second quarter of 2016. Total retail sales for the third quarter of 2016 were estimated at $1,212.5 billion, an increase of 0.9 percent from the second quarter of 2016.
The year-to-year comparison is even more astounding, however. The third quarter 2016 e-commerce estimate increased 15.7 percent from the third quarter of 2015 while total retail sales increased 2.2 percent in the same period. E-commerce sales in the third quarter of 2016 accounted for 8.4 percent of total sales.