Issue link: https://read.dmtmag.com/i/328668
T here is nothing "small" about a fleet of more than 3,300 power units. But The Kenan Advantage Group, a fuel delivery firm head- quartered in Canton, Ohio, maintains that at the foundation of the steadily growing company, you'll find the principles often associated with a small company. These include exemplary per- formance, customer service, pride and premium equipment, such as the Peterbilt Model 384 day cab, which has been inte- grated into the KAG fleet since the introduction of the versatile regional-haul vehicle. "Our growth has been extraordinary," says company vice- president of fleet services RJ Molder. "But all of our operating companies are run as if they're smaller, keeping their core prin- ciples and values in tact." "Last-mile" delivery The KAG's strategic growth is part of an acquisition model that has seen the company develop a coast-to-coast presence in 38 states, focusing primarily on "last-mile" deliverers of petro- leum products from rail and pipeline to retailers, marketers and other end users. KAG also features growing specialty products and logistics divisions. However, not any willing company is fit to become part of the KAG portfolio. "We focus only on best-in-class operations, companies that have an excellent reputation in their marketplace and that have a geographic footprint that appeals to us," says Molder. "But once we acquire them, we recognize that their own flavor, their own identity, is what made them successful in the first place. People in different parts of the country are accus- tomed to dealing with their own people, and they may do some things differently. So we allow that operating identity to remain in tact." National account While these small-company values may appeal to their cus- tomer base, being a large company has advantages as well. As the result of a national account developed with Peterbilt, the KAG enjoys leveraged purchasing power on the Model 384s it integrates into the fleet, as well as convenience factors and service advantages at the more than 250 Peterbilt North Amer- ican dealer locations. "With our buying power, it's a win for both us and the operating company," says Molder. "If our smaller operating companies have oper- ated their business successfully enough to be considered best-in-class, you can assume that not only do they employ the best drivers and opera- tions people, but the equipment goes right along with that," says Molder. "It's the whole pie – not just the pieces. It takes all that to be best-in-class." Peterbilt has been a cornerstone of the KAG purchasing program since the early 1990s. "It's not about the cheapest equipment. Growing Big, Operating Small "These trucks put on hard miles... but the Peterbilts really hold up..." Vice-President of Fleet Services RJ Molder says the Peterbilt Model 384 is a key component in KAG's delivery of best-in- class service to its customer base. Kenan Advantage Group says they may be biggest, but that's not why they're best 8 FIRST CLASS