The
company began in the late 1950’s with John R. Murphy
operating the Shreveport Syrup Company, the producer and
distributor of Johnnie Fair Syrup. He began warehousing
sugar for himself and other manufacturers of syrup. In 1964,
he founded Murphy Bonded Warehouse, LLC.
In
1976, John Murphy sold his interest in the corporation to
W. Wade Sample and Marshall L. Martin. Wade Sample owned
approximately 66% of the stock and Marshall Martin approximately
33%. Marshall Martin was elected President of the corporation
and Wade Sample was Vice President and Treasurer.
In
1986, W. Wade Sample purchased the shares owned by Marshall
Martin and became the sole shareholder. At this time, Wade
Sample was elected President and Marshall Martin became
Vice President and Secretary. Mr. Martin resigned as an
officer of the company in January 1990, and now is serving
in a consulting role. W. Wade Sample is currently President.
In
1995, Tim Hewitt and Virginia Lewis were elected Vice Presidents
and Virginia Lewis was also elected Secretary.
Original
Entrepeneurship
When
Wade Sample purchased the company in 1976, it had approximately
twenty (20) employees, $350,000 in annual revenues, four
(4) used bobtail trucks, two (2) used tractors, three (3)
used dry van trailers, and operated 100,000 square feet
of warehouse space.
Today,
approximately twenty (20) years later, the company has approximately
forty-five (45) employees, $5,000,000 in annual revenues,
fourteen (7) new tractors, sixty (20) modern 53 foot trailers,
and operates over 750,000 square feet of warehouse space.
Several important decisions and strategies facilitated this
record of successful growth.
First,
the company chose to develop and implement a competitive
salary and benefit package to attract and retain capable
and motivated employees to the company. It instituted a
defined benefit pension plan, a 401-k plan with company
matching contributions, and incentive and profit sharing
programs.
Secondly,
to increase profitability, it designed and implemented a
five-year budget and a productivity improvement system.
These procedures generated significantly more accurate managerial
reports, by facilitating an improved focus on growth and
profit objectives.
With
a dedicated employee team of service professionals and with
a clearer picture of profitable growth opportunities, the
company redefined its competitive advantages to achieve
greater success in the market place in three (3) areas.
First it chose to manage the transportation function by
using full service leases on all tractors and trailers.
By obtaining highly predictable unit operating costs and
avoiding wide fluctuations from unforeseen maintenance failures
characteristic of small and mid-size trucking companies
who own and maintain their own equipment. The company was
able to expand its operations profitability.
Second,
it also chose to adapt a new financial strategy in the warehouse
function by converting all its long term building leases
to mortgage financed purchases. The company’s decision
was adapted when real estate prices and interest rates were
at cyclical lows in this region. Its decision to become
an equity participant in the real estate, instead of only
a lessee, for the same relative financial risk, was made
more successful by the economic recovery from 1988 to the
present.
Third,
the company chose to decrease its almost sole dependence
on a single customer whose long term growth and even stability
was doubtful. At the time of acquisition, in 1976, 50% of
the company’s revenues came from five cigarette manufacturers.
By careful and deliberate focus of its sales and marketing
efforts, the company was able to survive the economic downturn
of the late 1980’s and to find three new customer groups,
forest products, consumer durables, and industrial raw materials,
that now provide over 75% of its revenue. This final development
has given the company a more diversified and predictable
customer revenue base.
Significant
Events and Adversity
The
company has faced adversity and has successfully conquered
each of these challenges.
First
in the late 1980’s, when Shreveport and the surrounding
area was suffering the dramatic economic collapse caused
by declining oil prices, banking failures, and personal
and corporate bankruptcies, the company experienced severe
insolvency. This problem was caused by unsuccessful expansion
into over-the-road trucking. The company met this challenge
by designing a strict financial recovery plan with the aid
of its CPA. This plan included immediate termination of
all risky trucking routes, honest and optimistic negotiations
with every vendor to obtain longer credit terms and daily
meetings with all employees to describe the problem, to
explain proposed solutions, and to communicate all progress
and developments.
These
efforts were successful as the company recovered from an
11% loss in 1989 to a modest profit in 1990 and solid profit
in each successive year to the present.
The
second and third challenges existed at the time of acquisition.
The company was experiencing significant economic pressure
from two internal sources. Both of these problems were identified
and strategies adopted to eliminate them.
The
company’s hourly warehouse workforce was unionized
and labor relations were poor with detrimental affects on
morale and productivity. The company adopted an open to
way dialogue with these employees to identify and improve
work issues. These long-term efforts were successful when
4 years later the union was decertified and the company
became non-union.
The
third challenge problem was internal shrinkage of products.
The company stored cigarettes and liquor, and it experienced
significant shortages of product with devastating economic
cost in employee morale and payment of claims. This problem
was overcome with careful work from all employees, by teamwork
and commitment to a common goal!
Examples
of initiative in the areas of national interest, service
to the community, and compliance to civil rights
Murphy
Bonded Warehouse, Inc. is an equal opportunity employer
and welcomes the chance to offer employment to all qualified
individuals, and has made improvements necessary to accommodate
the disadvantaged or handicapped. The company has also taken
an aggressive position to help the under privileged and
needy.
In
1992, Murphy evidenced its civic responsibility and concern
for the less fortunate, by aiding the victims of natural
disasters. Its employees participated in the disaster relief
efforts from Hurricane Andrew, by donating supplies and
providing equipment to deliver the donations.
Again
in 1993, the company and its employees came to the assistance
of the flood victims of Iowa and Missouri. The company transported
a 40,000 pound truckload shipment of donated bottled water
from Shreveport to Des Moines, Iowa, a distance of over
700 miles to help aid the less fortunate.
The
company again demonstrated its civic commitment as recently
as the summer of 1998, by co-sponsoring the summer day camp
at the Carver Branch of the YMCA for forty (40) children
from disadvantaged backgrounds.
Murphy
Bonded Warehouse, Inc. aided in the support of an evangelistic
mission to Kiev, Ukraine in October 1997 for its accountant,
Jim Newton.
Murphy
Bonded Warehouse, Inc. donated Windows based PC’s with
CD and multi-media based capabilities to the Life Share
Blood Center for use in their facilities.
Murphy
Bonded Warehouse, Inc is a member of the Chamber of Commerce
and is committed to community development at every level.
Participation includes charitable contributions, and service
on committees and boards for the betterment of our city
and its citizens.
Murphy
has also been active politically to support legislation
that we feel will protect our business, our employees, and
our nation. We are committed to support the leadership of
our State.
Personal
Characteristics
W.
Wade Sample is the President and Chairman of the Board of
Murphy Bonded Warehouse, Inc in Shreveport, Louisiana.
Mr.
Sample received his Bachelor of Science degree in Economics
from Washington and Lee University at Lexington, Virginia.
He received has Masters in Business Administration from
the University of Texas in Austin. While attending the University
of Texas, He was admitted to the Honor Society of Phi Kappa
Phi.
After
graduating from the University of Texas, Mr. Sample joined
International Paper Company in New York in its corporate
finance department where he managed its financing of pollution
control facilities at its various plants with industrial
revenue bonds. Later he assumed the responsibility of plant
controller at the company’s non-woven facility at Easley,
South Carolina.
In
1976, he purchased controlling interest in Murphy Bonded
Warehouse, Inc. and since that time he has acted as its
Chief Executive Officer. The company currently operates
over 750,000 square feet of warehouse space with approximately
45 employees.
Mr.
Sample is a native of Shreveport and is actively involved
in business and community affairs. This involvement includes
such civic organizations as Rotary, The Greater Shreveport
Economic Development Foundation, the Shreveport Chamber
of Commerce, and Young Men’s Christian Association
(YMCA).
He
traveled to Japan as a member of the Shreveport-Bossier
Japanese Trade Mission. The Mission visited seven cities
meeting with representatives of major Japanese banks, trading
companies, and industrial companies to present the advantages
of using Shreveport-Bossier as a cost effective distribution
hub in the United States.
His
professional associations include the International Material
Management Society (IMMS), International Warehouse Logistics
Association (IWLA), The Warehouse and Education Research
Council (WERC), and The Council of Logistics Management
(COLM).
Innovativeness
of Service and Commitment to Quality
Murphy
Bonded Warehouse, Inc. and its employees are proud of its
commitment to provide quality service to its customers.
These efforts have been recognized by several customers
and vendors.
In
1996, the company received the OUTSTANDING QUALITY OF SERVICE
AWARD from Ameripol Synpol Corporation, the world’s
largest domestic producer of crude synthetic rubber, located
in Port Neches, Texas with annual sales of over $500,000,000.
Murphy
also strives to provide a safe work area for all its employees.
In 1994, The Louisiana Workmen’s Compensation Corporation
recognized these efforts by presenting its “SAFE WORKPLACE
AWARD” for “Recognition of Your Commitment to
Safety”.
Murphy
also receives frequent letters of praise or commendation
from its customers, such as:
08/01/00
Margaret Rice Interiors wrote:
"Dear
Mr. Sample,
Recently
I have reviewed the business transactions we have received
from
our various service companies. I am writing to advise that
I have found
your firm to be outstanding in its field: timely, honest,
efficient and
best of all, your people are informed and most considerate.
Please
accept my deep appreciation for all of your help over the
years."
Sincerely,
Margaret Rice
Margaret Rice Interiors
01/04/99
Ameripol Synpol Corporation wrote:
"Dear
Wade:
RE:
Warehouse Evaluation/Audit Dated November 19, 1998
I
apologize for being so long in mailing you the official
copy of subject audit. As usual, we find that all of your
areas received excellent and good. We do appreciate the
service that your organization provides to ASC."
Sincerely,
R.T. Oxford - Manager
Logistics Support Services
12/23/98
AlliedSignal wrote:
"Dear
Wade:
This
note is to thank you for the exceptional service you supplied
our customer Delphi Interior Lighting over this past weekend.
Your
willingness to take action is exactly the type of energy
and commitment to customer excellence that we are continuously
trying to achieve at AlliedSignal.
I
just wanted to let you know how much I appreciate everything
you did to avoid a plant shutdown at one of our key accounts."
Sincerely,
Brian McKinley
Senior Account Manager
AlliedSignal, Engineering Plastics
12/17/1998
Osburn Distributors, LLC wrote:
"Dear
Tim,
Today
was a memorable day to Osburn Distributors, because we were
compelled to take our complete inventory of 'Kitty Litter'
out of your care. We can't recall having done business with
such a professional and courteous group of people. We are
particularly proud to have been served by Chuck Rexford,
Scott Fortenberry, David Ashlock, and Don Banks.
It
is no wonder that Murphy Bonded Warehouses are so successful.
Should we ever require bonded storage, I can ensure you
that you all will be the first to hear from us."
Sincerely,
Don & Lou Osburn
11/17/97
EG&G DYMATATIONS
U.S. Customs Service - Support Division wrote:
"Dear
Mr. Sample:
I
would like to take this opportunity to thank you for allowing
me to tour your facilities during my visit in October 1997.
I
was very impressed with your organization, cleanliness of
the warehouses, and the warm welcome that was extended by
all the personnel I met. It is not very often that these
three qualities are met at the same time.
I
look forward to doing business with Murphy Bonded Warehouse
and am certain taht the U.S. Customs Service and other Treasury
Services will be also.
Please
do not hesitate to contact me at anytime."
Sincerely,
Cheryl N. Morgan
New Orleans District Manager
