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that would provide insight for all military situations. The federal agencies were asked to rate various categories of measures. They clearly rated highly those 46 measures that predicted future freight volumes, as seen in Figure 5.8. Figure Figure5.2. Federal 5.8. agencies' Federal preference. agencies' preference. Each agency is affected by freight, and therefore future freight volume holds important implications for each agency's programs, investments, or regulatory strategies. All the agencies rated future freight Each agency is affected demand as very by freight, andimportant to them. therefore future Thirteen of the top motivators fell into the Efficiency, Prof- freight volume holds important implications for each itability, and Cost Savings category and included rationales agency's programs, investments, Truckingor regulatory Industry strategies. All Perspectives such as: the agencies rated future freight demand as very important to them. Eight interviews with trucking company managers 1. To and executives improve were conducted efficiency to ascertain that and bottom-line return on re- industry's perspective on measures. Insights were sought on both the measures they use and their interest sources; in potential publicly provided measures. Such 2. aTo small sample increase size was not efficiency; operational intended to be representative of Trucking Industry thePerspectives entire industry but rather to be illustrative of how a small cross section of the industry used 3. To increase productivity; performance measures. Eight interviews with trucking company managers and 4. To control costs; executives were conducted As to noted by the ascertain company that representatives, industry's per- they relyincrease 5. To heavily on andperformance measures but only measure profitability; and on those that provide specific spective on measures. Insights were sought on both theand highly granular insight 6. To measure employee performance. suppliers, their into the operations of their company, their fleets, and their employees. measures they use and their interest in potential publicly pro- vided measures. Such a small All sample size was eight indicated not that intended their companies rely on The most important performance measures, measures used byuse with the primary theof companies them were: to be representative of the being, entireinindustry but rather the order of frequency: to be illustrative of how a small cross section of the industry used Labor productivity; Efficiency, Profitability and Cost Savings (13) performance measures. Customer Service (5) On-time pickup and delivery; Competitiveness As noted by the company representatives, (3) heavily they rely Revenue yield by shipment or by mile; on performance measures but only Compliance on those that (1)provide spe- Shipments per truck/ truck productivity; cific and highly granular insight into the operations of their Fuel economy; company, their suppliers, their fleets, and their employees. Profit or loss per truck; 9 All eight indicated that their companies rely on perfor- Equipment utilization; mance measures, with the primary use of them being, in the Maintenance costs; order of frequency: Out-of-route and loaded miles; Loading and unloading times; and Efficiency, Profitability, and Cost Savings (13) Border crossing time/delays. Customer Service (5) Competitiveness (3) Compliance (1) Railroad Industry Perspectives Pricing (1) Routing (1) Railroad stakeholders, their goals and objectives, and their subsequent interest in railroad freight performance measures The use of performance measures to make business prac- have evolved over the more than 150 years that railroads tices more "efficient" was by far the strongest motivator. developed, were regulated, and then were largely deregulated.