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OCR for page 46
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.
