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Not for Sale

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45 Carrier D has a systematic, software-based PM program CASE STUDY E: MEDIUM-SIZED REGIONAL that schedules each truck for about 2 hours of PM every TRUCKLOAD CARRIER 20,000 miles of travel. This is supplemented by remote elec- tronic monitoring of engine performance. The company does Carrier E is a medium-sized truckload carrier in eastern not provide GPS routing systems free to drivers, but does sell Canada. The company owns several hundred tractors and more them to drivers for a discounted price. These systems have than 1,000 trailers. The company offers logistics and ware- truck-specific routing information. The SM told of two housing services in addition to truckload haulage. Truckload incidents of mishaps involving truck drivers using general- capabilities include refrigeration and Hazmat. Most runs driving GPS navigation systems. In one, a truck driver fol- are regional trips of less than 500 miles (one way) between lowed GPS directions under a low-clearance bridge, resulting Ontario and the northeastern United States, or in the upper in a crash. In the other, a driver followed GPS directions down Midwest. a narrow dirt road and rolled the truck. Assigning drivers ded- icated runs when possible is another way to reduce driving on The company recently received International Standards unfamiliar roads. Organization (ISO) certification under Standard ISO 9001: 2008 encompassing its transportation, warehousing, and Remote monitoring of trucks through wireless communica- logistics operations. The company also received the Shipper's tions includes fuel economy monitoring. A general, company- Choice Award from Canadian Transportation & Logistics wide, and driver-specific goal is 6 mpg. Although the primary magazine, based on a poll of shippers. Evaluation areas for motivation was economic, the SM believed that the moni- the award include "On Time Performance," "Equipment and toring had safety benefits as well. The same "patterns of Operations," "Information Technology," "Competitive Pric- behavior" and care while driving were reflected in both high ing," "Customer Service," "Problem Solving," and "Value- fuel economy and low-risk driving. The same system moni- Added Services." tors driver hard-braking and roll-stabilityrelated events. Carrier E participates in a consortium of 18 Canadian Carrier D does not use EOBRs for HOS compliance, but motor carriers striving to improve their safety and reduce the SM believed that their use would be an operational and losses. The group meets quarterly to share best safety prac- safety enhancement. This view was based more on potential tices and materials, including those related to operational safety management benefits of EOBRs than on their HOS efficiencies. Carrier E's 5 years of participation in this group compliance and fatigue reduction benefits per se. EOBRs has resulted in steady declines in the company's loss ratios. would give the carrier safety department more knowledge of operations, help to make better use of available driver hours, Just over half of Carrier E's runs are out-and-back trips to and quickly highlight compliance problems. They would two U.S. states. Because of the predictability of its runs, Car- reduce driver fatigue and drowsiness as well, but "that rier E is able to book back-haul loads for a high percentage of wouldn't be my sales pitch" in arguing for their use. its trips. Their current empty truck rate is 12%. This low rate benefits both efficiency and safety, and has enabled the com- Carrier D analyzes its operations extensively; for exam- pany to pay drivers by the mile equally for full and empty trips. ple, it closely examines and compares safety and productiv- Paying drivers for empty trips eliminates a possible source of ity data on its many individual fleets (divisions). It has the driver unhappiness, stress, and schedule pressure. capability to conduct relative crash risk analyses of opera- tional factors such as time-of-day, day-of-week, month-of- Carrier E has its own truck maintenance facility and man- year, and driving location. A limitation of such analyses, in ages preventive maintenance using TRANSMAN software. the view of the SM, is that there is usually not enough oper- The company owns many more trailers than tractors, so trail- ational flexibility to apply lessons learned fully. ers can easily be scheduled for regular maintenance. Carrier E is equipping its new trucks with EOBRs and tran- Five Carrier D sitioning to E-logs. The SM is enthusiastic about this change. Innovative Operational Practices E-logs "get rid of paper" and improve real-time management of operations. Drivers like the E-logs, and their use positions the Performs PM on each truck every 20,000 mi (2- to company to deal better with CSA 2010. The company's HOS 3-month intervals) compliance was already high with paper logs, so EOBRs' ben- Provides truck-specific GPS routing system to drivers (at discounted price) efits are from "easier compliance, not better compliance." Assigns drivers dedicated runs when possible Monitors individual driver fuel economy with goal of The SM believed that the company's communications 6 mpg system was an important element in operational safety. The Charges detention fees for excessive loading and unload- system facilitates trip pre-planning (required for every trip) ing delays and efficient deployment of drivers and vehicles. The system does not provide continuous navigation guidance to drivers,