For Immediate Release
AUGUST 17, 2000
Contact: Kristie Kehoe, Director of Communications
703-838-1950 or kkehoe@truckload.org
TCA Unveils Best Practices for Streamlining Loading &
Unloading Functions
The Truckload Carriers Association (TCA), through its "Improving
Efficiency at the Docks" Management Panel, released the
results of an extensive study, the results of which are intended
to help drivers reduce the unproductive time they spend waiting
to load and unload their trailers, and designed to help carriers
reduce the time that expensive assets are not utilized because
their drivers are kept waiting.
The Management Panel, also called the "Just in Time
to Wait" Panel, is composed of more than 20 large national
shippers and receivers, in addition to TCA's truckload member
carriers. Far from engaging in finger-pointing as to why motor-carrier
equipment is often tied up at loading and unloading docks
-- sometimes for more than two hours -- the members of the
Panel are generally agreed that problems exist, and have been
working diligently to solve the complex problem of getting
trailers loaded and unloaded faster and more efficiently.
"This is a fabulous working group," said Richard
E. Durst, Chair of the TCA management panel and President
and CEO of Arctic Express, Inc., of Hilliard, Ohio. "Nobody
is looking at this as 'someone else's problem', and we all
agree that we can get to better and faster solutions by working
together. It's a very committed group of individuals."
The study, entitled "Just in Time to Wait: An Examination
of Best Practices for Streamlining Loading/Unloading Functions
was conducted by Mercer Management Consulting, Inc., in association
with Marsh, USA, Inc., and the law firm of Scopelitis, Garvin,
Light & Hanson (SGL&H). Mercer undertook a series
of qualitative in-depth interviews with 27 shippers and receivers,
plus a number of drivers, to gain their perspectives on the
issues identified in the interviews. A significant number
of interviews were conducted within the food industry because
of the general agreement that the waiting time problem there
is worse, owing to the unique shipment and receiving issues
presented. All interviewees were guaranteed anonymity to ensure
candid and accurate responses. SGL&H reviewed more than
100 carrier contracts to identify best-practice contract clauses
for mitigating waiting time.
Initial observations included the following:
- Of the thousands of customers a company may serve, the
actual number of "problem" receivers may be small,
but can take a disproportionate amount of time and cost
to deal with. Solutions should focus on dealing with the
small subset of customers most responsible for driver dissatisfaction
and higher costs.
- All shippers and receivers interviewed considered motor
carriers as their working partners and are very concerned
about the current driver shortage and the proposed changes
in hours-of-service regulations.
- While many of the shippers and receivers interviewed
track dock productivity in terms of cases per hour or similar
measures, most are unable to quantify the actual costs of
loading and unloading delays.
- Drop trailer/"no touch" freight programs were
consistently cited as providing significant financial and
productivity improvements for both shippers and receivers.
- Shippers that offered financial incentives to reward
receivers for improving dock unloading efficiency had mixed
results, with some of the programs being very successful
and others showing marginal success.
- Most shippers and receivers said that even though they
were sympathetic about driver turnover, carriers share the
responsibility to avoid delays by making sure their drivers
-- especially new drivers -- are properly briefed on the
procedures they are expected to follow at shippers' and
receivers' docks.
The survey also reveals several possible paths toward smoothing
the flow of freight from shipper to receiver, which include:
- Motor carriers taking more control of their own destiny
by managing their customers more aggressively; being willing
to walk away from no-win freight; and forming cross-functional
teams to work closely with shippers and receivers to identify
and address problems.
- Unbundling the cost of delivery to reveal specific problem
areas as well as indicating where incentives and/or penalties
could be applied to improve efficiency and reduce delays.
- Outsourcing selected activities or entire spotting and
unloading functions.
- Negotiating contract terms more effectively to induce
changes in shipper/receiver behavior and motivate practices
that reduce delays. Pro forma or "off-the-shelf"
contracts can be tailored for individual situations, and
contracts should contain clear allocations of the responsibilities
of the different parties (e.g., unloading), as well as specifying
penalties and incentives based on specific measures or results
(e.g., specified turnaround times). Higher-level management
should be responsible for developing and reviewing detailed
contracts.
- Information systems and Internet technology should help
to streamline and improve communications. The ultimate goal
should be a totally seamless data transmission across the
industry via Internet, with no manual or voice-to-voice
handoffs between shippers, their customers, and motor carrier
partners.
"TCA has put significant time and energy into this study
because we know that major factors in drivers' decisions to
leave the industry include the way they are treated at the
docks; having to load and unload; waiting to turn their equipment
around; and having to sort and segregate," said Durst.
"These are not just good practices... these are the best
practices in the industry, and we hope that shippers and receivers
will be able to take some of these best practices and apply
them to their own facilities, thus helping to alleviate some
of the problems the trucking industry is currently facing."
The study uncovers some innovative practices in the distribution
industry, some of which are built upon trust among shipper,
carrier, and receiver. As an example, one receiver employs
a "sign and go" agreement that acknowledges overages
and shortages, but settles them later, allowing the driver
to be released as soon as the trailer is unloaded, without
holding him or her while the shipper is called, on the spot,
to account for the discrepancy. The entire study makes for
fascinating reading to those interested in improving the efficiency
of the distribution chain in corporate America.
The study was funded through the generosity of QUALCOMM,
Inc., Transportal Network, and Volvo Trucks North America.
Complimentary copies of the study are available by contacting
Rochelle Applewhite at 703/838 - 1950 or rapplewhite@truckload.org.
The study may also be downloaded from TCA's website by CLICKING
HERE*. 
* You must have Adobe Acrobat Reader installed on your
computer in order to read/print the information to be downloaded
on this page. If you need more information about obtaining
this free software, click here.
TCA is the only national trade association whose collective
sole focus is the truckload segment of the motor carrier industry.
The association represents dry van, refrigerated, flatbed,
and intermodal container carriers operating in the 48 contiguous
states as well as Alaska, Mexico, and Canada. Representing operators of over 200,000 trucks, which collectively produce an annual revenue of over $20 billion, TCA is an organization tailored to specific truckload carrier needs.
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