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.

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.