Averitt Forms Specialized LTL Service

AMERIT FLEET SOLUTIONS AND FLEET FINANCIALS PRESENT
VOL. 4, 2014
EXCLUSIVELY FOR TOP FLEETS IN NORTH AMERICA
CLIMATE CONTROL:
Averitt Forms
Specialized
LTL Service
GOING BEYOND
THE OIL CHANGE
FOR BEST FLEET
PERFORMANCE
AMERIPRIDE TESTS IT ALL IN
ALT-FUEL PILOT PROGRAM
WHAT TO EXPECT WITH PROPOSED
FDA FOOD TRANSPORT RULES
Amerit belief #1:
Your trucks belong on the road,
not waiting in the yard to be serviced.
WORRY-FREE FLEET MAINTENANCE
We believe that the less time your fleet spends waiting for service the better:
better for your profitability, better for your customers, better for your drivers,
better for everyone. That’s why every Amerit Fleet Solutions service program
offers you priority, dedicated services that focus on no one but you.
We will get them in, out and back on the road where they belong.
CONTENTS
4 Leading Highlights
8 Preventive Maintenance:
Ití s More than an Oil Change
To keep your fleet well-maintained, doní t
live by the misconception that regular
maintenance is just about the oil change.
10 Averitt Express Forms New
Climate Control LTL Service
4
In an industry first, Averitt Express has
launched a new less-than-truckload service,
providing hot to cold temperature controlled
shipping.
14 Q&A: Inside Amerit Fleet Solutions
As a custom maintenance provider, Amerit
often gets questions from fleets on how their
service works exactly. Can they really go
anywhere in the country?
8
16 AmeriPride Starts All-Inclusive
Alternative Fuel Pilot Program
Deciding on one alternative fuel to test in a
fleet can be tough. Thatí s why AmeriPride is
testing them all.
18 FDA Food Transport Rules
Focus on ë Track and Traceí
With the proposed rule from the FDA that
would regulate the food transport industry,
what should fleets prepare for?
10
20 Technicians: Finding and
Recruiting Top Talent
Amerit Fleet Solutions talent acquisition expert
provides insights on how to find, recruit and
retain top technicians throughout the U.S.
16
2
L E A D I N G FL E E T S
t
VO L 4, 2014
CEO VIEWPOINT
There’s No Time for Downtime
T
he trucking industry never stops
moving; it is truly the backbone of
our country, moving more goods
than any other mode of freight transportation. And this only seems to be
growing.
In a recent report from the American
Trucking Association, American Trucking Trends, the facts show that trucks
moved 69.1% of all domestic freight
tonnage in 2013 — up from 68.5% in
2012. Even more, the industry collected
81.2% of all freight revenue in 2013,
which is a similar figure from 2012.
Outside of freight figures, the industry
employed more than 7 million people
in 2013, and paid $37.8 billion in state
and federal highway user fees.
With a major dependence on the
trucking industry, it’s important that we
continue to support the industry’s needs.
What is one way we can do that? By
keeping well-maintained fleets and ensuring there as many tires on the ground
as possible. Too many companies are
stuck with long downtimes when getting
trucks repaired or are caught ill-prepared when a truck has a major breakdown while en route. The trucking industry has no time to spare when it comes
to moving goods, and it really has no
time for over-the-road interruptions.
On Page 8 of this magazine, you will
find an article with recommendations
on what a quality PM program entails
and what preventive maintenance really means. Amerit Fleet Solutions can
provide those much-needed maintenance services and can tailor them
specifically to your fleet. We take pride
in these custom services because we
are well aware of the hidden costs that
quickly accumulate when you’ve got vehicle breakdowns or when using shops
that don’t give your fleet the attention it
needs — and deserves.
The American Trucking Trends facts
listed here show that the trucking industry really does deserve more attention
to fleet maintenance as an important
way to drive better efficiencies. Whether using local service providers or your
own network of in-house maintenance
shops, neither ever seem to be enough.
And the same rule applies regardless
of the industry. Utility fleets keep the
country’s lights on and heaters running.
Construction fleets help keep the economy going. Transit fleets play an integral
role in public transportation. And so on.
At Amerit Fleet Solutions, we understand the challenges of downtime and
the incalculable effects on a company’s
bottom line, which is why we’ve tailored
solutions to fleets with a wide-range of
maintenance needs, including nationally operating fleets. You can read on
Page 14 some frequently asked questions we get about our custom services.
From our Mobile Service Centers to purpose-built Amerit Fleet Service Centers
and provided on-site labor solutions,
we are up for the task of keeping those
tires on the ground.
LF
By Dan Williams
CEO, Amerit Fleet Solutions
Business and Editorial Office
3520 Challenger St., Torrance, CA 90503
Phone: 310-533-2400 Fax: 310-533-2503
E-mail: info@leadingfleets.com
L E A D I N G FL E E T S.CO M
t
A M E R I T FL E E T S O LU T I O N S.CO M
3
LEADING HIGHLIGHTS
HDT Awards 2014
Truck Fleet Innovators
E
very year, Heavy Duty Trucking magazine recognizes the country’s most forward-thinking fleet professionals with the title of “HDT Truck Fleet Innovator.”
These fleets are all heavily focused on sustainability and fuel efficiency, including increasing their fleet’s
average miles per gallon and incorporating alternative powertrains such as electric and natural gas.
This year’s winners, who are chosen among nominations from the industry, operate vehicles ranging from
cargo vans through Class 8 trucks. Of 2014’s four honorees, three are from private fleets, and one is from a for-hire
trucking and logistics company.
From left to right, the 2014
HDT Truck Fleet Innovators are
Shelby Green, Mike O’Connell,
Bill Bliem, and David Hoover.
The 2014 HDT Truck Fleet Innovators
Shelby Green
Senior Fleet Director
PepsiCo North America Beverages
Somers, N.Y.
G
reen, who has been the fleet director for eight years, manages a fleet
with approximately 14,500 power units
and 11,600 trailers. PepsiCo’s commitment to environmental sustainability
is a major factor in equipment spec’ing
decisions, resulting in specs such as
low-rolling-resistance tires, idle time
limits, and alternative fuel and electric/hybrid vehicles. One of the biggest
changes he has spearheaded is moving
away from the traditional beverage delivery trailer to a tandem-axle dry van
using automatic axle lift suspension
systems that transform the trailer from
a tandem axle to a single axle.
Mike O’Connell
Senior Director, Supply Chain Fleet
Frito-Lay
Plano, Texas
O
4
’Connell, after eight years in fleet
operations, has worked with his
L E A D I N G FL E E T S
t
VO L 4, 2014
team to drive a significant cultural
change when it comes to improving
fuel efficiency and operational effectiveness. Corporate fleet fuel consumption amongst the 18,000 power
units and 4,000 trailers has dropped
by almost 20% over the past five years.
Frito-Lay, a division of PepsiCo, has
the seventh largest fleet in the U.S.
and the largest all-electric commercial fleet in North America, and is
deploying 208 CNG tractors. The company has been shifting delivery truck
specs to lighter weight and more aerodynamic vehicles.
Bill Bliem
Senior Vice President, Fleet Services
NFI
Vineland, N.J.
B
liem has led the charge on several
of NFI’s initiatives on fuel efficiency. Bliem has been with NFI — the
for-hire dedicated logistics company
— for five years. He manages internal/
external maintenance of the 2,000
power units and 7,500 trailers in the
fleet along with all corporate mainte-
nance functions, fuel management,
asset management, NFI Trailer Leasing, tolls, licensing, permits and the
corporate purchasing department. In
the past three years, NFI’s mpg has increased over 10% while idle time has
been reduced to 4.5%.
David Hoover
Director, Outbound Logistics
Meijer
Lansing, Mich.
H
oover has been Meijer’s director of outbound logistics for 11
years and manages 200 power units
and approximately 2,300 trailers. The
company is a Michigan-based retailer
with more than 200 supercenters and
grocery stores in five states. Hoover
is constantly researching and testing
new technologies to increase supply chain efficiencies, making Meijer
one of the first in North America to
implement the EPA’s 2010 emissions
standards. Hoover focuses on a high
level of collaboration, not only with
manufacturers but also with Meijer’s
for-hire carrier partners.
C.R. England Opens Company’s Second-Largest Facility
C.R. England COO Brandon Harrison kicks
off the ribbon-cutting ceremony at the company’s new terminal in Colton, Calif.
C
.R. England, one of the nation’s
largest refrigerated carriers, celebrated the June opening of a new terminal in Colton, Calif., and announced
the addition of 10 new liquefied natural
gas (LNG) powered trucks to the company’s Southern California fleets.
This 34-acre facility is the second
largest C.R. England facility nationwide and will feature the following
amenities:
r TRGUNBJOUFOBODFTIPQXJUI
eight service bays and a truck wash.
r TRGUEFEJDBUFEUPBESJWFSSF-
source center including laundry, TV
lounge, game room, an exercise facility and driver training facilities. Additional space is allocated to a nondriver support staff office, including
operations for several key dedicated
fleets.
r 1BSLJOH GPS NPSF UIBO USBDUPST
and 350 trailers.
r 1BSLJOHGPSESJWFSTBOEFNQMPZFFT
The ribbon-cutting event also featured the display of two of 10 new Mack
Pinnacle 12-liter LNG tractors that will
operate out of the new Colton terminal.
The company also hopes to open an
LNG fill station there as well.
“C.R. England is a strong advocate
of sustainable transportation and is
aggressively implementing and testing new technology, equipment and
training to provide our customers and
our environment with greener transportation,” said COO Zach England.
“Although there are still challenges
with utilizing natural gas tractors in our
fleets, such as equipment costs, maintenance, and degradation in mpg, we
have made the commitment to continually test this equipment and introduce
them into strategic areas where the
freight and fueling networks fit best.”
As LNG technology has improved
over time, England expects better
maintenance results from the 12-liter.
In 2011, C.R. England introduced
15-liter LNG tractors into its fleet. Two
years later, England introduced a compressed natural gas fleet in Utah.
Airgas Wins CGA Safety Awards
A
Anderson, Airgas’ director of DOT opand Cylinder Vehicle categories. Airnnounced this spring, Airgas reerations, accepted the Cylinder Vehicle
gas won the large fleet award in both
ceived two Fleet Safety Excellence
Fleet award and Rafiq Huq, regional
categories with 5,200 drivers. John
Awards for 2013 by the Compressed Gas
manager for Airgas Dry Ice and
Association (CGA). The first
Carbonic, accepted the Bulk
award honored Airgas’ cylinder
Vehicle Fleet award.
vehicle fleet for the fifth con“We are honored to be recsecutive year; the second award
ognized by the CGA for havrecognized Airgas’ bulk vehicle
ing the lowest vehicle accident
fleet for the fifth time since
frequency rate among large
2005.
cylinder gas and bulk fleets,”
The CGA calculates its Fleet
said Airgas President and CEO
Safety awards by taking a
Michael Molinini. “Our drivmember company’s total vehiers continued to raise the bar
cle accident frequency rate per
in 2013, covering more than
million miles driven during
130 million miles while safely
the year. The CGA recognizes
meeting the needs of our cylinone small fleet and one large Airgas was recognized for two Fleet Safety Excellence Awards for
der and bulk gas customers.”
fleet in each of the Bulk Vehicle 2013: the company’s Cylinder Vehicle Fleet and Bulk Vehicle Fleet.
L E A D I N G FL E E T S.CO M
t
A M E R I T FL E E T S O LU T I O N S.CO M
5
LEADING HIGHLIGHTS
Making Room for More CNG
Two major companies continue fleet adoption of compressed natural gas
for both environment sustainability and fuel efficiency.
Atmos Energy Adds 67 CNG Pickups
A
tmos Energy Corp., together with
ZeitEnergy, introduced its newest Ford F-150 and Ford F-250 natural
gas fleet, which will work directly with
ZeitEnergy’s new public compressed
natural gas (CNG) fueling station in
Arlington, Texas.
John Paris, Atmos Energy president
of the Mid-Tex division explained,
“We are thrilled to be introducing 67
new natural gas vehicles (NGVs) to
our existing NGV fleet, which will also
benefit ZeitEnergy’s newest CNG station in Arlington.”
According to Paris, Atmos Energy
has been replacing service vehicles
with NGVs since 2010, when the company first purchased more than two
dozen Honda Civic GX NGVs for its
meter readers. He said the company’s growing natural gas fleet demonstrates Atmos Energy’s commitment to the environment by reducing
harmful emissions and the natural
gas supply.
The announcement comes on the
heels of a banner year for CNG vehicles in Texas. According to the Energy
Information Administration, CNG vehicles consumed 2.5 billion cubic feet
of natural gas in Texas in 2013.
CHS Builds CNG
Fueling Station
C
HS Inc., a Fortune 100 energy,
grains and foods company and a
farmer-owned cooperative, announced
the construction of a CNG fueling station in Fairmont, Minn. CHS Transportation operates one of the nation’s
largest private truck fleets, logging
nearly 35 million miles each year. The
company said that building the station
is an excellent opportunity to leverage
an existing property and maximize the
utilization of current assets.
“CHS is embracing alternative fu6
L E A D I N G FL E E T S
t
VO L 4, 2014
CHS Inc. is building a CNG fueling station in
Farimont Minn., with expected completion in
September 2014.
eled vehicle technology such as CNG
and propane autogas to cost-effectively
serve some of its customers and to help
(From left) John Paris, Atmos Energy
president of the Mid-Tex Division, Arlington
Mayor Robert Cluck, and ZeitEnergy Founder
Clint Beauchamp break ground on the new
CNG station, which is expected to open this
summer.
achieve our aspiration to have a bestin-class transportation business,” said
Paul Herskind, the business development manager. “We are committed
to helping build the natural gas infrastructure and making this alternative
fuel more accessible to fleets, farmers
and consumers.” In addition to adding trucks powered by natural gas to its
fleet in 2013, CHS is currently testing
propane injection systems on some of
its tractors as well.
The new CNG fueling station will be
built adjacent to the CHS soybean processing plant in Fairmont. Construction is expected to be completed by
September 2014.
Schneider Hits Hiring Stride
Schneider is expanding
its employee base
and making some vital
changes across the
company and fleet.
Schneider has opened new job opportunities
across several divisions, with a bulk of the
openings operating out of Houston.
275 New Ways to
Work for Schneider
B
ased on its new relationship with
Harley-Davidson, Schneider has
opened up 75 new jobs for professional
truck drivers. The freight consists of
Harley-Davidson’s engines and parts
from Missouri, Wisconsin and Pennsylvania to various points across the U.S.
The Wisconsin-based carrier is hiring experienced drivers in Kansas City,
Mo., Menomonee Falls, Wis.,
and York, Penn., while offering
signing bonuses of $7,000 for
teams and $3,500 for solo drivers, in order to incentivize the
hiring process. Team drivers can expect to drive between 5,000 and 6,000
miles per week, earning up to $80,000,
with predictable schedules and weekly home time, explained Rob Reich,
Schneider’s vice president.
In another hiring swing, Schneider
is also adding 200 professional truck
drivers in Houston and the surrounding area to meet a variety of growing
business needs. “Customer demand in
Houston is incredibly strong across all
of our divisions,” Reich said.
The greatest opportunity is within
the company’s tanker division, which
is looking to add 100 company drivers
and owner-operators to its ranks. According to Schneider, the tanker division is aggressively growing its chemical transportation business, adding
company drivers and owner-operators
to keep up with customer demand.
Compensation recently increased an
additional 8-10% per mile for all tanker
drivers, making their average salary
Since the company is often referred to simply
as Schneider, it created an updated logo with
a more contemporary look that the company
said more accurately reflects its multiple
transportation modes.
up to $81,000 per year. The increase
comes after Schneider’s 10.5 cents per
mile compensation increase for tanker
owner-operators in April.
The other 100 Houston-area openings are across Schneider’s dedicated,
intermodal, van truckload and port
dray divisions, and local and over-
the-road opportunities for company
drivers and owner-operators. Owneroperators may choose a percentage or
mileage lease options and may be eligible for up to a $5,000 lease-on incentive.
Company Changes
S
chneider has also recently redesigned its logo with a more contemporary look. The company’s previous
logo had been in existence since 1985.
In addition to changing the
logo to one that is more refreshed
and befitting to a company operating in multiple transportation
modes, the company will now be
known simply as Schneider. “Although
we are not changing the name of our
legal entities,” said CEO and President Chris Lofgren, “to our associates,
our customers and the communities
we serve, we are, and have long been
known as Schneider.”
Transition to the new logo will occur
over time, including the 10,000 trucks
and 45,000 trailers/containers. Implementation will take place as trucks,
trailers, containers and other equipment and materials are lifecycled out
and replaced.
LF
L E A D I N G FL E E T S.CO M
t
A M E R I T FL E E T S O LU T I O N S.CO M
7
Preventive Maintenance:
More than an Oil Change
Regular preventive maintenance is key to the performance of your fleet and to keep
downtime low. Amerit Fleet Solutions outlines some misconceptions and rules to live
by when it comes to understanding that preventive maintenance includes far more
than just an oil change.
W
hen talking with prospective clients our team often
hears the same question
when it comes to preventive maintenance (PM): “My local repair shop only
takes 30 minutes for an oil change,
why does your PM take longer?” We’ve
heard this misconception enough lately that we thought it warranted further
conversation.
The common mistake made is the
impression that a 30-minute routine
oil and lube change is the same as a PM
program. The second misconception
is that an oil change is enough to keep
a fleet running at peak performance.
The driving force behind this way of
thinking is a strong one: a 30-minute
oil change seems to save money compared to a full PM service.
However, at Amerit we firmly believe
— and our data proves — that a full PM
program is fundamental and critical
to your fleet’s performance. A PM program actually saves you a great deal of
money and delivers profitability when
looked at from a broader perspective.
Rule #1:
Not all vehicles are created
equal.
When it comes to maintenance, not all
vehicles are created equal. A PM schedule that works for half your fleet may
not be best for the other half. Amerit
partners with customers to create individualized service plans that allow for
the differing composition, age, use patterns and long-term plans of your fleet.
8
L E A D I N G FL E E T S
t
VO L 4, 2014
Our PM programs allow you the
maximum flexibility, visibility and
control to not only schedule routine
services during downtimes but also allows you to take a more comprehensive
view of your vehicle and fleet, drawing
a direct line between PM services and
improved performance and lifespan.
Vehicles are comprised of many
unique components that keep them
running. The clutch, transmission and
tires, for example, each play a role in a
vehicle functioning correctly and are
specific to every type of vehicle. A comprehensive PM program goes beyond
changing the oil and lube of an engine;
it is tailored to monitor and maintain
individual needs of every component
for each vehicle type.
Rule #2:
A good PM is not only preventive but also predictive.
It is in the name — a good PM prevents
breakdowns and undue wear and tear.
At Amerit, we go one step further. Our
technician teams are dedicated and focused solely on a very small number of
customer’s vehicles, ensuring that the
fleet receives the quality and consistency of service it demands. Our techs
are also trained to go one step further
by predicting potential problems and
failures before they happen.
More than a standard oil change, our
PM covers up to 100 items. We check,
test, inspect and record the condition
of every part of the vehicle, entering
complete data on its condition directly
into the client’s fleet management system. This may seem time consuming
and costly but in fact it could potentially save on expensive repairs, unforeseen downtime, road calls, mitigate
safety risks, and avert the time and dollars spent on major repairs that would
go unforeseen under lesser processes.
Rule #3:
A PM program takes a little
more time but saves a lot
more money.
Let’s look at three areas of savings that
the standard oil change cannot address:
Safety and Department of
Transportation Inspections
Amerit’s PM program includes all components of a Department of Transportation (DOT) inspection to ensure safety
and compliance with DOT standards.
Many times, DOT inspections occur randomly and unexpectedly. In
the event a vehicle is not up to code,
the penalty can be extremely costly.
Beyond that, if a vehicle does not pass
inspection, it may present a danger to
the driver and those sharing the road.
By incorporating the elements of
a DOT inspection into a PM service,
Amerit ensures that the vehicle is safe
for the road and will pass any unpredicted DOT inspections.
Tires
The value of tires is immeasurable for
the safety and efficiency of your vehicle. Properly maintained tires not
only last longer but they improve fuel
efficiency and deliver savings as well.
For example, proper air pressure —
or lack thereof — presents the greatest
risk to a vehicle. If a tire is not inflated
properly it immediately diminishes
fuel economy. Over the long term, tires
that are underinflated are more susceptible to casing damage, a problem
that has no other solution than to replace the damaged tires with new ones.
If left unattended, worn and damaged
casing presents a real safety concern.
Amerit’s PM program monitors and
prevents casings from premature failure by rotating or replacing tires at
the appropriate time and checking air
pressure on each tire of every vehicle.
A task that takes only 10 minutes during a routine PM prevents a repair that
would take as long as two hours and at
a much higher cost.
Amerit also measures tire tread to
make sure the tread depth is to legal
DOT standards, as well as safe for the
current weather conditions. If the tread
is not up to code, the casing becomes
susceptible and threatens putting the
vehicle out of service by DOT criteria.
Engine Coolant
Engine coolant plays an extremely
important role in the functioning of a
vehicle’s engine. Used to prevent both
freezing and overheating, it is made of
unique chemicals that must be checked
and replenished on a periodic basis.
In the event these chemicals are
mishandled or not attended to, they
can cause irreversible damage in a
short period of time. Correcting and repairing the damage is time consuming
and costly but can be easily mitigated
with a proper, full PM service.
A PM improves profitability
vs. an oil change
Recently, Automotive Fleet magazine
revealed its 22nd Annual Operating
Cost Survey (November 2013). “Stable
Tire inspections are not necessarily
part of the typical oil change. Regularly
inspecting tires is a key component to
preventive maintenance and keeping
your fleet on the road.
fuel prices and maintenance costs,
combined with a decrease in total fuel
consumption due to increased use of
more fuel-efficient vehicles, resulted in
less volatility in fleet operations during
the 12 months ending August 2013.”
In a landscape where costs are finally flat over the prior year, most of us
breathe a sigh of relief. But that does
not remove the pressure to deliver
greater profitability than in previous
years. Even in the world of flat costs,
using our thorough, comprehensive
PM program will not only drive savings
in many areas but will extend the life
of vehicles, mitigate safety risks to the
fleet, drivers and community, and reduce unforeseen downtime by ensuring your fleet is in peak condition.
We have never met an oil change
that can say that.
LF
L E A D I N G FL E E T S.CO M
t
A M E R I T FL E E T S O LU T I O N S.CO M
9
COVER STORY
Averitt Express Changes
the Game with Climate
Controlled LTL
By Kelsey Nolan
This Tennessee company offers more than just refrigerated trailers through a
new climate controlled less-than-truckload service ó allowing customers to
securely ship temperature-sensitive cargo right alongside dry goods.
A
veritt Express has recently launched an industry first:
self-powered climate controlled less-than-truckload (LTL) units that can keep freight either
cold or hot. While refrigerated trailers have long
been an option for truckload shipments, this is
the first option available to mix both temperature controlled and dry good shipments on the
same trailer using this type of shipping unit.
According to Phil Pierce, executive vice
president of sales and marketing for Averitt, which is headquartered in Cookeville,
Tenn., the most common option
that currently exists for climate controlled LTL transportation is an exclusive truck
10
L E A D I N G FL E E T S
t
VO L 4, 2014
Averittí s new climate controlled units
can range from -10 to 140 Celsius
and can be monitored, tracked,
and adjusted by customers per their
freight needs.
After Averitt discovered Climate
Controlled Containers Inc. through
a local media report, Pierce and a
few other decision makers traveled
to Port Arthur, Texas, home of the
manufacturers of the climate controlled units, to find out more about
the systems. Pierce notes, ì We
didní t know them and they didní t
know us, but what came out of those
initial conversations was that we
could maybe revolutionize the market in certain verticals.î
How It Works
service. While Averittí s climate controlled LTL service is considered a premium option, it is less costly than the exclusive
truck mode. Plus, Averittí s model goes beyond refrigeration,
allowing for a range of climate controlled options.
Pierce says that Averitt had been in conversations about
starting a temperature controlled LTL service since the early
í 90s, but until recently, every product researched presented
some sort of weakness. The company was already providing temperature controlled truckload services, along with
warehousing, international, intermodal and its well-known
dry goods LTL services. However, Averitt wanted to extend
its climate controlled offering beyond truckload into the LTL
market. The market need for such a service was clear.
Using the units from Climate Controlled Containers to transport LTL
shipments is a completely different
model than what is currently available in the marketplace. Todayí s
most common approach is for providers to pack LTL shipments in dry
ice to cool the units. Unfortunately,
this limits what providers can transport and has other operational, economic and environmental drawbacks.
Instead, Averittí s self-powered
units are battery operated, which is
quite the departure from using dry
ice. Chuck Odom, vice president of
sales for global development at Averitt, explains, ì Every hour a customer
uses the dry ice unit, it burns about
three-and-a-half pounds of dry ice. So if you have a 100-hour
journey, you need 350 pounds of dry ice. Ours burns none.î
After charging the battery for about eight hours, the units
can run for up to 150 hours. This helps guarantee a set temperature for customers from departure to arrival. And not
only do these units cool cargo, they can also warm up or simply keep cargo at room temperature despite the frigid cold
or unrelenting heat outside. This is good news, in particular,
for companies transporting goods such as pharmaceuticals,
chemicals, medical supplies and technology, which often
need to remain at a neutral temperature. The units can also
handle hazardous materials.
These containers can range anywhere from -10 to 140 deL E A D I N G FL E E T S.CO M
t
A M E R I T FL E E T S O LU T I O N S.CO M
11
COVER STORY
grees Celsius, depending on the shipDue to the sensitive cargo and the necper’s needs. “We just came out of the
essary security, Averitt’s operations team
worst winter in a decade and customers
treats each temperature controlled unit
were calling left and right asking if we
with special care.
could keep their freight heated,” Odom
says. “We had a lot of requests to keep
A Secure Service
things moving.”
Averitt is treating each customer who
Because the climate controlled units
presents a need for climate controlled
are set at a predetermined temperature,
freight transportation with extra care.
it takes the guesswork out of guaranteePierce explains that this service is exing cargo in bad weather. “It takes the
ecuted more like an expedited service,
gray area out of your distribution praccomplete with standard operating
tice, especially for the pharmaceutical
procedures for its operations team. Becompanies,” Odom says. “Those types
cause this cargo is often of high value
of companies really like this service.”
and requires tight security, Averitt can
Brad Brown, Averitt’s marketing and
put on additional security to each unit
communications manager, says that
upon request. “If you put 1,000 iPads in
environmental responsibility has also
the unit, you’re going to get 1,000 out,”
been a positive result from the transiOdom says.
tion to these units. “We’re hearing from
The customer is directly involved in
more customers who are interested in
each aspect of the freight transit with
what we’re doing to be environmentally
these containers. Customers can even
responsible. This is one of several ways
require that the units are cleaned with
Averitt is demonstrating vision and
specific products, for example. Clients
leadership in that area,” he adds.
can also set and control the temperaPricing for the service varies dependThe maintenance of these temperature
ture remotely, and monitor it along with
ing on the type of freight, length of trancontrolled units is performed in-house
the humidity, the outside temperature,
sit and level of security measures.
at shops throughout Averitt’s distribution
how fast the truck is going and where it
Before Averitt launched the climate
network.
is, and that the truck and the freight are
controlled LTL units in February, it
both in compliance at all times.
did extensive testing on the product to make sure it was the
Because of the customized security, staying compliant
right fit. For eight months prior to the rollout, Averitt officials
with a temperature controlled unit varies case by case. Howthoroughly tested the units to make sure they were durable
ever, Pierce says that Averitt has a team working 24 hours a
and suitable for the company’s needs. “We moved the units
day, seven days a week so that if a shipment goes out of comaround our system, beat them up, then we had our VP of oppliance, the group can actively recover it during the journey.
erations and his team make some improvements to the deBrown explains that Averitt’s operational technology
sign to ensure maximum durability,” Odom says.
proves helpful for the customer. If something were to change
During this time, the company closely studied the vertical
with the shipper’s requirements for the freight, Averitt’s
markets where this service could have the biggest impact.
operations leadership can instantly alert the driver using
Some of those markets include health care, biotech, pharon-board Qualcomm computers
maceutical, chemicals, technology
available in every truck to prevent
and medical devices.
BY THE NUMBERS
any disruptions to the service. “We
On top of the company testing,
AVERITT CLIMATE-CONTROLLED UNITS
have great infrastructure to comOdom explains that Averitt had
t4J[FwYwYw
municate with the driver about any
a few select customers run trials
t1BZMPBEVQUPMCT
necessary adjustments, should the
with the units. The customers put
t5FNQ3BOHFUP¡$FMTJVT
need arise,” he says.
them on their docks and even had
t#BUUFSZ-JGFIPVST
Even the maintenance for these
Department of Transportation ofunits
gets the red carpet service.
ficials inspect them. He says that
AVERITT EXPRESS OPERATIONS
The
maintenance
is performed inmeeting Averitt’s pharmaceutical
t/VNCFSPG4FSWJDF$FOUFST
house
at
shops
throughout
Averitt’s
customers’ quality control checks
t5SBDUPST
distribution
network.
was perhaps one of the most import5SBJMFST
These technicians already hantant prerequisites to launching this
t%SJWFST
dle the maintenance for Averitt’s
service.
12
L E A D I N G FL E E T S
t
VO L 4, 2014
Averitt Express, headquartered in Cookeville, Tenn., is training
drivers on the new service to ensure that all drivers understand
the security protocols with these units.
Pierce explains, is convincing customers that they’re going
to get a reliable service. He says that this product is not for
everyday temperature-controlled frozen foods, but more of a
high-end vertical that has to have certification and meet government regulations.
According to Odom, the entire process of developing a strong provider-customer relationship with this service is far more consultative
tractor and trailer fleet, so it made sense that
and takes longer to iron out with each customer
they would also handle the necessary maintethan other types of traditional services. Rathnance for the climate controlled units.
er than just providing a rate for a customer’s
freight, he says, Averitt has to go through a valiBest Practices
dation process with customers in the biotech,
With the launch of any new product, companies
pharmaceutical and medical fields to ensure
must establish standard operating procedures,
security, satisfaction and compliance.
and Averitt has been working hard to create
Chuck Odom, vice
Pierce says that Averitt has seen an overthese for its operational leadership. Every new
president of sales for
whelming customer response from the rollout of
customer request or requirement gives Averitt
global development
the climate controlled service. For example, cusanother item to add to its operational protocols
tomers love that the units can be programmed
so it can accommodate every type of cargo.
to alert as many people as necessary.
Additionally, along with training across other
Plus, the company is getting quotes every day
company services, Brown explains that drivers
from all over the country and North America.
are educated on their role in transporting these
Shipping climate controlled products is a niche
units. Just like with dry LTL freight, drivers do
service. Odom explains that identifying the innot have much involvement with actually handustries with the most potential is key to the fudling the units.
ture success of the service.
“The training we do relates more to security
“We know some of the verticals,” Odom says.
and the process that the driver would need to
“For example, transporting vaccines has huge
follow should there be an issue, such as the
potential.” With the growth of the health care
battery getting low or the temperature changmarket, he explains, seven of the next 10 vacing,” he says. “If that happens, the customer and Phil Pierce, executive
cines require climate control during transport.
Averitt’s operations leadership are automatical- vice president of sales
And with the beginning of vaccine season,
ly updated. From there, if necessary, the driver and marketing
which runs from June to October, Averitt is hopwill be notified about next steps.”
ing to bring in a lot of that business.
Averitt’s ability to provide quality care and information
“We’re confident other industries will identify themselves,
with this service is closely related to its own operational
raise their hand and say ‘We love this,’” Odom says.
technology. As mentioned, Averitt uses Qualcomm units,
The company is also working to educate its sales team
which are in every truck along with a GPS system.
about this new service. Odom says it’s a continuous training
Aside from the loading and unloading of the freight, the
process for everyone in the company.
entire customer service process is centralized. Because of
this centralization, the dedicated customer service team is
able to remotely monitor and control these units and ensure
Pride in Service
their safe and timely arrival.
Averitt has been moving forward with a number of other advancements as well. The company has rolled out the industry’s first 100% mobile-friendly website, and will soon launch
Expectations vs. Reality
e-notifications to automatically alert customers to changes in
Pierce says that ever since Averitt began considering the clithe delivery status of a shipment.
mate controlled service, they have been studying and evaluThe company has also received the LTL Regional Carrier of
ating their offering, making sure they keep the target customthe Year Award from Walmart for the third year in a row — a
ers happy.
testament to the quality of service Averitt provides.
The difficult part of rolling out a new product like this,
LF
L E A D I N G FL E E T S.CO M
t
A M E R I T FL E E T S O LU T I O N S.CO M
13
Q&A:
Inside Amerit Fleet Solutions
W
ith the largest team of dedicated fleet maintenance
experts across the nation,
Amerit Fleet Solutions is focused on
creating service programs that are custom built to improve the performance
of complex fleets anywhere in the
United States. From brick-and-mortar
maintenance facilities to mobile maintenance units, the company draws
upon a portfolio of innovative service
platforms to get the job done.
Recently, three executives from
Amerit sat down with Leading Fleets to
talk about their unique company philosophy, detail how custom solutions
are developed and what fleet professionals can expect when working with
them.
Q: How is Amerit different from other
fleet maintenance companies?
Dan Williams, CEO: The things that
differentiate our company all boil down
to our scale and our perspective. Our
nationwide team of 1,300-plus technicians and managers are currently operating in most major-markets in the
U.S. This scale means we truly have the
ability to go anywhere our customers
need us. This separates us from most
local or regional maintenance providers, who are constrained in their ability
to deploy services in response to their
customers’ needs.
But our size does not mean our customers get lost in the crowd. As a privately held company that is focused
on nothing but fleet maintenance, we
have the ability to be more nimble than
our large, publicly held competitors.
Whether it’s a minor item like how a
customer wishes us to invoice them,
or a larger need like finding the perfect
garage location within a 5 minute drive
time radius, or how we capture and
transmit maintenance data, we truly
14
L E A D I N G FL E E T S
t
VO L 4, 2014
do customize our solutions to fit each
of our customers.
The last thing I would say that differentiates us is the fact that we truly
care about our customers. I know that
sounds hokey but I think it truly is what
has led to our success. We really do
care more than other providers — and
it shows in how we always put our customers first.
Q: What expertise do you have maintaining equipment and fleet assets?
Bob Brauer, President: We maintain more than 100,000 assets nationwide, everything from light to heavyduty, including high-mileage assets,
dry and refrigerated trailers, aerial
equipment, material handling equipment and even generators. We also
service more electric, CNG, LNG and
hybrid vehicles than anyone in the
industry. Because we have over 1,300
technicians throughout the U.S., when
we start with a new customer we usually have the expertise needed for their
asset types.
Having vehicle experts on-hand
speeds the transition process and ensures high-quality services from day
one. On the rare occasion when we do
not have a specific technical skill, we
deploy our team of recruiters to acquire
the right technical experts and technicians to ensure our clients are always
receiving the highest quality services.
Q: What are the Mobile Service Centers, and how long does it take to get
one up and running?
Amein Punjani, COO: The best way
to summarize Amerit’s Mobile Service
Centers (MSCs) is to say they are like a
garage on wheels. These aren’t garagebased units that make short trips for
emergency services or routine maintenance, our MSCs are stocked with
parts, tools and wireless data systems
and are designed to be on the road for
extended periods of time, operating
completely independent of the garage.
We tend to invest a little more in equipment on our MSCs, but it pays off because we are able to handle more of the
work at our customer’s location.
Another important difference is that
each MSC is a custom solution, built
specifically for each client’s fleet. We
begin by making sure it’s equipped
and stocked appropriately for the asset
types, usage and services required.
Regarding timing, we work with
each client to determine an acceptable start-up timeframe, but generally
it takes no more than 30 days for us to
get the MSC upfitted and into service.
Because we’ve had such high demand
for these units, we are receiving new
mobile units quite frequently, which
helps us react quickly to customer
needs.
Q: The newest service is the Amerit
Fleet Service Centers. What should
fleets expect in choosing this solution?
Williams When we open an Amerit
Fleet Service Center for a customer,
the goal is for that garage to operate
just like that customer’s in-house operations. While we can handle everything on our own, we love it when our
customers are highly involved at every
step — from initial property approval
to start-up monitoring and monthly
performance reviews.
Once up and running our clients can
expect to enjoy priority access, excellent services, hours of operation that
meet their routine downtimes, a dedicated team of technicians, state of the
art diagnostics and reduced costs. In
short, we want our clients to think of
the AFS Fleet Service Center as their
own garage just down the street.
Q: Explain the details of Amerit’s onsite labor services and why your customers choose this service model.
Punjani: Onsite labor is usually a solution for one of two reasons: either
we’re displacing a problematic existing
vendor or we are transitioning an inhouse operation to deliver greater efficiency, quality and savings. In either
case we are there to improve the situation — not just give the existing staff
a paycheck with a different logo on it.
Our onsite workforce capabilities
bring relief from the burdens and risks
found in managing a highly technical,
specialized group of employees. We
are the experts at assessing the correct staffing levels and skills that are
required to meet the needs of each
fleet. By hiring and managing the right
workforce we deliver savings and value. For example, by hiring for the right
skills, we drive down expensive thirdparty services, which reduces spend
while improving in-house efficiency
and vehicle availability.
And because we believe in total
transparency we track and report our
performance on everything from standard task times to comeback rates to vehicle downtimes. We hold our employees accountable for their performance
and incentivize them to perform above
industry and client benchmarks.
Williams: Another, often overlooked
benefit to our clients is our dedicated
recruiting and HR staff. Our focus on
managing our technical workforce
means that our customers are able to
focus their time and efforts on running
their business. By offering best-in-class
safety and technical training, continuing education programs, as well as
health care, financial planning and other sought-after benefits and incentive
programs, we are able to attract, retain
and reward the best in the business.
Q: So it sounds like you can you service a fleet anywhere in the country?
Williams: Yes, that is correct. Our
national footprint means we already
have technicians working in most markets, so it is easy for us to go anywhere
in the U.S. In fact, we have yet to find a
customer location we couldn’t create a
solution for.
Because we work with a number
of large national fleets with assets all
over the country, we are able to bring
together a small number of our customers to create service programs
even in remote locations. This allows
us to deliver higher quality services,
reduced costs and give our customers
higher priority and faster turnaround
service times than they are experiencing currently. It creates a win-win for
everyone.
Brauer: To give you an example, we
are currently opening a garage in a
small city in northern North Dakota.
In a town this small, hiring becomes a
serious challenge so we put together a
solution that brings in Amerit technicians from the lower states to maintain our clients’ vehicles. And with a
workforce as big as ours we have a lot
of technicians that we’re able to attract,
and move where they want to go. As it
turns out, for some, the North Dakotan
lifestyle is exactly what they have been
looking for.
Williams: I’ll add one more point.
Because we are in the early stages of
building out our network of brick-and-
mortar garages, we are uniquely positioned to provide an optimal solution
for our customers. Our national competitors who already have hundreds
of garages, approach new customers
from the perspective of “which of my
existing garages would best meet their
needs.” We approach a new customer
from the perspective of “what is the
best location for us to open a shop to
support this customer.”
We are currently opening garages
in rural parts of Texas that will literally save our customers over an hour of
drive time — that translates to big savings in time and fuel costs.
Q: You mention fast turnaround times
and priority, how have you organized
your services to support this?
Williams: Our dedicated service
model means that our customers experience unparalleled turnaround
and service times they cannot get
from anyone else. Because our technicians focus on supporting a very
limited number of customers they are
able to respond to service requests as
quickly as they can jump in a MSC
and get to the location, or as quickly
as they can pick up a wrench and start
working on a vehicle that has been delivered to the shop.
Punjani: Adding to that, we schedule
the work shifts around our customers’
needs. If their vehicles are available
during the day, we’ll work during the
day. If they’re available only at night,
we’ll service them at night. Our service
solution is inherently designed to be as
responsive as possible.
Q: In closing, what would you like
our readers to take away from this
conversation?:
Williams: We are proud that Amerit is
a unique, innovative company in this
industry. We want fleet professionals to
know that when we say “we create custom service programs that solve your
problems, anywhere in the country”
that we have the infrastructure, the
processes, the talent and the experience to do exactly that.
LF
L E A D I N G FL E E T S.CO M
t
A M E R I T FL E E T S O LU T I O N S.CO M
15
FLEET PROFILE
AmeriPride’s Alt-Fuel P
With a variation of route
types to service, AmeriPride
is on the hunt to find which
fuels and technologies are
the most cost effective for
each application.
By Joanne Tucker
16
L E A D I N G FL E E T S
t
VO L 4, 2014
Photos courtesy of Ameripride.
A
fter 125 years in the business
and in an effort to return to the
days of lower fuel costs, AmeriPride has evolved from horse and buggy operations to diesel trucks to now
testing out natural gas, propane, and
electric systems.
Eventually penetrating the company
fleet of almost 2,000 vehicles, a new
pilot program exploring not just one
but several technologies has taken the
reins of this fleet’s sustainability initiatives. “We didn’t want to limit ourselves
to one technology,” says Banny Allison,
AmeriPride corporate fleet manager.
AmeriPride is based in Minnetonka,
Minn. and has 115 production facilities and service centers in the U.S. and
Canada, which include a wide range of
routes from 50-mile runs to long hauls.
Allison knew that while every technology would work, not every application
would see a cost benefit. “That’s why we
are testing everything,” he says. “Maybe we’re crazy. It’s a lot of work but the
results and excitement it has generated
in the company has been well worth it.”
To manage the data, telematics systems and other electronic information
such as fuel card data, maintenance records, and pump monitoring at on-site
fueling stations are all used to generate
the reports. For every fuel or technology tested, an analysis is run against
the baseline platform: diesel.
The process began back in 2012,
when the company began looking at
alternative fuels and analyzing at what
(Above) This is one of four 53’ doubledecker trailers that AmeriPride is testing
on its long-haul routes. (Left) CNG
trucks make up the largest piece of the
company’s alt-fuel pilot program.
point each fuel is most cost effective.
Next, it was a matter of deciding which
locations best fit those criteria.
Starting with CNG
The AmeriPride fleet consists mostly
of step vans built from either a Ford
F-59 or a Freightliner Custom Chassis
MT45 chassis; the bodies are built by
either Morgan Olson or Utilimaster.
On the Ford chassis, AmeriPride did
the gaseous fuels engine-prep package
through Ford, and Green Alternative
Systems (GAS) did the upfit with a BAF
kit. Five trucks with this configuration
are being tested in Omaha, Neb. These
were the first AmeriPride CNG trucks
to hit the ground and already have
30,000 miles on them since mid-2013.
Overall, Allison reports no issues except for one lesson learned so far: tank
fluctuation. “We probably needed big-
ger tanks because when it gets really
warm — like 90-100 degrees — we lose
a lot of capacity,” he says.
The Omaha CNG fleet is fueling up at
public stations operated by Metropolitan Utilities District. AmeriPride will
hold off on investing any capital into
CNG stations until or if the pilot proves
it’s worth the cost.
Another five CNG trucks live in
Oklahoma City and are built on the
Freightliner Custom Chassis with a
Landi Renzo CNG package, also upfit
by GAS. Deployed after Omaha, these
trucks have bigger CNG tanks.
These two locations were chosen
due to the high-mileage routes, adequate public fueling sites, and because
there’s access to mechanics familiar
with CNG vehicles.
The verdict isn’t out yet on preference over the two truck configurations,
l Program Tests It All
but Allison says that the company is
seeing a large savings in fuel costs and
a reduction in carbon emissions.
Filling a Branch with Propane
For the five propane trucks in Topeka,
Kan., they are on the F-59 chassis with
a ROUSH system upfitted by GAS.
AmeriPride went ahead and had an
onsite pump installed. “Propane gives
you the flexibility of fueling in random
areas without public infrastructure,”
Allison says. “You can drop a tank, put
a pump on, and you’re ready to go.”
While some wiring issues were experienced with the upfits, the one major
pain point has been the propane price
fluctuation. With this last winter putting extra stress on home heating fuels, propane prices increased far more
than expected. “We were paying four
to five times what we did in the summer,” Allison says, adding that they did
not lock in a fuel price because they
wanted to see what it would be like to
run the fuel in a normal cycle.
Those propane trucks were temporarily parked until the propane prices
came back down. “It’s all part of the pilot,” Allison says. “What we’ve learned
from that is we will be locking in a fuel
price this summer, when it’s substantially lower.”
The pricing issue hasn’t deterred the
company from moving forward with
propane though. Allison says the company is considering filling out the Topeka location with propane trucks, and
possibly a few other locations.
California Leads in Electric
For electric, Los Angeles was the selected AmeriPride location to install
10 charging stations, which were completed in March. The site will receive
five Boulder EV trucks in December
and is working to source another five.
Why California? Government incentives. “Because without those, electric
vehicles — at least on the medium-duty truck side — are just too cost prohibitive to actually allow us to test them,”
Allison says.
While the company doesn’t have
much data other than the trucks get
an 80- to 120-mile range, lessons were
learned in launching the EV project
before the trucks have even been delivered. “We had estimated charging
infrastructure at $10,000 a station and
it has come in substantially higher,” Allison says. “We weren’t really considering that you have to do trenching, extra
lighting, potentially add transformers
to bring up our power situation, etc.”
The company worked with its utility
provider City of Vernon Light & Power
and Chateau Energy Solutions, an infrastructure design and build firm, on
the stations, especially to ensure that
the trucks never peak out on power
by charging at the same time and are
charging during the lowest rates.
Another electric system being tested is a bolt-on hybrid system from XL
Hybrids on two GM cargo vans. “The
installation went smoothly,” Allison
says. “From the drivers, they’re saying there’s not much difference power
FROM
HORSE
AND
BUGGY
Starting with a handcart and
moving up to a horse and
buggy to today’s alternative
fuel pilot program, AmeriPride
is testing it all. The fleet
currently has:
t 10 CNG step vans
t 5 propane step vans
t 5 all-electric trucks
t 4 double-decker trailers
t 2 hybrid cargo vans
wise, so they’re pleased with that.”
Getting More on the Road
On the company’s tractor/trailer fleet,
which operates out of AmeriPride’s 45
main distribution centers, four doubledecker trailers are being tested. Allison
says that some of the company’s service centers have outgrown the capacity of loading one, 53-foot trailer.
Instead of running a second truck
and having to hire another driver, the
company is trying double-decker trailers, which are manufactured by Innovative Trailer Design and have two
floors to store cargo with an internal lift
to maneuver between the two decks.
“Those have proven to be extremely
beneficial to the operation because we
can get so much more — about 60%
more into that trailer,” Allison says.
However, roadway conditions dictate where these low-riding trailers
can travel. While the company looked
at any highway conditions and restrictions, AmeriPride had to move
the trailer operating out of Memphis,
where the company’s facility doesn’t
have nicely paved roads up to the
building. “It was scraping the bottom,”
Allison says, adding, “we have to do a
more diligent review of every aspect of
the double-decker route.”
AmeriPride is looking to add three
more of these in 2014. The company
also installed side skirts on virtually all
their standard 53’ trailers.
Through all these trial runs of various technologies and products, AmeriPride is gathering driver feedback,
which pairs nicely with the company’s
125th anniversary.
In celebration of this milestone, drivers are getting new and improved uniforms, and general managers and other
company leaders will have the opportunity to check out some of the technologies at Ameripride’s upcoming Leadership Summit and “Fleet Expo.”
LF
L E A D I N G FL E E T S.CO M
t
A M E R I T FL E E T S O LU T I O N S.CO M
17
LEADING THOUGHTS
FDA Food Transport Rules F
I
n May 2014, 11 people across four
states fell sick from E. coli found in
beef they had consumed, with the
USDA’s Goods Safety and Inspection
Service stating that stores in as many
as nine states were stocked with beef
contaminated with E. coli.
Based on data from the Center
for Disease Control and Prevention,
around 48 million people annually (or
one in six Americans) get sick from a
foodborne illness. Of these, 128,000 are
hospitalized, and 3,000 die each year.
Growing public safety concerns
about food safety prompted the
FDA’s Food Safety Modernization Act
(FSMA), which was signed into law on
Jan. 4, 2011. In initial phases, FSMA focused on the regulation of food sources
and the supply chain. Now in 2014, it is
broadening its focus to the transport
of food as the seventh and final major
rule in the implementation of FSMA’s
overall food safety framework. The
proposed rule has been extended for
open comment until July 30.
The new food transportation measures
would set criteria to ensure sanitary
transportation practices for food, such
as proper refrigeration, the cleaning of
vehicles between loads, and other protective food measures during transport.
It would be universally applied to shippers, carriers and receivers engaged in
the transport of food consumed or distributed in the U.S. This means that the
regulations would cut across the supply
chain and require granular tracking,
tracing and visibility.
In such scenarios, shippers would
be expected to inspect vehicles for
cleanliness prior to loading food that
is transported in containers not completely enclosed, such as fresh produce
in vented boxes. Likewise, international shippers that transport food to
the U.S. in international freight con18
L E A D I N G FL E E T S
t
VO L 4, 2014
Photo: iStock.com
Who Would It Affect?
tainers by air or oceangoing vessel and
then arrange for the transport of these
containers onto motor or rail vehicles
in the U.S. for domestic consumption
or distribution would also be subject to
the new guidelines.
Who Would Be Exempt?
Domestically, the guidelines would not
apply to shippers, receivers or carriers
engaged in food transportation operations with less than $500,000 in total
annual sales. Nor would the rule apply
to transporting fully packaged shelfstable foods, live food animals, and raw
agricultural commodities when transported by farms.
Internationally, the guidelines would
not apply to shippers, receivers or carriers engaged in operations in which food
is shipped through the United States to
another country, but not consumed or
distributed in the U.S. Similarly, the
guidelines would not apply to food
imported to the U.S. for future export,
again as long as it is not consumed or
distributed in the United States.
The FSMA’s food safety transportation guidelines could have dramatic
impacts on the food and beverage in-
s Focus on ‘Track and Trace’
By Mary Shacklett
dustry, as well as food distribution and
supply chain logistics. Here are three
potential and significant areas of impact that operators should prepare for:
already know there are logistics providers “out there” with the supply chain
sophistication that will enable them to
comply with new FSMA standards.
#1: Track and trace visibility
#2: Plugging existing “holes” in
the supply chain
More granular visibility of food shipments would be expected in the supply chain — the type of granularity
that can track and trace a shipment of
food back to its originating farm if food
contamination breaks out. True track
and trace would follow food shipments
from their points of origin through the
logistics network and into warehouses,
distribution centers and retail outlets.
For carriers, it means track and trace
of shipments from shipper to buyer/
recipient. If the foods are “cold chain”
goods that require refrigeration or other types of strict environmental controls, such as maintenance of the goods
in specific humidity ranges during
transport, sensors for temperature and
humidity would be expected in transport vehicles and in the containers.
Sensor-based technology that controls the quality and safety of food
works in two ways: It can provide GPS
data that delivers real-time information on the location of the transporter
carrying the goods, and it can monitor
the temperature and humidity parameters of food containers — immediately
sending out alerts if a particular container’s environmentals begin to fail.
Large logistics providers with comprehensive Internet-based networks
already have sensor-based technologies, automated alerts and mitigation
practices in place. This puts pressure
on smaller logistics providers that do
not have this full network management
capability. The implementation of new
FSMA standards might give smaller logistics companies extra time to comply,
or in some cases exclude them — but
these companies would still run the
risk of losing shipper-customers who
Supply chain and transportation management systems should be evaluated
for completeness, with an eye toward
making adjustments for “holes” in
end-to-end logistics visibility that can
potentially expose food shipments to
safety hazards.
One prime example is yard management, where loading, unloading and
managing truck schedules is still often
handled with clipboards and walkietalkies, while warehouse management
(WMS) and transportation management (TMS) systems have soared to
next-generation technology. Yard activities outside a warehouse or a distribution center are often inefficient. The
hazards range from “misses” in scheduling and tracking carrier appointments, to even forgetting about a trailer
that is already in the yard — and full of
a perishable food product.
#3: Movement to cloud-based
networked supply chains
Historically, companies have used internal enterprise resource planning
(ERP) and supply chain systems. While
these systems can achieve optimal integration between corporate internal
functions like finance, distribution,
customer service and marketing — the
systems don’t fare nearly as well when
it comes to directing business transactions and communications that occur
outside the enterprise.
It is also difficult for traditional ERP
systems to facilitate communications
between more than two business partners at once. Directives like FSMA will
require greater collaboration and better communications between trading
partners and their logistics providers.
To facilitate these working relationships in the safe transport and
management of food products, supply
chains would need to be networked
and capable of creating opportunities for collaboration and multi-party
problem solving in much the same
fashion that social media does.
Newer, cloud-based supply chain
networks provide this functionality. It
would be important for logistics providers, as well as other supply chain participants, to subscribe to these networks.
Satisfying Requirements
Whenever new legislation and regulations enter the pipeline, there is sure
change for companies and concomitant
costs. Accordingly, monitoring food
containment environments during
transport, knowing where shipments
are and where they came from, and being able to take prompt steps whenever
a breach in food safety occurs, would
all be needed to conform to new FSMA
requirements for food safety in transit.
It would take capital to invest in these
new information, automation and supply chain technologies. Most logistics
providers understand though that
these technologies are the hallmarks of
the global, more visible and more agile
supply chains required to not only comply with FSMA, but to keep pace with
the expanding markets and customer
requirements that they must satisfy today and in the future.
LF
About the Author
Mary Shacklett is president of Transworld Data, a technology and
market research firm. She has been
actively involved in the publishing
industry for more than 20 years as
an editor and writer, with a focus on
topics such as supply chain, logistics
and manufacturing/distribution.
L E A D I N G FL E E T S.CO M
t
A M E R I T FL E E T S O LU T I O N S.CO M
19
LEADING EXPERTISE
4 Keys to Recruiting
Success: An Inside View
By Jennifer Toll, Vice President of Human Resources, Amerit Fleet Solutions
T
here is no doubt that finding, hiring and retaining the right talent
is critical to the success of every
company and every fleet. Hiring hundreds of qualified technicians every
year, Amerit Fleet Solutions has firsthand experience with the challenges
present in filling the needs of a growing workforce.
Through this experience, Amerit
has found the following four keys to be
important in the successful recruiting
and retention program.
Jennifer Toll brings years of experience
in managing organizational design, talent acquisition, and succession planning
from multiple Fortune 500 companies.
She currently leads Amerit’s talent
management strategy, with the goal of
attracting, developing and retaining the
company’s most valuable asset: the employees. Toll is an influential, strategic
business partner, engaged in all levels
of the organization. She holds a B.A.
from California State University, Chico.
20
L E A D I N G FL E E T S
t
VO L 4, 2014
#1: Build a strong recruiting
organization.
A recruiting team brings specialized
skills, insights and focus to the hiring
process that go beyond the realm of
the average human resources professional. Trained and certified recruiters
are focused on both the hard and soft
skills that make the candidate successful in your culture. Amerit’s in-house
recruiting team also conducts all firstline interviews, passing along only the
candidates that clear the team’s bar —
saving the hiring manager a great deal
of time and energy.
Another component of a strong recruiting team is technology. Utilizing
the latest job-board technologies not
only gives you access to a nationwide
pool of candidates but also provides
important data such as time-to-hire,
wage ranges and size of candidate
pools that will help your organization
manage expectations and risks.
And let’s not forget the power of social
media. Facebook, LinkedIn and Twitter are important tools that a recruiter
should use to build broad networks and
drive candidate engagement.
#2: Referral programs work.
An employee referral program leverages the power of employees’ existing
relationships with friends and associates. Referral incentives go a long way
to vesting employees in the process.
In Amerit’s experience, a referral is
much more likely to succeed than an
external candidate. It could be that
the employee acts as a mentor or that
friendships motivate candidates to
perform — but whatever the reason,
when employees have “skin in the
game,” your company benefits.
#3: Educate your managers.
The more involved a manager is in the
hiring process, the fewer headaches
they will have down the road. However, managers may lack the proper interviewing skills to properly assess candidates’ capabilities, capacity and fit.
Ensuring your managers know the ins
and outs of interviewing, what types of
questions they can/can’t ask and how
to both promote your company while
assessing the candidate will net great
rewards in finding the best employee
and in alleviating potential legal challenges.
#4: Have a focused HR team.
The HR department at Amerit is focused on the quality of life of technicians. We don’t hire many web developers or marketing people — we hire
techs. Therefore we design our benefits
and incentives to align with the needs
of technicians. A benefits package that
includes career path development,
training and certification management, as well as encouraging on-going
education in areas relevant to the position will go a long way to letting candidates know that your company is the
place where they should hang their hat.
Amerit’s experience and success in
attracting and hiring the best technicians is unparalleled in the maintenance industry. Finding the right person for the job is never easy but using
these four tactics will help bring rapid
and successful talent acquisition to
your company.
LF
Amerit belief #2:
We should go to
wherever your fleet needs us.
WORRY-FREE FLEET MAINTENANCE
Amerit belief #3:
Good decisions start
with good data.
WORRY-FREE FLEET MAINTENANCE