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NAFCD Convention: Trinity Logistics Presentation
- 3. Founded in 1979,we are a privately-owned and family-run business. We are solutions-driven and focused on serving our customers 100% of the time. Our devotion to service and commitment to continuous improvement have cultivated a unique company culture that fuels our unrivaled reputation in the logistics industry. We arranged over 20,000 shipments per month in 2012, and we work with a network of over 29,000 authorized carriers. We are the 3PL partner you can count on.
- 4. Regional Service Center SalesOffice Agent Office
- 5. Chances are, ifyou’ve heard of it, we’ve arranged a shipment of it. Over time, our repeat experience in a wide variety of select industries has made us quite the expert when it comes to shipping items like…
- 6. We are committedto staying abreast of current industry trends, networking with others to expand our knowledge, and maintaining certifications that make us easier to do business with. Some of our memberships include:
- 7. Trinity is anAlliance Partner with the NAFCD. During this convention, we are also Ruby Sponsors. We are offering a special program for members of NAFCD to include a free freight consultation. See us after this session to reserve an appointment time with us to take advantage of this offer while we’re together in Chicago, or afterward in the weeks ahead.
- 8. There are 10key control factors that, when implemented, help equip your supply chain for growth, enhanced efficiencies, and freight savings. Let’s discuss the first 5 now: 1) Make on-time delivery to customers the primary transportation objective 2) Maintain all rates and shipment activity in one repository 3) Use a transportation contract to control rates and service levels 4) Plan as far in advance as possible to obtain capacity for truckloads 5) Log the cost of each shipment before it moves, unbundling line haul from fuel
- 9. There are 10key control factors that, when implemented, help equip your supply chain for growth, enhanced efficiencies, and freight savings. Let’s discuss the rest now: 6) Keep transportation assets moving 7) Monitor every shipment, proactively 8) Pay carriers based on the shippers record of events and charges 9) Go green with paperless transactions 10) Use KPI’s to track carrier performance
- 10. In addition toan annual shortage in the pool of available equipment caused by produce seasonality, an overall shortage in supply has led to a carrier capacity shortage like no other. What has caused this perfect storm? A few reasons include: ● ● ● ● ● ● CSA-Compliance Safety & Accountability Regulations Slow recession rebound prevented truckers building up their fleets Retirement age workforce + difficult recruiting market Aging equipment, slow replacement, increased cost of new rigs Increased fees associated with trucking (insurance, permits, TWIC) Larger fleets increasing costs vs adding more capacity to their fleet
- 11. As a shipperyou do have options. Of course you can simply pay more and more to move your freight, but the better option is to find creative ways to become more efficient. Find cost savings throughout your processes, technology, and personnel instead of just trying to reduce your freight rates. ● Processes ● ● ● ● ● Technology Personnel Be carrier-friendly Time to commit Stay educated TMS Operation/Capability Savings Potential* Route & mode optimization 5%-15% Carrier assignment optimization 4%-8% Electronic communications w/supply chain partners 2%-6% More efficient/automated operations 1%-5% *Source: AMR Research, Inc. based on ~10 yrs evidence of TMS systems.
- 12. The trucking industryhas experienced some of the most challenging regulatory changes that impede their profitability. Two instances of this include: ● Hours of Service ●In efforts to prevent commercial motor vehicle-related fatalities and injuries, the FMCSA has published highly controversial changes to the regulations involving truck drivers’ allowable driving time, called “Hours-of-Service”, or HOS. The changes were released in December of 2011, and the final compliance date was July 1, 2013. ● Map-21 Act & Electronic on board recorders (EOBR’s) ●On October 1st, 2013, the MAP-21 (Moving Ahead for Progress in the 21st Century) Act went into effect. ●Within 2 years, all commercial vehicles must be equipped with EOBR’s. ●All freight brokers must have at least $75,000 Surety Bonds.
- 13. A primary advantageto partnering with a Third Party Logistics Provider such as Trinity includes our ability to help mitigate your risk when contracting motor carriers to haul your shipments. Every single shipment requires that you perform due diligence when hiring a provider to ensure you have a standard process in order to avoid negligence in the event something goes terribly wrong during the course of the contract. Examples of checkpoints to cover include: • • • • • What’s the safety rating of the providers moving my freight? Do I have a copy of their authority and other documentation? Do they have adequate insurance for both cargo and liability? Does their insurance carry any exceptions for my type of freight? How do they perform for other shippers? Did I check referrals first?
- 14. Our carrier compliancedepartment exists solely to ensure the carriers we select to haul your freight pass our rigorous process and quality control checkpoints. • Are they insured and compliant with federal regulations? • Before a carrier is cleared for take-off, their records are examined, their reputation is checked online, their insurance is confirmed, and we verify the phone number provided matches their official FMCSA listing. • Additionally, our logistics specialists are trained to verbally confirm with the dispatchers that they are indeed from the same carrier we booked. • While none of our practices are 100% fail-safe, we have the resources and expertise to prevent your freight from falling into the hands of a non-compliant carrier. Why take such a huge risk when you don’t have to?
- 15. We make itsimple. Our team learns about your company, how you operate, defines your transportation goals, and then offers solutions that utilize the most efficient freight solutions to meet your goals. ● ● ● ● ● Truckload Less-Than-Truckload (LTL) Intermodal (Door to Door) International Specialty Freight “Trinity’s thorough knowledge of our factories, personnel, and distribution partners allows us to maintain efficiencies by staying cost-competitive, and more importantly, reliable.” – Pizza Blends
- 16. Whether you havean in-house logistics team or you operate lean, we can help. Working to improve your existing processes and maximize efficiencies, our process begins with a freight consultation. We learn about your goals and work together to design recommendations for future success. ● Software & technology ● Logistics consulting services ● Other logistics services “Trinity has helped us streamline freight quotes to our clients, lower freight costs, and simplify logistics. Trinity has helped our company and also helped us improve our service to our clients.” – Tajima Flooring
- 17. Don’t simply guessat how to reach your supply chain goals. Let us be your trusted resource so that you can move forward with speed and confidence. We have the experience and the know-how to provide the guidance you need – in a way that’s easy for you to implement. A few of the consulting services we offer: ● ● ● ● ● ● ● Process evaluation Cost analysis RFP administration LTL rate negotiation Carrier compliance audit Strategic site evaluations Shipment optimization & consolidation
- 18. In addition toour freight arrangement, technology & consulting services, we provide a wide array of other logistics services. Examples of these solutions include: ● ● ● ● ● ● Warehousing Cross-docking Small parcel Reverse logistics On-site freight management Strategic partnerships for contracted hauls
- 19. 50 Fallon Avenue POBox 1620 Seaford, DE 19973 Phone: (800) 846-3400 Fax: (302) 253-0224 Learn more about us @ /logisticsleaders /trinity_tweeps blog.trinitylogistics.com
Editor's Notes
- #6 Floor coverings and building supplies are two large industries in which Trinity Logistics has extensive experience. R.A. Siegel Company and Tajima Flooring are both examples of the customers we serve in flooring, and we’ve dozens of others whose logistics needs range from LTL to full truckload to oversize flatbed or heavy haul. This is an industry we are very comfortable serving, and one you can be comfortable entrusting to our team.
- #9 Capture on time information with EDI and carrier web portals. Alleviate expensive, expedited shipments by managing your carriers well. 1:1 contracted rates and spot market prices against each shipment.Execute against your negotiated rates, capturing lower cost carriers and LTL service days. Accurate mining of data reveals volume lanes for better TL rate negotiations. Pre-tendering is an option before large shipments are ready-to-ship when you have automated sales order updates flowing between your ERP and TMS. Manage fuel surcharge tables with weekly DOE updates.
- #10 6) Maximize dedicated carriers reducing out-of-route and empty miles. Automate continuous moves, backhauls, and tours.7) See activity on shipments that haven’t picked up, had an appointment made, or delivered as expected. 8) Match-and-pay freight audit functionality or have Trinity Logistics audit and pay your freight bills for you.9) Export reports to .xls, .csv, etc. Eliminate faxing paperwork.10) Clean accurate data makes carrier measurement and KPI’s possible.
- #11 CSA (Compliance, Safety, Accountability):CSA went into effect in December of 2010 and was designed to make the roads safer by measuring trucking company performance and the performance of individual drivers and created a scoring system by which all carriers/drivers are assigned a rating. As a result of CSA, experienced drivers with good scores will be in high demand and will be able to act as “free agents.” Good drivers will be able to demand higher wages, which will eventually be passed on to you and other shippers. Other drivers have lost their jobs as a result of poor scoring, poor practices, and have reduced the overall driver pool by thousands. Slow Recession rebound: We’re recovering, but consumer confidence has still been shaken to the point where carriers are simply not adding much to their fleets to account for the increases in load count. This leads to higher prices being charged and more freight sitting on your docks as it becomes harder to find affordable providers. Workforce: 30% of truck drivers are over 55 years of age. As this workforce ages and retires, there are fewer and fewer younger drivers filling the rigs of this less than desirable profession, compounding the driver problem. Truckers aren’t as able to obtain credit to replace their tractors, purchase new trailers, repair issues, and keep maintenance at the forefront. This is leading to service issues as well as many trucks being parked, not serving the market. Larger fleets are taking advantage of this supply imbalance by increasing their prices, which hasn’t been done across the industry to any large degree in decades. Often intentionally, they avoid adding more to their fleets in order to charge more per truck and increase profitability for their company at the shipper’s expense.
- #12 Processes: As efficient as most companies believe their processes to be, transportation is generally one area that is overlooked. Many companies view their freight expenditures as a cost of doing business and seldom devote enough time to reviewing their processes and options. At today’s rate of transportation cost increases, shippers cannot afford to overlook the inner workings of their transportation departments.Technology: If the only technology you are using to manage your transportation is a combination of fax machine, spread sheets, and email, then you may have room for some efficiency improvements. You definitely have the ability to create “soft cost” savings through automation. Have you considered a Transportation Management System (TMSPersonnel: Take a careful look at the transportation expertise of the people handling your freight. Customer service or other employees sidetracked by transportation responsibilities may be doing their best, but one dedicated person is likely to be far more productive. Your company may think that it is saving money by not having a dedicated transportation person, but the likelihood is that patchwork efforts tend to compromise productivity and produce unnecessary expenses.There are many 3PLs (third party logistics companies) and transportation consultants who can help you and your company create cost saving solutions if you do not have the time or resources to do it internally, such as Trinity.Carrier Friendly : Are you doing everything possible to make certain yours is the freight the truckers want to haul? Have you committed your shipping and receiving staff to load and unload trailers as quickly as possible? Are you offering drop trailer programs to the carriers that are able to drop and hook? Another great tactic is to extend your dock hours to become more flexible around peak travel hours, accommodating for traffic patterns and accepting trucks after their last receiver held them up too long.Commitment: Are you committing to your transportation providers, making sure that you're providing them with the volume it takes to become a "VIP" in their eyes? Maybe you're one of those that still believe price shopping is the best way to save your company a dollar, dividing your freight among a long list of providers, and patting yourself on the back for finding "savings". What do you suppose will happen when your list of providers begin to focus their attention on giving capacity to their bread and butter customers? Unless you become valuable in the eyes of your providers, you could very well be left with a jam-packed dock of freight and no one left to help you win the fight for trucks that's predicted.Stay informed: Make sure you're on our email list (sign up on our website). Every week, we send out pertinent industry news, often touching on information like the CSA regs, capacity predictions, fuel surcharges, and other legislation that can affect your company's ability to serve your customers' delivery requirements.
- #13 HOSThe ChangeThe most critical element of the regulation is the provision limiting the minimum on 34-hour restarts. In the final ruling, drivers must include periods in those two nights between 1-5a.m. as home terminal time, and this may only be used once per week. They drive their daily 11 hours, but are capped weekly at 60/70 hours before they need to take the 34 hours of down time to restart their weekly clock. An additional factor involves the mandatory rest breaks of at least 30 minutes every 8 hours. There are numerous ways the final ruling impacts the shipping world, here are a few major ones:Delayed deliveries: Due to the reduction in the amount of time a driver is able to operate, it will inevitably take longer to transport shipments, resulting in delivery delays to your customers and potentially even a loss of business. For just-in-time manufacturers that have operated with lean inventories and small delivery windows, it can affect the inbound timing of those very important deliveries that supply production lines. Increased costs: In order to continue supporting their customer base, trucking companies will be forced to pay current drivers more, add additional drivers, and add trucks to offset the decrease in available hours per driver. Some carriers estimate the impact on their revenues could be up to a 33% hit. The additional operating costs associated, estimated between $10-25,000 per truck, will undoubtedly be passed along to the shippers.Reduced availability: Many trucking companies will be unable to keep up with the need for increased equipment, and will be unable to expand their fleets to service their existing customer base. Recent changes to trucking compliance regulations already put a dent in the available pool of decent truck drivers with a safe record, and the best drivers are going to the companies with the best pay and benefits package. Fewer available trucks will lead many carriers to unethical business practices such as juggling shipments beyond acceptable pickup date ranges and making empty promises to their customers. Shippers will need to have increased accessibility to additional partners with proven strong service records.Reconfigured Routing: Shippers may need to adjust and rework their usual shipping schedules and loading process to accommodate the changes in the hours-of-service within acceptable delivery appointment windows. Warehouses often have stringent acceptable time frames for inbound orders, which can affect the ability of the driver to offload the order and move on to their next load. To avoid increased days of transit and costs, shippers will often need to reconfigure the way they route many routine shipments or work with their customers on looser delivery windows.EOBR’sThe most important things you should be aware of:Within 2 years, all commercial vehicles will be required to be equipped with EOBRs (event-on-board-recorders). The goal here is to track hours of service and ensure that all carriers are compliant. Drivers certainly can’t fudge their log-books if the log-book is replaced with an electronic device that records whenever the truck is in motion, right? That’s the idea. While this will definitely help enforce the HOS regulations, word on the street is that this new requirement could put thousands of motor carriers out of business – especially the mom & pop, owner-operator folks. Currently, EOBRs are somewhat prohibitively expensive, and if you can’t afford the equipment, you can’t legally be on the road. If you tend to rely on small carriers, there’s a chance your favorite folks to work with may not be able to comply with this new law.All freight brokers must hold a surety bond of at least $75,000. This is a huge increase from the previous requirement of $10,000. This bond is essentially an easy way for a broker to communicate to you, “Hey, I’ve invested this money in my business – I’m not some shady guy operating out of my garage who will double- or triple- broker your freight.” This aspect of the bill was arguably the most controversial, and the original legislation actually proposed an increase to a $100,000 bond – but opposition resulted in the slight decrease. Many small brokers are concerned that being unable to afford the higher surety bond will put them out of business. While the increase means you’re less likely to inadvertently deal with a shady broker, it also will shrink the pool of brokers for you to choose from. (If you work with Trinity, not to worry – we’ve had a $250,000 bond for years now, which is the highest possible.)