P.M. Executive Briefing - April 10
This Afternoon's Headlines:
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FMCSA Extends GPS-Based Logs Option
The Federal Motor Carrier Safety Administration has extended the deadline for application submissions from motor carriers for its Global Positioning System technology pilot demonstration project until Dec. 29, 2000.The project is meant to replace drivers' handwritten hours-of-service logs with on-board GPS technology and related safety management computer systems that will monitor hours-of-service. However, Werner Enterprises is the only carrier involved in the project to date.
The high-level technical requirements including tamper-proof GPS technology, a system capable of recording multiple forms of data in addition to recording each driver's duty status separately, and a system capable of identifying system failures and edited data could be the reason for the lack of response from the industry. Commercial Carrier Journal (03/00) Vol. 157, No. 3; P. 60
Finding Fleet Leasing Options
Truck leasing has evolved into a big business, and many transportation companies are finding it more profitable to lease part or all of their fleets from another firm. For one thing, monthly costs are fixed, with no hidden surprises for maintenance or purchasing; in addition, all leasing costs can be written off as expenses on tax day, instead of relying on depreciation to lessen the taxation burden.As each company has different needs, leasing companies can be found to fit any type of requirement, from simple trailer leases to tractors, straight trucks, and even drivers and management personnel.
A number of Web sites have appeared providing information for lessees. Xtra Lease, for example, provides information for its line of refrigerated trucks, branch locations, and an online application form. Transport International Pool (TIP) gives facts about the group's products and services, from refrigerated users (its main consumer target) to value-added services and branch locations.
PacLease, the leasing unit of Paccar, the maker of Kenworth and Peterbilt trucks, has a Web site featuring anything from leasing to fleet consulting, maintenance, dedicated transport, short-term rental trucks, tire service, truck painting, and insurance, to name just some services. PacLease claims to have experience in food and retail distribution and has international information for Mexico and Canada.
Finally, Rollins Leasing provides leasing, rental, maintenance, dedicated transport, and logistics services on its Web site. Refrigerated Transporter (03/00) Vol. 37, No. 10; P. 48; Macklin, Gary
Hunt Logistics Uses IT Savvy to Develop Bid System
J.B. Hunt Logistics, a subsidiary of Lowell, Ark.-based J.B. Hunt Transport Services, has used its information technology knowledge to create a bidding system for carriers that haul freight as third-party contractors.According to JBHL, clients will like the system because the same bid-winning carrier will handle most of the shipments being picked up from and delivered to customers' sites, while their contract carriers will like the system because it allows them to create scheduled routes and increase revenue and equipment utilization along specific lanes.
The bidding process was refined through the use of a 12-month survey based on information gathered between 1998 and 1999. The survey allowed JBHL to determine their high-volume freight routes, which include the 1,500 lanes that were used at least 50 times and shipped 97% of all the company's traffic for that year.
Bidding carriers can also use the survey to figure in each of JBHL customer's shipment frequency, hours of operation, and time spent by drivers at docks.
Network World recently recognized Hunt's IT capabilities, which JBHL also uses, as one of only two U.S. organizations worthy of receiving a User Excellence Award, while Computer World rated Hunt among the Top 100 users of Internet business applications in addition to other top IT honors.
Optimization systems are used to minimize clients' transport costs by efficient shipment consolidation and carrier-load assignment, and optimal route planning. JBHL also links most shippers and contract-carriers to the IT platform via EDI, the Internet, or direct data lines, so they can check load tendering, shipment status updates, posting of available equipment, and search for available freight in the JBHL network. Commercial Carrier Journal (03/00) Vol. 157, No. 3; P. 48; Desmond, Parry
Daymark Introduces the Demand Circle
Traditional supply chains begin at the manufacturer and end with the consumer. The Daymark Group has taken the theory of Dr. Roger D. Blackwell of Fisher College of Business at Ohio State University to change the way distribution is performed.Calling his system a demand chain, Blackwell suggests that supply should start with consumer interest and involve all parts of the supply chain, thereby reducing new product failure and increasing productivity, as in such superchains as Wal-Mart.
Daymark Logistics' place in the system is a provider of the Demand Circle, the group's interpretation of Blackwell's demand chain. As a result, the unit of Daymark Group that began with just the transport of Sam's Club refrigerated products has moved into providing logistical transportation for Wal-Mart, Dole, Hershey Foods, Pillsbury, Sara Lee, and Tyson Foods, with an aim to provide many more small manufacturers the same advantage as the giants.
The theory, according to Daymark President and CEO Tim Hill, is that suppliers in the $30 million to $250 million sales range can work together through a logistics provider to gain access to the same consumer information as is available to major manufacturers.
In other words, Daymark combines the distribution information from small manufacturers, distributors, transporters, and vendors to create a web of communication that rivals the one available to a Wal-Mart-type group. Special software from i2 allows Daymark to keep an up-to-the-moment tally of services and goods available in its network, and make the correct decisions about distribution and production.
In fact, Daymark Logistics does not push business toward its own fleet of 185 tractors or warehousing space, although it allows Daymark Transportation to bid on contracts; Hill believes that it would not be a true logistics company if it forced work to its own carriers. Refrigerated Transporter (03/00) Vol. 37, No. 10; P. 18; Macklin, Gary
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