by wtfcanada2015@gmail.com | Jul 5, 2018 | BLOG
As a child, on those numerous occasions when I thought that a task was too large or too complex for me, my father had one response that he used without fail, always phrased in the form of a question: How do you eat an elephant- answer: one bite at a time.
Much has been published in the last seven months in both industry publications and mainstream media outlets about the ongoing capacity shortage an elephant sized issue if there ever was one- particularly as it relates to the limited supply of trucks. In many ways, the solution to this industry challenge is no different than that of perceived challenges of my childhood. We need to simply start to fix the parts of the supply chain that we have allowed to break – one bite at a time.
I was thinking of this universal truth in light of an experience I have repeatedly experienced over my two decades in this industry- yet another typical example of the myriad ways that this industry attempts to diminish the value of drivers limited on duty hours.
We had a driver scheduled to load for a 3PL this morning- 6 am Pickup appointment with strict instructions for the driver to be on time. As often happens, the driver arrived at 6 am only to find out that the brokerage dispatcher on the order had neglected to provide us with the correct pickup number and trip number needed for loading, even though they were in her custody. After 90 minutes, the confusion was finally clarified at the cost of 90 minutes of the drivers on duty time.
Assuming that we have this issue happen once per day with half of our trucks, for a duration of 30 minutes per event – it means that in a small fleet like ours- 12.5 hours per day are being wasted with delays that are entirely avoidable. Most of us are aware that preventable delays are one of the main sources of driver frustration and exodus.
However, the other thing I would like us to think about is this when we think about our elephant eating challenge: that’s more than one 11 hour driving shift- so by extension for every day of operation, we have one truck running free of charge because simple things like pickup numbers are not provided – simply because people do not care enough to think about the downstream effects of their inaction.
In essence, this means that we have one truck that could be moving freight but is not- taking one trucks capacity completely out of the market, even though all of its associated expenses are there. If that’s true for a small 50 truck fleet like ours- imagine the number of trucks wasted if that math holds true industry wide?
Perhaps, instead of complaining about shortage of capacity and rising rates, forward thinking shippers and receivers can look internally at simple cost and efficiency improvements. I hope to explore a number of these themes over my next few posts.
However, with this challenge – there is also a call to action for those people responsible for operational decisions at asset based carriers. As an industry we need to stop saying “this is part of Transportation”- there’s no need for inefficiencies like this- and no need for the same folks who cause the inefficiencies to be complaining about rising costs. It takes true collaboration and partnership to drive inefficiencies out of a supply chain- the picture is much bigger than pure Transportation cost. It takes everyone’s proactivity and effort to improve conditions for everyone.
How do you eat an elephant: To solve our capacity crisis, we all need to be serious about one bite at a time!
Bio: Tony Gerber has been one of the Managing Directors at Flash Freight Systems of Guelph, ON since 2004 – an asset based provider of crossborder and domestic transportation and warehousing solutions. He’s passionate about operational excellence, the application of the lost art of common sense, coffee, and reimagining the status quo in the supply chain to improve everyone’s quality of life and service levels.
by wtfcanada2015@gmail.com | Dec 11, 2016 | BLOG
There is always lots of discussion about what a company brand looks like or what it should look like. How is a company brand created and most importantly, what do customers feel or say about your company brand.
Your company brand is based on your company’s culture, your core values and mission statement. In my early years of business this really meant nothing to me. Company brand? Culture? Core Values? Mission Statement? I was very naïve as to what any of this meant or just how important a company brand really is.
The word “brand” is one of those words that is used often but is unevenly understood. A good example of the importance of branding would be cattle ranchers. Years ago they “branded” their cattle so ownership could be easily determined. It separated one cattle rancher from the other. Some cattle were better than others.
Fast forward to today and nothing has changed even in our industry. There are certain brands in our sector that are simply best in class. Best carriers, Best service providers… you get where I’m going? In many cases the best generally do business with the best. Great carriers deal with great service providers because the service providers help make the carriers better. In most cases when you deal with the best it is reflective in the price. Great service providers and carriers tend to charge more. Why? Because they can! They are confident that they will do a better job and supply better service than the competitor and their customers know that.
Put simply, your brand is what your customers and prospective customers think of when he or she hears your company name. Your brand exists in someone’s mind.
Consistent strategic branding is about brand equity. Brand equity means the added value brought by your company’s product or service that allows you to charge more for an identical product/service offered by another company. One of the most obvious examples of brand equity is Coke and Pepsi. They are still able to charge more for their soda than the generic brands even though the products are identical in nature.
At KRTS our brand has been built on the quality of our people. Our core value is people and our business circle revolves around our people. It looks something like this, as owners, we look after our people by paying them well, offer them a healthy work environment and supply them with the best available tools to do their job. We communicate regularly in reference to our goals and objectives, treat them with dignity and respect and, with the exception of ongoing education and periodic guidance, we get out of their way so they can do what their best at in their respective positions.
The associates in turn understand our culture and expectations. They appreciate how they are treated and want to be a part of something successful which results in them going above and beyond for KRTS ever day! By doing this their efforts affect the level of service we are able to provide and our customers receive best in class service.
When your customers feel and experience this quality of service they are successful and doing well. When they accomplish these two things they talk about our business in a positive way which, in turn, effects our bottom line in a very positive way. It also affects our brand and separates us from the “generic” version which generally means cheaper but the results are never the same.
Our brand has been built on quality, service, reputation and most importantly our core value being people. A great recipe for a great brand!
About the Author
Kim Richardson has been in the transportation industry for 33 years. Currently he is the President of KRTS Transportation Specialists Inc. a multiple award winning family owned and operated business. Under the KRTS group of Businesses is Transrep Inc. and The Rear View Mirror. Kim is currently the Chairman of the Board of the Truck Training Association of Ontario (TTSAO), Board of Director of the Professional Truck Driver Institute (PTDI). He is the past Chairman of the Board and current board member of Allied Trade Division of the Ontario Trucking Association (OTA) and past founding director of the Owner Operators Association of Canada (OBAC). Kim is a proud husband, dad, grandpa and loves his community, Caledonia, Ontario.
