Was it overkill for the industry to make a fuss? Absolutely not! We are taking great care to maximize safety on the highway. We are keeping rig and driver under careful watch to see that neither is worn out. We take great pride in the professionalism of those who drive trucks. And the image left by that commercial with millions of sports watchers was completely unacceptable.

    Shock TV is taking great liberties with the reality shows that seem to consume the networks. Makes one wonder when the Christians and the Lions will be next. And now that approach seems to have crossed over into the commercial area.

    Monster.com, you ought to be ashamed of yourself. If you wanted to create a go-to image for yourself for drivers seeking jobs, you sure blew it. Maybe you would do well to research the industry you seek to serve, better than that.

    Show how trucking firms are bending over backwards to ensure safety and security of those sharing the highway with us, and you may stand a chance recruiting truck drivers. The image you showed would only appeal to the suicidal!

Sincerely,

Scott Keyer

Scott Keyer
DOT Compliance Officer and Safety Engineer
Fredericksburg, VA

    ATA Economist Bob Costello noted that barriers to entry into the transportation business are "as high as I've ever seen them." He predicted that "Once the economy kicks into high gear, those still in the market will do pretty good."

    Special offer - get four issues of Transport Topics FREE.

    Details: www.ttnews.com

  Keyer states that his goal is "to create an environment where compliance and safety are foremost, while achieved in cost-effective means, with preventive maintenance as the primary focus."

  His consulting is done on-site, electronically or through phone and fax consulting. Projects can be one-time or ongoing.

  Besides compliance with DOT regulation, Keyer can inspect rigs and shops, provide train-the-trainer seminars and driver safety sessions. He works on accident investigation, workers comp rate reduction and establishing files for the voluminous paper work required.

  He provides driver hire packages, does drug and alcohol testing and prepares corporate safety documents such as mission statements and safety procedures. He can also be called on for pre-audit consultation. This has become particularly popular since DOT announced its intent to audit all new trucking firms or owner/operators within 18 months of their licensure.

  Keyer has served as Corporate Safety Director for LeeHy Paving Corp. in Richmond, VA, with a fleet of 150 trucks and their drivers. He was also Ground and Air Safety Director for Lockheed/Arabia and the Royal Saudi Air Force in Jeddah, Saudi Arabia. As such, he developed effective procedures and protocols for supervision and training of multi-national and multi-cultural work forces.

  Says Keyer, "You cannot write away, delegate away or legislate away the ultimate responsibility of safety for your company and its personnel." As a consultant, Keyer assists truckers and carrier corporate offices on the most diligent and cost effective ways to address compliance and safety.

  Details: www.truckersafety.com / www.transportmarketing.com/safety
  540-459-8390
  Cell Phone - 703-989-8315

Key learnings include:

• Freight brokers provide a key service in the truckload transportation market, providing value to both shippers and carriers- saves the administrative cost of shippers calling carriers to find capacity and serves as the marketing arm of many small carriers

• Shippers and brokers believe brokerage will have an increasing role in the future of freight transportation

• Both shippers and brokers expect the brokerage market to migrate towards "forward" contract services (i.e., transportation management services)

• Most expect the internet to play an increasing role in freight brokerage, largely at the expense of telephone and fax- however, most believe that the brokerage industry has few risks of future electronic disintermediation

• There is a differing view, however, among shippers and brokers as to the overall growth of brokerage services- nearly three quarters of shippers expect the market to use brokers the same as today, while 85 percent of brokers expect increases of 10 percent or more

• Shippers look to brokers to provide four key customer requirements: close relationships to anticipate and understand customer needs, high level of customer service, access to quality supply and low rates

• Among those four customer requirements, shippers believe broker performance could improve in two areas: access to quality capacity and customer service.

Al Klineburger

Ralph Massey

    Al Klineburger, CTB has been named Vice President of the Trinity Agents Division. Under his leadership as Director of this Division for more than a decade, the Trinity agents operation has grown to a nationwide network of some forty offices.

    Said Banning, "It's not just that Al added offices. It's that he has personally selected people as agents who share our values and our company culture and do things 'the Trinity Way'."

    A significant part of Trinity's growth in recent years has been through the enthusiastic agent network. A major attraction for agents is the accounting and administrative support provided in addition to extensive technology and training. A new addition to the corporate headquarters was built last year to accommodate the expanding support team for Trinity agents.

    "Al's responsibilities have increased and his importance to the company warrant moving him to this top executive position," stated Jeff Banning.

    Ralph Massey is also a veteran of over a decade of change and growth with Trinity Transport. Beginning as a dispatcher, Ralph has learned every aspect of the transportation business and excelled as a sales and customer service representative.

    A year ago, Ralph was promoted to Operations Manager. Since then, the employee base in his area has tripled; there have been major changes in technology, customer offerings and expanded transportation knowledge. In the last year, Ralph has been involved in intensive recruiting, hiring and training of teams to serve current customers and accommodate new customers.

    In making the announcement of the two promotions, Jeff Banning noted that Trinity Transport has been a family-run operation for more than 20 years and added, "The time has come for our size and our stature in the industry to warrant expansion of our executive team with these two highly respected transportation professionals."

    Donna took over the operation upon the passing of her mother, M. Cathy Davis, CTB, in October of last year. The family-owned and operated brokerage has been serving customers nationwide from their location in mid-Tennessee since 1991. The firm holds certification as a woman-owned business enterprise and a disadvantaged business enterprise, which allows customers special consideration.

    A member of the Transportation Intermediaries Association, the firm was awarded Best of the Best Broker Award in 2001 by the National Association of Small Trucking Companies.

    Wood has been an integral part of the management and operation of the firm as it earned awards and recognition. She earned her Certified Transportation Broker (CTB) designation in 1993. In 2000, for her work with the Delta Nu Alpha Transportation Fraternity, Wood was named Alphian of the Year by the Nashville Chapter.

    In taking over the presidency of MCD, Wood stated, "As a family, we established specific goals, values and rules of integrity by which we operate. I am committed to upholding our commitment to be honest and never avoid the truth, no matter what the situation, to be firm but fair and to always adhere to the highest standard of ethics. I continue the tradition of Cathy Davis who believed in life-long learning (Delta Nu Alpha has established a scholarship in her name) and involvement in organizations that advance the professionalism of the transportation industry."

    Wood expects to maintain the slow, steady growth the company has experienced over the last dozen years. "This allows consistent and outstanding customer service as the company grows along with its customers and their needs," she stated. Wood also has a reputation for working to maintain a balance between professional obligations and family life for all MCD employees.

    Wood and her husband Greg and their and their five children reside in Smyrna.

    Ketrow was formerly senior sales representative for Consolidated Freightways. Her 18 years of transportation experience includes the position of terminal manager and regional manager for a carrier. She also owned a trucking firm.

    "We are poised for growth and expansion," stated Gee. "The addition of this key transportation professional to our executive team is a significant part of our strategic plan to expand our services and service area nationwide."

    Virginia Hiway, Inc. is a full service transportation intermediary, providing van, flatbed and specialty delivery of freight as well as freight management and logistics services. Its mission is to provide freight solutions that meet or exceed expectations through transportation knowledge and technology.

The team at Virginia Hiway, Inc. gather outside corporate headquarters
in Richmond to celebrate the holidays 2002.

    Details: 800-807-7317- www.vahiway.com

    Petrick worked with both generations on growth strategies, management procedures, integration of computer systems, Internet website and marketing.

    Since the consultancy began, Trinity has grown from a staff of about 20 and less than a dozen agents to a staff of more than 70 with more than 40 agents nationwide and a volume that is more than four times what it was in 1997.

    Stated Banning, "We knew where the dots were, to get where we wanted to go. Annette was instrumental in helping us to connect those dots, plan the starategies required, write the plans and hold our feet to the fire to be sure we were implementing them."

    Today, Trinity Transport is recognized as a major employer on the Delmarva Penninsula. With a family of companies serving various aspects of transportation, the firm is in the top 10% of third party transportation intermediaries nationwide.

    Petrick has headed Petrick Outsourcing Unlimited, Inc. since 1996. Before that, she was executive director of the Transportation Brokers Conference of America (TBCA), which ultimately became the Transportation Intermediaries Association (TIA). Her firm specializes in marketing and management consulting and growth strategies for transportation companies and non-profit organizations.

    Petrick is a nationally recognized speaker and trainer and is publisher and editor of transportation/logistics business insider, an electronic newsletter for transportation brokers.

    Details: www.transportmarketing.com

Written contracts need to:

• be bilateral in nature and address issues for both signing parties;
• cover a series of shipments that imply a relationship between the signing parties;
• show specific need, which implies that one party needs the other because of specific things that they bring to the relationship;
• be signed by an officer of each corporation. Electronic signatures can be scanned and used where appropriate.

    These contracts should also have a generic pricing mechanism to calculate pricing on transactions that are out of the ordinary. For instance, "The freight rate for freight all kinds between all points is $1.30 per mile. All exceptions to this rate will be in writing in the form of an addendum, which will be numbered and filed."

A contract addendum should:

• be signed for each special shipment;
• contain all information and instructions to the carrier pertaining to the shipment;
• include all pricing for the transaction;
• be signed and returned by electronic means or faxed before the shipment is tendered;
• be signed by an authorized party.

    Contracts are as complicated as the relationship is between the parties. Simpler is better. Addressing dispute resolution is important. Having the "venue" in your own county means that legal proceedings will occur there in the event of a lawsuit. Longevity, and conditions for breaking the contract, can also be addressed.

    The rate schedules should be easy to understand and simple to use. For instance, a map of the United States showing how many cents per mile from a certain point to all states is easy. Often shippers like point-to-point rates. For example, from Chicago to Denver, the rate is $1600. That is a flat rate. Some clients want pricing by zip code; some prefer county rates. Others want freight pricing by the hour or by the ton. Regardless of how it's accomplished, rate schedules should be crafted in a simple manner and should include exceptions, minimum charges, fuel surcharges and access charges or charges for accessories.

    There are many document-scanning programs on the market. Storing bills of lading, freight bills and all pertinent information relating to a transaction can be a challenge. Looking for a delivery signature can be time-consuming. If all documents are scanned, the system could be accessed from a website. Anyone authorized could find their document, download it and fax or e-mail it. Updated freight-tracking screens can also be accessed from a website. All this technology is commonplace and getting cheaper. Any software products that shrink the loop, or eliminate a step, will lower costs.

    How many file cabinets are in your storage room? How would you like to eliminate them all? How much time does it take to look up a document and mail or fax it? Have you ever considered going paperless? Paperless organizations are more productive and the cost of technology needed to accomplish this is rapidly dropping. Set your goal: plan to be paperless in 12 months!

Rick Jones, CTB is President of Meadow Lark Companies, a freight brokerage in Billings, Montana.

Why You Should Attend TIA's 25th Anniversary Convention & Trade Show
TIA is the largest and only gathering designed exclusively for transportation intermediaries - your peers. You can't afford to give your competitors a leg up by not being there; The meeting is packed with relevant information and solutions that you need to manage your business and increase sales; Plenary sessions and pre-meeting workshops will address pressing issues of today and tomorrow with information that you can immediately put to work in your business; Network with your peers. Only at TIA can you interact and share ideas with so many of your peers in one place-ideas that can save you money; and The TIA Trade Show is where you can see the best of the best in products and services for transportation intermediaries. If you need real solutions, the TIA Trade Show is the place where you can find the products and services you need to keep your business up to speed.

With the many seminars, workshops, Trade Show, and networking opportunities, the TIA 25th Annual Convention & Trade Show is the one meeting you cannot afford to miss.

Trade Show
The Grand Opening of the Trade Show will be on Thursday, March 27 at 6:00pm. The trade show features companies that help you improve your bottom line. This is an outstanding opportunity to expand and strengthen your professional network of contacts and business partners in order to improve and grow your business. Here is just a sampling of companies you will see: Aljex Software * AMTEX * ASKK Technologies, Inc. * Avalon Risk Management, Inc. * Bill Hay International, Inc. * Cal State Express * Infinity Software Solutions, Inc. * Internet Truckstop, Inc. * Keypoint, Inc. * Leonards Guide * Rand McNally & Company * Registry Monitoring Services, Inc. * TransCore * Wolfbyte Software, Inc....and many more! Please be sure join us Thursday and Friday evenings for receptions in the Exhibit Hall.

register now

preliminary schedule of events

preliminary program

Taken from www.tianet.org.

    As Getloaded.com expands into new areas of service for the transportation industry, Myers heads the new Carrier Support Division, involving "products and services to provide Getloaded members with a competitive advantage in today's transportation business." Initial services will include operating authority filings, permitting, fuel tax reporting and safety. These products, and others, will be phased in within the next year.

    Myers was previously with the Defense Logistics Agency (DLA) of the federal government where he served as Director of the Office of Operations Research and Resource Analysis. He was responsible for providing consulting services to the Agency in all areas of supply chain management including guaranteed traffic, regional freight consolidation and third party logistics. His responsibilities covered management of over $20 million in private consulting contracts.

    Previous to this, Myers was with the Interstate Commerce Commission. A graduate of Troy State University, Myers attained his Masters degree in Transportation Management from Naval Postgraduate School. He has serves as an Instructor of Transportation for the University of Richmond and is a published author on transportation-related topics.

    Myers resides with his wife Carolyn in Midlothian and has three grown daughters.

    Details: 804-744-6354 or www.getloaded.com.

Website Design - Aaron Collegeman
Editing - Kathryn Rosypal

Published by
Petrick Outsourcing Unlimited, Inc.
Management and Marketing Consultants
to North America's Transportation Companies
679 Hottel Road
Woodstock, VA 22664
www.transportmarketing.com

Subscriptions/billing
Sandi Thomasson
540-459-9632
Fax - 540-459-8775
sthomass@shentel.net

Advertising
Lea Frazier
540-459-8390
Fax 540-465-9487
lafraz@shentel.net

    Instead, we'd like to spread the word on resolutions suggested by Francis Quinn, Editorial Director of Logistics Management magazine. His suggestions were so on the mark that I hope you will read his full VIEWPOINT column in the January issue of LM.

    Mr. Quinn, a respected veteran of transportation publishing, suggests that logistics manager should consider the following resolutions for the coming year. They apply equally well to and brokerage company owners. Mr. Quinn's suggestions are in bold; that's my addition after each one.

1. Resolve to collaborate more aggressively. It's where the action is.
2. Resolve to gain greater visibility. Quinn says this should address both internal and external visibility.
3. Resolve to spend more time thinking. Executives and management staff are usually hired because they impressed you with their ability to think and plan. Then we get folks so involved in the minutiae of everyday activities that they have no time to T&P.
4. Resolve to improve on a capability or develop a new one. Just like in life, learning, comprehending and providing new services, capabilities or needs fulfillment is pivotal to success.
5. Resolve to keep blocking and tackling. Quinn suggest we look at physical execution and be sure it's being done right. In the brokerage, this can equally apply to operations execution.

    If you are involved in logistics or expect to be, you may want to consider subscribing to Logistics Management.

    Details: reedbusiness.com.

    The Ten Rules were originally presented at the annual conference of the Council of Logistics Management (CLM) last year by Dr. Ratliff, who is also Executive Director of The Logistics Institute (TLI) at the Georgia Institute of Technology. Due to extensive interest in the topic, he recently expanded his presentation into a white paper for the logistics industry.

    "Based on the enthusiastic response we received, we felt we had some specific logistics insights we could share with the industry," said Dr. Ratliff. "Logistics optimization is neither easy nor cheap, but it is currently the biggest opportunity for most companies to significantly reduce costs. This is especially true in optimizing transportation operations, where companies can realize 10-40% cost savings. This white paper will help shed some light on the essential requirements for capturing value with logistics optimization technology."

1. Objectives - Objectives must be quantified and measurable

Objectives are the way that we specify what we want to accomplish. In order to optimize something, you have to decide how you will know it is optimized. Using quantitative objectives, computers determine whether one logistics plan is better than another, and management determines if the optimization process is providing acceptable ROI. For example, a delivery operation might define the objective to be "minimize the sum of the daily fixed cost of assets, the daily cost of fuel and maintenance, and the daily cost of labor." These costs are both quantified and reasonably easy to measure.

2. Models - Models must faithfully represent required logistics processes

Models are the way operational requirements and constraints are translated into something the computer can understand and process. For example, we need models to represent how shipments can be combined into loads for a truck. A very simple model such as the total weight/volume of the shipments will faithfully represent some loading requirements (e.g., bulk liquids). If a total weight/volume model is used for loading new cars onto a car-hauling truck, however, the model breaks down because it is not a rich enough representation of the situation. In this example, describing the capacity of a car-hauling truck as "45,000 pounds worth of vehicles" is an impractical simplification; in reality, the trailer will hold a discrete number of vehicles depending on vehicle type, trailer configuration, and other factors. With a simple weight/volume model in this case, many of the loads that a computer thinks will fit cannot actually be loaded, while better loads are discarded because the computer thinks that they will not fit. If the model does not faithfully represent the loading process, the loads created by an optimization system are likely to be either impractical or inefficient.

3. Data - Data must be accurate, timely, and comprehensive

Data is what drives logistics optimization. If the data is not accurate and/or it is not received in time to include it in the optimization process, the resulting logistics plans will obviously be suspect. For logistics optimization processes that create operational plans for execution, the data must also be comprehensive. For example, having the weight of each shipment is not sufficient if the volume of the truck limits some loads.

4. Integration - Integration must support fully automated data transfer

Integration is important because of the large amount of data that must be considered for logistics optimization. For example, optimizing deliveries from a warehouse to stores each day requires data regarding the orders, customers, trucks, drivers, and roads. Manually entering anything other than very minor amounts of data is both too time consuming and too error prone to support optimization.

5. Delivery - Optimized plans must be delivered in a form that facilitates execution, management, and control

Solutions provided by logistics optimization are not successful unless people in the field can execute the optimized plan and management can be assured that the expected ROI is being achieved. The field requirements are for simple, unambiguous instructions that are easily understood and executed. Management requires more aggregate, centralized information regarding the plans and their performance against key benchmarks over time and across facilities and assets. Web-based interfaces are becoming the medium of choice for both management and execution.

6. Algorithms - Algorithms must intelligently exploit individual problem structures

The biggest differentiators among logistics optimization technologies are the algorithms (the computer-based processing strategies used to find the best logistics plan). An irrefutable fact regarding logistics problems is that each has some special characteristics that must be exploited by the optimization algorithms in order to provide optimum solutions in a reasonable time. Therefore, it is critical that (1) their special problem structures be recognized and understood by the analysts setting up each logistics optimization system; and (2) the optimization algorithms being used have the flexibility to allow them to be "tuned" to take advantage of this special structure. Logistics optimization problems have a huge number of possible solutions (e.g., for 40 less-than-truckload shipments there are 1,000,000,000,000 possible load combinations). Failure to take advantage of special problem structures means either that the algorithm will pick a solution based on some unreliable rule-of-thumb or that the computational time will be extremely long (perhaps infinite).

7. Computing - Computing platforms must have sufficient power to find optimum plans in the available time

Because of the enormous number of possible solutions in any real-world logistics problem, problems of any significant size require significant computing power. Such computing horsepower allows the optimization technology both to find the best logistics plans and to find those plans in a reasonable amount of time. Obviously, for optimization technology to be practical in a day-to-day execution environment, it must produce a logistics plan in minutes or hours (rather than days of computing time). Algorithms that utilize powerful clustered servers and parallel architectures leveraging numerous computers simultaneously can be expected to provide significantly better and faster solutions than algorithms that use single PC-based or workstation-based technology.

8. People - People responsible for the technology must have the domain and technology expertise required to support the models, data, and optimization engines

Optimization technology is "rocket science," and it is unreasonable to expect it to function well over time without at least a few "rocket scientists" to keep it running. These experts must ensure that the data and models are correct and that the technology is working as designed. It is unrealistic to expect a complex set of data, models, and software to be operated and supported without considerable effort from people with the appropriate technical and domain knowledge and experience.

9. Process - Business processes must support optimization and have the ability to continuously improve

Logistics optimization requires a significant ongoing effort. There is invariably going to be change in logistics goals, rules, and processes. Systematic monitoring of data, models, and algorithm performance is required not only to adapt to change, but to initiate change when opportunities arise. Failure to put into place processes to monitor, support, and continuously improve logistics optimization invariably results in optimization technology being either poorly utilized or becoming "shelf-ware."

10. ROI - Return on investment must be provable considering the total cost of technology, people, and operations

Logistics optimization is not free. It requires significant expenditures for technology and people. Proving ROI requires two things:

(1) an honest assessment of the total cost of optimization and

(2) an apples-to-apples comparison of the solutions being produced by optimization technology versus benchmarked alternatives.

On the cost side of the calculation, there is a strong tendency to underestimate the ongoing cost of using logistics optimization technology, especially if a company buys "do-it-yourself" PC-based packaged software that requires a team of trained users and support personnel to run it on an ongoing basis. It is seldom the case that the ongoing annual cost of effectively utilizing logistics optimization technology is less than the initial cost of the technology (e.g., software licenses, implementation fees). If the total cost of a logistics optimization solution decreases after the first year, it is likely that the solution quality will decrease proportionally.

On the benefits side, determining the impact of logistics optimization technology requires:

(1) benchmarking with regard to key performance indicators before implementing the technology,

(2) comparing the results from logistics optimization to the benchmarks, and

(3) performing regular audits of your logistics optimization performance.

Developing an ROI requires having good ways to determine what the baseline is, understanding the cost of the technology and the people involved, measuring improvement, and then continually monitoring performance. Because performance data is rarely available and the monitoring process requires ongoing attention, few companies today know how effective their logistics optimization efforts actually are.

    Dr. Ratliff's white paper on the "10 Rules for Logistics Optimization" can be obtained, free of charge, by logging onto the Velant web site at www.velant.com.

    Currently a partner in the online job portal, MichiganJobShop.com, Randolph is well versed in the recruitment industry, with substantial experience in the area of transportation broker recruitment. She plans to continue writing recruitment and business e-commerce articles for logistics publications across the country, including Transportation Intermediaries Association's The Logistics Journal.

    Mike explains that, "I'm an OTR driver. I haven't been out here since the "good ol' days of driving", but long enough to see both the good and bad sides of this industry." He explains that his website "is for one of the good areas of driving that doesn't get enough credit or respect, and that is the women in this industry.

    "I've been fortunate enough to meet several women drivers in the last few years. Some worked for the same company as myself. Some were a passing voice on the CB. Some were the other half of a conversation that lasted a few hundred miles during the night. And at the risk of alienating my male counterparts in this industry, I have to say that nearly all the women I've encountered carry the title of "Professional Driver" much better than the men in this industry, and for several reasons. Now, this is not a knock against male drivers, since I'm one myself, but look at it this way:

    "How often do you see a female trucker running on the rear bumper of a 4-wheeler, intimidating them to move over because they're in rush to get somewhere? How often do you hear a woman on the radio saying those phrases we all hate, "Shut up, stupid", "crackerhead", "can you hear me now?", and that damn annoying "aaaaaaudio"?

    "Every driver I've ever seen in a truckstop wearing a hole-filled t-shirt, baggy and stained sweatpants, shoes falling apart, and lack of a shower in the last 4 days, has always been a male driver. You don't hear "Radio Rambo-ettes". And I'd venture to say that those urine-filled bottles and jugs laying around the rest areas, on-ramps, and truckstops were probably put there by my side of the gender pool.

    "I think credit is also due at the executive level of the industry...not only are women showing that they can handle a truck as well as men, but they are running the companies we work for, and succeeding very well at it. Although trucking is still a male-dominated industry, give credit where credit is due. The inroads women have made in trucking is tremendous, and I hope it continues.

    "Like I said, I'm not knocking the men in this industry. I have the highest regard for those that do this job safely & legally, whether male or female, and for management that treats their employees like people, not numbers and machines.

    "So consider this site to be my way of showing you the respect and credit you deserve. Keep up the good work, and if you see me running down the highway, don't hesitate to say "Hi". I'd love to hear from you."