Better way

July 1, 2007
PLANS to improve efficiency, a carrier selection initiative, and common language for order tending were among the topics presented by shippers at the

PLANS to improve efficiency, a carrier selection initiative, and common language for order tending were among the topics presented by shippers at the National Tank Truck Carriers Annual Conference May 7-9 in Las Vegas, Nevada.

Joel Adams of Holcim US, Summer Camp of Chevron Oronite Chemical Co, and Bill Harvey and Bill Wolfe of Elemica presented their companies' various shipper/carrier programs. Also commenting on shipper issues was George Grossardt of Schneider National Bulk.

Adams said his company formed a committee to review a carrier performance based on information submitted to the shipper and then to select a carrier to service the shipper. The committee determines the selection criteria and scope of work that will be necessary. The carrier is then given the requirements that are necessary for the fleet to perform.

Carriers are considered by financial stability, innovation and flexibility, safety and service records, on-time performance, scope of operations, and rates. After the committee reviews the information, it determines which carrier is best suited for the job.

He said satellite vehicle tracking and Environmental Protection Agency Smart Way membership adds weight to a carrier's chances of acceptance.

Camp said that Chevron will conduct a study that includes looking at ways to improve logistics and various transportation modes. Among the considerations are rates, scheduling, driver/shipper relationships, and loading expediting.

The study includes examining ways that rates could be based on wait times at facilities. In discussing hold-harmless contracts required by shippers, she said shipper legal departments aren't likely to back away from that mandate. Other issues being considered include rack schedules, delivery windows, use of nitrogen blanketing, and pump and hose standardization.

Harvey discussed Elemica's program used for order tending that provides an electronic hub for integrating shipper and carrier systems to expedite communication. The hub acts as a translator for the differing systems. Wolfe said that with the use of the hub there are fewer delays and instances of mis-communication.

Grossardt said using a system such as the one from Elemica can provide a quicker turn around time and frees employees to focus on value-added efforts. He reported an 18% productivity gain from use of the program at Schneider that provides one connection to 20 shippers.