Web-based solutions and six-sigma statistics are new terms being heard by the tank truckindustry as it concentrates on customer service in the Internet age.
"Value isn't in information anymore but how it is disseminated," said Robert Shertz, director of sales and marketing for Bulknet.com of Tulleytown, Pennsylvania. Shertz spoke at the National Tank Truck Carriers 52nd annual conference May 16-17 in Chicago, Illinois. Also making presentations were Mark Bitting, president of Bulknet.com; Beat Schweizer, vice-president of logistics operations for ShipChem.com of Kingsport, Tennessee; and Peter Meissner, customer quality leader of GE Plastics, Lisle, Illinois.
Bulknet.com has introduced an e-commerce service that allows chemical shippers and carriers to negotiate anonymously for each other's business. "Customers will be able to deal with everybody through one site," Shertz said.
Schweizer pointed out that Internet-enabled programs will aid carriers in competing in the new economy that can prove challenging and includes driver shortages and fuel hikes. "Margins are squeezed," he said.
ShipChem.com is part of a new step by Eastman Chemical Company to outsource its distribution operations.
Customers are demanding more efficiency from their suppliers who, in turn, demand more from their transporters. Easing those transitions are virtual logistics providers. "It will help to make an operation smoother, faster, and more efficient," said Schweizer.
Bitting noted that in the United States today, e-commerce in the chemical industry accounts for $8 billion and is projected to explode to $112 billion by 2004. Worldwide use today is estimated at $11 billion with $400 billion projected for 2004.
Despite the technological aspects of the Web, companies still have priorities to satisfy customers. "You must offer solutions and be able to adapt and adjust quickly," said Bitting. "You must have a system that can make a change in 24 hours."
Shippers are able to get thorough, fast, and up-do-date information about carrier qualifications. "The information can change daily as carriers improve their profile," he said. In addition, small and midsize companies will have a better chance at competing with larger carriers, said Schweizer.
E-commerce services reap revenue through commissions, management fees, and transactions fees - some apply only one method while others use a combination of commissions and fees.
While companies learn the byways of the Internet, some are turning to computer-aided statistical tools to enhance employee performance and, subsequently, improve customer service.
General Electric adapted the six-sigma program in its employee training and eventually applied it throughout the company. The idea is to have continuous improvement, eventually reaching the point where only 3.4 defects per million opportunities occur - or six-sigma.
"Six sigma drives customer satisfaction and company growth," said Meissner. For the program to be a success, company leaders must be trained first and support the program. "When they see how it improves their jobs, they will bring others on board," he said.