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LOGISTICS

TRUCKING

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Our Client is a transportation company headquartered in the Maritimes. They handle and transport freight for clients that they service through an integrated network of over 23 terminals throughout the entire Maritime region. With more than 40 years of experience in the trucking industry they are recognized as one of Canada’s 50 best managed companies, employing over 1,700 people throughout Canada and the United States. Their fleet consists of more than 400 trucks and trailers that move freight to and from the Maritimes via rail, ships and road, while also providing logistics and warehousing support to their clients.

LOGISTICS PROJECTS

Objectives

  • Improving cost structures including dock operations, dispatch and drivers.
  • Improving on-time-delivery (OTD) as volumes increase.
  • Increasing overall effectiveness through improved scheduling of work and utilization of resources (equipment, labor, materials and overheads).
  • Training and on-the-floor performance coaching of Supervisors in terms of proactive management styles and behaviors.
  • Designing and installing Management Operating Systems (MOS) to provide greater visibility to daily operational requirements and status.

Assessment Findings

Logistics Trucking Assessment Findings

  • Work Time

  • Non-effective Time

  • % Service Delivery

Logistics Trucking Assessment Findings 2

  • Work Time

  • Non-effective Time

Logistics Trucking Non Effective Time Assessment

  • Inadequate communication between dispatch and the drivers to update the automated tracking system in a timely manner and take advantage of the most efficient dispatching scenarios.
  • Lack accurate data in the contact information gathering system for their Clients.
  • Inadequate communication with their Clients to set expectations regarding service delivery times and the Client’s delivery constraints.
  • Rework on the docks when loaders had to re-load pallets due to improper handling techniques.
  • Lack of scheduling and coordination of local pick-up activities and the subsequent negative impact on dock operations.
  • Congestion on the docks resulted in loading/unloading doors being over utilized and equipment capacity issues existing at the beginning of the shifts.
  • Paperwork readiness was not always on time for dock employees and drivers.
  • Damaging goods on the docks due to improper handling.
  • Searching for freight due to inaccurate locator systems in the warehouse.
  • Inefficient cross-docking activities as loaders worked from doors at opposite ends of the warehouse.
  • Minimal levels of proactive supervision by the Foremen on the docks.
  • Foremen and Supervisors were spending excessive time in their offices or at their desks.
  • Foremen and Supervisors generally believed that their people knew what to do and would ask them when they needed help.

PVA's Response

  • Implemented crewing guides for dock activities using daily volume profiles.
  • Established work activity standards with drivers to monitor stops, mileage and weights.
  • Optimized the sequencing and scheduling of the cross-docking activities.
  • Optimized on-time departures as well as cube-out versus weight-out levels.
  • Reduced the amount and levels of freight double handling and rework.
  • Developed new communication patterns between and within departments (i.e. dispatch to Clients, dispatch to drivers and billings to operations).
  • Optimized route schedules and driver planning.
  • Better management and control of driver activities and work hours.
  • Reduced levels of fuel consumption across the fleet.
  • Increased fleet reliability and utilization through improved preventive maintenance programs.
  • Reduced the levels of maintenance costs (labor and materials).
  • Developed and implemented supervisory behavioral models focused on increased levels of proactive management, accountability and results attainment.
  • Provided training and performance coaching of the Supervisors on the docks.

The Results

  • 30% improvement in number of stops per hour.
  • 15% to 25% improvement in weight per stop.
  • 35% reduction in overtime hours.
  • 30% reduction in claims levels.
  • 75% reduction in temporary labor hours.
  • 75% reduction in shipping errors and rework levels.
  • 60% improvement in on-time delivery levels.
  • 50% improvement in maintenance response time.
  • 30% reduction in inventory levels and carrying costs.

Increase in Supervisory Activities

Logistics Trucking Supervisory Activities

PRE-PROJECT
3% 0% 37% 18% 42%
POST-PROJECT
40% 9% 16% 26% 9%
  • Active Supervision
  • Training
  • Administration
  • Manual Work
  • Available

Increase in OTD During High Volume Period

Logistics Trucking OTD During High Volume Period

Increase in Savings

Logistics Trucking Savings

Improvements in Shipments Per Hour

Logistics Trucking Shipments Per Hour

Long Term Work Continuation

  • A Client Coordinator was trained and certified during the PVA engagement
  • A quarterly audit program of the new Management Operating System was developed and implemented with the Coordinator
  • PVA conducted audits over 18 months to ensure compliance to the continued utilization of the Management Operating Systems
  • These Audits resulted in recommendations and action plans to further identify additional opportunities for improving operations.
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$1.15
+ BILLION SAVED
4.2
AVERAGE ROI
28
YEARS
580
+ ENGAGEMENTS
220
+ CLIENTS

I was very surprised and impressed with how quickly PVA were able to learn our business and work with our staff to implement Management Operating System (MOS) tools to help manage our daily volumes. We were able to implement realistic standards, plan for the volume and now staff accordingly. We have experienced increased efficiencies in many departments and will continue to do so with the Continuous Improvement Program we implemented that involves all levels of the employees.’