Food Logistics

JAN-FEB 2013

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far-reaching in their impact on an organization, the constant changes and delays have made it incredibly difficult to plan and prepare for their inevitable implementation. The federal Hours of Service (HOS) rule is one example. It���s been amended several times and the latest version is scheduled to take effect on July 1, 2013. However, there���s a good chance it will be delayed due to several challenges currently winding their way through the courts. ���Although we really don���t know if the new HOS rule will take effect on July 1, the 34-hour restart change definitely has the potential to tighten capacity in the marketplace and drive up www.foodlogistics.com rates,��� says Hartman. The change also threatens to make the driver shortage problem more acute. ���We���re looking at different strategies for dealing with the driver shortage,��� acknowledges Hartman. So too is the American Trucking Associations (ATA), which has proposed research on a graduated commercial driver���s license as one way to help mitigate the shortage of drivers in the industry. The idea is to target potential drivers in the 18-25 yearold range who could undergo more extensive training and help fill the labor pool. The Federal Motor Carrier Safety Administration���s (FMCSA) Compliance, Safety, Accountability (CSA) program is another regulation that is being rolled out in phases. Although the trucking community, in general, supports the goal of CSA, there are some aspects that have come under fire. One of those is the lack of accountability when there is a crash. There are also some challenges with how CSA classifies fleets, according to Hartman. ���We���re somewhat unique because in one respect we���re an over the road carrier, yet we���re also a very urban delivery carrier.��� The absence of a classification that accurately captures a fleet operation like Papa John���s ���puts us in a position of less strength when it comes to reporting and comparisons.��� Nonetheless, Hartman believes CSA is helping those in the industry ���make more informed decisions regarding performance and safety, and that���s a very good thing.��� Papa John���s is unique in other ways. Hartman suggests his fleet���s drivers may have one of the hardest jobs in the transportation industry. ���Not only are they driving, but they���re unloading freight by hand and there are typically 10 to 15 stops on a route. It���s physically demanding and it pulls the driver away from home for 36 to 40 hours at a time.��� The driving demands are equally rigorous. ���Our drivers encounter very difficult parking situations in urban environments, like strip malls. Or, sometimes they���re driving to truck stops out in the middle of Wyoming, for instance, and fighting severe weather. And that���s the easy part, because once they get there, they���re stocking and delivering with their hands and a handtruck anywhere from 100 to 400 pieces or cases of product. Then they���re counting it for accuracy, because we may only go there two times a week. Afterwards, they���re responsible for cleaning up after themselves as well.��� It���s a challenge to keep and maintain excellent drivers, concedes Hartman. ���So we do our best to accommodate their personal needs while maintaining our business needs.��� Compensation packages are important, but there���s more than just a paycheck in the mix. ���We offer standard pay plus incentive pay and reward positive behavior, consistent attendance, a clean driving record, accuracy, and customer interaction, which all provide ways for our drivers to make more money. It lends itself to greater stability in our organization and helps with recruiting drivers.��� On the equipment side, Papa John���s fleet includes customized 48-food trailers designed with a sidegate. Although rental equipment is used on occasion, Papa John���s keeps backup equipment at the distribution centers and maintains its tractors and trailers to assure its network is running smoothly. ���If a liftgate on a truck breaks down in Salt Lake City, for instance, we have limited options. We may have to ask the driver to hand unload the contents of the truck to the ground then into the store, which increases the stop time at each location significantly.��� Over the past five years, Papa John���s has introduced a variety of software and technology tools into its operation, which ultimately results in every customer getting a perfect pizza pie. In 2007, Papa John���s began deploying Manhattan Associates��� transportation management system (TMS). ���We started with inbound, managing the carriers, load tenderings, electronic RFPs,��� recounts Hartman. ���About the same time, we moved into centralized inventory and demand planning. Then in 2009, we deployed outbound TMS and dynamic routing. Today, we���re rolling out Manhattan���s Supply Chain Intelligence solution. The reason we took this approach is that Papa John���s is a very disciplined organization. We adhere to a philosophy of ���crawl, walk, run.��� And the final part���Supply Chain Intelligence���is allowing us to run.��� Hartman describes Manhattan���s fleet solutions as the ���brains��� of his operation, while the ���eyes��� are credited to Isotrak���s telematics solutions. ���Isotrack enhances our ability to see where our tractors are and make sure we���re following routes sequentially and not making stops we shouldn���t be making. Manhattan���s fleet solutions are sort of behind the scenes allowing us to track all of this and ultimately put it into various reports. Providing visibility into both areas of our operation helps us to be a lot more proactive when issues arise at the distribution centers. It could be something as simple as a truck getting in late because of ice on the road, which means it may get out late the next morning. We can now call the customers and alert them to a delay, and also plan our labor better at the distribution center. These tools allow us to continue to drive efficiency and improvement throughout our operations in a number of areas.��� He adds that, ���A lot of folks talk about Big Data today. What we have now allows us to cull the Big Data quite easily and put it into a simple to understand format that becomes actionable data, which we can turn around and deliver to our distribution centers as well as to our corporate teams. It���s a phenomenal place to be in and it���s been really great.��� FOOD LOGISTICS ��� JANUARY/FEBRUARY 2013 27

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