Food Logistics serves the entire food supply chain industry with targeted content for manufacturers, retailers, and distributors.
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32 JANUARY/FEBRUARY 2015 • FOOD LOGISTICS www.foodlogistics.com make it easier to acquire new equipment. According to Brian Holland, president and CFO at Ft. Lauderdale, Fla.-based Fleet Advantage, "We are seeing a growing trend in the transportation industry as more fleet operators turn to leasing to lower their overall costs, free up capital for growth and expansion, and gain the flexibility to upgrade to newer, more fuel-efficient technology when it becomes cheaper to do so." Of course, the ability to free up cash makes leasing very attractive to fleet managers, empha- sizes Holland. "Leasing allows fleet operators to avoid tying up large amounts of capital in their rolling stock, and instead invest that money to grow other aspects of their business," he says. From a more strategic perspective, deeper collabora- tion is one way to address current challenges, says Jorge Salas, vice president of operations at Miami, Fla.-based Ryder Dedicated. "We continue to see more openness for collaboration, even between competitors, to drive supply chain efficiencies," he says. "For example, Ryder continues to leverage indirect and direct competitors within both wholesale and retail grocery distribution. We have utilized this model successfully in our region to reduce costs (both to the distributor and end custom- er), increase flexibility/adaptability, and when possible, combine freight to reduce the carbon footprint of the goods." Salas says adhering to lean principles remains highly effective, too. "The general costs and complexity asso- ciated with operating fleets and supply chains continue to increase. While fuel prices dropped for months, the cost of drivers, equipment and maintenance continued to rise. Furthermore, as an outsourced provider, we have to deliver our service at a price that allows the customer to remain competitive. And, our customers are always looking to us to bring creative ways to continue to drive efficiencies." This is where lean supply chain execu- tion comes into play, says Salas. "As a lean company, our focus is on helping our cus- tomers and partners understand where their costs lie and then presenting them with cost saving initiatives. We have engineers and on-site managers constantly exploring profitable backhauls, both internally and externally, for customers. For example, cube-per-load analysis is broken down to cost-per-delivery and even cost- per-case." ◆ For more information: C.H. ROBINSON, 952-683-2800, www.chrobinson.com CONNECT CMMS, 877-340-2077, www.connectcmms.com FLEET ADVANTAGE, 954-615-4400, www.fleetadvantage.net ISUZU COMMERCIAL TRUCKS, 866-441-9638, www.isuzucv.com RYDER DEDICATED, 888-793-3702, www.ryder.com TELOGIS, 949-389-5500, www.telogis.com TMW SYSTEMS, 216-831-6606, www.tmwsystems.com ZONAR, 206-878-2459, www.zonarsystems.com Why A New FMCSA Rule Misses The Mark By Fred Fakkema O n Dec. 18, 2014 the Federal Motor Carrier Safety Administration (FMCSA) issued a final rule that is sure to greatly impact food and beverage fleet operations. This rule eliminates the requirement for drivers to submit a non-defective Driver Vehicle Inspection Report (DVIR). It affects all motor carriers currently subject to 49 CFR 396.11, both private and for-hire, with the exception of operators of passenger-carrying commercial motor vehicles. Before the new rule went into effect, safety regulations required drivers employed by motor carriers to prepare a written report at the completion of each day's work, on each vehicle operated. The report listed any defects or deficiencies that could impact the safety of the vehicle's operation or result in its breakdown. This report had to be submitted to the employing motor carrier so that repairs could be made. While drivers must still complete and file the DVIR at the end of each tour of duty, they're no longer required to file it if there are no vehicle defects to report. The main issue to remember is pre- and post-trip inspections are still required. Drivers must still perform pre- and post-trip evaluations of equipment condition, and complete DVIRs, if any defects or deficiencies are discovered or reported. The rule change aims to eliminate unnecessary paperwork for the trucking industry. Unfortunately, the rule change didn't quite hit the mark. And here's why—imagine if one of your trucks has a defect that causes or results in an accident with significant property damage, injuries, or fatalities, or all of the above. In the likely ensuing litigation, attorneys would probably ask for all driver vehicle inspection reports. Let's say they find reports of defective equipment. But what they don't find are any pre- or post-trip DVIRs for the days, maybe even the weeks leading up to the crash. Their likely conclusion and argument to the jury: You and your drivers got complacent and didn't conduct the required vehicle inspections in the days or weeks leading up to the accident. Otherwise, if they had, "The defects would have been found and this terrible tragedy could have been avoided." They may even have one of your drivers take the stand and ask him or her, "Did you ALWAYS conduct your vehicle pre- and post-trip inspections? Remember, you're under oath." Now, instead of a lawsuit, let's say that accident triggered an on-site audit by the FMCSA. In that hypothetical situation, it's easy to see how inspection officers could also come to the same conclusion as the attorneys. Obviously, your company would have a dif- ficult time convincing the jury or the inspection officers that your drivers DO conduct their inspections even though you have no evidence. While Seattle, Wash.-based Zonar eliminates unnecessary paperwork with its patented electronic vehicle inspection report (EVIR), it also provides fleets the evidence they need to prove to juries and to inspection officers that daily inspections were completed, as required, even when there were no defects to report. I have had companies tell me they want our telematics system because of this rule change. They want the evidence Zonar's EVIR offers to prove their drivers conduct all routine inspections should they ever end up defending themselves in court or trying to convince inspection officers not to write them up. Meanwhile, if your fleet also operates trucks in Canada, keep in mind this new rule does not change reciprocity. Canada will still require your company to prove that your driv- ers have conducted their proper pre- and post-trip inspections. This means many carriers with trucks that travel in Canada must still require drivers to keep some form of documen- tation in order to prove the inspections have been done. ◆ Fred Fakkema is vice president of compliance at Zonar (www.zonarsystems.com). Record keeping require- ments are part of the job for motor carriers and drivers. Cloud-based solutions like Connect CMMS save time and enhance compliance.