Managing by the Numbers: CSA and Fleet Safety Management

• • • •

This webcast will cover ...

CSA -- Post Launch Update, Managing Roadside Inspections and Interventions, Kraft Foods CSA Compliance Efforts, and Question & Answer Moderator Dr. Gary Petty

, President & CEO, NPTC

Panelists Tom Moore

, Vice President of Education, NPTC

Tom Bray

, Editor – Transportation Management, J. J. Keller & Associates, Inc.

Scott Willert

, Senior Manager, Private & Dedicated Fleets, Kraft Foods

Jeff Jones

, Senior Manager Logistics Operations, Kraft Foods

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Dr. Gary Petty President & CEO National Private Truck Council

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Introduction

• • • •

CSA -- Post Launch Update – Tom Moore Managing Roadside Inspections and Interventions – Tom Bray Kraft Foods CSA Compliance Efforts – Scott Willert & Jeff Jones Gary Petty

National Private Truck Council

Housekeeping issues:

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Introduction and Disclaimers

• • • •

The content in this webcast is intended for information purposes only and should not be construed as providing legal advice.

Gary Petty

National Private Truck Council

This is an introductory course and is intended to highlight critical safety and compliance topics. Time constraints limit our ability to go in depth.

We invite you to ask questions. We will answer them throughout today’s webcast.

This is a two part webcast. Tomorrow’s webcast will take a closer look at driver coaching. If you haven’t signed up you can at

http://www.jjkeller.com/nptcinfo

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Tom Moore, CTP Vice President of Education National Private Truck Council

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Why CSA?



Tom Moore

National Private Truck Council

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Is the New SMS a Good Predictor of Crash Rates?



Tom Moore

National Private Truck Council

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What Does This Mean?

• •

The upside is:

   

Crash rates should go down The downside is:

 

Increased likelihood of FMCSA intervention Recruiting and retaining drivers just got more difficult Tom Moore

National Private Truck Council

Greater scrutiny from insurance companies Plaintiff attorneys’ jobs just got easier!

ISS will change from “Pass” to “Inspect”. With an average of 30 minutes per roadside inspection, this will slow you down Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

SMS Process

• • • • •

Uses seven “BASICs” (Behavior Analysis and Safety Improvement Categories) to analyze carriers Measures and compares safety performance using all safety based violations discovered during roadside inspections and Tom Moore

National Private Truck Council

interventions, and DOT-recordable crashes All violations are severity and time weighted

  

Severity Weight - Violations 1-10, Accidents 1-3 Time Weight - 0-6 months = 3, 6-12 = 2, 12-24 = 1 Full value is determined by a formula that multiplies the weights Once per month, scores are totaled, normalized, and used to percentile order carriers in each BASIC versus peers in Safety Event Groups Carriers with percentiles that exceed the BASIC thresholds will be targeted for intervention Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Intervention Thresholds

BASIC

•Unsafe Driving •Fatigued Driving •Crash •Driver Fitness •Drugs/ Alcohol •Vehicle Maintenance •Cargo-Related

Passenger

50% 65%

Hazmat

60% 75%

Others

65% 80%

Complaints and crashes can lead to investigative interventions as well

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Tom Moore

National Private Truck Council

• • •

CSA Intervention Process

In CSA process, “Alert” status starts the intervention process Based on FMCSA policy, not regulations Drivers too, but only in relation to a carrier investigation Tom Moore

National Private Truck Council

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Interventions

Intervention Process – How It Works:



Early Contact:

 “Warning”: Carrier notified via warning letter  “Targeted roadside enforcement” - Carrier’s ISS recommendation changed to “Inspect”

Tom Moore

National Private Truck Council

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Interventions

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Investigative:

 

“Focused” reviews (on and off site): Based on BASIC(s) the carrier is above the intervention threshold “Comprehensive” review: Full and complete audit Request for documents starts process Tom Moore

National Private Truck Council

Investigator looking for violations Investigator also checking carrier’s Safety Management Controls (policies, procedures, responsibilities, accountabilities, qualifications processes, training, internal tracking, corrections, etc.) Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Intervention Scoring

• •

Investigative Intervention scoring: Investigation cannot improve BASIC Score, but can “flip” a BASIC to “Alert” regardless of calculated score Based on violations of serious regulations discovered during investigations and audits



Tom Moore

National Private Truck Council

One “very serious” violation or a pattern of “other serious violations” Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Interventions

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Follow-on: Used if a problem is found

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Cooperative Safety Plan Notice of Violation Tom Moore

National Private Truck Council

Notice of Claim

 Settlement agreement

Unfit suspension: Carrier declared “Unsatisfactory” following Comprehensive Review and fails to make necessary corrections and/or settle Notice of Claim Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Which Intervention?

• • • •

Specific intervention will depend on: Which BASIC(s) the carrier is over

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“Stand-Alone BASICs” How far over the threshold the carrier is How many BASICs exceed the threshold Enforcement history Tom Moore

National Private Truck Council

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State

Wisconsin Michigan Idaho Arizona Massachusetts Texas Connecticut Louisiana Rhode Island Indiana

Top 10 States with Highest % of Inspections with Violations

Violation Rate Top Violation

87.13

86.99

86.49

85.78

85.47

84.38

84.33

82.58

82.07

81.97

OOS Rate

28.61

17.80

24.08

21.86

21.33

20.91

33.82

27.25

19.33

10.52

Viol/ Inspect

4.08

2.20

3.21

3.37

2.48

4.16

3.39

2.47

4.03

1.98

395.8 - Log violation 392.2S - Speeding 392.2S - Speeding 395.8 - Log violation 392.2S - Speeding 391.11B2 - Non-English Speaking 392.16 - Failing to Use Seat Belt 392.16 - Failing to Use Seat Belt 391.41A – No Med Certificate 392.2S - Speeding Source: http://ai.fmcsa.dot.gov/SafetyProgram/spViolation.aspx?rpt=RDDV

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Tom Moore

National Private Truck Council

Tom Bray Editor, Transportation Management J. J. Keller & Associates, Inc.

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“Insufficient Data”

• •

With the latest update carriers that do not meet sufficiency requirements have BASIC Scores of:

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“Insufficient data”: Carrier did not even meet the minimum data standards.

“Inconclusive”: There is data there, but the sufficiency standard was not met.

“No violations”: Carrier was not scored in the BASIC due to not having a violation in it.

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“Not Available” : Means data will not be displayed Neither good nor bad…need to review the data behind these “scores” to determine if carrier is in good or bad shape Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Unsafe Driving

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Violations that affect BASIC Measure and Score:

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Speeding Failure to wear seatbelt Failure to obey traffic control device Following too close Discovered during auditing:

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Allowing driver to violate local laws Scheduling runs to necessitate speeding

Speeding violations appeared on more than 170,000 inspection reports in 2010 claiming the top spot, and seat belt violations are #7 with over 70,000

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Tom Bray

J. J. Keller & Associates, Inc.

Preventing Unsafe Driving Interventions

How to Prevent an Intervention in this BASIC:

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Effective driver hiring and screening processes (past performance…)

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Driver road testing, training, and retraining

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Require defensive and safe driving Track driver performance Tom Bray

J. J. Keller & Associates, Inc.

Watch scheduling and hours of service compliance (poor HOS compliance indication of scheduling problems)

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Consider speed limiters, on-board data recorders, LDWS, and CWS Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Fatigued Driving

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Violations that affect BASIC Measure and Score :

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Form and manner Logs not current Over-hours violations No logs False logs

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Discovered during auditing:

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No logs False logs Failure to retain logs or supporting documents

The above-listed violations account for 5 of the top 10 violations

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Tom Bray

J. J. Keller & Associates, Inc.

Preventing Fatigued Driving Interventions

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How to Prevent an Intervention in this BASIC: Management commitment to compliant culture Driver training and retraining Driver supervisor training and assigned responsibilities Tom Bray

J. J. Keller & Associates, Inc.

Auditing, counseling, remedial training, verified correction Driver and supervisor performance tracking Policies that discipline when problem found, reward when good behavior displayed Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Driver Fitness

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Violations that affect BASIC Measure and Score :

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No or expired medical certificate Non-English speaking driver No license Class and endorsement violations

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Discovered during auditing:

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No inquiry into employment record (SPH) Failing to maintain DQ file on each driver Using an unqualified driver No or expired medical certificate

Non-English speaking and medical certificate violations are #5 and #10, respectively

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Tom Bray

J. J. Keller & Associates, Inc.

Preventing Driver Fitness Interventions

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How to Prevent an Intervention in this BASIC: Verify driver qualifications at hire:

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Training and/or experience License Medical card Complete DQ file Track qualifications after hire (tickler system) Make sure driver remains qualified Verify qualifications regularly

 

Annually/semi-annually/quarterly Whenever significant event occurs Tom Bray

J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Drugs and Alcohol

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Violations that effect BASIC Measure and Score :

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Possession/use/under influence alcohol during or within 4hrs of duty

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Driver uses or is in possession of drugs Discovered during auditing:

   

Using a driver before receiving a pre-employment result Failing to implement an alcohol/drug testing program Failing to do random tests at applicable annual rate Using a driver who tested positive for a drug Tom Bray

J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Preventing Drugs and Alcohol Interventions

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How to Prevent an Intervention in this BASIC: Clear and concise drug and alcohol policy Doing the required testing and immediately removing drivers that fail a test Trained “supervisors” Swift and severe consequences Tom Bray

J. J. Keller & Associates, Inc.

Banning alcohol and drugs (prescription drugs that have been cleared by the driver’s and company doctor being the exception) from company property and vehicles Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Vehicle Maintenance

• •   

Violations that effect BASIC Measure and Score :

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No/defective/inoperable light Brake defects/adjustment Tire tread No annual inspection

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Discovered during auditing:

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DVIR errors (number 1 violation discovered during auditing)

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Using a vehicle not periodically (annually) inspected Failing to have maintenance records Operating an out-of-service vehicle Operating a vehicle with defective parts Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Tom Bray

J. J. Keller & Associates, Inc.

Preventing Vehicle Maintenance Interventions

• • • • • •

How to Prevent an Intervention in this BASIC: Vehicles well maintained by a competent maintenance department/contractor Qualified technicians inspecting and maintaining the Tom Bray

J. J. Keller & Associates, Inc.

vehicles at regular intervals (not just “fixing when broke”) Drivers doing vehicle inspections (pre-trip, enroute, and post trip) and addressing problems when found Sound decisions related to on-road repairs DVIRs submitted at end of each workday and problems addressed Tracking of inspection and maintenance activities (including annual), vehicle problems, roadside inspection reports, and repairs Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

• •

Cargo Related

   

Violations that effect BASIC Measure and Score :



Damaged or loose tiedown Failing to secure vehicle equipment or load HM placard missing, damaged, or obscured HM package not secure Shipping paper errors

 

Discovered during auditing:

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Security plan problems No shipping paper for HM shipment Accepting and transporting HM not prepared properly

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Failure to maintain copies of cargo tank certificates Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Tom Bray

J. J. Keller & Associates, Inc.

Preventing Cargo Related Interventions

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How to Prevent an Intervention in this BASIC: Train, train, train Make sure drivers:

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Know what they are doing

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Know to ask questions Have replacement procedures for defective equipment

 

Provide drivers with hands-on information

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Handbook Cheat sheets Support numbers (expert and/or mentor) Tom Bray

J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

•

Crash Indicator

What affects this BASIC?



DOT recordable crashes (preventability is not a factor, all crashes count)



Based on injury or fatality vs. no injury and the release of a hazardous material (cargo) Tom Bray

J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Preventing Crash Interventions

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How to Prevent an Intervention in this BASIC: Reduce crashes (eliminate preventable crashes) Effective driver hiring and screening processes (past performance…) Driver road testing, training, and retraining Require defensive and safe driving Track driver performance CWS Tom Bray

J. J. Keller & Associates, Inc.

Consider speed limiters, on-board data recorders, LDWS, and Investigate all crashes and track trends



Fix problems trends uncover Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Scott Willert Sr. Manager, Private & Dedicated Fleets Kraft Foods Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Jeff Jones Sr. Manager, Logistics Operations Kraft Foods

Kraft Foods Fleet Operations

•  

Fleet consists of :

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1,450 Power Units of varied types 1,530 Trailers 1,873 CDL Drivers

•

Kraft Foods maintains two fleets… Scott Willert

Kraft Foods

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Impact of CSA on Kraft Foods

• • • • • •

Re-evaluated hiring practices Re-defined driver and management training, specifically, as it applies to CSA Scott Willert

Kraft Foods

Participating in best practice discussions with other companies Although the requirement is every 24 months, due to CSA we now update our MCS-150 bi-annually.

Stringent procedures in place prior to CSA. Continue to reinforce.

Reset scope of 3PL compliance management company reporting practices Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Driver Coaching and Incentives in a CSA World

• • • •

Driver coaching has not changed after launch of CSA.

Kraft historically has and continues to use roadside inspection and crash reports as a means of identifying areas of focus for driver coaching.

Jeff Jones

Kraft Foods

Kraft does not incentivize drivers for clean inspections. Our philosophy is it’s a job requirement to operate in compliance.

Driver coaching will be covered in greater detail in tomorrow’s webcast.

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Driver Hiring Criteria & Onboarding Process

• •

Due to the number of facilities and to ensure consistency we utilize a 3 rd party for all on-boarding processes.

Current Criteria

  

2 years’ driving experience in class A equipment Clean driving record Preventable motor vehicle accident free

 

Successful completion of road test Successful completion of written evaluation Scott Willert

Kraft Foods

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Proactive Driver Fatigue BASIC Management - HOS Reporting

Date Run: Page 1 of 16

Driver Violation Percentage Summary Report

Start Date

:

01/24/2010 End Date: 02/20/2010 Location KRAFT FOODS GLOBAL, INC

12 Hour Rule Violation - need graph log 70 Hour / 8 Day Violation Company Address Missing Company Name Missing Empl # Missing Hours Incorrect Incomplete Log Missing Signature Missing Unit # Missing

Total Logs # of Violations Violation % # of Drivers Days In Range

28 28 28 28 28 28 28 28 28 28

Jeff Jones

Kraft Foods

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Proactive Vehicle Maintenance BASIC Management

• • • •

DSD Fleet has implemented EVIR process



Improved defect tracking



Improved driver inspection tracking Jeff Jones

Kraft Foods

Independent monitoring of EVIR w/ communications to Field Managers



Enables coaching sessions with Drivers for EVIR processes Maintenance providers engaged with EVIR defect repair management through



Enables maintenance providers to be more proactive and better utilizes their onsite service trucks and in shop scheduling



Better tracking of defect resolution Private Fleet tractors are equipped with a CSA kit (light bulbs, fuses, etc.) Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Proactive Vehicle Maintenance BASIC Management – EVIR Reporting

Jeff Jones

Kraft Foods

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Proactive Vehicle Maintenance BASIC Management – EVIR Reporting

Date

10/27/2010 18:36 10/27/2010 3:33 10/25/2010 13:25 10/25/2010 3:17

Asset

N29020 54285 10097 28706

First Name

Bean Noe Fricke Ellis

EVIR Report - Incomplete Inspections Last Name

Bob John Dave Mike

Repair Count

0 0 0 0 0 1 6 0

Defect Count Config Label

TRACTOR POST-TRIP TRACTOR PRE-TRIP TRACTOR POST-TRIP TRACTOR PRE-TRIP 0 0 0 0

Manual

0 0 0 0

Verified Extractor Device

UNK UNK UNK UNK

Jeff Jones

Kraft Foods

Duration

0:05:02 0:11:08 0:05:26 0:04:33

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Proactive Driver Fitness BASIC Management – DQ Management Reporting

Company /Location State Last First Emp #

110 110 110 110 110 110 WI WI WI WI WI WI

Document Type

Noe John Noe John Noe John Noe John Bean Bob Bean Bob 309 309 309 309 310 310 Annual Review (391.25) Copy of Operator's License (391.11) VS4 Medical Exam Long Form (391.43) VS1 Medical Exam Wallet Card (391.43) VS3 Medical Exam Long Form (391.43) VS1 Medical Exam Wallet Card (391.43) VS3 Maintenance Maintenance Maintenance Maintenance Maintenance Maintenance

Status

90 DAY NOTICE REMINDE R 60 DAY NOTICE 60 DAY NOTICE 60 DAY NOTICE 60 DAY NOTICE

Doc Date Jeff Jones

Kraft Foods

Exp Date

4/6/2010 4/12/200 6 3/13/200 9 3/13/200 9 3/30/200 9 3/30/200 9 4/5/2011

2/12/20 11 3/13/20 11 3/13/20 11 3/30/20 11 3/30/20 11 Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

CSA Impact on Shipper Contract Carrier Management

•

Broad range of measurements and increased transparency require higher level on ongoing monitoring by shippers to mitigate risk



Kraft Foods action plan: Scott Willert

Kraft Foods  Considering changes to motor carrier contract language to recognize CSA requirements  Carrier score monitoring process (3 rd party provided) – Supply provider with USDOT numbers of all contract carriers (including Fleet) – Monthly reports emailed showing carrier scores: ranked worst to first – Thresholds established for warning levels consistent with intervention and “out of service” CSA parameters. – Expanded distribution list of reports for carriers reaching threshold levels 

Consult your counsel and/or NPTC Counsel Rick Schweitzer with legal inquiries Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451

Question & Answer

Gary Petty

National Private Truck Council

Tom Moore

National Private Truck Council

Tom Bray

J. J. Keller & Associates, Inc.

Scott Willert

Kraft Foods

Please submit questions to “Q&A” using the Q&A tool Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Jeff Jones

Kraft Foods

Closing Remarks

• •

Checkout the archive of past topics at: http://www.jjkeller.com/nptcinfo



PowerPoint slides up in 1-2 days



Recording up in 1 week Gary Petty

National Private Truck Council   

Topics for 2011:



February 10 – Managing by the Numbers – CSA and Driver Management May 11 – The EOBR Rule and Elogs July 13 – Fleet Excellence: Driver Wellness October 12 – Fleet Excellence: Driver Discipline and Coaching Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451