Thursday, September 29, 2011
Wednesday, September 21, 2011
Friday, September 16, 2011
Postal Service Contracting: What Every Contractor Should Know
Hursch Blackwell LLP and NSRMCA attorney David Hendel will be presenting a one day seminar on Contracting to the USPS. You can obtain detailed information here.
If you contract to the USPS, or if you are planning on contracting to the USPS, this is for you. Register here.
If you contract to the USPS, or if you are planning on contracting to the USPS, this is for you. Register here.
Thursday, September 15, 2011
Your company hauls US Mail - How Do You Plan Your Business?
Many of our customers haul US Mail for Highway Contract Routes. If you were at the NSRMCA convention in Baltimore in August, today's news is no surprise. You heard the PMG and surface transportation leadership describe coming changes. Many readers of this blog contacted us to request a copy of the OIG's report on the new postal network. This report, published by the USPS Office of the Inspector General, outlined the "new" USPS network. There is one fact in this discussion - things must change for the USPS. Change is no longer in doubt. The question is the type of change, and the pace of change.
Your company hauls mail. What do you do and how do you plan? Will you get more or fewer trips on your contracts? What will contracts look like when they renew? Will there be more trips, fewer trips, GPS required, etc?
We know that many of the USPS proposals require Congressional approval, but not all. We can speculate that some, but not all, of these proposals will become reality. We also know that many of these initiatives have already started. Our clients are already reporting combined contracts, cut trips, elimination of mail processing facilities that in turn necessitate new contracts.
We know that the USPS leadership has stated their intention to dramatically change the network, increasing capacity utilization. They wish to issue more area wide contracts - fewer contracts that require more resources from the successful bidder. They wish to increase utilization, including dynamically combining or changing trips to respond to current volumes. This means fewer miles within existing lanes of traffic. However, the story does not end there.
We also know they have already closed 145 processing facilities since 2006. They wish to reduce the current number of mail processing facilities from 528 (FY 2010) to 135. Fewer processing facilities means more miles in new lanes. Further, they wish to shift mail from air to trucks - adding even more miles.
The impact on your company will be determined by three things; your willingness to work with the USPS, your geographic areas of operation, and your ability to rapidly respond to service changes.
You must decide if you wish to remain in the mail business in light of these changes. If so, you must start preparing tomorrow to run your company differently. Drivers must understand that there will be fewer "milk runs" where they execute the same routine for years on end. Mechanics must understand that uptime, appearance, and response to downtime is more important than ever. Dispatchers must understand there there will be fewer static runs, and they must come up with plans to respond to flexible demands for people and equipment.
Finally, owners must drive these changes - plus respond to their own set of challenges. Be flexible yet precise when bidding new contracts. Determine the true cost and benefit of handling extras. Consider other revenue opportunities with your existing capacities - such as dedicated runs that can serve as backhauls for those postal "one-ways".
You would expect a technically-oriented blog to address the role and importance of technology. Yet, it's pretty obvious what you must be able to do. You must be able to instantly communicate with your drivers, and to see how each of your routes are performing in real time. You must be able to perform proforma analyses of contracts you're bidding. You must have the tools to dynamically dispatch equipment and people as needed.
Contact us with any questions or comments. We're in this business to stay, and we're interested in working with you and hearing your comments.
Your company hauls mail. What do you do and how do you plan? Will you get more or fewer trips on your contracts? What will contracts look like when they renew? Will there be more trips, fewer trips, GPS required, etc?
We know that many of the USPS proposals require Congressional approval, but not all. We can speculate that some, but not all, of these proposals will become reality. We also know that many of these initiatives have already started. Our clients are already reporting combined contracts, cut trips, elimination of mail processing facilities that in turn necessitate new contracts.
We know that the USPS leadership has stated their intention to dramatically change the network, increasing capacity utilization. They wish to issue more area wide contracts - fewer contracts that require more resources from the successful bidder. They wish to increase utilization, including dynamically combining or changing trips to respond to current volumes. This means fewer miles within existing lanes of traffic. However, the story does not end there.
We also know they have already closed 145 processing facilities since 2006. They wish to reduce the current number of mail processing facilities from 528 (FY 2010) to 135. Fewer processing facilities means more miles in new lanes. Further, they wish to shift mail from air to trucks - adding even more miles.
The impact on your company will be determined by three things; your willingness to work with the USPS, your geographic areas of operation, and your ability to rapidly respond to service changes.
You must decide if you wish to remain in the mail business in light of these changes. If so, you must start preparing tomorrow to run your company differently. Drivers must understand that there will be fewer "milk runs" where they execute the same routine for years on end. Mechanics must understand that uptime, appearance, and response to downtime is more important than ever. Dispatchers must understand there there will be fewer static runs, and they must come up with plans to respond to flexible demands for people and equipment.
Finally, owners must drive these changes - plus respond to their own set of challenges. Be flexible yet precise when bidding new contracts. Determine the true cost and benefit of handling extras. Consider other revenue opportunities with your existing capacities - such as dedicated runs that can serve as backhauls for those postal "one-ways".
You would expect a technically-oriented blog to address the role and importance of technology. Yet, it's pretty obvious what you must be able to do. You must be able to instantly communicate with your drivers, and to see how each of your routes are performing in real time. You must be able to perform proforma analyses of contracts you're bidding. You must have the tools to dynamically dispatch equipment and people as needed.
Contact us with any questions or comments. We're in this business to stay, and we're interested in working with you and hearing your comments.
Wednesday, September 7, 2011
Why EOBR's?
Even though we have a modern technical guideline for the technical aspects of EOBR's in 395.16, there is uncertainty about the implementation of an EOBR mandate. In fact, the only certainty is uncertainty. We are fairly certain there will be a delay in the implementation of 395.16 - but how long is anyone's guess.
We have focused on the regulatory aspects of EOBR's - now let's focus on the business aspects. There is no widely-deployed, industry accepted pure EOBR. Instead, systems include EOBR functionality but also include lots of other stuff. It is this additional functionality that gives fleets their return on investment. A very important side benefit is the safety and ease of regulatory compliance.
I recommend you read this EOBR white paper. It was written in 2006, and published on numerous web sites as well as in Transport Topics as an editorial. Until we have a mandate, it's applicable to our current situation.
We have focused on the regulatory aspects of EOBR's - now let's focus on the business aspects. There is no widely-deployed, industry accepted pure EOBR. Instead, systems include EOBR functionality but also include lots of other stuff. It is this additional functionality that gives fleets their return on investment. A very important side benefit is the safety and ease of regulatory compliance.
I recommend you read this EOBR white paper. It was written in 2006, and published on numerous web sites as well as in Transport Topics as an editorial. Until we have a mandate, it's applicable to our current situation.
Tuesday, September 6, 2011
Transportation Industry Input Requested
There is still time to provide your input on the 2011 Top Industry Issues Survey. The survey is conducted annually by ATRI and seeks industry input on the top industry concerns along with appropriate strategies for addressing each issue. The survey is for ALL industry stakeholders, not just motor carriers. The survey is available online at www.atri-online.org and only takes a few minutes to complete. Results of the survey will be released in October.
EOBR Update
If you have read 395.16, you know that most of this EOBR rule addresses the technical aspects of an EOBR. Only a portion of the rule addresses a partial mandate - for those companies who have 10% of drivers fail the HOS portion of an audit. It is this latter part of the regulation that the court had issues with, as the FMCSA did not properly address a Congressional directive on minimizing driver harassment.
Meanwhile, the FMCSA continues to iron out the details of the EOBR rule, scheduled to become effective next year. If you are a fleet with a system that includes an EOBR - it's business as usual for you. If you are considering a system that includes an EOBR, make sure it will meet the current edition of 395.16. It is very likely that whatever changes in 395.16 - changes to the technical portion will not be substantial. If you're not going to consider an EOBR until it's absolutely necessary, you'll probably have a little more time.
Meanwhile, the FMCSA continues to iron out the details of the EOBR rule, scheduled to become effective next year. If you are a fleet with a system that includes an EOBR - it's business as usual for you. If you are considering a system that includes an EOBR, make sure it will meet the current edition of 395.16. It is very likely that whatever changes in 395.16 - changes to the technical portion will not be substantial. If you're not going to consider an EOBR until it's absolutely necessary, you'll probably have a little more time.
Thursday, September 1, 2011
CSA Driver Survey
Contact us for a copy of the American Transportation Research Institute's survey of professional drivers regarding CSA.
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