Fleet Management News & Business Info | Commercial Carrier Journal
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INNOVATORS With an average length of haul of only 95 miles and a working radius of 250 miles, Central Pennsylvania Transportation is looking to grow its footprint, but is cautious in doing so. We've always modeled what the operation looks like and tried to work together with customers to create cost-saving measures. – Thorny Embly, vice president, Central Pennsylvania Transportation Pa., CPT has a few customers for whom it utilizes a mix of CPT trailers and customer trailers. When CPT is hauling freight with the customer's trailers, it has a lower cost to the customer since CPT is earning some revenue on the backhaul. "If a customer has a load on their trailer that we deliver to the middle of nowhere and we have to come back empty, that is in the rate," explains Embly. "But if the shipment goes into a high-volume area where we know we can get some backhauls that come right back into the area, there's some offset for that if we get to utilize their trailer." Another example of CPT's commitment to service for its customers is dynamic loading, where a production facility is able to move finished product right out of assembly and into a waiting trailer. As the trailer is filling, CPT is notified to move the shipment to a distribution center. "Part of the reason we are so trailer-intensive is our dynamic loading operations," says Embly. CPT, which has a mix of 80 power units and 320 trailers, often has 10 to 20 trailers at a single customer's facilities. CPT increasingly uses dynamic loading as manufacturing processes change. 44 "Our customers' production machinery generates revenue, and more of them are adding to their production at the expense of storage space," says Embly, noting that one Fortune 300 Company in the area has reduced its finished product inventory space from 60,000 square feet down to less than 25,000. "As finished goods come off the production line, they are loaded directly into a trailer rather than being staged on a dock. Dynamic loading allows us to eliminate their bottleneck and keep product flowing out the door." Pay by the hour As a short-haul carrier, Central Pennsylvania Transportation already has a lot to offer its drivers in the way of home time, with drivers returning home every night. But its hourly wage structure, something the company has had in place since its inception in 1985, provides its work force with predictable paychecks. In addition, the company typically operates Monday through Friday, allowing most drivers to have downtime on the weekends. "It's interesting to me that even though we pay hourly, the majority of our guys hate to sit, even though they are getting paid to do so," says Embly. "They want to get their job done and go home. I think that is unique, and it has been that way since we started." As a result, driver turnover is low, averaging about 7 to 8 percent per year. "The last time we had double-digit turnover was probably 2009, when we lost many drivers, a couple due to performance even after working to correct the problems," says Embly. "We focus on relationships with our drivers and making this a good place to work. Our culture here is very stable. "Our drivers are our best salesmen," he adds. "They know the people on the docks and build relationships. We don't just start and stop with the local transportation manager. We build relationships from the bottom up, going all the way to upper management so that we can address their issues and show we care." Its ability to be selective on which drivers to hire and retain, as well as stringent safety training and maintenance practices, has helped CPT achieve Compliance Safety Accountability scores that are "a fraction of the national average," says Embly. With an average length of haul of only 95 miles and a working radius of 250 miles, CPT is looking to grow its footprint, but is cautious in doing so. "I get phone calls every day from customers looking for our business, and the driver shortage and tight capacity is certainly a part of that," says Embly. "That is causing carriers to raise rates and has pushed a lot of potential customers back into the market looking for other carriers. That will be very impactful this year and probably next." CCJ INNOVATORS profiles carriers and fleets that have found innovative ways to overcome trucking's challenges. If you know a carrier that has displayed innovation, contact Jeff Crissey at jcrissey@ccjmagazine.com or 800-633-5953. COMMERCIAL CARRIER JOURNAL | JULY 2013 CCJ_0713_Innovators.indd 44 6/25/13 1:18 PM