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Flat Glass Logistics Council

Flat Glass Logistics Council

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Flat Glass Logistics Council

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  1. Flat Glass Logistics Council Issues Chicago, May 1, 2003 Chicago Council Meeting

  2. Who are we? Chicago Council Meeting

  3. Evolution • Don Osterberg – Military Logistics Officer • Took responsibility for Schneider Specialized Carriers • Recognized key industry problems • Asked UT for help • Together we recognized it was an industry rather than a Schneider problem • Amendable to an industry standards committee approach Chicago Council Meeting

  4. Two Conference Calls • Call 1 – Everyone reluctant especially about antitrust issues & role of group • Call 2 – Who would be willing to participate Chicago Council Meeting

  5. Two Chicago Meetings • October 9, 2002 • Six issues raised and discussed by industry teams • Specified data needed to analyze safety issues • November 21, 2002 • Reviewed safety data • Standardized data categories for future data collection • Group decision to move forward and form group Chicago Council Meeting

  6. Conclusion: There are major industry problems. There is no other group to address these issues. If this group does not do it, it will not be done. Chicago Council Meeting

  7. What are the major issues? Chicago Council Meeting

  8. Distribution costs have been steadily decreasing since 1980. Flat Glass has not benefited from this cost reduction. Chicago Council Meeting

  9. Index of Distribution Costs Over 20 years Chicago Council Meeting

  10. Expectations are changing • In a world of • Efficient Consumer Response (ECR) • Vendor Managed Inventory (VMI) • Collaborative Planning, Forecasting and Replenishment (CPFR) • Need for greater communication & standards for efficiencies • The world is expecting • Quick response • Short Lead Times • Synchronized Delivery • Greater Variety (mixed shipments) • Lower landed cost • Greater flexibility Chicago Council Meeting

  11. But we say • Flat glass is different • Inability to adjust production level • We acknowledge this. • But there are many areas where problems are self-inflicted. Chicago Council Meeting

  12. What are these self-inflicted areas? • Driver safety and worker compensation costs • Driver retention • Loss and damage claims • Capacity utilization • Lack of supply chain collaboration • Lack of participation on standards committees Chicago Council Meeting

  13. Today we will address the first issue – Driver Safety • In an era of strict OSHA guidelines on safety issues, flat glass has not been covered • OSHA covers plant workers • DOT regulates safety issues for drivers • Drivers do not typically load truck Chicago Council Meeting

  14. OSHA Requirement • Workers must have protective railing and/or tethers when work off the floor • Limitations on weight employees are expected to lift without mechanical assistance • Special attention must be given to employees working on wet or slippery surfaces Chicago Council Meeting

  15. 130 lbs tarp Chicago Council Meeting

  16. How Would You Like to Explain? • Drivers working 13’ 6” above the ground without railings or teathers • Where they carry, spread and secure a 130# tarp • Surrounded by a product that is famous for sharp edges and the ability to cut (sharp as glass) • Some times working outside where it has rained and material is slippery Chicago Council Meeting

  17. Why are we here today? • To develop best practice guidelines to reduce injuries • Why? • Humanitarian – you want to protect workers • Reduce cost of worker’s compensation • Keep drivers on the road to reduce cost of retraining and recruiting • Don’t want a problem to occur and have OSHA and DOT impose solutions • Supply chain interruptions Chicago Council Meeting

  18. How important is transportation to delivered cost of glass? • High percentage • 16% • Low percentage • 9% Chicago Council Meeting

  19. How important are losses to transportation costs? Chicago Council Meeting

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  24. Did not have hire data for part of sample. Chicago Council Meeting

  25. Probability of Injury • 10 percent of work force • Higher rate for new employees Chicago Council Meeting

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  28. Summary • High level of driver turnover • High cost of driver recruitment • High cost of driver training • High probability of driver injury especially the first year • High cost of injury • Rapid decline in availability of new drivers Chicago Council Meeting

  29. Summary (cont) • Loading and unloading procedures are not in conformance to OSHA guidelines because the drivers are in a no-mans area • Unless this group does something to make area safer, standards will be imposed. Chicago Council Meeting

  30. Mission • How to develop best practice guidelines to reduce loading and unloading accidents? • How do you secure and tarp loads? • Faster • Safer • How can drivers be protected while securing and tarping loads? Chicago Council Meeting

  31. Other Issues • There are many other issues but they must wait until subsequent meetings. • Safety is our first issue. We need to do it: • For humanitarian reasons. You cannot hire an employee to be injured. • Do it now for cost reasons. • Do it before OSHA and DOT make you do it. Chicago Council Meeting

  32. Bright Spot • One carrier here uses different methods • Did not have a single injury in 2001. Chicago Council Meeting

  33. NEW SLIDE • Group Vision:The Flatglass Logistics Council will help make the flatglass supply chain safer and more responsive to customers with lower cost for consumers. The Council is an organization of flatglass logistics professionals and firms involved in manufacturing, transportation, and fabrication of flatglass, who are interested in improving the safety and supply chain management process in the industry. It is primarily interested in identifying best practices, developing standardized training programs, and adapting information and other standards that will improve logistics practice in their respective organization • Group Mission: 1.Develop improved safety practices in the transportation/ handling of flat glass and educate firms on the use of these practices. 2.Identify best practices in the supply chain management and educate the industry in the use of these best practices 3. Develop industry standards that facilitate the labeling, packaging, and distribution of flat glass and educate the members on the use of these standards and encourage their adoption industry-wide. Chicago Council Meeting

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