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Managing the Last Link Supply Chain Transportation Quality

Managing the Last Link Supply Chain Transportation Quality. Harry Bell, Northeast Regional Manager, American Transport, Inc. Introduction. American Transport, Inc. (ATI) is a flatbed trucking company based in Pittsburgh, PA ATI began operations in 1986

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Managing the Last Link Supply Chain Transportation Quality

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  1. Managing the Last LinkSupply Chain Transportation Quality Harry Bell, Northeast Regional Manager, American Transport, Inc.

  2. Introduction • American Transport, Inc. (ATI) is a flatbed trucking company based in Pittsburgh, PA • ATI began operations in 1986 • Focused on steel products and building materials • ATI includes a machinery division and recently added a wind energy group • Harry Bell joined ATI in 1988 • Local office is based in South Jersey near the new Paulsboro Marine Terminal site

  3. The Bottom Line • Quality in cargo transportation directly impacts the bottom line. • During a deflated economy, we found creative ways to improve profits by focusing on reducing claims and accidents. • Improving quality increases customer satisfaction and confidence. The Bottom Line

  4. Steps to Improve Quality • We revamped safety and handling procedures. • Example: Replaced chains with nylon straps as cargo securing devices on trucks. Coil “eye to the sky” secured with nylon straps

  5. Steps to Improve Quality • Implemented both incentive programs for drivers, as well as holding drivers accountable for any claims or accidents where driver is found negligent. • Example: Created escrow account for each driver, making them financially responsible for the first $1,000 of any claim or accident. • Example: Drivers are trained on proper handling procedures and sign an acknowledgement and are financially rewarded annually for being accident and claim free.

  6. Steps to Improve Quality • Improvements in technology also benefits quality: • Example: New trailers have replaced the older tarped flatbed with covered wagon and curtain side flatbeds. These trailers allow air circulation to reduce condensation on steel products. Covered Wagon Trailer

  7. Understanding Value 10 ton steel coil $15,000 New Car = Value Equal To A key to improving quality is to educate the entire supply chain about the value of the cargo we transport.

  8. Claims - The Old Standard Old Claims Standard Based on a 100 Coils per month Industry Acceptable Claims 5 coils per month Claims value of $75,000 per month or $900,000 annually

  9. Claims - The New Standard The NEW Claims Standard Based on a 100 Coils per month Industry Acceptable Claims 1/2 coil per month Claims value of $7,000 per month or $90,000 annually WE STRIVE TO ACHIEVE ZERO TOLERANCE FOR CLAIMS

  10. The Supply Chain The domestic transport company is the eighth and final link in the supply chain to handle and deliver the cargo to the customer. A focus on quality of service, communication and cooperation with all the partners is essential to ensuring customer satisfaction and everyone’s bottom line.

  11. QUESTIONS

  12. Thank You Harry Bell Northeast Regional Manager American Transport, Inc. Telephone: 856-423-4220 Email: hrbell@transportinvestments.com

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