Getting Material from Point A to Point B

1. Getting Material from Point A to Point B Jim PrzybylskiManager, Transportation Management MATERIALS MANAGEMENT WORKSHOP May 13, 2008 This work was done by National Security Technologies, LLC, under Contract No. DE-AC52-06NA25946 with the U.S. Department of Energy. Vision • Service • Partnership

2. Material Movement • NSTec Traffic Operations performs shipping functions for Counter Terrorism Operations Support (CTOS). • CTOS has developed and conducts training courses for many agencies, and oversees the training of emergency first responders to take immediate, decisive action to prevent or mitigate terrorist use of radiological or nuclear weapons of mass destruction. • Training courses and exercises are conducted at: • Nevada Test Site • Municipality-hosted locations around the US and overseas • The program trains approximately 10,000 first responders per year.

3. NSTec Traffic Operations • Early shipments used air express carriers • As the popularity of CTOS training increased, • Frequency increased • Size of shipments increased • Freight costs escalated… …dramatically

4. Traffic Operations Identifies a Need …and so did the Logistical challenges! • Very tight turnaround schedules • Materials had to be returned, cleaned, repaired, and re-shipped • Material arrived late on Mondays • Handling and storage at training sites • The need to ship point-to-point between offsite locations

5. NSTec Traffic Operations Traffic Operations staff applied Lean / Six Sigma methodologies to identify a solution.

6. NSTec Traffic Operations Air Express versus Dedicated Truckload

7. Air Freight Shipping Costs • Las Vegas to Philadelphia and return via FedEx Priority Overnight Training materials 80 pieces X $81.00 each = $6,480.00 (one way) Radioactive sources 5 pieces X $116.00 each = $580.00 (one way) Total: $14,120 round trip

8. Truckload Shipping Costs • Las Vegas to Philadelphia and return via dedicated truckload service Line haul: $4,100.00 (outbound) Detention: $1,500.00 (one way) Line haul: $4,700.00 (inbound) Total: $10,300.00 Cost Savings: $3,820.00

9. Cost Savings • Back-to-back, week-long classes, in 4 different cities, returning to Las Vegas each week for material cleaning and repair. Air express: $41,429.00 Dedication truckload service: $15,915.00 Cost savings: $25,514.00

10. Dedicated Truckload Shipments The dedicated truckload option was presented to CTOS and was well received. • Eliminated training site storage problems • Reduced and simplified the documentation • Allowed Round-Robin training schedules • Materials available on-time • Reduced handling and damage • Provided huge cost savings

11. Dedicated Truckload Shipments

12. Scheduling • Round-Robin scheduling • Multiple stops on a single outbound trip • Cleaning and repair materials transported with training materials • 12-Stop Round-Robin Schedule • Air express costs would have been in excess of $100,000 • The dedicated truckload cost was $51,264

13. CTOS and NSTec Traffic Operations Cooperation between CTOS and Traffic Operations has created a well-oiled process. In three years, despite last-minute course additions or deletions, weather extremes, and equipment problems, the contracted dedicated truckload service has always arrived on schedule in support of each CTOS class.