Tips for taming transportation costs

By Paul Driskell President Translabor Leasing Corp. Pico Rivera. Ca.

I N TODAY'S world of rising costs

Iand dwindling return on the dollar, the businessman is finding it more important than ever to keep tight control on operational costs and reduce unnecessary expenditures whenever and wherever possible.

Few financial variables have as dramatic an impact on his "bottom line" as those dealing with transportation. With fuel, equipment and labor costs rising at alarming rates, today's executive might well be compared to the engineer of a runaway train. Unless he manages to find some way to lessen the speed of that train, results could be devastating to him and the company.

Over the past seven years, Translabor Leasing has worked with numerous companies to solve this problem. We've been able to identify five costcutting steps that can have a significant impact upon a company's transportation budget.

(1) Isolate transportation costs. If you can't isolate them, fix them. Since transportation is not your major business, develop a system in which its components are easily identified and budgeted. Isolate all costs associated with your transportation system including labor, equipment, maintenance, etc. Don't allow anyone to combine other company-related expenses with those of transportation. If you do, you'll have no way to objectively evaluate your present in-house system.

If you can't isolate costs, consider leasing your trucks and equipment. Personnel, too. You'll pay a standard and pre-budgeted monthly rate on each. This may not be the least expensive way of doing business, but it's undoubtedly the safest.

(2) Take care of your equipment now, not later. A well-run preventive maintenance program can save time and money, take care of potential problems before they occur, and generally be inexpensive to implement and operate. Whatever you decide,

Story at a Glance

Five ways to lower company transportation costs... how to organize your system planning for the future . tips to maintain tight control.

hold yourself and your workers to it. The long-range benefits far exceed the short-term costs.

Make sure that drivers and other equipment operators have a system with which to report malfunctions or problems, that there is someone responsible for listening and doing something about their complaints.

(3) Develop incentive wage programs for employees. No matter how good your supervisors are at keeping your drivers on time and working hard, total efficiency will never occur

(Continued on next page) trucking regulations. Giggans, who was an award winning reporter for ABC-TV in Viet Nam, now works with NBC News in Los Angeles.

Taming Costs

(Continued from previous page) unless the employee is motivated to make it happen. This motivation may take many forms: extra time off, pay increase, bonus or company award to recognize exceptional equipment maintenance, on-time performance, attendance, lowest number of accidents, product losses or damage, customer compliments.

(4) Get the maximum use out of your equipment. Trucks and other equipment sitting idly in your yard is equipment and money wasted. If you are going to buy your own transportation equipment, don't over-buy. Use supplemental services for dips and valleys. Check into rentals, temporary personnel services, outside carriers.

Effective trip planning can help you maximize equipment use. Plan two-way movements whenever possible. When not, compare your costs with those of a "for hire" carrier. Or consider operating as a "for hire" carrier yourself on the return trip.

(5) Plan for the future-yours and your employees. A well-organized long range plan is essential to the successful operation of your company's transportation operation, especially when it comes to labor costs.

Time spent now to decide your company's posture on recruiting, labor relations and employee wages could result in saved dollars later. Budgets can be drawn, goals set, and a plan of action set in place.

Like the engineer on the runaway train, today's executive can do something about skyrocketing transportation costs. All it takes is a little common business sense, a little hard work, and the effective use ofoutside resources available to vou and vour company.

Checklist for Hiring Drivers

Of all the decisions you'll make while managing your company's transportation system, few will be as important as those concerning the hiring of new truck drivers.

Out on the road. that driver becomes an extension of your company, He (or she) must be concerned with delivering your product as well as equipment to its intended location.

Good, qualified truck drivers are out there. The trick is to identify them in the screening process.

The following guidelines, may help you interview a prospective driver:

(l) Check the applicant's credentials. Require a valid driver's license (issued by the state in which your operation is based), a current department of motor vehicles citation and accident report, and Department of Tranqportation @OT) physical card, written examination and certified road test.

Prospective drivers should be licensed to drive your maximum piece of machinery, and should have been examined by a physician who is familiar with and capable of conducting the types of physicals required by the DOT. If you need the name of a qualified physician, contact your local trucking association.

(2) Check the applicant's background. Study the DMV report, as well as the applicant's job application. Look for potential "danger" signals. Make note of the number of job changes and reasons for those changes.

(3) Determine the applicant's driving patterns and interests. During the inlerview, don't tell the applicant what type of driver you're hiring. Ask him, instead, what kind of job he'd prefer to have.

(4) Assess the applicant's attitude toward life, work and family. Is it positive? This is something you'll undoubtedly have to evaluate based upon responses to some of your other questions.

(5) Take note of how the applicant presents himself. An applicant wearing a coat and tie may caus€ you as much concern as the one who shows upin sandals ald a sleeveless shirt. A man does not need to war a coat and tie to *row good personal hygiene habits. However, you may be talking to drivers who come see you straight from work,

Check the applicant's automobile

If the body is a wreck, there's a ton of paper scattered inside and the engine sounds like something out of "The Exorcist," you can be pretty sure that's howyour equipment will look in a few weeks.

(O Give the applicant a behind-thewheel test. Assuming an applicant has scored well on the other points, the next step is to check out his driving skills, particularly if good references are not available.

One bit of advice here, though:

Make sure the person giving the test knows what he is doing.

Driving a truck is not the same as driving a car. You're subjected to different highway regulations, different driving techniques, and handling considerably more weight.

Keep in mind that truck drivers are professionals, and usually have income potentials far above those of comparable skill level jobs because of the considerable hours they're usually asked to work.

Keep in mind, too, that the size of a trucker's belt buckle has no relationship to the quality of driver,wearing it. That, my friend, is up to you to decide.