f)istributor opts for do-it-yo urs elf trucking

QIX years ago, Universal Forest Product's plant in \JSaginaw. Tx., suffered delivery costs that leeched as much as 1Vo of its $140 million in annual sales.

UFP manufactures and engineers wood and wood-alternative products for do-it-yourself retail home centers and the site-built construction market, and specialty wood packages for industrial markets. For years, its Saginaw plant had hired a dedicated carrier to deliver its products to customers.

With runaway operational costs into the millions for UFP and frequent delivery delays for its customers, Saginaw plant manager Paul Shoppell said plant operators knew arrangements for fleet operations had to change. Company officials were also concerned that fleet drivers, who weren't Universal employees, were not dedicated to the needs of the plant's customers.

"We had to constantly juggle our schedules in order to fulfill customer orders. The dedicated service drivers weren't very interested in working a little harder to help us fill our customers' last-minute needs," Shoppell said. "If our customers forgot something when they ordered, and they needed it the next morning for work to continue on their work sites, they had to get those immediate needs met somewhere else. That's not the kind of service we wanted to be known for."

That's when plant operators considered different options, which involved hiring drivers and taking over dayto-day fleet operations, including truck dispatch. But the plant didn't want to take on the responsibility and expense of maintaining a fleet of trucks.

"We had always had some form of dedicated fleet service, but we just didn't have the facilities or resources to establish our own maintenance shop," Shoppell said.

The Paclease location in nearby Fort Worth offered the solution: full-service leasing. Shoppell said by switching to a full-service lease, the plant has reduced its delivery costs from a high of 17o of total annual sales to a more reasonable 4.5Vo to 5Vo of annual sales. That reduction translates to a drop of about $ I .5 million to $3.5 million in expenses each year.

Shoppell said he looks forward to being able to reduce his delivery costs even further through Paclease's new telematics system called PacTrac. PacTrac provides GPS vehicle position reports based on real-time data from the customers' vehicles. The system operates through a network of more than 100 wireless carriers and an Internet connection to an onboard computer.

Shoppell said he plans to use the information gathered through the system to help him counsel drivers on how they can improve their productivity and fuel efficiency. The system will be particularly helpful, he said, to keep track of the day-cab trucks, since they are all used in slipseat operations.

Through its full-service lease, the Saginaw plant operates 2l Peterbilt tractors. There are 13 tandem-axle Peterbilt 378 daycabs, two tandem-axle Peterbilt 379s with sleepers, and one tandem-axle Peterbilt 385 with a flatbed. The plant recently took delivery of five new units: three tandem-axle Peterbilt 379s with sleepers and two tandemaxle Peterbilt 335 straight trucks with flat beds. Shoppell said running a new, all-Peterbilt fleet contributes significantly to the plant's reputation among its customers.

"They look at the great trucks we're running with Paclease, and that instills more confidence in our products and service," he added.

The leasing service has also helped the plant improve its customer service, Shoppell said.

"Our business is highly seasonal," he said. "When we operated our delivery with a dedicated fleet, it was hard to be ready for that seasonal business because the dedicated fleet's drivers were not very interested in serving our customers. With our own drivers, we can offer much better service, particularly during seasonal peaks, because these are our employees. They're flexible and motivated to fulfill the needs of our customers."