RED Magazine | Number 17

The

Magazine

Number 17 | November 2020

Get the right

to treat your supply chain ailments.

The

Magazine

Number 17 | November 2020

Table of Contents Getting the Right Prescription to Treat 5 Your Supply Chain Ailments

3

Mile by Mile

Keeping pace with the latest Ruan highlights.

1

Why Companies Should Consider Employing Robots Gain an understanding of robotic process automation.

4

Setting Up a Successful RFP Tips for managing your RFP process.

Prescription for Supply Chain Ailments

Dealing with lingering headaches for a healthier 2021.

9

When Fresh is a Factor

Keeping food supply lines strong in a global pandemic.

Engagement

How we feel about where we work.

12

Regulatory Update

Keeping up with the ever-changing regulatory landscape.

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3 4 5 9

12 14

MILEBYMILE

Keeping pace with the latest Ruan highlights.

[Ruan Honors Driver and Operation of the Year] Bryan Farmer was named Ruan’s Driver of the Year after

being selected from a pool of more than 4,500 professional drivers. Farmer, who operates out of T391 in Fair Oaks, IN, has been driving for 26 years, accumulating more than 3 million miles. He’s been with Ruan since 2015 and has had zero accidents in his career. He hauls milk in super tankers for our valued customer Select Milk Producers. Ruan began the search for our Driver of the Year when 169 drivers from Ruan’s 300 operations were named finalists based on length of service, safety performance, and exceptional customer service. Our vice presidents of operations then narrowed the field further to 11 Winners’ Circle honorees, who participated in two days of virtual round tables with several Ruan leaders and teams. Out of the Winners’ Circle, Ruan’s leadership team selected Farmer, and he was awarded a trophy and $5,000.

Ruan’s Canton, OH, operation, led by Dedicated Transportation Manager Dustin Shaft, was named our Operation of the Year.

T449, which serves Medline, was selected based on the operation’s demonstration of our Guiding Principles of People First, Safety Focus, Exceptional Performance, Customer Satisfaction, and Continuous Improvement. The Canton team, with 27 team members, annually delivers nearly 4 million pounds of essential medical supplies to Medline’s customers including hospitals, urgent care facilities, nursing homes, elective surgery centers, and more. The Operation of the Year received a trophy awards for all winning team members.

Brian Farmer T391 Fair Oaks, IN

T449 Canton, OH Led by Dustin Shaft

[First Super Tankers Enter Fleet] Almost a year ago, Ruan took possession of our first eight-axle super tankers to be used for dairy hauling in the Midwest.

The initial two super tankers are based at our operation in Fair Oaks, IN, and travel to Coopersville, MI, hauling for Select Milk Producers.

Super tankers hold 12,000 gallons of milk (8.6 pounds per gallon), more than doubling the capacity of traditional trailers, which means the cargo weight is approximately 103,000 pounds. The gross commercial vehicle weight (GCVW) for the unit is about 130,000 pounds.

[Ruan Named Industry Leader in 2020] Ruan is proud to be recognized by a number of industry publications and organizations in 2020. It’s an honor to be included in lists with the top-notch providers in our industry. Ruan has received the following awards and recognition this year: Food Logistics: Top Green Providers SmartWay Excellence Award Recipient Commercial Carrier Journal Top 25 #4 Dedicated

Transport Topics: Top 50 Logistics Companies, #21 Top Dedicated Contract Carrier, #12 Top Freight Brokerage Firm, #68 Top 100 For-Hire Carrier, #40

Inbounds Logistics: Top 100 3PL Provider Top 100 Trucker Top Dedicated Carrier and Brokerage Firm Green Supply Chain Partner

RED No. 17 | November 2020 | www.ruan.com | 1

MILEBYMILE

Keeping pace with the latest Ruan highlights.

[James Wheetley Wins Top Tech Competition] Ruan looks forward each July to hosting our Top Technician Competition, which highlights our technicians’ skills and mastery of the industry’s latest diagnostic tools and technologies. Due to COVID-19 and with an abundance of caution, we replaced our in-person competition with a virtual competition in September 2020.

First, our technicians completed an online written exam, consisting of 100 questions that test a range of maintenance knowledge. The 10 technicians who had the highest scores in the written exam qualified to participate in the final virtual round of competition.

The 10 qualifiers then attended five Microsoft Teams meetings, during which the competitors, supervised by their service managers, completed a task or written exam delivered by one of our vendors. The five events focused on the following maintenance areas: + Preventative Maintenance Inspections + Tires and Wheels + Diagnostics + Electrical + Warranty Congratulations to the top three finishers of the virtual Top Technician Competition! + First Place: James Wheetley, T060 in Cedar Falls, IA + Second Place: Timothy Zormier, T409 in Phoenix, AZ + Third Place: Paul Velazquez, T709 in Tyler, TX

James Wheetley T060 in Cedar Falls, IA

[Ruan Purchases Fully Electric Terminal Truck] Ruan recently purchased a fully electric Orange EV terminal truck for our warehouse in Otsego, MN. It is utilized 24/7 to move inbound and outbound trailers for our customer Bobcat.

“The advantages of electric vehicles are considerable,” said Vice President of Fleet Services Brad Gehring. “Companies can save on fuel, engine and transmission-related powertrain maintenance, and emissions control compared to a heavily used diesel unit.”

Our professional drivers, technicians, and operations team received detailed training from Orange EV on the safe operation and charging of the vehicle, which is done from a wall-mounted charging cabinet on a separate electric meter. Ruan’s technicians perform basic preventive maintenance on the truck, including tires and brakes, and a local Orange EV technician handles any specialized work on the electrical systems and battery.

Comparing electric to diesel, Orange EV trucks have eliminated the diesel engine, transmission, and radiator along with the diesel fueling, exhaust, and emission control systems. What remains are far fewer, largely sealed and maintenance-free elements. This means less wear and tear, reducing maintenance, repair, and downtime. The electric truck’s powertrain also generates less noise, heat, and vibration than diesel counterparts. As a result, many other Orange EV clients have reported more driver-friendly work conditions that are conducive to reduced fatigue, safety incidents, and driver turnover. And, the trucks have regenerative braking, which provides finer control of the vehicle acceleration and deceleration.

“Ruan is committed to implementing electric vehicles in our fleet,” Gehring said. “We continue to work closely with several OEMs and electric utility providers as we consider electrification options for our operations.” Ruan is currently working on a project for a second terminal truck unit in another operation, and we have five build slot reservations for Tesla electric heavy-duty trucks. Current production estimate is the second half of 2021.

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WHY COMPANIES SHOULD

CONSIDER EMPLOYING ROBOTS Article by Emily Burns, Manager of IT

Q. A.

What is robotic process automation?

Modern robotic process automation (RPA) technology began forming 20 years ago and has become the transformative tool it is today within the past five years.

RPA is a high-tech solution where a process that was previously performed by a human is now performed by a computer. RPA “bots” mimic many human actions, handling repetitive, rules-based, high-volume tasks with a clear trigger.

They log in, move files, copy and paste, fill in forms, extract data, scrape browsers–all without making mistakes or needing to sleep. Bots are available to provide value 1,440 minutes per day, 365 days per year–the equivalent availability of three or four human team members.

Q. A.

What RPA platform do you use?

Ruan selected UiPath as our RPA provider. UiPath was named a Leader in the 2020 Gartner RPA Magic Quadrant for ability to execute. Our UiPath suite of products has enabled us to scale our business without a linear increase in people.

Q. A.

What are some benefits yielded from Ruan’s adoption of RPA? We began 2020 by assigning 33 tasks to our digital team members, and within four days we started to realize the return on our investment, ultimately exceeding our total investment payback period within 15 weeks.

These automated processes have allowed us to avoid the cost of adding 14 new positions.

With RPA we have significantly improved our service to our customers through: A reduction in non-value-added activity by our skilled team members who are focused on customer service, analysis, quality, and coaching.

Improved data quantity, timeliness, and accuracy.

Increased speed, accuracy, and completeness of billing, payroll, and record processing.

Simplified execution of our capabilities with more consistent results.

Delivery of critical customer-requested capabilities such as en route tracking for LTL loads.

Lowered complexity and increased ability to scale to other customers and carriers.

Avoidance of more costly solutions like point-to-point integrations with carriers and expensive engagements with technology vendors.

Q. A.

What is next for RPA at Ruan?

We expect the time and cost savings will empower our teams to deliver more exceptional experiences that create more value for our customers and team members.

While our current focus is on scaling and sustaining our RPA program, our future plan is to align RPA with all of Ruan’s business process transformation technologies such as chatbots, big data and analytics, machine learning, and artificial intelligence–and continue to shift our company and industry away from the pencil and paper of the 20th century to the cyberspace of the 21st century.

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e h t SETTING UP A SUCCESSFUL RFP . o 1 t # s G n o N I i t D a t N i I F extend inv ? s I r e o d i d v o w r p o :Q H qualified om st A Q&A with Matt Tiedens, Manager of Logistics Solutions

e ly defin re a ou clear Is the d w do y RFP? instea Q: Ho pe of the strictive or es? the sco to being re ve respons benefit g alternati allowin

Q: How do I extend Managing a Request for Proposal invitations to the most (RFP) process can be daunting. qualified providers?

Prequalify respondents, then The most qualified providers will reveal themselves through a keep things focused for Request for Information (RFI) process the best results. or reference. Preceding the Request

for Proposal with an RFI allows you to gather information on providers and screen out the less qualified applicants. References from peer or partner companies are also a great source for qualification. While this can seem to seed competition, good experiences at one firm can translate to growth, partnerships, and prosperity for the whole industry.

Q: How do you clearly define the scope of the RFP? Is there a benefit to being restrictive or instead allowing alternative responses?

A well-defined scope is critical to a successful RFP event. The scope needs to be clearly laid out early in the RFP document and should include a company’s background, the purpose of the RFP, specific service parameters, and your quantified goals. Unclear scope can lead to inaccurate responses that require you to issue a clarification document or potentially causes you to select a provider that lacks expertise or one that leads to an unexpected increase in cost.

n o i t s e u q t a h Q: W eveals the r e r u struct rs? e w s n a b e s tQ: What metrics are most valu Q: What question structure reveals the best answers?

The most important section of a great RFP is the open response section. A strong RFP always includes primary response items such as price, operational plan, and references; however, it is the open response area that allows the respondents to positively differentiate themselves. A section for a cover letter or supplemental material is the ideal place for this and offers respondents a chance to convey their culture, history, business approach, and innovative ideas.

Q: What metrics are most valuable in evaluating RFP responses?

The RFP host should expect responses that are as accurate as possible, but accuracy does not always equal importance. There are two methods of determining how to ultimately make your provider selection. Using a rubric with values assigned to responses is the formal method. A more informal approach can be taken where the host weighs the submissions and makes a decision based on thoroughness of response, creativity, and overall impression of the respondent’s solution.

Either way, the categories considered should be an accumulation of metrics that are carefully vetted to provide the RFP host the most value. Most often the best value isn’t in price alone but is a compilation of capabilities, price, innovation/continuous improvement ideas, proof of savings, adherence to metrics, and quality of work.

evaluating RFP responses?

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able in

THE SYMPTOM MSS

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FIVE LINGERING

HEADACHES TO ADDRESS FOR

H E A L T H I E R S U P P LY C H A I N S IIN N

202 1

RAISE RAIS RA ISEE YO YOUR UR HHAND ANDD IF YYOU’RE AN OU’R OU ’REE RE READ READY ADYY TO HHANG ANGG UP OON AN N 20 22020 200 AND ND RRING INGG IN A BBRAND-NEW RAND RA ND-N -NEW EW YYEAR. EAR. EA R. (PICTURE (PI P CT CTUR UREE US RAISING RAI A SI SING NG BOTH BOT OTHH HA HAND HANDS, NDS, S BBUT UT AALSO LSOO LS WAVING AROUND.) WHO ECONOMY, WAVIING TTHEM WA HEM HE M AR AROU OUND ND.) .) AAND ND W HO CCOULD OULD OU LD BBLAME LAME LA ME US? US?? NO NO MATTER MATT MA TTER ER HOW OW CCRITICAL RITI RI TICA CALL TO TTHE HE AAMERICAN MERI ME RICA CANN EC ECON ONOM OMY, Y, TTRANSPORTATION R NS RA NSPO PORT RTAT ATIOON IS SSTILL TILL TI LL VULNERABLE MARKET TRADE WARS, OTHER NUMBER UNFORESEEABLE FACTORS—CAN GLOBAL VU ULNNER ERAB ABLE LE TTOO TH THEE MA MARK RKET ET DDOWNTURNS, OWNT OW NTUR URNS NS, TR RAD ADEE WA WARS R , AN ANDD AN ANY OT OTHE HERR NU NUMB MBER ER OOFF UN UNFO ORE RESE SEEA EABL BLEE FA FACT CTORRS— S—CA CANN YO YYOUU SA SAYY GL GLOB OBAL AL PANDEMICS?—THAT SMACKED SHIPPERS WITH UNCERTAINTY PANDDEM PA MIC ICS? S?—T —THA HATT HHAVE AVE SM AV SMAC ACKE KEDD SH SHIP PPE PERS RS W ITHH UN IT UNCE CERT RTAI AINT NTYY TH THIS IS YYEAR. EAR. EA R So, as we look forward to a much healthier 2021, it’s more important than ever that we closely examine the challenges that are sure to come with it: headaches that may not be entirely new to supply chains, but may need new treatment options.

One of Ruan’s Guiding Principles is Continuous Improvement through personal and professional growth. That’s why we recently surveyed logistics and transportation executives across numerous industries to find out exactly what they’re taking aspirin for these days. Because we want to help build a healthier industry in 2021. And we know you do, too.

01

IMPROVING VISIBILITY

Losing track of shipments causes headaches. Not knowing if you’ve lost track of a shipment causes migraines. With trucks responsible for moving more than 70 percent of all freight across the country, having systems in place to ensure real-time visibility is crucial. Companies lose big bucks every day because they can’t always see where their shipments are. No wonder this is one of the biggest concerns for the transportation executives we surveyed. They want (and deserve) to know what’s going on out there.

THEE RUAN TH AN R REMEDY EMED EM DY The only way to relieve this nagging headache is with a powerful dose of technology, and we have it. Ruan combines the most advanced software with in-cab technology to provide real-time tracking from a secure client portal. Our customers see it all—truck positioning details, ETA calculations, and notifications for event management should a shipment be arriving late. Let the deep breaths begin!

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02

STAYING SAFE TO KEEP CUSTOMERS FIRST

Making sure employees stay healthy has always been important, even before mask mandates and sanitizer shortages.

But maintaining a healthy workforce is just what the doctor ordered for the transportation industry. When seats aren’t filled in trucks (or offices), or when less-familiar personnel have to fill in at various service points, supply chains are threatened and shippers tend to get a bit anxious. Rightfully so, too; drivers already fall into high-risk health categories, and employee retention is challenging for our industry overall. Shippers want to know their 3PL partners are in tip-top shape across the board, so they can kick back and rest easy.

THE RUAN REMEDY The best (maybe only?) way to find out if you’re meeting your customers’ expectations is to ask them. Ruan does that. A lot. And we consistently get high marks—in the high 80 to 90 percentiles. Our customers know we were among the first in the industry to introduce a formal safety program, which we implement across all levels of our operations. This keeps us healthy and safe, leads to exceptional service for our customers, and eliminates the need for temple rubs.

03

DIAGNOSING A DEEPENING DRIVER SHORTAGE

This headache just won’t go away, will it? Attracting new men and women to replace an aging population of truck drivers isn’t easy. Concerns over work-life balance, pay, and driver health issues all make the pain worse—and cold compresses don’t seem to help one bit. Before the pandemic, driver shortages were already predicted to more than double over the next decade.

Lawmakers had introduced a bill with measures to address the urgent issue, one of which included allowing 18- to 20-year-old drivers to operate commercial motor vehicles across state lines. But all of that was put on hold. The headache’s still there, but it’s anyone’s guess what our driver shortage will look like in the near and distant future. (Pass the ice pack, please.)

THE RUAN REMEDY Ruan treats drivers like the ambassadors they are. We know they’re our driving force behind customer service. They’re the ones building long-lasting relationships that are critical to Continuous Improvement. So, we work hard to take care of them by maintaining predictable schedules for work-life balance and assigning them to a single primary customer. Our turnover rate is low, which means we have safer and more accurate deliveries—Ruan’s drivers know their truck, their route, their product, and their customer. Is that cool or what?

04

WAREHOUSING WOES NO C APAC IT Y

Similar to the capacity shortage in the transportation of products, there’s also the issue of warehouse space. As in, there’s not a whole lot of it. This is not something logistics and transportation executives take lightly; warehousing capacity concerns have topped the list of ailments, even outweighing increasing transportation costs. Now add the increasing challenge of attracting professional warehouse workers to make sure customers are getting what they want, when they want it—and, well, you can see why it’s a top industry health concern.

THE RUAN REMEDY Our warehouse solutions are pretty slick. Sure, we have innovative software that gives customers visibility to their product in every handling stage—but we also have our own in-house teams operating these systems, not a third-party. This means our customers get real-time data for less cost. And warehouse space? Ruan operates warehouse locations across the country. We use our Value-Added Warehousing services to find the best existing facility to optimize our customers’ operations. And that’s not all. We build customized warehousing plans that include kitting, subassembly, inventory management, and cross docking. These are what we call no-sweat solutions.

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055 0

GENERAL ACHES AND PAINS

We’ve looked at some of the top issues that are bothering transportation and logistics executives these days, but there are many more. Like a cough or sore throat, they’re nagging signs that something worse may be ahead. Perhaps the biggest worry centers on uncertainty about the future; even analysts struggle to predict what the transportation environment will look like six months from now. Making adjustments to best secure the supply chain is critical, and industry leaders are thinking about all options: hyperlocal networks, digital transformation, or simply changing their existing operations are (and should be) on the table. Problem is, every supply chain is unique. There isn’t one quick fix for everyone. Sometimes an asset-based solution is appropriate. Sometimes it’s not. This is why shippers need a true “menu” of services in order to create (or re-create) an ideal transportation solution that’s perfect for them.

THEE RU TH RUAN AN R REMEDY EMED EM EDYY When Ruan puts Integrated Supply Chain Solutions to work, things happen. Good things, like a honey-flavored cough drop. We look at three main categories —Dedicated Contract Transportation, Managed Transportation, and Value-Added Warehousing—to customize a plan that covers every inch of every shipment. We’re constantly analyzing our customers’ existing networks to find ways we can optimize supply chain functions. It might be technical, like using Ruan’s mighty transportation and warehouse management systems to design plans strictly using our customers’ own business rules. Or it might be operational, like driver management, sourcing carrier capacity, and upstream process improvement. The point is, it’s a custom solution that’s also flexible—so we can continue to meet the changing needs of our customers. And we know we are.

TTHE H E RUAN R U A N REMEDY R E M E D Y TO TO C COVID-19 O V I D -11 9 OK, so we really don’t have a remedy for the Coronavirus per se. But we do know how we’ve responded to it, and how that response affected our customers when they needed us most. We even have some ideas on how COVID-19 is reshaping the trucking industry’s future.

When “social distancing” started to become a household phrase, Ruan was already beginning to pivot. We redirected resources from customer accounts that were starting to slash output and assigned those people, trucks, and trailers to grocery chains and other businesses that were experiencing the most demand.

Because Ruan is a customer-focused company, we also released some customers from their transportation commitments, which proved to be a “win-win-win situation,” according to Ruan President Dan Van Alstine. wanted provide “W wa “We want nted ed ttoo pr prov ovid de employment empl em p oy oyme ment n for or our ourr driver dri rive ver team team members,” wanted create economic me emb mber e s, s ” he said. ““We We w ante an tedd to cre reat atee so some me eco cono nomi mic And wee wa wanted create rrelief re lilief for or tthose hose ho s ccustomers usto us tome merss aaffected. fffec ecte ted. d A nd w want nted ed ttoo cr rea eate te solutions customers surge so olu lutionss for cu cust s om omer e s th that at are re ffacing a in ac ingg a su surg rgee in vvolumes.” olum ol umes e .”

Van Alstine said Ruan’s IT team also jumped in to build an electronic portal for operations staff to show assets that weren’t being used so others could find more capacity. At all times, Ruan was mindful to maintain transparency and communication with customers—not only to continue our strong customer service, but also to ease nerves.

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PIVOTING TO MEET CUSTOMER NEEDS + REDIRECTED ASSETS TO HIGH-DEMAND VERTICALS + RELEASED SOME CUSTOMERS FROM THEIR TRANSPORTATION COMMITMENTS + BUILT AN ELECTRONIC PORTAL TO FIND MORE CAPACITY + HIGH-LEVEL OF TRANSPARENCY AND COMMUNICATION

“That ability demand, “T “Tha hatt ab abil ilit ityy to qquickly uick ui ckly ly ppivot ivot iv ot ttoo sh show ow aallll ooff ou ourr de dema mand nd,, an andd solve then th en bbee ab able le ttoo so solv lvee it it,, ha hadd a hu huge ge iimpact mpac mp actt on oour ur aability bilility bi ty ttoo serve customers, drivers employed, generate serv se rvee cu cust stom omer ers, s, kkeep eepp dr ee driv ver erss em empl ploy oyed ed,, an andd ge gene nera rate te ssome omee om revenue Ruan,” reve re venu nuee fo forr Ru Ruan an,” ,” Van Alstine said.

Keeping employees healthy continues to be a priority within the trucking industry, with equal attention placed on preventing disease and preventing accidents and injuries. Other operational adjustments will linger as well, such as employees working remotely. Customers have to put emergency plans in place, and be open to alternative options for their businesses. Ruan continues to help customers by identifying more efficient or lower-cost ways of doing things, such as centralized billing or on-site support.

“The most important thing is listening to our customers,” Van Alstine said. “Where there are issues, we’re creating action plans.”

WHEN

FRESH IS A FACTOR KEEPING FOOD SUPPLY LINES STRONG IN A GLOBAL PANDEMIC This year has placed a spotlight on the transportation industry.

Professional truck drivers are responsible for keeping hospitals, factories, grocery stores, and more stocked with essential supplies for companies and families alike. One of the most crucial elements in 2020 has been the need for steady distribution of food across the nation—both in bulk and retail-ready quantities.

Since 1932, Ruan has been a leading transportation provider with more than 86 years of serving the grocery and food processing industries. More than 40 percent of the company’s portfolio is food related. Ruan transports bulk products such as dairy, sweeteners, and grains along with processed and perishable foods.

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FLEXIBILITY AND TECHNOLOGY INNOVATION IN CHALLENGING TIMES Unlike typical seasonal changes in demand, the COVID-19 pandemic created a nearly overnight need for increased supplies for grocers and other retailers. To help address this sudden high demand, Ruan worked with our teams across the country to provide support where needed. Customers whose industries were negatively impacted by the pandemic had a surplus of drivers without loads to haul. Therefore, numerous Ruan drivers across the country were reallocated to haul loads for our national grocery and retail customers, including service to more than 800 added delivery locations.

Since partnering with Ruan in 2019 for warehousing and transportation services, Iowa Alcoholic Beverages Division (ABD) has added 140 new retailers and scaled deliveries for surges and holidays.

“We have accomplished many of our goals for the partnership with Ruan, including enabling ABD to focus on our core responsibility of governing the alcoholic beverages marketplace in Iowa while providing the highest level of service to our customers,” State of Iowa ABD Administrator Stephen Larson said. “During the uncertainty of the COVID-19 outbreak, it has been reassuring to have a trusted partner like Ruan to help us through this time. We commend the professional drivers and staff for their work in safely delivering the spirits while remaining flexible during a time of surging and increased business across the network. We chose Ruan for their high standards of service. We couldn’t be prouder of our partnership with Ruan.”

To improve efficiencies and limit physical interactions at customer locations, Ruan’s IT team developed an imaging feature in our exclusive RedTrak application. This feature allows drivers to scan load paperwork and eliminates the need for a customer signature, helping to keep everyone safe while also reducing paper waste and driver downtime.

CUSTOMER TESTIMONIALS

Perhaps nowhere is logistics more important than in the dairy industry. Computers, building materials, and ATVs don’t spoil sitting on the dock, but a tanker load of milk needs to get to the processing plant as soon as the farmers (and the cows) say it’s ready to go. To ensure the freshest food arrives where it’s needed—on time, every time—Ruan relies on experienced drivers, continual technological advancement, and exceptional logistics support.

“The current Ruan team has great knowledge of our specific dairies and our expectations for quality service. They are providing a very professional level of service.”

“The team has demonstrated an exemplary commitment and dedication to service to both our dairy farmers and our customers.

Even in the event of additional challenges like weather and everchanging schedules, these folks just find a way to get the job done.”

When fresh is a factor, loading at the peak of freshness and finding the fastest delivery route is critical. Ruan uses RedTrak to re-route drivers—sometimes en route to a farm or processing plant—to ensure the freshest product gets where it can be processed the quickest.

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THE VALUE OF CUSTOMIZED, INTEGRATED SUPPLY CHAIN SOLUTIONS With more than eight decades of transportation management experience, Ruan provides complete Integrated Supply Chain Solutions. The Ruan team collaborates with our customers to evaluate, optimize, and deliver a one-source transportation solution focused on continuous improvement, cost reduction initiatives, safety, and overall supply chain efficiency. From hiring experienced, professional truck drivers and managing carriers to investing in equipment and implementing best-of-breed technology, nothing compares to Ruan.

Our Dedicated Contract Transportation (DCT) service means you are never without a driver and never have to deal with the hassle of managing your own fleet. Unlike non-asset 3PLs, Ruan has an entire in-house team of experts dedicated to serve you and your customer, every day and during extraordinary circumstances. Dedicated equipment, consistent and safe drivers, and backhaul revenue sharing are other benefits of Ruan’s DCT. Because we have a close working relationship with our partners, we adapt quickly to changing landscapes and ensure loads get delivered no matter what.

Our comprehensive Managed Transportation service provides cost control using capacity management and sourcing, network optimization, and more. By optimizing routes and delivery schedules, performing consolidation and mode selection, and increasing cube or payload, Ruan can typically produce efficiencies of 4 to 12 percent. That’s real savings and real value.

Additionally, we offer Value-Added Warehousing, cross docking, certified brokerage services, and yard management. Each of these services allows food and grocery companies to focus on their core competencies and improve their bottom lines.

All of these services work on the back of a superior technology solution. Ruan’s custom transportation management system, seamlessly manages every facet of the supply chain. It provides industry-leading supply chain management and workflow, superior transportation planning, resource scheduling, secure portals, flexible billing, and rich analytics that we use for business intelligence.

ARE YOU READY TO IMPROVE YOUR SUPPLY CHAIN? Ruan has been serving the food and grocery industries since 1934. With Ruan, your product is in expert hands with the right people, processes, and technology to meet all of your transportation management needs.

Contact a Ruan expert today for a free transportation spend analysis or learn more about Dedicated Contract Transportation, Managed Transportation, and Value-Added Warehousing. Email Solutions@ruan.com or call (866) 782-6669.

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ENGAGEMENT

How We Feel About Every organization has a unique workplace culture, which is the sum of everyday actions and interactions, big and small. And, because culture is made up of what we do, it is highly driven by how we feel about where we work—how engaged we are as individuals and teams.

The great news about workforce engagement is that every team member can influence the outcomes, no matter what their position in the organization. Everyone is responsible for culture and engagement.

What Is Engagement?

The Society for Human Resources Management (SHRM) defines engagement as: the level of an employee’s commitment and connection to an organization. Engagement goes beyond satisfaction and happiness. It is more about the overall employment experience—the ability to add value and feel valued, to trust in others and to feel trusted.

Even though team members have differing opinions on what makes a great place to work, research shows there are categories of engagement that most of us have in common. These include trust in leadership, manager effectiveness, teamwork, recognition and rewards, learning and development, and communication.

Why It Matters Research studies show that engaged team members are more motivated and more productive. Rather than just showing up, they routinely go the extra mile in their performance. Engaged team members understand and commit to the mission, and they take pride in their contribution toward success.

When workforce engagement is high, organizations enjoy related positive outcomes such as reduced turnover, reduced safety incidents, and reduced absenteeism. For example, Ruan’s engagement data reveals a correlation between highly engaged teams and lower accidents and workplace injuries.

The business case for engagement goes beyond the organization itself. Engaged team members are more likely to speak highly of their workplace culture to others, improving the ability to attract new talent and increasing credibility. Most importantly, an engaged workforce positively improves customer satisfaction as well as ability to sell to new customers. Many of Ruan’s valued customer partners have shared that our workplace culture was a positive deciding factor in selecting us as their provider and is a reason they continue to select us as their provider.

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Where We Work Article by Erin Peterson, Director of Organizational Development

Getting Started The first step in improving workforce engagement is determining the current state. This can be accomplished with surveys, focus groups, team meetings, or even individual conversations. The purpose is to get a baseline measurement and understand areas of strength and areas for improvement.

Many organizations rely on team member surveys. Ruan has surveyed the organization routinely for over six years. Surveys are a great tool for efficiently capturing and analyzing the voice of the workforce. Surveying at a regular frequency allows an organization to view trends over time and potentially isolate problem areas of the business.

Outside of surveys, leaders can simply gather data by talking to the people they lead and those around them. Strive to continuously get a feel for how people perceive their company’s culture.

Include the Team The most important work of improving engagement happens after the data collection. Sharing the results and findings with the team members is critical. This allows them to see how their responses fit in with their team, their business unit, or the entire organization. Research shows the simple act of sharing results with the team can increase engagement.

But the survey isn’t enough. Leaders need to include the team in both action planning and execution of those plans. A common pitfall is fixating on the survey results, falling short with meaningful action, or worse, never acting at all. Ruan leaders are encouraged to keep it simple, collaborating with their teams to select three to five items of focus each year. Our action items have been as simple as changing the frequency of team meetings, leaving the truck in good shape for the next driver, or recognizing each other for good work. Ruan selects areas of organization-wide focus, but we understand the real impact is at the team level where team-driven changes can be made and monitored on a smaller scale.

Everyone is Responsible While it is true that leaders set the tone for teams, every team member is responsible for workplace culture.

At Ruan, we use our Guiding Principles to steer daily decisions and actions. We’re each accountable for the environment through our behaviors and attitudes. Our Guiding Principles require everyone to communicate, respect, listen, act safely, perform, provide service, learn, and change.

When Ruan team members are asked why they like working at Ruan, many share it’s the people and relationships that make the difference. Our culture allows for innovation and dynamic processes but also requires high performance, customer service, and teamwork from everyone.

Growing engagement in an organization does not happen overnight, but even small efforts can make a big impact, signaling to team members the organization cares. Get started, determine the current state, make a simple action plan, and don’t let up. Include and involve everyone, because each of us is responsible for our workplace culture.

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reg·u·la·to·ry : related to an authoritative rule dealing with details or procedure

up·date : an up-to-date version, account, or report The transportation industry is vitally important to the global and American economy. According to the American Trucking Associations (ATA), overall freight tonnage will grow more than 25 percent by 2030 to 20.6 billion tons—with revenues increasing 53.8 percent to $1.6 trillion.

Trucking will remain the dominant freight mode, hauling 68.8 percent of the total freight tonnage in 2030.

Despite its importance, trucking is not immune to ups and downs of the economy or, as we’ve seen in 2020, global pandemics. After 2018 saw record highs for freight demand and rates, demand softened in 2019 due in part to tariffs, manufacturing declines, trade wars, and recession fears. As we entered 2020, some economists agreed that the industry was stabilizing and nearing supply/demand equilibrium. Then came COVID-19, derailing any and all expectations and predictions economists had about the American economy and different sectors within it. Compounded by a presidential election and civil unrest, 2020 has been filled with uncertainty.

One thing that remains constant in the industry, however, is government regulation.

Ruan’s safety, legal, and operations teams stay abreast of new and pending regulations to ensure compliance at the state and federal level. We’ve highlighted a few regulatory updates and issues impacting the industry now and in the foreseeable future.

Hours-of-Service Flexibility Nearly nine months after proposing five changes to the hours-of-service (HOS) rules that govern when and for how long professional truck drivers may work, the Federal Motor Carrier Safety Administration (FMCSA)

issued on May 14, 2020, a final rulemaking that was met largely with praise by the transportation industry. The federal HOS rules were last updated in 2013, and the industry has sought flexibility that would allow truck drivers to make driving decisions based on fatigue, weather, congestion, etc. The final rule adopts four of the five proposed changes made in 2019. The new rule does not increase a driver’s daily driving time or working limit, but rather allows the driver flexibility to determine how those hours are spent. The rule went into effect September 29, 2020.

First, the 30-minute break rule, which required a break after no more than eight hours of consecutive driving, can now be satisfied by the on-duty/not driving status, rather than off-duty status. Therefore, drivers may use fueling time or waiting to load/ unload as the 30-minute break.

Second, drivers are now allowed to split their required 10 hours off duty into two periods: an 8/2 split, or a 7/3 split, with neither period counting against the driver’s 14-hour driving window. Under the former rules, drivers were required be off-duty or in a sleeper berth for 10 consecutive hours before driving again after completing a 14hour workday.

These two changes largely satisfy the industry’s call for flexibility. Previously, many drivers felt that the 30-minute break rule was unnecessary or forced them to break at inconvenient or unnecessary times, especially when drivers spent on-duty time not driving. Adjusting the sleeper berth, proponents argued, allows drivers the flexibility to decide when to get the rest they need. Many drivers argued they did not need 10 consecutive hours of rest to drive safely—now they are allowed to split the break into two rest periods.

Third, FMCSA modified the adverse driving conditions exception by extending the maximum window during which driving is permitted by two hours. The previous rule already permitted two hours of additional driving time on the 11-hour clock, so this expands the 14-hour on-duty clock by two hours as well. The new rule allows the workday to be extended to as much as 16 hours in the case of adverse conditions such as extreme weather or congestion.

Fourth, the agency changed the short-

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haul exemption that is available to certain commercial drivers by lengthening the driver’s maximum on-duty period from 12 to 14 hours and extending the distance limit within which the driver may operate from 100 air miles to 150 air miles.

“This new final rule will improve safety for all motorists and increase flexibility for America’s truckers,” U.S. Transportation Secretary Elaine Chao said in a press conference. “This has been a deliberate and a careful process provided by the direct feedback we’ve had from truckers, carriers, safety advocates, law enforcement, and concerned residents and citizens. Each of these areas of reform are designed to add flexibility and regulatory savings for the motor carrier industry, which is critical for our nation’s economic recovery.”

Combating Nuclear Verdicts The past decade has seen a significant uptick in the number of nuclear verdicts, where victims of incidents with large trucks receive a jury award above $10 million. A Florida jury has handed down what is believed to be the biggest nuclear verdict ever against a single trucking company defendant: a $411 million verdict in Florida to a motorcycle driver. Large jury awards of $1 million and above are also on the rise. An American Transportation Research Institute (ATRI) study found a 335 percent rise in the number of cases with a jury award over $1 million from 2012 to 2019.

Regardless of fault or the facts of the case, plaintiffs’ attorneys often use emotional appeal to enrage jurors and force them to act with a sense of moral obligation.

According to the American Trucking Associations, this tactic “compels the jury on a base level to render an outsized verdict in order to send a broader message that speaks to issues beyond the proximate cause of the particular accident under examination.” These verdicts are generally awarded when incidents result in paralysis, brain damage, or death. In trial, plaintiffs’ attorneys aim to prove that the carrier was negligent in some way, therefore resulting in the truck driver being involved in such an accident. While nuclear verdicts are rare,

they garner much national media attention, tarnishing public perception of even the safest carriers.

The large payouts also pose a risk to the industry in the form of excess insurance rates—so far by as much as 10 percent as insurers try to cover and protect against such large losses. One reason plaintiffs’ attorneys cite when requesting large payouts is to reflect real-world cost increases, according to FreightWaves. But ATRI’s research found that from 2010 to 2018, the size of verdict awards grew 51.7 percent annually, while standard inflation only grew 1.7 percent and health care costs grew 2.9 percent.

To combat nuclear verdicts, the industry, led by the ATA, is calling for tort reform. The ATA is focusing its efforts on those reforms most important to the trucking industry, like elimination of joint and several liability, caps on punitive damages, the recognition of collateral sources, and the admissibility of non-use of seat belts—where defense lawyers are unable to present evidence that a victim was not wearing a seat belt, contributing to his or her injuries. The ATA also works closely with state trucking associations to ensure that trucking industry interests are included in state tort reform efforts.

National Drug and Alcohol Clearinghouse Carriers are now required to report drivers’ positive drug test results and refusals to test into a central Drug and Alcohol Clearinghouse.

Employers must also access this database when looking to hire potential drivers, as well as query the database annually for current drivers. The clearinghouse became operational on January 6, 2020. Mandatory use went into effect at that time.

As of October 2020, more than 39,000 drug violations were reported, along with more than 890 alcohol violations. Marijuana positives accounted for more than 50 percent of the positive tests reported to the Clearinghouse. Although it is recreationally or medically legal in a growing number of states, marijuana remains an illegal

substance for truck drivers. To accompany the initiation of the Clearinghouse in 2020 and in response to rising positive drug-testing rates, the FMCSA doubled the minimum annual percentage rate for random controlled substance testing for CMV drivers, from 25 percent to 50 percent.

So more drivers than ever are being tested at random.

As anticipated based on these results, the Clearinghouse is contributing to tightened capacity and a deeper driver shortage because truck drivers are no longer able to hide positive drug and alcohol tests from potential employers. In fact, according to the ATA, more than 30,000 truck drivers who tested positive are prohibited from driving, and nearly 24,000 of them have not even attempted to return to duty. The Clearinghouse is achieving its goal: to identify and unseat impaired drivers.

ON THE RADAR

by federal HOS rules, some states have issued their own regulations that are often in conflict with the federal rules. In these states, plaintiffs’ attorneys are using state regulation of trucking companies as the basis of expensive lawsuits related to meal and rest breaks and pay types, especially in California. In 2018, FMCSA granted a petition by the ATA to block California’s rules in December 2018 in an effort to ensure consistent rules and promote safety. The ATA turned to the FMCSA after Congress failed for four years to restore the strength of the Federal Aviation Administration Authorization Act of 1994 (F4A)—the regulation that broadly preempted states from regulating interstate motor carriers. Despite the FMCSA’s action, drivers’ cases continue to be brought to about the state’s meal and rest break provisions. So far, judges have not sided with drivers, but there will likely be many more challenges to the FMCSA’s ruling as this continues to be a hot button issue.

CSA Overhaul

Entry-Level Driver Training Rule The entry-level driver training (ELDT) final rule mandates certain minimum training requirements for those seeking to obtain a Class A or Class B commercial driver’s license, or a hazardous materials, passenger, or school bus endorsement. The rule was set to go into effect in February 2020, but FMCSA delayed implementation by two years in December 2019. The final rule requires driver’s license schools, as well as carriers with in-house CDL training programs, to self-certify in a Training Provider Registry and overhaul entrylevel driver training courses to provide a curriculum that will be consistent across the country. Training providers wishing to provide ELDT will need to be listed on the Training Provider Registry, and drivers seeking a CDL or endorsement on or after that implementation date must complete the required training as set forth in the ELDT final rule.

Compliance Safety Accountability (CSA) is the FMCSA’s carrier scoring program designed to improve safety by identifying at-risk drivers and carriers. FMCSA conducts inspections and reviews crash reports and then measures the results using the Safety Measurement System (SMS) and assigning points for violations and incidents. Due to a host of issues with data and enforcement, Congress has mandated that CSA essentially be overhauled. A key component of that overhaul is accounting for crash responsibility in scores. On August 1, 2020, FMCSA rolled out a program called the Crash Preventability Determination Program.

This program allows carriers to submit eligible crashes under specific criteria to the FMCSA to review and potentially remove points from the carrier’s CSA SMS score.

Only crashes that occurred after August 1, 2019, are eligible for submission.

Regulation approved

Meal and Rest Break Provisions

Regulation pending

Even though the trucking industry is regulated

Regulation denied

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INDICIA INFORMATION

3200 Ruan Center 666 Grand Avenue Des Moines, IA 50309 www.ruan.com

I N T E G R AT E D S U P P LY C H A I N S O L U T I O N S > MANAGED TRANSPORTATION + DEDICATED CONTRACT TRANSPORTATION + VALUE-ADDED WAREHOUSING

COMPARING THIRD-PARTY LOGISTICS PROVIDERS IS LIKE COMPARING

APPLES STEEL. NO TWO PRODUCTS ARE ALIKE. NO TWO THIRD-PARTY LOGISTICS PROVIDERS ARE EITHER. When you’re choosing between 3PLs, make sure you’re doing an apples to apples comparison of the proposals. Ruan’s Integrated Supply Chain Solutions bring additional value to every shipment through our people, process, and technology platform.

chain, whether your customized solution requires managed transportation, warehouse management, Ruan assets, or more. And our flexible, best-of-breed technology platform scales to meet your needs, improving visibility and reducing spend.

With more than 87 years of experience, we provide a wealth of knowledge to each client. And our process generates savings by optimizing your supply

For more information about how we can design a solution that brings more value to you (whether you’re shipping apples or steel), call (866) 782-6669 or visit ruan.com.

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