AMERIT FLEET SOLUTIONS AND FLEET FINANCIALS PRESENT

EXCLUSIVELY FOR TOP FLEETS IN NORTH AMERICAVOL. 4, 2014

AMERIPRIDE TESTS IT ALL IN ALT-FUEL PILOT PROGRAM

GOING BEYOND THE OIL CHANGEFOR BEST FLEET PERFORMANCE

Averitt Forms Specialized LTL Service

CLIMATE CONTROL:

WHAT TO EXPECT WITH PROPOSEDFDA FOOD TRANSPORT RULES

Amerit belief #1:Your trucks belong on the road, not waiting in the yard to be serviced.

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WORRY-FREE FLEET MAINTENANCE

We believe that the less time your fleet spends waiting for service the better: better for your profitability, better for your customers, better for your drivers, better for everyone. That’s why every Amerit Fleet Solutions service programoffers you priority, dedicated services that focus on no one but you.

We will get them in, out and back on the road where they belong.$�FHUWLILHG�'9%(���ZZZ�DPHULWIOHHWVROXWLRQV�FRP

2 LEADING FLEETS VOL 4, 2014

CONTENTS

10

4

8

16

4 Leading Highlights

8 Preventive Maintenance:

Ití s More than an Oil Change To keep your fleet well-maintained, doní t

live by the misconception that regular maintenance is just about the oil change.

10 Averitt Express Forms New

Climate Control LTL Service In an industry first, Averitt Express has

launched a new less-than-truckload service, providing hot to cold temperature controlled shipping.

14 Q&A: Inside Amerit Fleet Solutions As a custom maintenance provider, Amerit

often gets questions from fleets on how their service works exactly. Can they really go anywhere in the country?

16 AmeriPride Starts All-Inclusive

Alternative Fuel Pilot Program Deciding on one alternative fuel to test in a

fleet can be tough. Thatí s why AmeriPride is testing them all.

18 FDA Food Transport Rules

Focus on ë Track and Traceí With the proposed rule from the FDA that

would regulate the food transport industry, what should fleets prepare for?

20 Technicians: Finding and

Recruiting Top Talent Amerit Fleet Solutions talent acquisition expert

provides insights on how to find, recruit and retain top technicians throughout the U.S.

3LEADINGFLEETS.COM AMERITFLEETSOLUT IONS.COM

CEO VIEWPOINT

There’s No Time for Downtime

By Dan Williams

CEO, Amerit Fleet Solutions

The trucking industry never stops moving; it is truly the backbone of our country, moving more goods

than any other mode of freight trans-portation. And this only seems to be growing.

In a recent report from the American Trucking Association, American Truck-ing Trends, the facts show that trucks moved 69.1% of all domestic freight tonnage in 2013 — up from 68.5% in 2012. Even more, the industry collected 81.2% of all freight revenue in 2013, which is a similar figure from 2012.

Outside of freight figures, the industry employed more than 7 million people in 2013, and paid $37.8 billion in state and federal highway user fees.

With a major dependence on the trucking industry, it’s important that we continue to support the industry’s needs. What is one way we can do that? By keeping well-maintained fleets and en-suring there as many tires on the ground as possible. Too many companies are stuck with long downtimes when getting trucks repaired or are caught ill-pre-pared when a truck has a major break-down while en route. The trucking indus-try has no time to spare when it comes to moving goods, and it really has no time for over-the-road interruptions.

On Page 8 of this magazine, you will find an article with recommendations on what a quality PM program entails and what preventive maintenance re-ally means. Amerit Fleet Solutions can

provide those much-needed mainte-nance services and can tailor them specifically to your fleet. We take pride in these custom services because we are well aware of the hidden costs that quickly accumulate when you’ve got ve-hicle breakdowns or when using shops that don’t give your fleet the attention it needs — and deserves.

The American Trucking Trends facts listed here show that the trucking indus-try really does deserve more attention to fleet maintenance as an important way to drive better efficiencies. Wheth-er using local service providers or your own network of in-house maintenance shops, neither ever seem to be enough.

And the same rule applies regardless of the industry. Utility fleets keep the country’s lights on and heaters running. Construction fleets help keep the econo-my going. Transit fleets play an integral role in public transportation. And so on.

At Amerit Fleet Solutions, we under-stand the challenges of downtime and the incalculable effects on a company’s bottom line, which is why we’ve tailored solutions to fleets with a wide-range of maintenance needs, including nation-ally operating fleets. You can read on Page 14 some frequently asked ques-tions we get about our custom services. From our Mobile Service Centers to pur-pose-built Amerit Fleet Service Centers and provided on-site labor solutions, we are up for the task of keeping those tires on the ground. LF

Business and Editorial Office

3520 Challenger St., Torrance, CA 90503

Phone: 310-533-2400 Fax: 310-533-2503

E-mail: info@leadingfleets.com

4 LEADING FLEETS VOL 4, 2014

LEADING HIGHLIGHTS

From left to right, the 2014

HDT Truck Fleet Innovators are

Shelby Green, Mike O’Connell,

Bill Bliem, and David Hoover.

HDT Awards 2014 Truck Fleet Innovators

Shelby GreenSenior Fleet Director

PepsiCo North America Beverages

Somers, N.Y.

Green, who has been the fleet direc-

tor for eight years, manages a fleet

with approximately 14,500 power units

and 11,600 trailers. PepsiCo’s commit-

ment to environmental sustainability

is a major factor in equipment spec’ing

decisions, resulting in specs such as

low-rolling-resistance tires, idle time

limits, and alternative fuel and elec-

tric/hybrid vehicles. One of the biggest

changes he has spearheaded is moving

away from the traditional beverage de-

livery trailer to a tandem-axle dry van

using automatic axle lift suspension

systems that transform the trailer from

a tandem axle to a single axle.

Mike O’ConnellSenior Director, Supply Chain Fleet

Frito-Lay

Plano, Texas

O’Connell, after eight years in fleet

operations, has worked with his

team to drive a significant cultural

change when it comes to improving

fuel efficiency and operational ef-

fectiveness. Corporate fleet fuel con-

sumption amongst the 18,000 power

units and 4,000 trailers has dropped

by almost 20% over the past five years.

Frito-Lay, a division of PepsiCo, has

the seventh largest fleet in the U.S.

and the largest all-electric commer-

cial fleet in North America, and is

deploying 208 CNG tractors. The com-

pany has been shifting delivery truck

specs to lighter weight and more aero-

dynamic vehicles.

Bill BliemSenior Vice President, Fleet Services

NFI

Vineland, N.J.

Bliem has led the charge on several

of NFI’s initiatives on fuel effi-

ciency. Bliem has been with NFI — the

for-hire dedicated logistics company

— for five years. He manages internal/

external maintenance of the 2,000

power units and 7,500 trailers in the

fleet along with all corporate mainte-

nance functions, fuel management,

asset management, NFI Trailer Leas-

ing, tolls, licensing, permits and the

corporate purchasing department. In

the past three years, NFI’s mpg has in-

creased over 10% while idle time has

been reduced to 4.5%.

David HooverDirector, Outbound Logistics

Meijer

Lansing, Mich.

Hoover has been Meijer’s direc-

tor of outbound logistics for 11

years and manages 200 power units

and approximately 2,300 trailers. The

company is a Michigan-based retailer

with more than 200 supercenters and

grocery stores in five states. Hoover

is constantly researching and testing

new technologies to increase sup-

ply chain efficiencies, making Meijer

one of the first in North America to

implement the EPA’s 2010 emissions

standards. Hoover focuses on a high

level of collaboration, not only with

manufacturers but also with Meijer’s

for-hire carrier partners.

Every year, Heavy Duty Trucking magazine recognizes the country’s most forward-thinking fleet profes-sionals with the title of “HDT Truck Fleet Innovator.”

These fleets are all heavily focused on sustainability and fuel efficiency, including increasing their fleet’s average miles per gallon and incorporating alternative powertrains such as electric and natural gas.

This year’s winners, who are chosen among nominations from the industry, operate vehicles ranging from cargo vans through Class 8 trucks. Of 2014’s four honorees, three are from private fleets, and one is from a for-hire trucking and logistics company.

The 2014 HDT Truck Fleet Innovators

LEADINGFLEETS.COM AMERITFLEETSOLUT IONS.COM 5

Airgas Wins CGA Safety Awards

Announced this spring, Airgas re-

ceived two Fleet Safety Excellence

Awards for 2013 by the Compressed Gas

Association (CGA). The first

award honored Airgas’ cylinder

vehicle fleet for the fifth con-

secutive year; the second award

recognized Airgas’ bulk vehicle

fleet for the fifth time since

2005.

The CGA calculates its Fleet

Safety awards by taking a

member company’s total vehi-

cle accident frequency rate per

million miles driven during

the year. The CGA recognizes

one small fleet and one large

fleet in each of the Bulk Vehicle

and Cylinder Vehicle categories. Air-

gas won the large fleet award in both

categories with 5,200 drivers. John

Anderson, Airgas’ director of DOT op-

erations, accepted the Cylinder Vehicle

Fleet award and Rafiq Huq, regional

manager for Airgas Dry Ice and

Carbonic, accepted the Bulk

Vehicle Fleet award.

“We are honored to be rec-

ognized by the CGA for hav-

ing the lowest vehicle accident

frequency rate among large

cylinder gas and bulk fleets,”

said Airgas President and CEO

Michael Molinini. “Our driv-

ers continued to raise the bar

in 2013, covering more than

130 million miles while safely

meeting the needs of our cylin-

der and bulk gas customers.”

C.R. England, one of the nation’s

largest refrigerated carriers, cel-

ebrated the June opening of a new ter-

minal in Colton, Calif., and announced

the addition of 10 new liquefied natural

gas (LNG) powered trucks to the com-

pany’s Southern California fleets.

This 34-acre facility is the second

largest C.R. England facility nation-

wide and will feature the following

amenities:

eight service bays and a truck wash.

-

C.R. England Opens Company’s Second-Largest Facility

source center including laundry, TV

lounge, game room, an exercise facil-

ity and driver training facilities. Ad-

ditional space is allocated to a non-

driver support staff office, including

operations for several key dedicated

fleets.

and 350 trailers.

The ribbon-cutting event also fea-

tured the display of two of 10 new Mack

Pinnacle 12-liter LNG tractors that will

operate out of the new Colton terminal.

The company also hopes to open an

LNG fill station there as well.

“C.R. England is a strong advocate

of sustainable transportation and is

aggressively implementing and test-

ing new technology, equipment and

training to provide our customers and

our environment with greener trans-

portation,” said COO Zach England.

“Although there are still challenges

with utilizing natural gas tractors in our

fleets, such as equipment costs, main-

tenance, and degradation in mpg, we

have made the commitment to contin-

ually test this equipment and introduce

them into strategic areas where the

freight and fueling networks fit best.”

As LNG technology has improved

over time, England expects better

maintenance results from the 12-liter.

In 2011, C.R. England introduced

15-liter LNG tractors into its fleet. Two

years later, England introduced a com-

pressed natural gas fleet in Utah.

C.R. England COO Brandon Harrison kicks

off the ribbon-cutting ceremony at the com-

pany’s new terminal in Colton, Calif.

Airgas was recognized for two Fleet Safety Excellence Awards for

2013: the company’s Cylinder Vehicle Fleet and Bulk Vehicle Fleet.

6 LEADING FLEETS VOL 4, 2014

LEADING HIGHLIGHTS

Atmos Energy Corp., together with

ZeitEnergy, introduced its new-

est Ford F-150 and Ford F-250 natural

gas fleet, which will work directly with

ZeitEnergy’s new public compressed

natural gas (CNG) fueling station in

Arlington, Texas.

John Paris, Atmos Energy president

of the Mid-Tex division explained,

“We are thrilled to be introducing 67

new natural gas vehicles (NGVs) to

our existing NGV fleet, which will also

benefit ZeitEnergy’s newest CNG sta-

tion in Arlington.”

According to Paris, Atmos Energy

has been replacing service vehicles

with NGVs since 2010, when the com-

pany first purchased more than two

dozen Honda Civic GX NGVs for its

meter readers. He said the compa-

ny’s growing natural gas fleet dem-

onstrates Atmos Energy’s commit-

ment to the environment by reducing

harmful emissions and the natural

gas supply.

The announcement comes on the

heels of a banner year for CNG vehi-

cles in Texas. According to the Energy

Information Administration, CNG ve-

hicles consumed 2.5 billion cubic feet

of natural gas in Texas in 2013.

Two major companies continue fleet adoption of compressed natural gasfor both environment sustainability and fuel efficiency.

Making Room for More CNG

(From left) John Paris, Atmos Energy

president of the Mid-Tex Division, Arlington

Mayor Robert Cluck, and ZeitEnergy Founder

Clint Beauchamp break ground on the new

CNG station, which is expected to open this

summer.

CHS Builds CNG Fueling Station

CHS Inc., a Fortune 100 energy,

grains and foods company and a

farmer-owned cooperative, announced

the construction of a CNG fueling sta-

tion in Fairmont, Minn. CHS Trans-

portation operates one of the nation’s

largest private truck fleets, logging

nearly 35 million miles each year. The

company said that building the station

is an excellent opportunity to leverage

an existing property and maximize the

utilization of current assets.

“CHS is embracing alternative fu-

Atmos Energy Adds 67 CNG Pickups

eled vehicle technology such as CNG

and propane autogas to cost-effectively

serve some of its customers and to help

achieve our aspiration to have a best-

in-class transportation business,” said

Paul Herskind, the business develop-

ment manager. “We are committed

to helping build the natural gas infra-

structure and making this alternative

fuel more accessible to fleets, farmers

and consumers.” In addition to add-

ing trucks powered by natural gas to its

fleet in 2013, CHS is currently testing

propane injection systems on some of

its tractors as well.

The new CNG fueling station will be

built adjacent to the CHS soybean pro-

cessing plant in Fairmont. Construc-

tion is expected to be completed by

September 2014.

CHS Inc. is building a CNG fueling station in

Farimont Minn., with expected completion in

September 2014.

7LEADINGFLEETS.COM AMERITFLEETSOLUT IONS.COM

275 New Ways to Work for Schneider

Based on its new relationship with

Harley-Davidson, Schneider has

opened up 75 new jobs for professional

truck drivers. The freight consists of

Harley-Davidson’s engines and parts

from Missouri, Wisconsin and Pennsyl-

vania to various points across the U.S.

The Wisconsin-based carrier is hir-

ing experienced drivers in Kansas City,

Mo., Menomonee Falls, Wis.,

and York, Penn., while offering

signing bonuses of $7,000 for

teams and $3,500 for solo driv-

ers, in order to incentivize the

hiring process. Team drivers can ex-

pect to drive between 5,000 and 6,000

miles per week, earning up to $80,000,

with predictable schedules and week-

ly home time, explained Rob Reich,

Schneider’s vice president.

In another hiring swing, Schneider

is also adding 200 professional truck

drivers in Houston and the surround-

ing area to meet a variety of growing

business needs. “Customer demand in

Houston is incredibly strong across all

of our divisions,” Reich said.

The greatest opportunity is within

Schneider Hits Hiring StrideSchneider is expanding its employee base and making some vital changes across the company and fleet.

Schneider has opened new job opportunities

across several divisions, with a bulk of the

openings operating out of Houston.

Since the company is often referred to simply

as Schneider, it created an updated logo with

a more contemporary look that the company

said more accurately reflects its multiple

transportation modes.

the company’s tanker division, which

is looking to add 100 company drivers

and owner-operators to its ranks. Ac-

cording to Schneider, the tanker divi-

sion is aggressively growing its chemi-

cal transportation business, adding

company drivers and owner-operators

to keep up with customer demand.

Compensation recently increased an

additional 8-10% per mile for all tanker

drivers, making their average salary

the-road opportunities for company

drivers and owner-operators. Owner-

operators may choose a percentage or

mileage lease options and may be eligi-

ble for up to a $5,000 lease-on incentive.

Company Changes

Schneider has also recently rede-

signed its logo with a more contem-

porary look. The company’s previous

logo had been in existence since 1985.

In addition to changing the

logo to one that is more refreshed

and befitting to a company oper-

ating in multiple transportation

modes, the company will now be

known simply as Schneider. “Although

we are not changing the name of our

legal entities,” said CEO and Presi-

dent Chris Lofgren, “to our associates,

our customers and the communities

we serve, we are, and have long been

known as Schneider.”

Transition to the new logo will occur

over time, including the 10,000 trucks

and 45,000 trailers/containers. Imple-

mentation will take place as trucks,

trailers, containers and other equip-

ment and materials are lifecycled out

and replaced. LF

up to $81,000 per year. The increase

comes after Schneider’s 10.5 cents per

mile compensation increase for tanker

owner-operators in April.

The other 100 Houston-area open-

ings are across Schneider’s dedicated,

intermodal, van truckload and port

dray divisions, and local and over-

8 LEADING FLEETS VOL 4, 2014

When talking with prospec-

tive clients our team often

hears the same question

when it comes to preventive mainte-

nance (PM): “My local repair shop only

takes 30 minutes for an oil change,

why does your PM take longer?” We’ve

heard this misconception enough late-

ly that we thought it warranted further

conversation.

The common mistake made is the

impression that a 30-minute routine

oil and lube change is the same as a PM

program. The second misconception

is that an oil change is enough to keep

a fleet running at peak performance.

The driving force behind this way of

thinking is a strong one: a 30-minute

oil change seems to save money com-

pared to a full PM service.

However, at Amerit we firmly believe

— and our data proves — that a full PM

program is fundamental and critical

to your fleet’s performance. A PM pro-

gram actually saves you a great deal of

money and delivers profitability when

looked at from a broader perspective.

Rule #1: Not all vehicles are created equal.When it comes to maintenance, not all

vehicles are created equal. A PM sched-

ule that works for half your fleet may

not be best for the other half. Amerit

partners with customers to create indi-

vidualized service plans that allow for

the differing composition, age, use pat-

terns and long-term plans of your fleet.

Our PM programs allow you the

maximum flexibility, visibility and

control to not only schedule routine

services during downtimes but also al-

lows you to take a more comprehensive

view of your vehicle and fleet, drawing

a direct line between PM services and

improved performance and lifespan.

Vehicles are comprised of many

unique components that keep them

running. The clutch, transmission and

tires, for example, each play a role in a

vehicle functioning correctly and are

specific to every type of vehicle. A com-

prehensive PM program goes beyond

changing the oil and lube of an engine;

it is tailored to monitor and maintain

individual needs of every component

for each vehicle type.

Rule #2: A good PM is not only pre-ventive but also predictive.It is in the name — a good PM prevents

breakdowns and undue wear and tear.

At Amerit, we go one step further. Our

technician teams are dedicated and fo-

cused solely on a very small number of

customer’s vehicles, ensuring that the

fleet receives the quality and consis-

tency of service it demands. Our techs

are also trained to go one step further

by predicting potential problems and

failures before they happen.

More than a standard oil change, our

PM covers up to 100 items. We check,

test, inspect and record the condition

of every part of the vehicle, entering

complete data on its condition directly

into the client’s fleet management sys-

tem. This may seem time consuming

and costly but in fact it could potential-

ly save on expensive repairs, unfore-

seen downtime, road calls, mitigate

safety risks, and avert the time and dol-

lars spent on major repairs that would

go unforeseen under lesser processes.

Rule #3: A PM program takes a little more time but saves a lot more money.Let’s look at three areas of savings that

the standard oil change cannot address:

Safety and Department of

Transportation Inspections

Amerit’s PM program includes all com-

ponents of a Department of Transporta-

tion (DOT) inspection to ensure safety

and compliance with DOT standards.

Many times, DOT inspections oc-

cur randomly and unexpectedly. In

the event a vehicle is not up to code,

the penalty can be extremely costly.

Beyond that, if a vehicle does not pass

inspection, it may present a danger to

the driver and those sharing the road.

By incorporating the elements of

a DOT inspection into a PM service,

Amerit ensures that the vehicle is safe

for the road and will pass any unpre-

dicted DOT inspections.

Tires

The value of tires is immeasurable for

the safety and efficiency of your ve-

hicle. Properly maintained tires not

Preventive Maintenance: More than an Oil ChangeRegular preventive maintenance is key to the performance of your fleet and to keep downtime low. Amerit Fleet Solutions outlines some misconceptions and rules to live by when it comes to understanding that preventive maintenance includes far more than just an oil change.

LEADINGFLEETS.COM AMERITFLEETSOLUT IONS.COM 9

only last longer but they improve fuel

efficiency and deliver savings as well.

For example, proper air pressure —

or lack thereof — presents the greatest

risk to a vehicle. If a tire is not inflated

properly it immediately diminishes

fuel economy. Over the long term, tires

that are underinflated are more sus-

ceptible to casing damage, a problem

that has no other solution than to re-

place the damaged tires with new ones.

If left unattended, worn and damaged

casing presents a real safety concern.

Amerit’s PM program monitors and

prevents casings from premature fail-

ure by rotating or replacing tires at

the appropriate time and checking air

pressure on each tire of every vehicle.

A task that takes only 10 minutes dur-

ing a routine PM prevents a repair that

would take as long as two hours and at

a much higher cost.

Amerit also measures tire tread to

make sure the tread depth is to legal

DOT standards, as well as safe for the

current weather conditions. If the tread

is not up to code, the casing becomes

susceptible and threatens putting the

vehicle out of service by DOT criteria.

Engine Coolant

Engine coolant plays an extremely

important role in the functioning of a

vehicle’s engine. Used to prevent both

freezing and overheating, it is made of

unique chemicals that must be checked

and replenished on a periodic basis.

In the event these chemicals are

mishandled or not attended to, they

can cause irreversible damage in a

short period of time. Correcting and re-

pairing the damage is time consuming

and costly but can be easily mitigated

with a proper, full PM service.

A PM improves profitability vs. an oil changeRecently, Automotive Fleet magazine

revealed its 22nd Annual Operating

Cost Survey (November 2013). “Stable

fuel prices and maintenance costs,

combined with a decrease in total fuel

consumption due to increased use of

more fuel-efficient vehicles, resulted in

less volatility in fleet operations during

the 12 months ending August 2013.”

In a landscape where costs are fi-

nally flat over the prior year, most of us

breathe a sigh of relief. But that does

not remove the pressure to deliver

greater profitability than in previous

years. Even in the world of flat costs,

using our thorough, comprehensive

PM program will not only drive savings

in many areas but will extend the life

of vehicles, mitigate safety risks to the

fleet, drivers and community, and re-

duce unforeseen downtime by ensur-

ing your fleet is in peak condition.

We have never met an oil change

that can say that. LF

Tire inspections are not necessarily

part of the typical oil change. Regularly

inspecting tires is a key component to

preventive maintenance and keeping

your fleet on the road.

10

COVER STORY

Averitt Express has recently launched an industry first:

self-powered climate controlled less-than-truck-

load (LTL) units that can keep freight either

cold or hot. While refrigerated trailers have long

been an option for truckload shipments, this is

the first option available to mix both tempera-

ture controlled and dry good shipments on the

same trailer using this type of shipping unit.

According to Phil Pierce, executive vice

president of sales and marketing for Averi-

tt, which is headquartered in Cookeville,

Tenn., the most common option

that currently exists for cli-

mate controlled LTL trans-

portation is an exclusive truck

Averitt Express Changes the Game with Climate Controlled LTLThis Tennessee company offers more than just refrigerated trailers through a

new climate controlled less-than-truckload service ó allowing customers to

securely ship temperature-sensitive cargo right alongside dry goods.

By Kelsey Nolan

LEADING FLEETS VOL 4, 2014

11LEADINGFLEETS.COM AMERITFLEETSOLUT IONS.COM

service. While Averittí s climate controlled LTL service is con-

sidered a premium option, it is less costly than the exclusive

truck mode. Plus, Averittí s model goes beyond refrigeration,

allowing for a range of climate controlled options.

Pierce says that Averitt had been in conversations about

starting a temperature controlled LTL service since the early

í 90s, but until recently, every product researched presented

some sort of weakness. The company was already provid-

ing temperature controlled truckload services, along with

warehousing, international, intermodal and its well-known

dry goods LTL services. However, Averitt wanted to extend

its climate controlled offering beyond truckload into the LTL

market. The market need for such a service was clear.

After Averitt discovered Climate

Controlled Containers Inc. through

a local media report, Pierce and a

few other decision makers traveled

to Port Arthur, Texas, home of the

manufacturers of the climate con-

trolled units, to find out more about

the systems. Pierce notes, ì We

didní t know them and they didní t

know us, but what came out of those

initial conversations was that we

could maybe revolutionize the mar-

ket in certain verticals.î

How It WorksUsing the units from Climate Con-

trolled Containers to transport LTL

shipments is a completely different

model than what is currently avail-

able in the marketplace. Todayí s

most common approach is for pro-

viders to pack LTL shipments in dry

ice to cool the units. Unfortunately,

this limits what providers can trans-

port and has other operational, eco-

nomic and environmental draw-

backs.

Instead, Averittí s self-powered

units are battery operated, which is

quite the departure from using dry

ice. Chuck Odom, vice president of

sales for global development at Aver-

itt, explains, ì Every hour a customer

uses the dry ice unit, it burns about

three-and-a-half pounds of dry ice. So if you have a 100-hour

journey, you need 350 pounds of dry ice. Ours burns none.î

After charging the battery for about eight hours, the units

can run for up to 150 hours. This helps guarantee a set tem-

perature for customers from departure to arrival. And not

only do these units cool cargo, they can also warm up or sim-

ply keep cargo at room temperature despite the frigid cold

or unrelenting heat outside. This is good news, in particular,

for companies transporting goods such as pharmaceuticals,

chemicals, medical supplies and technology, which often

need to remain at a neutral temperature. The units can also

handle hazardous materials.

These containers can range anywhere from -10 to 140 de-

Averittí s new climate controlled units can range from -10 to 140� Celsius and can be monitored, tracked, and adjusted by customers per their freight needs.

12 LEADING FLEETS VOL 4, 2014

COVER STORY

grees Celsius, depending on the ship-

per’s needs. “We just came out of the

worst winter in a decade and customers

were calling left and right asking if we

could keep their freight heated,” Odom

says. “We had a lot of requests to keep

things moving.”

Because the climate controlled units

are set at a predetermined temperature,

it takes the guesswork out of guarantee-

ing cargo in bad weather. “It takes the

gray area out of your distribution prac-

tice, especially for the pharmaceutical

companies,” Odom says. “Those types

of companies really like this service.”

Brad Brown, Averitt’s marketing and

communications manager, says that

environmental responsibility has also

been a positive result from the transi-

tion to these units. “We’re hearing from

more customers who are interested in

what we’re doing to be environmentally

responsible. This is one of several ways

Averitt is demonstrating vision and

leadership in that area,” he adds.

Pricing for the service varies depend-

ing on the type of freight, length of tran-

sit and level of security measures.

Before Averitt launched the climate

controlled LTL units in February, it

did extensive testing on the product to make sure it was the

right fit. For eight months prior to the rollout, Averitt officials

thoroughly tested the units to make sure they were durable

and suitable for the company’s needs. “We moved the units

around our system, beat them up, then we had our VP of op-

erations and his team make some improvements to the de-

sign to ensure maximum durability,” Odom says.

During this time, the company closely studied the vertical

markets where this service could have the biggest impact.

Some of those markets include health care, biotech, phar-

maceutical, chemicals, technology

and medical devices.

On top of the company testing,

Odom explains that Averitt had

a few select customers run trials

with the units. The customers put

them on their docks and even had

Department of Transportation of-

ficials inspect them. He says that

meeting Averitt’s pharmaceutical

customers’ quality control checks

was perhaps one of the most impor-

tant prerequisites to launching this

service.

A Secure ServiceAveritt is treating each customer who

presents a need for climate controlled

freight transportation with extra care.

Pierce explains that this service is ex-

ecuted more like an expedited service,

complete with standard operating

procedures for its operations team. Be-

cause this cargo is often of high value

and requires tight security, Averitt can

put on additional security to each unit

upon request. “If you put 1,000 iPads in

the unit, you’re going to get 1,000 out,”

Odom says.

The customer is directly involved in

each aspect of the freight transit with

these containers. Customers can even

require that the units are cleaned with

specific products, for example. Clients

can also set and control the tempera-

ture remotely, and monitor it along with

the humidity, the outside temperature,

how fast the truck is going and where it

is, and that the truck and the freight are

both in compliance at all times.

Because of the customized security, staying compliant

with a temperature controlled unit varies case by case. How-

ever, Pierce says that Averitt has a team working 24 hours a

day, seven days a week so that if a shipment goes out of com-

pliance, the group can actively recover it during the journey.

Brown explains that Averitt’s operational technology

proves helpful for the customer. If something were to change

with the shipper’s requirements for the freight, Averitt’s

operations leadership can instantly alert the driver using

on-board Qualcomm computers

available in every truck to prevent

any disruptions to the service. “We

have great infrastructure to com-

municate with the driver about any

necessary adjustments, should the

need arise,” he says.

Even the maintenance for these

units gets the red carpet service.

The maintenance is performed in-

house at shops throughout Averitt’s

distribution network.

These technicians already han-

dle the maintenance for Averitt’s

AVERITT CLIMATE-CONTROLLED UNITS

AVERITT EXPRESS OPERATIONS

BY THE NUMBERS

Due to the sensitive cargo and the nec-

essary security, Averitt’s operations team

treats each temperature controlled unit

with special care.

The maintenance of these temperature

controlled units is performed in-house

at shops throughout Averitt’s distribution

network.

13LEADINGFLEETS.COM AMERITFLEETSOLUT IONS.COM

tractor and trailer fleet, so it made sense that

they would also handle the necessary mainte-

nance for the climate controlled units.

Best PracticesWith the launch of any new product, companies

must establish standard operating procedures,

and Averitt has been working hard to create

these for its operational leadership. Every new

customer request or requirement gives Averitt

another item to add to its operational protocols

so it can accommodate every type of cargo.

Additionally, along with training across other

company services, Brown explains that drivers

are educated on their role in transporting these

units. Just like with dry LTL freight, drivers do

not have much involvement with actually han-

dling the units.

“The training we do relates more to security

and the process that the driver would need to

follow should there be an issue, such as the

battery getting low or the temperature chang-

ing,” he says. “If that happens, the customer and

Averitt’s operations leadership are automatical-

ly updated. From there, if necessary, the driver

will be notified about next steps.”

Averitt’s ability to provide quality care and information

with this service is closely related to its own operational

technology. As mentioned, Averitt uses Qualcomm units,

which are in every truck along with a GPS system.

Aside from the loading and unloading of the freight, the

entire customer service process is centralized. Because of

this centralization, the dedicated customer service team is

able to remotely monitor and control these units and ensure

their safe and timely arrival.

Expectations vs. RealityPierce says that ever since Averitt began considering the cli-

mate controlled service, they have been studying and evalu-

ating their offering, making sure they keep the target custom-

ers happy.

The difficult part of rolling out a new product like this,

Pierce explains, is convincing customers that they’re going

to get a reliable service. He says that this product is not for

everyday temperature-controlled frozen foods, but more of a

high-end vertical that has to have certification and meet gov-

ernment regulations.

According to Odom, the entire process of de-

veloping a strong provider-customer relation-

ship with this service is far more consultative

and takes longer to iron out with each customer

than other types of traditional services. Rath-

er than just providing a rate for a customer’s

freight, he says, Averitt has to go through a vali-

dation process with customers in the biotech,

pharmaceutical and medical fields to ensure

security, satisfaction and compliance.

Pierce says that Averitt has seen an over-

whelming customer response from the rollout of

the climate controlled service. For example, cus-

tomers love that the units can be programmed

to alert as many people as necessary.

Plus, the company is getting quotes every day

from all over the country and North America.

Shipping climate controlled products is a niche

service. Odom explains that identifying the in-

dustries with the most potential is key to the fu-

ture success of the service.

“We know some of the verticals,” Odom says.

“For example, transporting vaccines has huge

potential.” With the growth of the health care

market, he explains, seven of the next 10 vac-

cines require climate control during transport.

And with the beginning of vaccine season,

which runs from June to October, Averitt is hop-

ing to bring in a lot of that business.

“We’re confident other industries will identify themselves,

raise their hand and say ‘We love this,’” Odom says.

The company is also working to educate its sales team

about this new service. Odom says it’s a continuous training

process for everyone in the company.

Pride in ServiceAveritt has been moving forward with a number of other ad-

vancements as well. The company has rolled out the indus-

try’s first 100% mobile-friendly website, and will soon launch

e-notifications to automatically alert customers to changes in

the delivery status of a shipment.

The company has also received the LTL Regional Carrier of

the Year Award from Walmart for the third year in a row — a

testament to the quality of service Averitt provides. LF

Averitt Express, headquartered in Cookeville, Tenn., is training

drivers on the new service to ensure that all drivers understand

the security protocols with these units.

Phil Pierce, executive

vice president of sales

and marketing

Chuck Odom, vice

president of sales for

global development

14 LEADING FLEETS VOL 4, 2014

With the largest team of dedi-

cated fleet maintenance

experts across the nation,

Amerit Fleet Solutions is focused on

creating service programs that are cus-

tom built to improve the performance

of complex fleets anywhere in the

United States. From brick-and-mortar

maintenance facilities to mobile main-

tenance units, the company draws

upon a portfolio of innovative service

platforms to get the job done.

Recently, three executives from

Amerit sat down with Leading Fleets to

talk about their unique company phi-

losophy, detail how custom solutions

are developed and what fleet profes-

sionals can expect when working with

them.

Q: How is Amerit different from other

fleet maintenance companies?

Dan Williams, CEO: The things that

differentiate our company all boil down

to our scale and our perspective. Our

nationwide team of 1,300-plus techni-

cians and managers are currently op-

erating in most major-markets in the

U.S. This scale means we truly have the

ability to go anywhere our customers

need us. This separates us from most

local or regional maintenance provid-

ers, who are constrained in their ability

to deploy services in response to their

customers’ needs.

But our size does not mean our cus-

tomers get lost in the crowd. As a pri-

vately held company that is focused

on nothing but fleet maintenance, we

have the ability to be more nimble than

our large, publicly held competitors.

Whether it’s a minor item like how a

customer wishes us to invoice them,

or a larger need like finding the perfect

garage location within a 5 minute drive

time radius, or how we capture and

transmit maintenance data, we truly

do customize our solutions to fit each

of our customers.

The last thing I would say that dif-

ferentiates us is the fact that we truly

care about our customers. I know that

sounds hokey but I think it truly is what

has led to our success. We really do

care more than other providers — and

it shows in how we always put our cus-

tomers first.

Q: What expertise do you have main-

taining equipment and fleet assets?

Bob Brauer, President: We main-

tain more than 100,000 assets nation-

wide, everything from light to heavy-

duty, including high-mileage assets,

dry and refrigerated trailers, aerial

equipment, material handling equip-

ment and even generators. We also

service more electric, CNG, LNG and

hybrid vehicles than anyone in the

industry. Because we have over 1,300

technicians throughout the U.S., when

we start with a new customer we usu-

ally have the expertise needed for their

asset types.

Having vehicle experts on-hand

speeds the transition process and en-

sures high-quality services from day

one. On the rare occasion when we do

not have a specific technical skill, we

deploy our team of recruiters to acquire

the right technical experts and techni-

cians to ensure our clients are always

receiving the highest quality services.

Q: What are the Mobile Service Cen-

ters, and how long does it take to get

one up and running?

Amein Punjani, COO: The best way

to summarize Amerit’s Mobile Service

Centers (MSCs) is to say they are like a

garage on wheels. These aren’t garage-

based units that make short trips for

emergency services or routine main-

tenance, our MSCs are stocked with

parts, tools and wireless data systems

and are designed to be on the road for

extended periods of time, operating

completely independent of the garage.

We tend to invest a little more in equip-

ment on our MSCs, but it pays off be-

cause we are able to handle more of the

work at our customer’s location.

Another important difference is that

each MSC is a custom solution, built

specifically for each client’s fleet. We

begin by making sure it’s equipped

and stocked appropriately for the asset

types, usage and services required.

Regarding timing, we work with

each client to determine an accept-

able start-up timeframe, but generally

it takes no more than 30 days for us to

get the MSC upfitted and into service.

Because we’ve had such high demand

for these units, we are receiving new

mobile units quite frequently, which

helps us react quickly to customer

needs.

Q: The newest service is the Amerit

Fleet Service Centers. What should

fleets expect in choosing this solution?

Williams When we open an Amerit

Fleet Service Center for a customer,

the goal is for that garage to operate

just like that customer’s in-house op-

erations. While we can handle every-

thing on our own, we love it when our

customers are highly involved at every

step — from initial property approval

to start-up monitoring and monthly

performance reviews.

Once up and running our clients can

expect to enjoy priority access, excel-

lent services, hours of operation that

meet their routine downtimes, a dedi-

cated team of technicians, state of the

art diagnostics and reduced costs. In

short, we want our clients to think of

the AFS Fleet Service Center as their

own garage just down the street.

Inside Amerit Fleet SolutionsQ&A:

LEADINGFLEETS.COM AMERITFLEETSOLUT IONS.COM 15

Q: Explain the details of Amerit’s on-

site labor services and why your cus-

tomers choose this service model.

Punjani: Onsite labor is usually a so-

lution for one of two reasons: either

we’re displacing a problematic existing

vendor or we are transitioning an in-

house operation to deliver greater ef-

ficiency, quality and savings. In either

case we are there to improve the situ-

ation — not just give the existing staff

a paycheck with a different logo on it.

Our onsite workforce capabilities

bring relief from the burdens and risks

found in managing a highly technical,

specialized group of employees. We

are the experts at assessing the cor-

rect staffing levels and skills that are

required to meet the needs of each

fleet. By hiring and managing the right

workforce we deliver savings and val-

ue. For example, by hiring for the right

skills, we drive down expensive third-

party services, which reduces spend

while improving in-house efficiency

and vehicle availability.

And because we believe in total

transparency we track and report our

performance on everything from stan-

dard task times to comeback rates to ve-

hicle downtimes. We hold our employ-

ees accountable for their performance

and incentivize them to perform above

industry and client benchmarks.

Williams: Another, often overlooked

benefit to our clients is our dedicated

recruiting and HR staff. Our focus on

managing our technical workforce

means that our customers are able to

focus their time and efforts on running

their business. By offering best-in-class

safety and technical training, continu-

ing education programs, as well as

health care, financial planning and oth-

er sought-after benefits and incentive

programs, we are able to attract, retain

and reward the best in the business.

Q: So it sounds like you can you ser-

vice a fleet anywhere in the country?

Williams: Yes, that is correct. Our

national footprint means we already

have technicians working in most mar-

kets, so it is easy for us to go anywhere

in the U.S. In fact, we have yet to find a

customer location we couldn’t create a

solution for.

Because we work with a number

of large national fleets with assets all

over the country, we are able to bring

together a small number of our cus-

tomers to create service programs

even in remote locations. This allows

us to deliver higher quality services,

reduced costs and give our customers

higher priority and faster turnaround

service times than they are experienc-

ing currently. It creates a win-win for

everyone.

Brauer: To give you an example, we

are currently opening a garage in a

small city in northern North Dakota.

In a town this small, hiring becomes a

serious challenge so we put together a

solution that brings in Amerit techni-

cians from the lower states to main-

tain our clients’ vehicles. And with a

workforce as big as ours we have a lot

of technicians that we’re able to attract,

and move where they want to go. As it

turns out, for some, the North Dakotan

lifestyle is exactly what they have been

looking for.

Williams: I’ll add one more point.

Because we are in the early stages of

building out our network of brick-and-

mortar garages, we are uniquely posi-

tioned to provide an optimal solution

for our customers. Our national com-

petitors who already have hundreds

of garages, approach new customers

from the perspective of “which of my

existing garages would best meet their

needs.” We approach a new customer

from the perspective of “what is the

best location for us to open a shop to

support this customer.”

We are currently opening garages

in rural parts of Texas that will liter-

ally save our customers over an hour of

drive time — that translates to big sav-

ings in time and fuel costs.

Q: You mention fast turnaround times

and priority, how have you organized

your services to support this?

Williams: Our dedicated service

model means that our customers ex-

perience unparalleled turnaround

and service times they cannot get

from anyone else. Because our tech-

nicians focus on supporting a very

limited number of customers they are

able to respond to service requests as

quickly as they can jump in a MSC

and get to the location, or as quickly

as they can pick up a wrench and start

working on a vehicle that has been de-

livered to the shop.

Punjani: Adding to that, we schedule

the work shifts around our customers’

needs. If their vehicles are available

during the day, we’ll work during the

day. If they’re available only at night,

we’ll service them at night. Our service

solution is inherently designed to be as

responsive as possible.

Q: In closing, what would you like

our readers to take away from this

conversation?:

Williams: We are proud that Amerit is

a unique, innovative company in this

industry. We want fleet professionals to

know that when we say “we create cus-

tom service programs that solve your

problems, anywhere in the country”

that we have the infrastructure, the

processes, the talent and the experi-

ence to do exactly that. LF

16 LEADING FLEETS VOL 4, 2014

FLEET PROFILE

After 125 years in the business

and in an effort to return to the

days of lower fuel costs, Amer-

iPride has evolved from horse and bug-

gy operations to diesel trucks to now

testing out natural gas, propane, and

electric systems.

Eventually penetrating the company

fleet of almost 2,000 vehicles, a new

pilot program exploring not just one

but several technologies has taken the

reins of this fleet’s sustainability initia-

tives. “We didn’t want to limit ourselves

to one technology,” says Banny Allison,

AmeriPride corporate fleet manager.

AmeriPride is based in Minnetonka,

Minn. and has 115 production facili-

ties and service centers in the U.S. and

Canada, which include a wide range of

routes from 50-mile runs to long hauls.

Allison knew that while every technol-

ogy would work, not every application

would see a cost benefit. “That’s why we

are testing everything,” he says. “May-

be we’re crazy. It’s a lot of work but the

results and excitement it has generated

in the company has been well worth it.”

To manage the data, telematics sys-

tems and other electronic information

such as fuel card data, maintenance re-

cords, and pump monitoring at on-site

fueling stations are all used to generate

the reports. For every fuel or technol-

ogy tested, an analysis is run against

the baseline platform: diesel.

The process began back in 2012,

when the company began looking at

alternative fuels and analyzing at what

point each fuel is most cost effective.

Next, it was a matter of deciding which

locations best fit those criteria.

Starting with CNGThe AmeriPride fleet consists mostly

of step vans built from either a Ford

F-59 or a Freightliner Custom Chassis

MT45 chassis; the bodies are built by

either Morgan Olson or Utilimaster.

On the Ford chassis, AmeriPride did

the gaseous fuels engine-prep package

through Ford, and Green Alternative

Systems (GAS) did the upfit with a BAF

kit. Five trucks with this configuration

are being tested in Omaha, Neb. These

were the first AmeriPride CNG trucks

to hit the ground and already have

30,000 miles on them since mid-2013.

Overall, Allison reports no issues ex-

cept for one lesson learned so far: tank

fluctuation. “We probably needed big-

ger tanks because when it gets really

warm — like 90-100 degrees — we lose

a lot of capacity,” he says.

The Omaha CNG fleet is fueling up at

public stations operated by Metropoli-

tan Utilities District. AmeriPride will

hold off on investing any capital into

CNG stations until or if the pilot proves

it’s worth the cost.

Another five CNG trucks live in

Oklahoma City and are built on the

Freightliner Custom Chassis with a

Landi Renzo CNG package, also upfit

by GAS. Deployed after Omaha, these

trucks have bigger CNG tanks.

These two locations were chosen

due to the high-mileage routes, ade-

quate public fueling sites, and because

there’s access to mechanics familiar

with CNG vehicles.

The verdict isn’t out yet on prefer-

ence over the two truck configurations,

(Above) This is one of four 53’ double-decker trailers that AmeriPride is testing on its long-haul routes. (Left) CNG trucks make up the largest piece of the company’s alt-fuel pilot program.

AmeriPride’s Alt-Fuel P

By Joanne Tucker

With a variation of route types to service, AmeriPride is on the hunt to find which fuels and technologies are the most cost effective for

each application. Ph

otos

cour

tesy

of A

mer

iprid

e.

17LEADINGFLEETS.COM AMERITFLEETSOLUT IONS.COM

but Allison says that the company is

seeing a large savings in fuel costs and

a reduction in carbon emissions.

Filling a Branch with PropaneFor the five propane trucks in Topeka,

Kan., they are on the F-59 chassis with

a ROUSH system upfitted by GAS.

AmeriPride went ahead and had an

onsite pump installed. “Propane gives

you the flexibility of fueling in random

areas without public infrastructure,”

Allison says. “You can drop a tank, put

a pump on, and you’re ready to go.”

While some wiring issues were expe-

rienced with the upfits, the one major

pain point has been the propane price

fluctuation. With this last winter put-

ting extra stress on home heating fu-

els, propane prices increased far more

than expected. “We were paying four

to five times what we did in the sum-

mer,” Allison says, adding that they did

not lock in a fuel price because they

wanted to see what it would be like to

run the fuel in a normal cycle.

Those propane trucks were tempo-

rarily parked until the propane prices

came back down. “It’s all part of the pi-

lot,” Allison says. “What we’ve learned

from that is we will be locking in a fuel

price this summer, when it’s substan-

tially lower.”

The pricing issue hasn’t deterred the

company from moving forward with

propane though. Allison says the com-

pany is considering filling out the To-

peka location with propane trucks, and

possibly a few other locations.

California Leads in Electric For electric, Los Angeles was the se-

lected AmeriPride location to install

10 charging stations, which were com-

pleted in March. The site will receive

five Boulder EV trucks in December

and is working to source another five.

Why California? Government incen-

tives. “Because without those, electric

vehicles — at least on the medium-du-

ty truck side — are just too cost prohib-

itive to actually allow us to test them,”

Allison says.

While the company doesn’t have

much data other than the trucks get

an 80- to 120-mile range, lessons were

learned in launching the EV project

before the trucks have even been de-

livered. “We had estimated charging

infrastructure at $10,000 a station and

it has come in substantially higher,” Al-

lison says. “We weren’t really consider-

ing that you have to do trenching, extra

lighting, potentially add transformers

to bring up our power situation, etc.”

The company worked with its utility

provider City of Vernon Light & Power

and Chateau Energy Solutions, an in-

frastructure design and build firm, on

the stations, especially to ensure that

the trucks never peak out on power

by charging at the same time and are

charging during the lowest rates.

Another electric system being test-

ed is a bolt-on hybrid system from XL

Hybrids on two GM cargo vans. “The

installation went smoothly,” Allison

says. “From the drivers, they’re say-

ing there’s not much difference power

wise, so they’re pleased with that.”

Getting More on the RoadOn the company’s tractor/trailer fleet,

which operates out of AmeriPride’s 45

main distribution centers, four double-

decker trailers are being tested. Allison

says that some of the company’s ser-

vice centers have outgrown the capac-

ity of loading one, 53-foot trailer.

Instead of running a second truck

and having to hire another driver, the

company is trying double-decker trail-

ers, which are manufactured by In-

novative Trailer Design and have two

floors to store cargo with an internal lift

to maneuver between the two decks.

“Those have proven to be extremely

beneficial to the operation because we

can get so much more — about 60%

more into that trailer,” Allison says.

However, roadway conditions dic-

tate where these low-riding trailers

can travel. While the company looked

at any highway conditions and re-

strictions, AmeriPride had to move

the trailer operating out of Memphis,

where the company’s facility doesn’t

have nicely paved roads up to the

building. “It was scraping the bottom,”

Allison says, adding, “we have to do a

more diligent review of every aspect of

the double-decker route.”

AmeriPride is looking to add three

more of these in 2014. The company

also installed side skirts on virtually all

their standard 53’ trailers.

Through all these trial runs of vari-

ous technologies and products, Amer-

iPride is gathering driver feedback,

which pairs nicely with the company’s

125th anniversary.

In celebration of this milestone, driv-

ers are getting new and improved uni-

forms, and general managers and other

company leaders will have the opportu-

nity to check out some of the technolo-

gies at Ameripride’s upcoming Leader-

ship Summit and “Fleet Expo.” LF

el Program Tests It All

Starting with a handcart and moving up to a horse and buggy to today’s alternative fuel pilot program, AmeriPride is testing it all. The fleet currently has: 10 CNG step vans 5 propane step vans 5 all-electric trucks 4 double-decker trailers 2 hybrid cargo vans

FROM HORSE AND

BUGGY

18 LEADING FLEETS VOL 4, 2014

LEADING THOUGHTS

In May 2014, 11 people across four

states fell sick from E. coli found in

beef they had consumed, with the

USDA’s Goods Safety and Inspection

Service stating that stores in as many

as nine states were stocked with beef

contaminated with E. coli.

Based on data from the Center

for Disease Control and Prevention,

around 48 million people annually (or

one in six Americans) get sick from a

foodborne illness. Of these, 128,000 are

hospitalized, and 3,000 die each year.

Growing public safety concerns

about food safety prompted the

FDA’s Food Safety Modernization Act

(FSMA), which was signed into law on

Jan. 4, 2011. In initial phases, FSMA fo-

cused on the regulation of food sources

and the supply chain. Now in 2014, it is

broadening its focus to the transport

of food as the seventh and final major

rule in the implementation of FSMA’s

overall food safety framework. The

proposed rule has been extended for

open comment until July 30.

Who Would It Affect?The new food transportation measures

would set criteria to ensure sanitary

transportation practices for food, such

as proper refrigeration, the cleaning of

vehicles between loads, and other pro-

tective food measures during transport.

It would be universally applied to ship-

pers, carriers and receivers engaged in

the transport of food consumed or dis-

tributed in the U.S. This means that the

regulations would cut across the supply

chain and require granular tracking,

tracing and visibility.

In such scenarios, shippers would

be expected to inspect vehicles for

cleanliness prior to loading food that

is transported in containers not com-

pletely enclosed, such as fresh produce

in vented boxes. Likewise, interna-

tional shippers that transport food to

the U.S. in international freight con-

tainers by air or oceangoing vessel and

then arrange for the transport of these

containers onto motor or rail vehicles

in the U.S. for domestic consumption

or distribution would also be subject to

the new guidelines.

Who Would Be Exempt?Domestically, the guidelines would not

apply to shippers, receivers or carriers

engaged in food transportation opera-

tions with less than $500,000 in total

annual sales. Nor would the rule apply

to transporting fully packaged shelf-

stable foods, live food animals, and raw

agricultural commodities when trans-

ported by farms.

Internationally, the guidelines would

not apply to shippers, receivers or carri-

ers engaged in operations in which food

is shipped through the United States to

another country, but not consumed or

distributed in the U.S. Similarly, the

guidelines would not apply to food

imported to the U.S. for future export,

again as long as it is not consumed or

distributed in the United States.

The FSMA’s food safety transporta-

tion guidelines could have dramatic

impacts on the food and beverage in-

Phot

o: iS

tock

.com

FDA Food Transport Rules F

19LEADINGFLEETS.COM AMERITFLEETSOLUT IONS.COM

dustry, as well as food distribution and

supply chain logistics. Here are three

potential and significant areas of im-

pact that operators should prepare for:

#1: Track and trace visibility

More granular visibility of food ship-

ments would be expected in the sup-

ply chain — the type of granularity

that can track and trace a shipment of

food back to its originating farm if food

contamination breaks out. True track

and trace would follow food shipments

from their points of origin through the

logistics network and into warehouses,

distribution centers and retail outlets.

For carriers, it means track and trace

of shipments from shipper to buyer/

recipient. If the foods are “cold chain”

goods that require refrigeration or oth-

er types of strict environmental con-

trols, such as maintenance of the goods

in specific humidity ranges during

transport, sensors for temperature and

humidity would be expected in trans-

port vehicles and in the containers.

Sensor-based technology that con-

trols the quality and safety of food

works in two ways: It can provide GPS

data that delivers real-time informa-

tion on the location of the transporter

carrying the goods, and it can monitor

the temperature and humidity param-

eters of food containers — immediately

sending out alerts if a particular con-

tainer’s environmentals begin to fail.

Large logistics providers with com-

prehensive Internet-based networks

already have sensor-based technolo-

gies, automated alerts and mitigation

practices in place. This puts pressure

on smaller logistics providers that do

not have this full network management

capability. The implementation of new

FSMA standards might give smaller lo-

gistics companies extra time to comply,

or in some cases exclude them — but

these companies would still run the

risk of losing shipper-customers who

already know there are logistics provid-

ers “out there” with the supply chain

sophistication that will enable them to

comply with new FSMA standards.

#2: Plugging existing “holes” in

the supply chain

Supply chain and transportation man-

agement systems should be evaluated

for completeness, with an eye toward

making adjustments for “holes” in

end-to-end logistics visibility that can

potentially expose food shipments to

safety hazards.

One prime example is yard manage-

ment, where loading, unloading and

managing truck schedules is still often

handled with clipboards and walkie-

talkies, while warehouse management

(WMS) and transportation manage-

ment (TMS) systems have soared to

next-generation technology. Yard ac-

tivities outside a warehouse or a distri-

bution center are often inefficient. The

hazards range from “misses” in sched-

uling and tracking carrier appoint-

ments, to even forgetting about a trailer

that is already in the yard — and full of

a perishable food product.

#3: Movement to cloud-based

networked supply chains

Historically, companies have used in-

ternal enterprise resource planning

(ERP) and supply chain systems. While

these systems can achieve optimal in-

tegration between corporate internal

functions like finance, distribution,

customer service and marketing — the

systems don’t fare nearly as well when

it comes to directing business transac-

tions and communications that occur

outside the enterprise.

It is also difficult for traditional ERP

systems to facilitate communications

between more than two business part-

ners at once. Directives like FSMA will

require greater collaboration and bet-

ter communications between trading

partners and their logistics providers.

To facilitate these working rela-

tionships in the safe transport and

management of food products, supply

chains would need to be networked

and capable of creating opportuni-

ties for collaboration and multi-party

problem solving in much the same

fashion that social media does.

Newer, cloud-based supply chain

networks provide this functionality. It

would be important for logistics provid-

ers, as well as other supply chain partic-

ipants, to subscribe to these networks.

Satisfying RequirementsWhenever new legislation and regula-

tions enter the pipeline, there is sure

change for companies and concomitant

costs. Accordingly, monitoring food

containment environments during

transport, knowing where shipments

are and where they came from, and be-

ing able to take prompt steps whenever

a breach in food safety occurs, would

all be needed to conform to new FSMA

requirements for food safety in transit.

It would take capital to invest in these

new information, automation and sup-

ply chain technologies. Most logistics

providers understand though that

these technologies are the hallmarks of

the global, more visible and more agile

supply chains required to not only com-

ply with FSMA, but to keep pace with

the expanding markets and customer

requirements that they must satisfy to-

day and in the future. LF

About the AuthorMary Shacklett is president of Tran-

sworld Data, a technology and

market research firm. She has been

actively involved in the publishing

industry for more than 20 years as

an editor and writer, with a focus on

topics such as supply chain, logistics

and manufacturing/distribution.

es Focus on ‘Track and Trace’By Mary Shacklett

20 LEADING FLEETS VOL 4, 2014

LEADING EXPERTISE

There is no doubt that finding, hir-

ing and retaining the right talent

is critical to the success of every

company and every fleet. Hiring hun-

dreds of qualified technicians every

year, Amerit Fleet Solutions has first-

hand experience with the challenges

present in filling the needs of a grow-

ing workforce.

Through this experience, Amerit

has found the following four keys to be

important in the successful recruiting

and retention program.

#1: Build a strong recruiting organization. A recruiting team brings specialized

skills, insights and focus to the hiring

process that go beyond the realm of

the average human resources profes-

sional. Trained and certified recruiters

are focused on both the hard and soft

skills that make the candidate success-

ful in your culture. Amerit’s in-house

recruiting team also conducts all first-

line interviews, passing along only the

candidates that clear the team’s bar —

saving the hiring manager a great deal

of time and energy.

Another component of a strong re-

cruiting team is technology. Utilizing

the latest job-board technologies not

only gives you access to a nationwide

pool of candidates but also provides

important data such as time-to-hire,

wage ranges and size of candidate

pools that will help your organization

manage expectations and risks.

And let’s not forget the power of social

media. Facebook, LinkedIn and Twit-

ter are important tools that a recruiter

should use to build broad networks and

drive candidate engagement.

#2: Referral programs work.An employee referral program lever-

ages the power of employees’ existing

relationships with friends and associ-

ates. Referral incentives go a long way

to vesting employees in the process.

In Amerit’s experience, a referral is

much more likely to succeed than an

external candidate. It could be that

the employee acts as a mentor or that

friendships motivate candidates to

perform — but whatever the reason,

Jennifer Toll brings years of experience in managing organizational design, tal-ent acquisition, and succession planning from multiple Fortune 500 companies. She currently leads Amerit’s talent management strategy, with the goal of attracting, developing and retaining the company’s most valuable asset: the em-ployees. Toll is an influential, strategic business partner, engaged in all levels of the organization. She holds a B.A. from California State University, Chico.

4 Keys to RecruitingSuccess: An Inside ViewBy Jennifer Toll, Vice President of Human Resources, Amerit Fleet Solutions

when employees have “skin in the

game,” your company benefits.

#3: Educate your managers.The more involved a manager is in the

hiring process, the fewer headaches

they will have down the road. Howev-

er, managers may lack the proper inter-

viewing skills to properly assess can-

didates’ capabilities, capacity and fit.

Ensuring your managers know the ins

and outs of interviewing, what types of

questions they can/can’t ask and how

to both promote your company while

assessing the candidate will net great

rewards in finding the best employee

and in alleviating potential legal chal-

lenges.

#4: Have a focused HR team.The HR department at Amerit is fo-

cused on the quality of life of techni-

cians. We don’t hire many web devel-

opers or marketing people — we hire

techs. Therefore we design our benefits

and incentives to align with the needs

of technicians. A benefits package that

includes career path development,

training and certification manage-

ment, as well as encouraging on-going

education in areas relevant to the po-

sition will go a long way to letting can-

didates know that your company is the

place where they should hang their hat.

Amerit’s experience and success in

attracting and hiring the best techni-

cians is unparalleled in the mainte-

nance industry. Finding the right per-

son for the job is never easy but using

these four tactics will help bring rapid

and successful talent acquisition to

your company. LF

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Amerit belief #2:We should go to wherever your fleet needs us.

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Amerit belief #3:Good decisions start with good data.