SUPERIOR SUPERIOR BULK BULK LOGISTICS, LOGISTICS, …is showing up,” Woody Allen famously quipped....

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“Being average has never had that much appeal,” observes management guru Tom Peters in his preface to The Pursuit of WOW! Every Person’s Guide to Topsy-Turvy Times. He then goes on to explain how to become the kind of innovative, excellence-driven company that stands out in today’s unpredictable marketplace. There’s ample evidence that Superior Bulk Logistics has emerged as that kind of company. Last September, I wrote an article for the Driving Force on “People Who Wow Us,” a Peters- inspired, terminal-level tribute to SBL’s outstanding front line people. It generated good feeling inside and outside the company, but there was one problem: when asked to identify those “wow” employees, managers had to leave out scores of high-performing people — especially teams who function as effective units. This is a nice problem to have, so I recently asked each regional manager to identify a superbly functioning group in his region. While some worthy candidates again had to be elimi- nated, the teams chosen exemplified the many great teams throughout our organization. All work groups profiled here shared the following characteristics, work habits and attitudes: High energy, small size. About 25 years ago, large corporations discovered that their smaller project teams consistently broke performance records and set innovation benchmarks. Evidently, something motivates a small, nimble group — call it peer pressure, shared purpose, an absence of corporate oversight — that makes the whole greater than the sum of its parts. Peters quotes Ren McPherson, a people-first pioneer at Dana Corporation, who believed that constant innovation and customer concern come only from a small and “spirited, obsessed, energetic unit.” Ironically, societal factors that contribute to isola- tion in our lives may also foster good work teams. People who feel disengaged from their communities, or who live apart from their extended families, often find in work teams the connectedness they need. Increased Empowerment. Today’s streamlined management hierarchies require employees to take on more self-management and responsibility. (Ask any hourly-wage tank cleaner how his performance affects the world’s largest chemical companies, and he’ll likely share a story about how his team helped to avert a plant shutdown.) Peters comments: “All this highfalutin ‘stuff’ about running companies comes down — surprise! — to the folks who actually do the work.” As our logistics industry becomes more sophisticated, employees are required to know more about a broader spectrum of operations. This requires daily knowledge sharing, that’s easily achieved in small work teams . . . which leads me to my next point. Widespread information sharing. Leveragi SUPERIOR BULK LOGISTICS, INC. SUPERIOR BULK LOGISTICS, INC. JUNE 2008 NEWS QUARTERLY continued on page 2 WORK TEAMS THAT “WOW” US by Gail Jones Hansen Teamwork — a critical component of any endeavor

Transcript of SUPERIOR SUPERIOR BULK BULK LOGISTICS, LOGISTICS, …is showing up,” Woody Allen famously quipped....

Page 1: SUPERIOR SUPERIOR BULK BULK LOGISTICS, LOGISTICS, …is showing up,” Woody Allen famously quipped. The teams profiled in this article have a hang-in-there work ethic that simply

“Being average has never had that much appeal,” observes management guru Tom Peters inhis preface to The Pursuit of WOW! Every Person’s Guide to Topsy-Turvy Times. He then goeson to explain how to become the kind of innovative, excellence-driven company that stands outin today’s unpredictable marketplace.

There’s ample evidence that Superior Bulk Logistics has emerged as that kind of company.Last September, I wrote an article for the Driving Force on “People Who Wow Us,” a Peters-inspired, terminal-level tribute to SBL’s outstanding front line people. It generated good feelinginside and outside the company, but there was one problem: when asked to identify those“wow” employees, managers had to leave out scores of high-performing people — especiallyteams who function as effective units.

This is a nice problem to have, so I recently asked each regional manager to identify asuperbly functioning group in his region. While some worthy candidates again had to be elimi-nated, the teams chosen exemplified the many great teams throughout our organization. Allwork groups profiled here shared the following characteristics, work habits and attitudes:

High energy, small size. About 25 years ago, large corporations discovered that theirsmaller project teams consistently broke performance records and set innovation benchmarks.Evidently, something motivates a small, nimble group — call it peer pressure, shared purpose, anabsence of corporate oversight — that makes the whole greater than the sum of its parts. Peters quotes Ren McPherson, a people-first pioneer at DanaCorporation, who believed that constant innovation andcustomer concern come only from a small and “spirited,obsessed, energetic unit.”

Ironically, societal factors that contribute to isola-tion in our lives may also foster good work teams. Peoplewho feel disengaged from their communities, or who liveapart from their extended families, often find in workteams the connectedness they need.

Increased Empowerment. Today’s streamlinedmanagement hierarchies require employees to take onmore self-management and responsibility. (Ask anyhourly-wage tank cleaner how his performance affects the world’s largest chemical companies, and he’ll likelyshare a story about how his team helped to avert a plant shutdown.) Peters comments: “All this highfalutin ‘stuff’ about running companies comes down — surprise! — to the folks who actually do the work.” As our logistics industry becomesmore sophisticated, employees are required to know more about a broader spectrum of operations.This requires daily knowledge sharing, that’s easily achieved in small work teams . . . which leads me to my next point.

Widespread information sharing. Leveragi

S U P E R I O R B U L K L O G I S T I C S , I N C .S U P E R I O R B U L K L O G I S T I C S , I N C .

J U N E 2 0 0 8 N E W S Q U A R T E R LY

continued on page 2

WORK TEAMS THAT “WOW” USby Gail Jones Hansen

Teamwork — a critical component of any endeavor

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Widespread information sharing. Leveragingknowledge rather than hoarding it is the key to suc-cess in our fast-changing service sector business.New Hazmat rules, complex technology, and morediverse job requirements mandate that teams of peoplebecome generalists and support each other by sharinginformation. Not surprisingly, this fosters a cultureof equality and leads to process innovation.

Personal and professional support. As every-one knows, it’s the “little stuff” (that’s not really littleat all) that gets even the most dedicated employeesdown. When you work with a close-knit team, every-one’s facing the same problems, and solutions areachieved by consensus. In times of stress, everyonestands behind everyone else. From natural disastersto emergency customer requests to spousal disputes,all are easier to deal with if you have your team supporting you.

Sheer dedication. “Eighty percent of success is showing up,” Woody Allen famously quipped. Theteams profiled in this article have a hang-in-there workethic that simply won’t tolerate less-than-excellentperformance. Given that most of our work teamshave direct customer contact, these qualities quicklybecome apparent to those companies we serve.

NOW, FOR THE “WOW” TEAMS.

The Houston Tank Wash Team. While tankcleaning is a complex process, evaluating its perform-ance is straightforward: either a tank is accepted orrejected. Our Houston wash team has expertly dealt

with every kind of tank cleaning challenge . . . butthey’re relatively inexperienced in handling rejection.

Their performance stats are truly staggering:Since 2003 they have cleaned 23,695 trailers, withonly three rejections Three. The 6-person team handles everything from latex to highly hazardouschemicals, cleaning an average 550 trailers a month.Between them they flexibly cover two shifts, 24hours a day, seven days a week. These shining starsare: Rodrigo Gonzalez, Danny Berry, RicardoChavez, Alejandro Sierra, Athan McDowell, andEnrique Gutierrez (who works in maintenance butfills in at the tank wash.)

Tank wash manager Greg Lockner can’t sayenough about his crew. “Many of them followed mehere from our competition, and they’re absolutelytop people who do whatever it takes to get the jobdone. They also manage customer communicationswell. There are ten tank cleaning facilities inHouston, so the market is very competitive. Ourteam keeps us a step ahead!”

RVP Brian Nowak echoed Greg’s sentiments.“We simply don’t have rejections. These are dedicat-ed, talented people who do an exceptional job. We’refortunate to be able to support them with the mostadvanced tank cleaning equipment available, an efficient ‘green’ thermal oxidizing system that doesn’trelease harmful pollutants into the environment.And one of our greatest assets is Greg Lockner,whose strong background in tank cleaning and over-all leadership help everyone excel.”

Greg’s modest response to this compliment —“It takes a good crew to make a good leader” — saysa lot about the mutual respect that characterizes theHouston team. Congratulations on “wowing” us yearafter year . . . and keep up the good work!

Eastern RegionDispatch ConferenceCall Team. It would betough to find a betterexample of informationsharing and front lineempowerment than theEastern Region DispatchConference Cal l — a“simple” idea that turnedsensational in the handsof the dispatchers who run

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Houston Tank Wash Team. Back row, left to right:Danny Berry, Enrique Gutierrez, Rodrigo Gonzalez.Front row: Alejandro Sierra, Athan McDowell.Missing: Ricardo Chavez

Kingsport TerminalManager andConference CallModerator Dale Ward

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it. Every day at 10:30 a.m., dispatchers from acrossthe region get on the phone and share load informa-tion that allows terminals to respond quickly to customer needs.

The idea for the conference call surfaced inFebruary 2005 with then Eastern Region VP BobLennon and (current RVP) Johnny Williams.Realizing that this was something best managed by those in the trenches, theyhanded it over to the dis-patchers themselves — whoran the ball down the field forone logistics touchdown afteranother. “To say that they’vemade it a complete success isan understatement,” said SteveHicks, Kingsport TerminalManager. “Logistically speak-ing, it gives us an edge onmoving our drivers to theproper locations within theregion, cutting down on dead-head miles and increasingloaded mile percentages. Allregional terminal representa-tives have a chance to provideinput on their terminals’needs.”

Dispatchers participatingin the daily conference callare: Jeff Hall, Kristi Estep,Ellen Heath, Guy Henrich,Jodi Feldman, Ken Bristow,Larry Oetter, LeNora Smith,Mark Holley, Mike Artis,Gerry Flannery and LouisMoss. Other call participantsinclude Kristen Hansell inLog Ops and moderator JohnCole, who steps aside thismonth to focus on the man-agement of Superior’s Springfield, MA terminal. Veteranindustry professional and Kingsport TerminalManager Dale Ward will take over moderating duties.

“The daily conference call is a great example ofreal teamwork,” stated Ken Bristow, Baltimore, MDdispatcher. “Without the call, the terminal is justlooking at so many loads for so many drivers, not

taking into consideration ways to relay loads, productcompatibility issues, driver hours of service, andmoving drivers from terminal to terminal.”

This, truly, is process ownership and innovationat its best. We commend the entrepreneurial spirit ofthis remarkable dispatch team who took a great ideaand used it to change the landscape of load planning. . . with a big bottom line impact.

Chicago’s PowerhouseDispatch Duo: O’Dell & Duncan. Together theymanage some of Superior’shighest profile accounts inour largest inbound and out-bound marketplace. They’reMarkham, Illinois’ ChiefDispatcher Jeff O’Dell andDispatcher Dustin Duncan,who according to RegionalOperations Manager Jim Carlroutinely handle an extraordi-nary volume of challengingbusiness.

“Jeff and Dustin are sea-soned experts at providinghigh levels of service todemanding customers whooften require special equip-ment and specially traineddrivers,” Carl commented.

Jeff O’Dell was hired in1997 for the Markham termi-nal and has provided solidleadership ever since. DustinDuncan came on board inKankakee straight out of highschool in 2000. At that time,at the urging of CentralRegion VP Paul Foltz, the twoseparate inbound/outbound

operations were combined into one smoothly run-ning machine at Markham.

“After I interviewed Dustin, who had just turned18, I told Paul Foltz that here was someone withtremendous potential,” Carl recalled. “Foltz drovedown from Cincinnati to meet Dustin and in shortorder informed our candidate that the only thing he

The Eastern Region Dispatch Conference Call Team

Top to bottom rows, left to right: Larry Oetter,LeNora Smith, Mike Artis, Kristi Estep, Jeff Hall,Gerry Flannery, Ken Bristow, Louis Moss, GuyHenrich, Jodi Feldman, Ellen Heath, Mark Holley

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knew about trucks was that they got in his way onthe highway. Today, of course, Dustin and Jeff con-sistently receive high praise from our most valuedcustomers.”

Years of making fast, complex decisions in tandemhave honed the team’s communication skills to thepoint where they’re almost eerily intuitive. “Theythink alike, talk alike, even use their own sign language to communicate instantaneously whenthey’re on the phone,” observed Carl.“Great dispatchteams tend to have high energy, core competence,speed and synergy. Jeff and Dustin possess thesethings in abundance.”

A critical linchpin for O’Dell and Duncan isKankakee clerk Kristy Kirchner. Each month shescreens thousands of calls for the dispatchers, deter-mining their relative importance and forwardinginformation on to Markham. “She’s dedicated, per-sonable, and one of the most important people inthis operation,” Carl stated.

So there you have it: three outstanding teamswho remind us that the front line is the company, interms of both customer perception and performance.

As Peters says, the “reengineered, quality-obsessedorganization . . . will succeed or fail on the strengthof the trust that the remaining cadre of managersplaces in the folks working on the front line.” AtSuperior Bulk Logistics, that trust has never beenstronger. So once again, to SBL’s hardworking teamseverywhere, from Maine to California: a heartfelt,resounding thank you. ▲

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WORK TEAMS THAT “WOW” UScontinued from page 3

Markham Dispatchers Dustin Duncan (left), Jeff O’Dell(right) and Kankakee Clerk Kristy Kirchner

THREE CHEERS FOR INNOVATIVE TEAMS!

“A tale that once got out: Mercedes engineers, lobbying for zippier engines, ‘disappeared’ a Benz sedan for a few days. It returned with its hood chained shut,belly pan below, and its engine sounding stout. A few corporate fat cats raced itup and down the autobahn and Alps, and then rushed back to see what greatadvance was in there. The engineers unshackled the hood to reveal a BMW engine.Mercedes revamped its motors.” ▲

Car and Driver, 1993Quoted by Tom Peters in The Pursuit of WOW! Every Person’s Guide to Topsy-Turvey Times

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Superior Carriers Newscontinued on page 6

SUPERIORCARRIERS

News In Brief

CUSTOMERS PRAISE SUPERIOR PERFORMANCE

Recently customer service rep Tori Evans at ourSt. Gabriel, LA-based shipper Ineos forwarded a noteto us from Ineos’ customer El Bullard at AirgasSpecialty Gases in Montgomeryville, Pennsylvania.Bullard had praised the great service provided byBaton Rouge, LA driver Kendrick Brumfield:

“Kendrick is by far the best driver I have experi-enced delivering refrigerants to Montgomeryville. He is polite, professional, knows his equipment andhow the transfer process should be completed. Hewas prepared in every way to service Airgas includinghis own camlock tie-down straps. Kendrick hadnever been in Montgomeryville . . . [but] within fiveminutes of his arrival, I had complete confidence Iwould be able to walk away and not have to monitorhim step by step throughout the transfill . . . Kendrickis welcome back in Montgomeryville at any time.”

In March, Scott Neale – who wears many hats atSBL, among them ISO/QMS Administrator – com-mended Atlanta, GA driver James Eichelberger andN. Charleston, SC driver Jeff White for their “superiorinterview performance” with the Responsible CareManagement System (RCMS) auditor in Cincinnati.Neale wrote: “They answered the auditor’s questions,provided examples of some of the hazards our driversfaced, and how the company provided training tocope with these hazards. This speaks well not onlyfor our drivers but also of the personnel who providedthe training.”

Thanks to this kind of audit performance, SBLnow has formally achieved RCMS certification,which measures our environmental, health, safetyand security processes against a common industrystandard. In an announcement from VP-National

Accounts Dan Sommers, customers were informed thatthe certification “covers all aspects of our operation,from order acceptance through invoicing, and fortransportation, tank cleaning, and rail transloading.”

When news of the RCMS certification reachedour customers, several applauded the achievement,including John Heater of Rohm & Haas: “Pleaseextend our congratulations to the entire Superiorteam involved in becoming RCMS certified. This feattruly shows Superior’s commitment to the ResponsibleCare Program.” Robert Marine of DuPont USAwrote: “This is good news! Please pass along my con-gratulations to all those in your organization whoworked very hard on getting this certification.”

In April, SBL Director of National AccountsLarry Goodman wrote to Southern Region VP BrianNowak about the outstanding job Atlanta, GA dis-patcher Ken Tollerson does with Stepan Company atWinder, Georgia: “During our hour-long servicereview meeting today with Stepan, the complimentsflowed about Ken’s dedication, timely communica-tions, and dispatch efforts to handle the most difficultsituations that Stepan presents him. Ken has beeninstrumental in our continued growth with thisplant. I feel as if we are truly becoming a servicepartner with the Stepan team. My sincerest appreci-ation for the great job that Ken has done to sustainthis valuable relationship.”

Congratulations to all the individuals and teamswho do so much every day to provide exceptionalservice to our quality partners! ▲

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Superior Carriers Newscontinued from page 5

It is with both sadness and joy that we announcethe retirement of our dear friend Pete Duncan,Operations Manager for the Southern Region. He willleave Superior Carriers on July 15 to begin his well-deserved “golden years”. We are grateful we were ableto persuade him to work for the company as long ashe did. For those who know him, to simply say ‘hewill be missed’ does not do his service justice.

Pete has worked for several carriers throughouthis 47-year career in the tank truck industry, thelast 15 with Superior Carriers in Tennessee andAlabama. An impressive book could be written onhis work life and personal accomplishments, but itis his positive spirit of helping others that will neverbe forgotten. In August we will be hosting his retire-ment party, but for now, please join me in wishingPete all the best as he and his wife Nancy embark on a new phase of their lives together.

We are pleased to announce new changes in theSouthern Region operations team that will strength-en our ability to service our customers, in the wakeof considerable recent growth within our region. Wewill now have two Regional Operations Managers:Rusty Davis (current Atlanta, GA Terminal Manager)and Steve Lowman (current Houston, TX TerminalManager), both of whom will remain based in theirrespective locations. Rusty will have a slight focus inthe Southeast and Steve in the Gulf Coast areas, butthey will both work throughout the Southern Regionas a whole as business needs dictate. These two lead-ers have proven operational skills that will benefitour customers and employees to the highest degree.

To fill the critical vacant Terminal Manager posi-tions in Houston and Atlanta, we again will promotefrom within our organization. Current HoustonOperations Supervisor Larry Bezet will step into the Houston Terminal Manager position; we are confident he is up to the challenge as he has a solidhistory in this market. We do not intend to fill theOperations Supervisor role in Houston at this time,since we have such a solid management team

already in place including Dispatchers WillardPerkins, Justin Elswick and Staci Guidry, and Tank Wash Manager Greg Lockner.

We also are pleased to announce the promotionof current Augusta, GA Dispatcher Barry Cromer tothe Atlanta, GA Terminal Manager position. Barryand his family will be relocating to the Atlanta area,and his many years of experience with the companywill serve him well in his new position. Barry willinherit a strong existing Atlanta operations teamincluding Ken Tollerson, Leslie Barker, and SteveQueen, who do a great job with the day-to-day needsof the business. In addition, our Atlanta-basedDispatch Trainee Vanessa Watson will relocate tothe Augusta terminal to fill Barry’s position, workingclosely there with Terminal Manager Tracey Mellott.

Finally, current Savannah, GA TerminalManager Debbie Long will move to an OperationsSupervisor role in that location, as she feels she isbest suited to help the company by focusing on dis-patch operations, a role in which she excels. In turn,Houston Dispatcher Wil Nichols will return to hisformer position as Savannah Terminal Manager. Weare pleased to have Wil back in his prior role afterserving the company well for two years in Houston.We know he will do an excellent job managing ourcustomer and employee needs in Savannah.

We have given considerable time and thought to these Southern Region operations changes, andare pleased to have an experienced managementteam drawn from within the company to serve ourcustomers going forward. All of these changes inposition became effective June 1st. The new regionalOperations Managers will undergo a slightly longertransition period subsequent to Pete Duncan’sretirement on July 15.

As always, we appreciate all your support in ourefforts to remain SUPERIOR to the competition! ▲

PERSONNEL CHANGES STRENGTHEN GROWING SOUTHERN REGIONby Brian NowakSouthern Region Vice President

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KINGSPORT TERMINAL RECEIVES EASTMAN SUPPLIER EXCELLENCE AWARD

On May 8, the Kingsport, Tennessee terminalreceived the Eastman Supplier Excellence Award for 2007, which honored contributions in logisticsshipping performance. Accepting the award on behalfof the terminal at this year’s Eastman Supplier Daywere Kingsport Terminal Manager Steve Hicks,Eastern Region Operations Manager Mike Austin,Director-National Accounts Larry Goodman, and VP-Training & Development Jack McPeek.

The Eastman Supplier Excellence Award is given each year to suppliers in every mode of trans-portation including liquid and dry bulk, dry van, rail,ship, and overnight services. According to Eastman,our designation as one of their most valued suppliers“signifies consistent performance in furnishingEastman with high quality services and working onEastman’s behalf to improve our efficiency and competitiveness in today’s challenging market.”

We congratulate all Kingsport Terminal driversand staff on the achievement. ▲

Front row, left to right: Tina Davis (Eastman), PamTilley (Eastman), Steve Hicks (Superior Carriers),Larry Goodman (Superior Carriers)

Back Row, left to right: Dustin Adams (Eastman),Ed Palmer (Eastman), Mike Austin (SuperiorCarriers)

SMITH PROMOTED TO DISPATCHER by Scott HouriganPaulsboro Terminal Manager

LeNora Smith came to Superior Carriers in July2007 to handle clerk duties in Bridgeport, NJ. Rightfrom the start she worked quickly and accuratelyand was pleasant to everyone. At the end of 2007,when we decided to hire a dispatcher and eliminatethe clerk position, we offered LeNora the job ofDispatch Trainee. Over the next few months sheproved her ability to learn dispatch theory and func-tion. Kristen Hansell from Log-Ops provided herwith additional training in February, and againLeNora’s performance and progress were commend-able. She was promoted to full Dispatcher in April.

LeNora is truly an asset to the PaulsboroTerminal. I have had numerous positive commentsfrom customers, drivers and other dispatchers andterminal managers. Thanks for a job well done! ▲

Dispatcher LeNora Smith

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One of the major challenges facing our industryis how to improve capacity utilization. Capacity maybe defined as the number of operating units anddrivers available to deliver loads over a period oftime. In a perfect world, trucks would make deliveries24/7 to achieve maximum utilization.

However, many customers only accept deliveriesbetween 5 a.m. and noon, causing an imbalance inequipment/capacity utilization. Loads delivered inthe morning to meet customers’ expectations may,by afternoon, cause an inordinate number of trucksto sit idle, lowering utilization and profitability.

One solution is to motivate shippers and customersto change their behavior, spreading delivery timesout over a longer period of time and/or taking deliveriesduring off-peak hours. However, this can be difficultto achieve without providing a quantifiable customerbenefit or incentive.

Significant improvement in capacity utilization,then, requires a model that defines a benefit bymeasuring the cost savings achieved through higherlevels of utilization, as well as the cost “penalties”of lower utilization. Shippers and customers whosupported the effort would benefit by lower costs.Those who chose not to hold down costs throughhigher utilization would likely experience a penaltyin the form of a higher rate.

In 2006, Carry Transit President Jim Blackmonrecognized the need for such a model, but knew thatthe extensive data gathering and analysis requiredwas beyond the company’s capability. He thereforesubmitted a proposal to Northwestern University’sSchool of Industrial Engineering and ManagementSciences to conduct a study that would providequantifiable solutions to the challenging issue ofimproving bulk truck capacity utilization.

The university routinely receives many proposalsfrom Fortune 500 companies, but will choose only

those few that present a unique opportunity todevelop solutions to an industrial problem. DespiteCarry’s comparatively small size, the universityfound the capacity utilization project to be worthy of investigation and analysis, and selected it as aproject for their PhD student research program.Called “Yield Management, Capacity UtilizationModel,” the project had three phases: Phase I: InitialAssessment; Phase II: Model Development; andPhase III: Tool Development and Evaluation.

Phase I: Initial Assessment The objective of the project was to develop a

model that could measure capacity utilization bydefining the spatial distribution of loads (time ittakes to deliver tendered loads over a 24-hour periodwithin a geographic space), then determining levelsof capacity (trucks and drivers) needed to meetthose business demands. Economic criteria wereapplied to the analysis to quantify costs and savingsdirectly related to delivering the required number ofloads while achieving high levels of equipment utilization. The resulting operating model could thenbe used to plan and price capacity. (This is notunlike the pricing approach of Southwest Airlines,where passengers who book early can receive lowerfares, and as capacity is filled, the cost increaseswith incremental demand.)

Work began on Phase I in December 2006 withthe gathering and analysis of data on thousands ofshipments. It included time-related detail of eachshipment, from the time the order was received tothe time the truck returned empty to its terminal orre-load point. The data mining, graphing and analysisprovided quantifiable insights into the many factorsthat impact utilization, including the detailed behaviorof specific customers. This allowed Carry to beginworking with certain customers to improve theirsupply chain practices.

CARRY TRANSITNews in Brief

NORTHWESTERN UNIVERSITY CONDUCTS CAPACITY UTILIZATION STUDY FOR CARRYby Joe Nolan, VP – Business Development

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Phase II: Model Development During Phase II, the information gathered in

Phase I was used to develop a computer model thattook the thousands of variables involved in thousandsof shipments, and yield a solution that achieved loaddelivery using the fewest trucks, or highest level ofcapacity utilization. Numerous constraints wereintroduced to the model to reflect “real operatingworld” conditions. The results revealed significantpotential to increase utilization levels. In somecases, the number of trucks needed could bereduced by 25%.

Impressed by the results, the Northwestern project team presented the project model and workat Northwestern University’s Transportation Center’sannual Business Advisory Committee Meeting inOctober 2007. The conceptual model was shared witha number of leading food companies who expressedinterest in its application to their businesses.

Before beginning Phase III, the model had to be refined so that it could run in real time, enablingfast modifications to the utilization plan as loadswere added or changed. As the model existed, itwould take an entire day to run all of the variablesnecessary to achieve a schedule with optimumcapacity utilization. Unlike standard optimizationmodels, this model incorporated a degree of pre-dictability based on past order/customer/operatingtrends and behavior.

The Northwestern University team went to work, and after a few months they had refined themodel to the point where it took only four secondsto update and complete the optimization process.Today, the model is poised to be used as an analyticaltool for designing load planning, optimization andpricing strategies that measure the benefits gainedby shippers, customers and carriers through highercapacity utilization.

Phase III: Tool Development and Evaluation

This final phase, yet to be completed, will takevarious costing factors and run them through themodel to quantify those benefits in dollars and cents,providing methods for their application to rating

practices. During Phase III we will also profile customers/receivers to identify those whose business practices (or ability to change behavior)will help in achieving capacity utilization objectives– thus reaping the benefits of this initiative.

Soon Carry will have complete TransportationManagement System capabilities that will automateall aspects of the shipment management process,from tendering to freight settlement. This willenhance the benefits of the capacity utilization modeling tool and enable the slotting/scheduling of orders to strive for optimum utility. Combiningthis comprehensive modeling tool with a robustTransportation Management System will enableCarry and Superior to offer shippers and receivers a level of value added transportation services notcurrently provided by other asset-based carriers. ▲

BEST WISHES TO CARRY’SRETIRING LAKELAND DRIVERS!

Congratulations to three retiring Lakeland,FL terminal drivers (left to right): Roy Daniels(7 years of service), Robert Moore (10 years),and James Floyd (14 years). “Filling the gap leftby these drivers will prove difficult, as their customer service skills and professionalismhave always been of the highest quality,” statedTerminal Manager Sean Roach. ▲

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SBL’s SuperFlo network now owns six mobile beltconveyors that allow efficient transloading of a widerange of granular products, from soda ash to sand.

“The mobile conveyors are used for dry bulkproducts that cannot be offloaded using air pressure,”commented Gary Watt, Senior VP and Chief MarketingOfficer. “We inherited one mobile belt conveyorwhen we began the Pittsburgh operation in 2005,then purchased another for that location a few yearsago. We just added two more in Pittsburgh and tookdelivery of our first two in Elizabeth, New Jersey – a half million dollar equipment investment that hasgreatly enhanced our product handling versatility.”

During the transfer process, the conveyor ispositioned between the rail and the bottom of thehopper car. When the gate is opened under the rail-car, gravity drops the product onto the conveyor.The four wheel drive conveyors move easily fromcar to car; when operating at full capacity each canoffload up to a dozen loads per work shift.

Since granular products can cause excessivewear on conveyor rollers and bearings, proper main-tenance is critical. Personnel from Pittsburgh andElizabeth recently completed a day-long maintenanceseminar at the equipment manufacturing site, WilsonManufacturing and Design, Inc., in Cecilia, Kentucky.“Given the abrasive nature of the products handled bythis equipment, preventive maintenance is a highpriority,” said Ken Shafer, SBL Fleet Manager.

Transloading crews at both locations are enthu-siastic about the mobile equipment’s ease of use.“These diesel-powered units are great since they movethemselves around from railcar to railcar,” statedMatt Ehrat, Pittsburgh Terminal Manager. “Our fourunits are capable of offloading a substantial daily vol-ume of sodium sulfite, soda ash and silica sand.”

Both Shafer and Ehrat cited the built-in productscale as one of the most convenient features of themobile conveyor. “With an on-board scale you neverhave to estimate the weight of a product at any pointduring the transload,” observed Shafer. “We alsohave the capability of changing the conveyor belt tohandle heavier products such as gravel.”

At the Pittsburgh location, SBL’s investment inconveyor equipment is protected by a large shedthat fully covers three conveyors and partially coversa fourth, shielding them from the elements. SBL currently is considering construction of similar shedat the Elizabeth facility.

SBL’s investment in transloading equipmentand corresponding broadening of service optionsparallel SuperFlo’s geographical expansion. ThroughSuperior Carriers and Carry Transit, SBL now operateseighteen SuperFlo locations coast to coast, fromStockton, California to South Portland, Maine. ▲

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SUPERFLONews in Brief

MOBILE BELT CONVEYORS EXPAND TRANSLOAD CAPACITY

Operator LesHeasley per-forms dailycleanup on amobile belt conveyor at the PittsburghTBT.

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SCTA AWARDS RECOGNIZE PERFECT SAFETY RECORDS AT N. CHARLESTON & GREER

by David Durham

SAFETY CHALLENGE AWARD WINNERS RECOGNIZED

by William R. Lavery

On March 26, I attended the South CarolinaTrucking Association (SCTA) Safety Awards banquetin Columbia.

This annual award ceremony honors performancein two safety categories. The first is the IndustrialSafety Contest, based on recordable injury rates forthe prior year. Superior’s N. Charleston and Greerterminals were co-entrants with a combined recordableinjury rate of zero for 2007. However, another com-pany also had a zero rate but had more employees,statistically giving them the first place award.Obviously, however, achieving error-free workplacesafety is a superlative accomplishment for both

terminals . . . award or no award!In the Trucking Safety Contest, again the

frequency for the two terminals combined was zero.As co-entrants, they each received a first place trophyin the 1,000,000 to 5,000,000 mile class.

To have a zero error frequency in both industrialand trucking safety is a rare and outstanding accom-plishment that required a team effort at each terminalinvolving management, dispatch, drivers and shoppersonnel. I congratulate Terminal Managers LindaBerger and Phil Henderson and their hardworkingstaffs for all of their efforts. ▲

In mid-March, Superior Bulk Logistics an-nounced the winners of the 2007 Terminal SafetyChallenge. These awards are given to the terminalsthat have the best vehicle accident record permile driven, and the best workplace injury record.The winning terminals received the traveling plaque,which is displayed until next year’s winners are known.The winners also received a separate plaque andbanner that remain at their location as continuingrecognition of their success in 2007. All employeesin those terminals hired before December 1, 2007received a gift in recognition of their contribution to the winning effort.

To determine the vehicular accident frequency winners, the following formula was used:

Vehicle Accident Frequency (DOT Standard) (number of accidents/miles driven) X 1,000,000 =number of accidents per million miles

The winners are:

VEHICLE ACCIDENT FREQUENCYOver 2 Million Miles Category

Superior Carriers:Markham, Illinois Terminal with a frequency of 1.03

This is Markham’s second consecutive year winningthis award — a noteworthy accomplishment!

We wish them continued success in 2008.

Under 2 Million Miles CategorySuperior Carriers:

Westville, Indiana with a frequency of 0.0

Carry Transit:Decatur, Alabama with a frequency of .98

PERSONAL INJURYSuperior Carriers:

Over 35 Total Personnel:Greer, SC with one incident in 2007

Under 35 Total Personnel:Nitro, WV with zero incidents in 2007

Carry Transit:Vassar, MI with zero incidents in 2007

Congratulations to all drivers, tank washers,mechanics, unloaders, and office personnel whocompleted 2007 accident and/or injury free. Thankyou for your commitment to our safety mission andto the commitment YOU make to yourself and toyour family. ▲

SafetyZone

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IT’S NEW AND FREE: 24/7 HELP WITH JUST ABOUT ANY PROBLEMby Diane Wright

Do you need help understanding a legal contract?Advice on researching daycare options? Or wouldyou simply like someone to talk to? We’re pleased to announce the June 1st start-up of SBL’s EmployeeAssistance Program (EAP), available free to allemployees covered under our Group Health Plan.Twenty-four hours a day, seven days a week, you’llbe able to telephone professionals for advice in the following categories:

Parenting/Older Adults

Mid-life and Retirement

Disabilities

Financial and Legal Issues

Work/Life Issues

Health and Emotional Well-being

Addiction and Recovery

Over the last few years, the Human ResourcesDepartment has fielded an increasing number ofcalls asking for assistance on a wide range of problemsand topics. While we are always willing to speak withemployees, we’ve come to realize our limited ability to handle the complexity of recent requests.

Our new program provides advisory servicesfrom the third party professionals at Ceridian EAP.These contacts may be used for crisis interventionor simple inquiries. Even though EAP calls are confi-dential, they are not anonymous; you will need toidentify yourself as an employee of one of our com-panies, possibly providing a geographical identifierfor referral purposes. The EAP provides English andSpanish-speaking consultants as well as TTY/TDCservice for the hearing impaired. A multi-languagecontact number also is available.

Soon all eligible employees will receive packetsoutlining the EAP services available, with a wallet-sized card displaying contact numbers. After June1st, feel free to check out Ceridian EAP online atwww.lifeworks.com. (Your user ID: superior; yourpassword: bulk.) This informative site featuresvideos, articles and free materials which may beordered.

Please read your information packet carefully,keep the phone numbers handy, and if the need arisestake advantage of this wonderful new benefit! ▲

For YourBenefit

SUPERIOR

BULK LOGISTICS, INC.

711 Jorie Boulevard

Suite 101 North

Oak Brook, IL 60523

630 573 2555

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