Private Carriers Have Adjusted Their Operations for the Long Haul

Adapting to COVID-19 Private Carriers Have Adjusted Their Operations for the Long Haul By Jerry Hirsch Contributing Writer he COVID-19 pan demic is reshaping private carriers in ways that will last long after the novel coronavirus subsides. TA Transport Topics review of large private trucking fleets found that companies are rapidly adding digital tools and paperless methodology to their operations to reduce human contact and limit access to distribution cen- ters. They are becoming more nimble, especially in implement- ing new technology and finding new revenue sources. Fleets also are more aware of em ployee health and the role it plays in productivity. And of course, just about every company Transport Topics con- tacted is doing the basics to pre- vent the spread of the virus within their own workforce and to employees’ families and customers. “We provide face masks, gloves, cleaning supplies and hand sani- tizer to every driver before they dispatch,” said Jim VonAchen, di- Food distributors such as Sysco rector of transportation support have quickly adjusted to shifting at McLane Co., a major distrib- demand during the pandemic. utor of groceries and packaged Luke Sharrett — Bloomberg News goods based in Temple, Texas. “We disinfect the tractor, hand- held scanners, driver bags and dollies after each trip.” Several senior supply chain executives pointed to agility — in decision-making, business operations and revenue stream discovery — as a strength to maintain beyond the duration of COVID-19. “When the pandemic first hit and everybody was rushing the grocery store, we pivoted very quickly,” said Marie Robinson, executive vice president and chief supply chain officer of food distribution giant Sysco. LM Otero — Associated Press Clean Harbors Grocery retailers have experienced heavy demand Private carriers such as hazardous waste hauler Clean Harbors are taking steps (Continued on next page) during the COVID-19 outbreak. to protect their workers through sanitation and social distancing measures. A6 Top 100 Private Carriers A32 A Rough Year for Oil A36 Index of Carriers Private carriers in the energy sector face challenging market conditions as Industry Sector Rankings A22 oil prices remain depressed. Acknowledgments and Sources The 2020 Top 100 Private Carriers is an annual publication A28 E-Commerce Gains Steam A34 Logistics & Supply Chain Directory produced by Transport Topics. The coronavirus pandemic has accelerated the growth Seth Clevenger, TT’s managing editor of features, coordinated the project with the help of Features Coordinator Marissa Food Suppliers Adapt of online shopping and A35 Gamache and Multiplatform Coordinator Joe Antoshak. home delivery, a trend that Food suppliers and distributors are is testing the flexibility of adjusting to consumers’ changing The cover was designed by Brian Kelly, creative services manager. private fleets. eating habits during the pandemic. Production Manager Debra Devine designed the layout. 2020 TRANSPORT TOPICS Top 100 Private Carriers — A3 Private Carriers Respond to Pandemic (Continued from previous page) nology,” said Ron Flanary, senior vice president of national opera- The company signed agreements tions for the Miami-based bever- with other distributors to redeploy age distributor. trucks used for food delivery to Southern Glazer’s operates a fleet eating establishments — a busi- of 721 tractors and another 2,189 ness that had plunged — to retail- straight trucks. It employs about ers experiencing heavy shopping 2,500 drivers and ranks No. 59 on demand. the TT100 private carriers list. Others did the same. Trucking equipment is one area “We took what excess capacity where many private fleets wish we had and applied it to areas they had invested more exten- that needed help, like the gro- sively prior to the pandemic, said cery chains, to keep our team- Jim Griffin, chief operating offi- mates and equipment utilized,” cer at Fleet Advantage, a truck McLane’s VonAchen said. leasing and fleet asset manage- Fleets also discovered they could ment company. significantly slash the time needed “We have some clients that had to develop and launch new busi- put off fleet modification and felt ness strategies and procedures. that was a mistake. They should “Some decisions that would have been more prepared,” Grif- typically take weeks to finalize fin told Transport Topics. were made in days and some- Companies have slashed capital times hours,” VonAchen said. expenditures, leaving fleets with Before the pandemic, Sysco aging equipment that lacks the had set a goal to better level its fuel efficiency and automated delivery volume across the days safety systems that reduce oper- of the week to allocate labor ating expenses, he said. more efficiently, Robinson said. Griffin expects fleets will rap- Such an initiative typically would idly replace aging trucks once the take the Houston-based distribu- economy rebounds, and they are tor about 18 months to plan and convinced there will be sustained implement. growth. “We did it in four weeks when the crisis hit,” she said. Southern Glazer’s has utilized a Focusing on Employee Health This type of productivity ad- text message system to improve Enhanced sanitation protocols vancement will remain in place communications with its workforce. are another change likely to last even when the pandemic fades. & Spirits Wine Southern Glazer’s beyond the pandemic as com- With 8,745 tractors and another panies adopt practices that limit 1,345 box trucks, Sysco ranks No. with critical updates because it ers our projected delivery time “As you scale up from a small the spread of diseases between 2 on the Transport Topics Top can reach them even if they’re from the first stop to the last, company, these tools become in- workers. 100 list of the largest private car- working remotely, or if they are with added traffic and weather valuable,” VonAchen said. Drivers at Southern Glazer’s now riers in North America. drivers or warehouse personnel impacts. Our customers can then Southern Glazer’s also has in- “stop and drop,” Flanary said. McLane has 3,886 tractors and who don’t sit at a desk. prepare for our arrival 12 hours vested in technical equipment. It Instead of capturing a signa- ranks No. 8 on the TT100 list of ture, the driver notes the name private fleets. of the person accepting the ship- ment and the time of the deliv- Technology Investments ery, limiting personal contact. Whether it is transitioning em- Southern Glazer’s is “spending ployees to remote work, tracking “When the pandemic first hit and a substantial amount of money worker health or refining loading to sanitize the trucks and break and delivery windows to limit hu- everybody was rushing the grocery rooms,” Flanary added. “We man contact, technology has played probably have 100 people nation- a vital role in seeing fleets through store, we pivoted very quickly.” wide who are just cleaning.” the pandemic. And it is creating ef- Developing contactless interac- ficiencies that will last beyond the tion is a high priority for private crisis, industry executives said. Marie Robinson, Sysco fleets. Southern Glazer’s Wine & Spir- “Think about the drivers having its, a large alcoholic beverage to share a pen with a customer,” distributor, modified its text mes- Sysco Sysco’s Robinson said. sage system to prompt drivers Delivery validating technology and other workers to complete Fleets have access to an ever- out and make sure they have re- has thermal scanners that check was another initiative the food a health form two hours before increasing amount of data gener- sources ready,” VonAchen said. workers and visitors for fever as distributor planned to tackle and their shift. It has become an im- ated by electronic logging devices Armed with this information, they reach the security station at accelerated as the pan demic un- portant communications tool and telematics systems, which they McLane restructured its delivery the front of a company facility. folded, she said. It is now tran- during the pandemic. The dis- can utilize to improve operations, network to meet demand and re- “We don’t see an end in sight sitioning from other delivery tributor now uses the text mes- McLane’s VonAchen said. duce cost when business slowed to this any time soon. We are procedures that could potentially saging system to reach employees “We are able to tell our custom- early in the pandemic. making the investment in tech- require personal contact. Southern Glazer’s says it has McLane reallocated capacity andresr — Getty Images made a significant investment in sanitizing to match changes in demand. Many fleets have been issuing personal protective its trucks and break rooms during the pandemic. McLane Co. equipment such as face masks to their drivers. A4 — 2020 TRANSPORT TOPICS Top 100 Private Carriers But not every fleet can move to will go down and you will have fewer planners and dispatchers who a contactless business model. people getting sick at work,” she said. work from office- based desktop “We are paper-intensive. With workstations. They needed a hazardous material, hazardous Is Remote Work Here to Stay? way to access the system. All of manifests, tracking and chain of Even with enhanced worker its workers have company-issued custody is critically important to health measures, there still will Apple iPhones, and that provided the hazardous waste industry,” be plenty of opportunities for a solution. Employees can now said Kevin Ridings, executive people to work from home. The access essential planning and vice president of transportation companies discovered that a de- dispatch functions through pro- and logistics at Clean Harbors. centralized business model — prietary apps developed for the “We are paper-intensive. ... [C]hain of custody is critically important to the hazardous waste industry.” Clean Harbors’ Kevin Ridings on the challenges of moving to a contactless business model Clean Harbors The Norwell, Mass., handler of where scheduling and other func- phones, Ridings said.

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