A.T. Kearney, a top global management consulting firm, is the new author and researcher of the 27th annual State of Logistics Report, the Council of Supply Chain Management Professionals (CSCMP) announced. Penske Logistics has been the report presenter since 2009.
The State of Logistics Report will debut at the National Press Club in Washington D.C., on June 21. The report has tracked and measured all costs associated with moving freight through the U.S. supply chain since 1988.
With an attractive mix of tax incentives and proximity to its North American neighbors, Mexico has become a destination for businesses looking to establish a manufacturing base while at the same time creating a market for third-party logistics (3PL) companies.
No industry has benefited more than automotive manufacturers, who have flocked to this country in recent years.
Penske Logistics Mexico, a provider of logistics services for 20 years in Mexico, has witnessed the growth in the logistics industry, a trend that is expected to continue well into the future.
“The logistics landscape in Mexico is growing rapidly,” said Mike Casidy, managing director of Mexico for Penske Logistics. “There are a lot of other industries growing as well, but from an automotive standpoint, there are a lot of new plants being built.”
As the logistics business in Mexico grows and evolves, Penske Logistics Mexico expects to grow right along with it.
“I believe we will play a significant role in the future of the logistics industry in Mexico,” Casidy said. “We have the best-in-class technology deployed in Mexico. We have an outstanding transportation network set up in Mexico with the best carrier base in Mexico. We are trying to set up ourselves to be ahead of the growth curve for the next 20 years.”
As the second largest economy in Latin America, analysts expect Mexico’s economy to grow to become the 5th largest global economy in 2050, according to Goldman Sachs.
The growth in manufacturing can be traced back to the establishment of the North American Free Trade Agreement, according to the U.S. Central Intelligence Agency’s World Fact Book.
Most Mexican trade falls under free trade agreements with more than 50 countries. Mexico has become the United States' second-largest export market and third-largest source of imports. In 2014, two-way trade in goods and services exceeded $550 billion.
It is this growth in manufacturing that is creating opportunities for 3PLs with logistics services helping to keep business costs competitive, according to the 2015 19th Annual Third-Party Logistics Study: The State of Logistics Outsourcing produced by John Langley, a clinical professor of supply chain management and the director of development for the Center for Supply Chain Research at Penn State University, along with Capgemini Consulting, Penske and Korn Ferry.
Respondents in the study who shifted their business operations to Mexico from other regions cited lower cost wages, lower operating costs and reduced freight transport time as some of the reasons for the relocation.
Yet, Mexico’s proximity to its North American trade partners may be among the most attractive reasons. This near-shore option allows for countries that share borders to receive goods in a more timely manner.
Saltillo, Mexico – a cultural and educational region known as “the Athens of Mexico” – is located about 869 kilometers from Mexico City. The old colonial city’s name describes a waterfall that comes from a spring where the city was founded.
It is a fitting metaphor for this north Mexico city, which also serves as the national headquarters for Penske Logistics in Mexico, which for the past 20 years has provided a wealth of logistics services to assist customers from different industries.
“Penske Logistics in Mexico provides innovative solutions to our clients to overcome their logistics challenges,” said Casidy. “We are a provider that customizes the solutions to fit the clients’ needs, regardless of the type of industry we are dealing with.”
Penske Logistics Mexico offers warehousing services, distribution services, transportation management and also lead logistics provider services, handling the entire inbound/outbound supply chain for our clients.
“If your expertise is manufacturing, we would handle all of your logistics needs so you could concentrate solely on producing quality products,” Casidy said.
Mike Casidy was named the company's first Mexico managing director in 2013.
Penske Logistics Mexico’s clients include original equipment manufacturers (OEMs), suppliers of the OEMs, consumer product manufacturing like appliances, recreational product manufacturing, and food and beverage.
Yet, it is the automotive industry that has grabbed the logistics spotlight. While transportation has been a thriving industry, manufacturers are moving operations from traditional northern Mexico to central and southern cities.
“Kia Motors will be in Monterrey; BMW is coming to San Luis Potosi; and Audi built a new plant in Puebla and that is to name just a few,” Casidy said. “We are working with our carrier partners to expand their operations into different areas that maybe they are not currently servicing because of the demand for transportation.”
As the country braces for the increase, stakeholders – including top automotive OEMs, automotive suppliers, government officials and logistics service providers – will gather in Mexico City at the Automotive Logistics Mexico 2016 Conference Jan. 26-28, with Penske Logistics serving as the premier sponsor.
“It is a great opportunity to showcase our logistics expertise in Mexico,” said Casidy, who will serve as a panelist discussing ideas and requirements for 2020. “We have the ability to provide entire logistics solutions to these OEMs and new ones coming in and to expand on what we do here in Mexico.”
The panel will discuss how Mexico can remain competitive and continue its logistics growth.
“For instance, there is a lot of work in Mexico on intermodal growth. Rail companies are spending an enormous amount of money extending operations in Mexico. Just about every port has a project going on to expand their services, and they are building to handle more and more,” Casidy said.
There are also transportation infrastructure needs that must be addressed including highway and toll systems. “There are billions of dollars of projects scheduled over the next 10 to 15 years to make sure Mexico can stay with this growth,” Casidy said.
By Bernie Mixon
In successful third-party logistics (3PL)-shipper relationships, both parties work together as strategic partners, sharing data and implementing the technology and processes that achieve results. Relationships have become even more valuable as both costs and shippers’ expectations increase.
“A good 3PL is not looking for a short-term windfall. They want a collaborative, long-term relationship with a shipper that is good for both parties,” said Andy Moses, senior vice president of global products for Penske Logistics.
Moses added that 3PLs are often able to collaborate with their customers to achieve results faster than shippers could on their own. Moses made his remarks during the webinar Vision to Reality: 3PLs as Strategic Supply Chain. He presented along with Todd Johnson, global vice president, 3PL business unit for JDA Software.
The 2016 20th Annual Third-Party Logistics Study, which is produced by Capgemini Consulting, Penn State University, Penske Logistics and Korn/Ferry International, reported that gainsharing and collaboration are a priority for supply chain partners. The majority of shippers taking part in the study—75 percent—said 3PLs provide new and innovative ways to improve logistics effectiveness; 70 percent said 3PLs contribute to reducing overall logistics costs; and 83 percent of shippers said 3PLs contributed to improving service to their customers.
“In this year’s study it was loud and clear on the importance of information sharing,” Moses said. He added that relationships develop and evolve over time to become more and more encompassing and beneficial. In the best relationships, shippers and providers work together on solutions and no one can figure out who works for whom, he said.
In today’s environment, 3PLs are essentially manufacturers of data and of the right processes, Moses said. To achieve results, 3PLs are employing the latest technology and marrying that with process excellence along with people who are cross-trained and have knowledge of multiple industries.
Johnson said technology is a key enabler in successful 3PL/shipper relationships, but the “IT Gap”—the difference between what shippers feel is important and their providers’ current IT capabilities—remains, according to the 2016 3PL Study. “3PLs are continuing to increase their system capabilities, but at the same time the expectations and needs of the market are increasing at a pretty rapid pace,” Johnson said.
Moses said the stakes are high for 3PLs on the technology front and the ability to make an impact with the right systems is significant. For example, data is key to driving costs out of networks, and network optimization and transportation management, which are all fueled by information, are key elements in managing expenses. Capturing, monitoring and utilizing data allows Penske to examine trade-offs in transportation and distribution costs and also make facility recommendations.
Shippers have a greater expectation of transparency than they have in the past and want the convenience of accessing information in a number of different ways, which has led Penske to invest in systems that are updated in real time. “Your customers want access to look into a system moment by moment. They want alerts pushed to a mobile phone. It creates a different type of environment in which you have to operate,” Moses said.
Data and processes have become even more important given the e-commerce megatrend. Consumer demand has driven fundamental changes in how the supply chain needs to be constructed and how it is adapting.
“It is moving from a pallet-in, pallet-out environment to a much higher volume of transactions, and a higher amount of parcels and smaller packages,” Johnson said, adding that the shift can be a challenge, as many systems weren’t built to handle inventory in that way, creating opportunities for 3PLs to provide additional value in the supply chain.
Moses said time compressions are continuing to take place, with both shippers and consumers expecting products to move even faster. “There is also increasing segmentation in the supply chain with the result of e-commerce,” he said. “Shippers have to organize multiple unique supply chains within their organizations to cater successfully to these different channels while attempting to leverage some common back-end resources.“
Increasingly, shippers want 3PLs with a broad set of capabilities, including a more global, unified platform along with the increased technology understanding, which allows them to develop more strategic partnerships with fewer providers, Johnson said.
Both Moses and Johnson said that overall, long-term opportunities within the supply chain exist. The 3PL industry is growing and will continue to grow. The 2016 3PL Study reported a combined annual growth rate of 4.3 percent over several years. “Every year the dollars and services outsourced to 3PLs seems to grow by $6 or $8 billion,” Moses said.
By "Move Ahead" Staff
Penske Truck Leasing has completed the first of several grant-related facility modifications to provide maintenance to natural gas vehicles as part of its award from theMobile Source Air Pollution Reduction Review Committee (MSRC) in California.
In 2014, the company announced it received $525,000 from MSRC to retrofit several Southern California locations. Penske buildings in Santa Ana and Vernon are now servicing trucks powered by compressed natural gas (CNG) fuel.
As can be seen in photos of the company’s Vernon location, the maintenance facility received modifications to electrical circuits within 18 inches of the ceiling (top photo), a methane detection system was installed (right) and a new ventilation system (left) was created.
By Alen Beljin
The final mile is an area of competition within the overall portfolio of logistics services, and shippers are demanding innovative solutions and timely deliveries. To ensure success within the final mile, providers are utilizing route optimization, incentivized scheduling, and real-time electronic tracking and communication, all of which are moving products from the manufacturer to the end user faster than ever.
“E-commerce is having an effect on our customer base and we’re seeing a host of verticals focusing on omni-channel and the last mile. We’re able to support our customers with their needs in this area and creating the necessary supply chain, with one example being a pilot delivery program in the western part of the U.S.”
-Joe Carlier, senior vice president of global sales, Penske Logistics
E-commerce, in part, has driven the demand for more innovative final-mile solutions and continues to drive new delivery methods, many of which haven’t been used before.
Amazon Prime now offers one- and two-hour deliveries on thousands of items in certain areas of the country.
Amazon has turned to everyday individuals to help make its timely deliveries and has developed Amazon Flex in which people can earn $18 to $25 an hour as independent contractors delivering packages with their car and smartphone, Amazon said.
The service is available now in Seattle and “coming soon to Manhattan, Baltimore, Miami, Dallas, Austin, Chicago, Indianapolis, Atlanta and Portland,” Amazon said on its website.
Wal-Mart has also looked to innovate crowd-sourcing solutions in which the retailer’s existing or in-store customer base would make deliveries near their destination location.
The concept of drones has been growing as a final-mile solution and a field hospital in rural Virginia launched the first federally-approved small parcel drone delivery. As part of the project,
the final mile of prescription deliveries for 20 people was completed via a special drone delivery.
Amazon initially made headlines for the delivery method in 2013 and recently proposed that airspace located between 200 feet and 400 feet from the ground be reserved for drones.
While the latest innovations hold promise, they can also create challenges, such as safety, privacy and liability concerns. However, as the space continues to develop and change, industry analysts anticipate it will shape the ways in which 3PL providers deliver service to their customers.
The Third-Party Logistics Study (Penske is a co-sponsor) can be accessed here.
Shippers have always had to be concerned about potential supply chain disruptions. Now a drought is altering the size of ships that can pass through the Panama Canal, which could alter shipping patterns and transportation needs.
Since January 1, Panama City has received only 40 percent of its normal rainfall -- 9.35 inches compared to 23.43 inches normally. Lower water levels mean the canal will have to limit how deeply ships are immersed as they pass through the waterway, leading to changes in which the maximum draft will drop to 39 feet from 39.5 feet. Some ships may have to reduce their cargo to be able to pass through, and that change could have consequences for manufacturing and trigger far-reaching delays.
The 
Panama Canal Authority originally said the change would take effect on September 8 with another adjustment possible on September 16, but subsequent rainfall has enabled the authority to suspend restrictions. The limit would have affected an estimated 18.5 percent of ships traveling through the canal, resulting in negative consequences for some companies, particularly those that rely on just-in-time inventory. While the rainfall provided current relief, the situation requires an urgent call for strong contingency planning.
To minimize risk from this or other potential disruptions, supply chain managers can work with their transportation and logistics partners to create contingency plans that include alternative sourcing and transportation arrangements. Transportation providers are typically able to offer a variety of services and sufficient capacity on short notice, which can mean the difference between continuing operations and temporary shutdowns for some companies.
The drought comes at the same time the Panama Canal is wrapping up the lengthening, widening and deepening of the canal, which will double its capacity. The work is scheduled to be complete in 2016 and the changes are expected to alter shipping patterns, particularly as a number of U.S. ports, including ports along the Gulf Coast and on the East Coast, are preparing to handle larger ships.
The changes to the canal could make it easier for shippers to source alternative routes and avoid the Port of Long Beach and Los Angeles, which often struggle with congestion. Earlier this year labor disputes at Long Beach and L.A. caused shippers to re-route ships.
In adjusting to potential changes, shippers may need to source capacity on alternative routes and rely on carriers that can adjust to changes in traffic patterns. To maintain a competitive advantage, shippers should look for providers that can be nimble when faced with the need to make changes.
By "Move Ahead" Staff
Penske Logistics will be the premier sponsor at next month’s Automotive Logistics South America Conference at the Renaissance São Paulo Hotel, São Paulo, Brazil, on November 3. Penske Logistics executives from Brazil will also serve as panelists, help facilitate think tank sessions and exhibit.
This 2015 Automotive Logistics South America event brings together automotive OEMs, tier suppliers, policy-makers and logistics service providers to meet, share and discuss the ways in which supply chains can run more efficiently in the short- and long-term, and the automotive sector as a whole can go “adiante juntos” or “forward together.”
Penske Logistics Managing Director Paulo Sarti will be a panelist for Session 2, Supply Chain Change, where he will highlight the company’s positive practices to support future growth and assist customers during Brazil’s economic downturn.
Sales Director Fabricio Orrigo will host one of several think tanks to be held, on the lead logistics provider concept.
“We’re very pleased to be a first-time premier conference sponsor,” explained Sarti. ”We look forward to connecting with current and prospective customers and our colleagues.”
“This conference has great significance for regional supply chains, particularly during tough times,” said Louis Yiakoumi, publisher of the Automotive Logistics group. “I believe it’s essential that executives from both buyers and suppliers of supply chain services meet to create the true partnerships which can raise efficiency and ensure a healthy automotive industry in the region. Penske Logistics is demonstrating, through its significant support for these interactions, its commitment to that goal.”
By “Move Ahead” Staff
Penske Logistics Warehouse Order Selectors (from left): Todd Hall, Melvin Robertson and Aumoir Garnett.
The dream of a better life drove Aumoir Garnett to want more.
As a manager with a fast food restaurant, Garnett grew tired of living paycheck to paycheck and wanted more than just a job. He wanted a career with a company that offered good pay and benefits and could help him give his family a better life.
Garnett said he found that new way of life among the growing number of warehouse order selectors working at the Penske Logistics Shelbyville location, a cold storage warehouse providing logistics services to a leading grocery store chain.
“It is a good job, and it can change your life,” said Garnett, who has worked as a selector for the past six years. “It changed my family’s life. I’m not living paycheck to paycheck. I’m investing in my future.”
Located just 15 minutes from Indianapolis, Shelbyville offers the serenity of rural living along with the convenience of a big city. Some of the features include live horse racing, a host of restaurants, strong parks and recreation department and a golf course.
Penske Logistics, a leading provider of distribution center management and warehousing solutions, has operated and managed the 600,000-square-foot refrigerated food distribution facility since 2013.
The job of a warehouse order selector – just known as selectors in the warehouse – is to assemble and select cases from pick slots for store orders in an accurate manner and assemble orders onto pallets using voice-activated computers and pallet jacks.
The physical demands of the job include the ability to work in a cold storage warehouse environment with minus 20 degree to 55 degree temperatures for long periods of time. Order selectors must have the ability to lift 60 to 95 pounds and work in spaces with 55 inches of headroom.
The work is challenging but rewarding at the same time.
“There are multiple benefits. The location provides competitive wages. We pride ourselves on good communication, a team environment and timely feedback to our associates,” said Steve Chambers, general manager, Penske Logistics Shelbyville. “Our team is serious about safety and the safety of our employees. We over communicate safety topics on a daily basis and emphasize the importance of safe behavior.”
Advancement opportunities are available for those seeking to grow with the company.
“Whether it is moving up within the warehouse classification and learning different jobs or moving into management, this site has demonstrated the ability to grow people for future opportunities,” Chambers said.
Melvin Robertson, a selector and a trainer, said he likes the opportunities to advance.
“You have so many different doors open to you if you come in here and do a good job,” said Robertson, who has worked at the warehouse for more than five years.
While moving into a career with advancement was the central motivator for Garnett, it is moving of a different kind that was an unexpected benefit of working at the warehouse.
“It’s kind of like a workout,” said Garnett of his duties. “It kind of keeps you in shape. It’s an easy job but it is physical. It’s fun for me. I like the workout. I am constantly moving.”
Like Garnett, Robertson appreciates being on the go, so much so that he said he dropped 35 pounds in his first two months on the job. “I get paid good money and get a workout while I do it,” he said.
Penske Logistics is looking for warehouse order selectors to become part of an excellent team servicing the nation’s largest grocery store chain. It is a great opportunity for individuals who are safety conscious and have a pleasant, outgoing attitude and who want to excel in a warehouse environment. Penske Logistics offers excellent and competitive pay, benefits, paid time off, 401K, training, tuition reimbursement and unlimited career opportunities.
By Bernie Mixon
Penske Logistics has been designated as a 2014 Special Services Supplier of the Year by Whirlpool Corporation for its ability to provide exemplary contributions to Whirlpool’s integrated supply chain.
“This award is confirmation of the excellent service that our associates consistently deliver in support of Whirlpool’s operations,” stated Marc Althen, Penske Logistics president.
The criteria for this honor include: on-time pick up and on-time delivery of company components and products; innovation practices; accuracy of invoices; and the business flexibility to keep pace with the premier appliance maker.
“Penske is the model for a strategic partnership,” said Jim Keppler, vice president, Whirlpool integration supply chain and quality. “They provide us with the people, technology and services that consistently enable us to deliver our commitments to customers every day.”
By "Move Ahead" Staff
kindprotect.xyzThe current state of the third-party logistics market is strong, and providers anticipate future growth potential as well as continued collaborative and positive relationships with shippers, industry analysts said this week during the Council for Supply Chain Management's Annual Global Conference in San Diego.
Dr. Robert Lieb, professor of supply chain management at Northeastern University and the author of the 22nd Annual Surveys of Third-Party Logistics Provider CEOs, which was sponsored by Penske Logistics, said more than 80 percent of the companies taking part in the survey were profitable in 2014, and North American providers forecast three-year revenue growth of nearly 8 percent.
Lieb was among several industry experts presenting research findings during the annual event. The findings from his report analyze responses from 30 major 3PL CEOs across North America, Europe and Asia-Pacific whose companies generated more than $40 billion in revenue in 2014.
Dr. John Langley, professor at Pennsylvania State University, said today's 3PL providers and shippers are becoming more proficient at what they do, individually as well as together, which is improving the quality of their relationships.
Langley, author of the 20th Annual Third-Party Logistics Study: The State of Logistics Outsourcing, said both parties—93 percent of shippers and 94 percent of 3PL providers—reported that their relationships are successful and that their work is yielding positive results.
Marc Althen, president of Penske Logistics, said the logistics industry experienced one of its best years in 2014, and 2015 is on track to be a good year as well.
“The 3PL industry continues to deliver value, savings and efficiencies by collaborating closely with customers and adjusting to rapidly changing economic conditions, business challenges such as capacity and talent shortages, as well as consumer online shopping needs that demand new and agile supply chain and fulfillment models," he said.
The 20 th Annual Third-Party Logistics Study report, which is based on responses from more than 260 shippers and logistics service providers in North America, Europe, Asia-Pacific, Latin America and other regions and was sponsored by Penske Logistics, found that 70 percent of shippers and 85 percent of 3PL providers said the use of 3PL services has contributed to overall logistics cost reductions.
Moreover, 83 percent of shippers and 94 percent of 3PL providers said the use of 3PLs has contributed to improved customer service. Langley, of Penn State, said the majority of both groups—75 percent of shippers and 88 percent of 3PL providers—said 3PLs offer new and innovative ways to improve logistics effectiveness.
Continuing Growth of E-Commerce
For many that innovation is particularly evident in the final mile, which is an area of firece competition within the overall portfolio of logistics services. The latest innovations are driven, in part, by the growth in e-commerce.
One-third of CEOs participating in the 22
nd Annual Surveys of Third-Party Logistics Provider CEOs said they saw significant changes in the e-commerce marketplace in the past year. Lieb said North American and European CEOs reported that Amazon has had a particularly significant impact on supply chains and e-commerce in their regions.
“The company's market dominance and huge popularity with customers creates a great opportunity for 3PLs to assist Amazon, and ensure customers get the goods they need – especially during peak e-commerce seasons," Lieb, from Northeastern University, said.
On average, Lieb reported, e-commerce now accounts for nearly 12 percent of North American 3PLs' revenue, and CEOs predict it will increase to just over 20 percent in three years. E-commerce revenues account for about 5.33 percent of European respondent revenues, and that percentage has been projected to grow to 9 percent in three years.
Technology is playing a crucial role in the final-mile innovations while also improving operations within the supply chain.
Langley reported that 60 percent of respondents are using technology to increase visibility within orders, shipments and inventory; 40 percent are using it for planning within transportation management and 48 percent are using it for scheduling within transportation management.
Logistics providers are also utilizing technology to choose the most profitable and efficient shipping lanes and modes.
Increasing Competition
Competition within the logistics industry is ramping up due to tightened capacity along with increased consolidation within the supply chain arena that has resulted in fewer partners for 3PLs and increased prices.
Since early 2014 there have been ten major acquisitions by 3PLs totaling $18 billion, leading to a significant restructuring of the industry in many markets. Not only will this require substantial effort on behalf of those 3PLs to integrate operations post-acquisition, it could result in brand confusion in the marketplace, Lieb said.
Penske acquired Transfreight North America earlier this year.
The changing landscape is altering how 3PLs and shippers work together. The majority of respondents in the 20 th Annual Third-Party Logistics Study—44 percent—have enhanced relationships to guarantee shipping lanes and on-time shipments, 40 percent have increased rates, and 29 percent said assets have not been available to move shipments when needed.
Similarly, 29 percent have engaged with a larger number of 3PLs to get access to gain capacity.
“The spirit of collaboration with 3PLs and shippers has led to increased efficiencies in the supply chain," said Bob Daymon, vice president of transportation management for Penske Logistics. “Enhanced relationships with shippers results in operational costs savings and ensures reliable coverage and better rates."
As the logistics landscape continues to respond to more freight, capacity and regulatory issues, as well as increasingly demanding customers and consumers, the industry is more focused than ever on innovation.
To meet increasing customer requirements, 58 percent of respondents said they are investing in new capabilities for themselves, 40 percent said they are leveraging new capabilities from other companies in different industries, and 15 percent said they are leveraging new capabilities from competitors.
“These factors should create an interesting competitive environment, spurring significant changes to the 3PL business model," said Shanton Wilcox, vice president and North America logistics and fulfillment lead at Capgemini Consulting. “Social, crowd-sourcing and flexible fulfillment will converge to create opportunities for alternative logistics service providers."
The Worsening Labor Shortage
The logistics industry is facing an unprecedented labor shortage, and the driver shortage remains a concern, both within North America and abroad. Twenty-six percent of North American CEOs and 60 percent of Asia-Pacific CEOs cited the worsening driver shortage as a key challenge for the global 3PL market.
In North America, the American Trucking Associations estimates a driver shortage of 35,000 to 40,000 in 2015, and that number jumps to 240,000 in 2020.
Additionally, CEOs said they believe an inflexible workforce, regulatory requirements, changing market conditions, increased costs for technology upgrades and capacity constraints will affect the global 3PL industry over the next several years.
Langley reported that more than half of shippers—52 percent— feel they can rely on their 3PLs to address the labor shortage's affect on their business. However, 79 percent of 3PLs feel they are unprepared for the labor shortage's impact on their supply chain.
To meet customer expectations, they will need to ramp up their efforts to attract and retain employees, increasing their focus on training, workforce agility and employer branding. In addition, automation, both within the warehouse and on the road, could help lessen the impact of a workforce shortage.
"The employee skill sets and traits that logistics companies need are shifting as new technologies and distribution approaches transform the industry," said Neil Collins, global leader of logistics, distribution and transportation for Korn Ferry. “Simultaneously, wage issues and job alternatives that didn't exist a few years ago have increased competition for talent."
By “Move Ahead" Staff
Long removed from their role as payload escorts, charged with shepherding goods to their destinations, today’s truck drivers have evolved into brand ambassadors.
Unlike their predecessors, today’s 21st Century drivers now take on more of a customer-facing role as their point of contact has shifted from the delivery dock to direct customer interaction.
Aiding them in this new role is a wealth of technological advances, such as cellphones, GPS, on-board computing platforms and related apps that have enhanced the tools used by drivers to help deliver optimal customer service.
“It allows flexibility today with the use of technology to change based on things that our drivers are experiencing on a daily basis,” said Steve Pitt, director of driver recruitment and retention, Penske Logistics.
Penske Logistics truck driver Ray Osborne.
When Penske Logistics driver Ray Osborne graduated from truck driving school in 1993, Beanie Babies were all the rage, Bill Clinton was president and the World Wide Web made its debut in the public domain.
The only way dispatchers could communicate with drivers was by landline. Back then, driver logs were filled out by hand. Map-reading skills were a must.
“We didn’t have MapQuest,” said Osborne, who hauls freight for an automotive manufacturer in Flint, Michigan. “Sometimes you would make a duty status change and not know what town you were in. You had to estimate that on the map.”
With the emergence of satellite technology in the late 1980s, technology companies began to use satellite triangulation to communicate with and to track drivers.
This was before the Department of Defense opened up GPS for public use in the 1990s. Yet GPS came with its own set of issues, such as the need for proprietary technology in the cab and a healthy dose of driver uneasiness.
“At the time, the big concern was that the truck drivers would view it as ‘big brother’ watching them, and some of them did, but I think the drivers began to realize that there were a whole lot of advantages to being connected while they were out there by themselves on the road,” said Tom McKenna, senior vice president, engineering and technology, Penske Logistics.
Over the years as cellular technology developed, onboard technology companies began to gravitate toward using smartphones, tablets and other devices instead of having proprietary platforms inside cabs.
“So the forms, the trip sheets drivers used to fill out are now electronic. This is not universal, but it is becoming more universal,” McKenna.
Penske Truck Leasing’s lease customers utilize mobile technology vendors such as PeopleNet and Omnitracs.
Penske Logistics uses a proprietary app for GPS-enabled cellphones that allows the drivers to manage routes, receive any special instructions, scan freight on and off the truck and capture electronic signatures on the phone.
In addition, Penske Logistics has contracted with XRS to utilize an electronic on-board reporting system that connects to the engine module to monitor engine performance.
McKenna predicts technologies that are beginning to be adopted today will become more widespread in the next five to 10 years.
“Truck drivers have moved from moving freight from point A to point B to really being a mobile worker,” McKenna said. “It is all the things that they were out there doing, but they are connected to the business every minute of the day.”
Interested in driving for a winning team? Apply today. Penske truck drivers enjoy competitive wages and great benefits.
By Bernie Mixon
