DC Velocity - April 2013

alliances

Vishay Intertechnology Inc., a manufacturer of semiconductors and electronic components, says it reduced corporate risk and improved compliance with trade regulations after it began using Amber Road’s on-demand restricted party screening solution. … The Johannesburg, South Africa-based supply chain consulting and software company Business Modelling Associates is now the exclusive distributor of LLamasoft Inc.’s supply chain design software solutions in the sub-Saharan region of Africa. … Norwegian food wholesaler K. Ekrheim has reported significant yearly profit increases and inventory reductions since implementing the Blue Ridge inventory optimization solutions. … Dematic, a supplier of systems for the factory, warehouse, and distribution center, has expanded its relationship with Vocollect, a provider of voice solutions for mobile workers and a business unit of Intermec Inc. … Kronos Inc., a developer of cloud-based workforce management solutions, and supply chain software specialist Manhattan Associates have formed a relationship to help retailers integrate their brick-and-mortar stores and their digital selling strategy. … Great Lakes Wine & Spirits, a distributor of wines, spirits, and beer in Michigan, is using Descartes’ Mobile for Android solution to improve delivery performance across its fleet. … Eagle Distributing of Shreveport Inc., an Anheuser-Busch distributor in Louisiana, has signed a full-service lease agreement for 23 compressed natural gas (CNG) tractors with Ryder System Inc.

YRC Freight unveils network
restructuring plan

YRC Freight, the long-haul unit of less-than-truckload (LTL) carrier YRC Worldwide Inc., has unveiled a long-awaited network restructuring that seeks to close three breakbulk terminals and consolidate 29 smaller “end-of-line” terminals used as freight pickup and final delivery points. However, it may be some time before the plan is implemented.

The Overland Park, Kan.-based carrier, which employs between 20,000 and 25,000 members of the Teamsters union, initially requested meetings on March 20 with leaders of union locals to discuss the proposed changes. However, the international leadership in Washington has told all locals not to schedule meetings with YRC through the end of April because there are “ substantive and procedure issues” with the proposal.

Under the National Master Freight Agreement, the compact that currently governs labor relations between the Teamsters and what’s left of the unionized trucking industry, a company has the right to implement a “change of operations.” Management must meet with the union to discuss the proposal, and labor has substantial say in how the change is executed.

The proposed restructuring would eliminate breakbulk terminals in Cincinnati, St. Louis, and Memphis, Tenn. It would also consolidate end-of-line terminals in San Jose, Calif.; Youngstown and Mansfield, Ohio; and Daytona Beach, Fla., among other cities, into YRC’s terminal network. Ironically, on that list is Fort Smith, Ark., home of YRC’s archrival, ABF Freight System Inc.

YRC Freight plans to open a small “relay” driver facility in Staunton, Va., staffed by 26 drivers. Relay drivers take over a load and drive between eight and 10 hours before handing that load to another driver. After a required break, the initial driver would then take over the next truck heading back to his or her hometown.

The restructuring proposal would result in the loss of 760 dock, shop, office, and cartage jobs, and 452 over-the-road driver positions at the various affected terminal locations. At the same time, 343 over-the-road driver jobs would be created, along with 639 cartage positions. All told, the restructuring would result in a net loss of 230 jobs.

YRC Freight said the proposal is designed to improve linehaul density, reduce unproductive “empty” miles, cut fixed administrative costs such as building and leasing expenses, and make the company’s service more cost-effective.

FEWER “FINGERPRINTS”

A breakbulk facility acts as an intermediate sorting point for interregional freight. Freight from the various end-of-line terminals is sent to a regional breakbulk terminal to be combined into trailers, which the carrier then routes to other end-of-line terminals. For example, freight destined for Texas from Binghamton, N.Y., might go to a breakbulk terminal in Pittsburgh, where it would be combined with Texas-bound freight from other eastern cities.

Charles W. Clowdis Jr., a longtime trucking executive and now managing director, transportation advisory services for the consulting firm IHS Global Insight, said the proposal should reduce the frequency of freight “touches” between origin and destination, a problem that plagued Yellow Transportation Inc., an LTL carrier that was one of the forerunners of YRC Freight.

“Every time a carrier handles, or ‘fingerprints,’ a shipment, it adds labor costs,” Clowdis said. Touches also raise the risk of loss and damage, he added.