Monday, February 25, 2008

Are you losing money with Activity-Based Compensation?

Activity-based compensation has been touted as a way for fleet managers to increase delivery and driver productivity while managing labor costs. Private fleets are particularly embracive of this model as a means of reducing overall operations costs. See Gary Petty’s article from the National Private Truck Council (NPTC) and Fleet Owner magazine. But how can you ensure that the activities you have defined are accurately measured? Do you know what the cost variance is between one activity’s compensation rate and another?

Many Cadec customers are using their Mobius TTS and Series 100 on-board computers (OBCs) to aid in their ABC program. Yes, on-board computers are commonly implemented to improve safety or increase fleet and driver productivity. However, driver safety can also be calculated into a compensation plan. Speeding, excessive idle, HOS violations are negatives that can be built into the ABC.

ABC rewards efficiency, which is often very difficult to measure accurately. On-board computers provide a level of accuracy that simply cannot be obtained by manual processes. Mr. Petty agrees in his article, stating “Using on-board technology is critical. Managers analyzed data on 3,000 trips to and from their stores to set the standards for the ABC program.”

Without accurate data, your ABC program may be costing you more than you think. For example, one Cadec fleet management customer incorporated a driver incentive program that would measure the time from arrival to departure at each delivery stop. The goal was simple; improve efficiency to allow for more stops in a day. Drivers were incented to make their deliveries within a certain amount of time. Originally, the driver would call their dispatcher when they were leaving the site. When the customer began using the on-board computer’s GPS and geofencing technology, they found that drivers were often calling in 1-3 minutes before they actually left the site in order to hit their incentive window. By eliminating these inaccurate incentive payments, this customer was able to reduce payroll by over $800,000 across 450 drivers.

The geofencing features can also help identify if/when a driver has reached a pickup/delivery location, but may still be in drive mode, waiting in line for their load. Accurate identification of when a vehicle enters and exits a site is essential when implementing ABC programs, and while some drivers will look for ways to cheat the system, once implemented, drivers embrace the use of on-board systems and use them to their advantage to improve their overall productivity.

Author: Gerry Kirouac

Monday, February 18, 2008

Protect Against Lawsuits with On-board Computers

Ours has become a very litigious society. Some of the lawsuits we hear about have merit, others range from the dubious to the downright outrageous. Unfortunately, for each of these suits that is settled, there is a winner and a loser, and often the settlement sums are also outrageous. There are even people in our midst who derive their income from the mishaps that give rise to these suits. These people are… lawyers. A recent lap around the internet has shown that a target has been placed smack dab in the middle of the chest of the trucking industry. If this sounds inflammatory or paranoid, then read the words for yourself:

From http://www.truckingaccidentattorneyblog.com
“Winning Truck Accident Cases--The Key is to Find Violations of Federal Motor Carrier Regulations
Tractor trailer accidents involve complex issues and require knowledge of Federal Regulations applicable to trucking companies. In order to win you need to prove that the truck driver or trucking company was negligent. Negligence is defined as the truck driver's failure to use reasonable care that a careful and prudent truck driver would use in the same or similar circumstances.
Trucks that carry goods between states are regulated by the Federal Motor Carrier Safety Administration which promulgates regulations that truck drivers and trucking companies are required to follow. You can make a convincing case of negligence to a jury if you can prove not only that the truck driver was negligent in the manner her drove his the truck, but also if he violated one of the many federal regulations governing the conduct of truck drivers.
One of the most common violations what is known as the hours of service regulations. The hours of service regulations only apply to property carriers and drivers.


More from the same site:

One of the key to winning any case tried to a jury is to get the jury to side with your client. If you can show not only that the truck driver was negligent in the operation of his truck but also that he falsified his log book and his employer knew it, the jury is more likely to award a large verdict, or the insurance company will pay more to settle the case. That is why you are involved in a trucking accident, you should hire an experienced trucking accident lawyer like Jeff Lowe of the Lowe Law Firm. We work on a contingency basis and only charge you a fee if we recover for you. We also advance all expenses and only recover them if we win for you.

From http://www.ocinjury.com/html/auto.html

Semi Truck Accidents
A semi truck accident is, with respect to a victim's lawsuit, somewhat different from a typical auto accident. In a normal auto accident, the driver at fault is often the only party legally liable for damages; if this driver is uninsured, or if damages exceed his or her insurance policy's limits, the victim may have no means of acquiring just compensation. When a semi truck is involved in the accident, though, other entities may be held responsible for the collision. Many semi trucks are owned and operated by large companies for whom the drivers work as employees. If these companies fail to hire safe, competent people to operate their trucks, they may be considered at fault in any accidents caused by their workers. Good legal representation is crucial in the trying to bring those responsible to account, and California semi truck accident lawyer Sean M. Burke can help
.

An important legal concept in semi truck accident litigation is “joint and several liability.” In a nutshell, this doctrine ensures that victims receive compensation for economic damages from someone responsible, regardless of whether the guilty parties can each pay their share. Thus, if the driver in a semi truck accident is deemed most at fault, but is very poor, and his employer is deemed only partially at fault, but has more money, the employer will have to cover whatever damages the driver cannot. After the fact, the employer can seek restitution from the driver via separate legal action that does not involve the victim. This system (which does not apply to non-economic damages such as pain and suffering) ensures that victims of personal injury are compensated and not forced to suffer through endless legal battles involving every party responsible for their harms. Determining who is responsible and bringing them to court requires the expertise of a skilled attorney. Contact Southern California semi truck accident lawyer Sean M. Burke for help with your case today.

From http://www.alabamaaccidentinfocenter.com/CM/Custom/Truck-Accident-FAQ.asp

What Should I Do If I Have Been in a Truck Accident?
· Render first aid and summon medical professionals.
· Contact an attorney as soon as possible. He will send investigators to the site, advise you of your rights, and recommend steps to take.
· DON'T GIVE STATEMENTS to police, an insurance adjuster, the other driver(s), or bystanders. Any admission of fault can reduce your ability to recover damages.
· If possible, take photos of damage to both vehicles, debris, your visible injuries, and the general scene.
· Get contact information from any witnesses before they leave the scene (let your attorney get their statements).
· Record the truck driver's name and driver's license, license plate numbers of the cab and trailer.
· Exchange personal information (including insurance information) with all drivers involved.
· See a doctor as soon as possible. Seemingly minor injuries can turn out to be serious — brain trauma, fractured bones, soft tissue injury. Carefully document your injuries, your treatment, and your recovery over the next weeks and months.
· Report the accident to your insurance agent, but stick to basic facts (where it occurred, when, vehicles involved). DO NOT SIGN ANYTHING without talking to your attorney.
· Make sure that your vehicle and the truck are inspected before any repairs are made. Your attorney can arrange this.


Who Can Be Sued in a Truck Accident?
Truck accidents often involve multiple vehicles. Your attorney should be experienced in complex litigation involving multiple parties and the insurance issues that often arise. If the truck driver was at fault, you can sue the driver personally and usually the trucker's employer. The owners of the tractor-trailer cab, the trailer, and the freight may all be liable in part, as well as the truck's manufacturer or a third-party maintenance company. If a third driver caused the accident, you can sue for damages under their auto liability policy.

What If I Was Partly at Fault?
Alabama is a contributory negligence state. Under a strict reading of the law, you cannot recover damages if you are found to be even 1 percent at fault. As a practical matter, however, you may be able to collect if you share some of the blame but the truck driver or trucking company was predominantly at fault. DO NOT DISCUSS fault with anyone other than your attorney.

All of these websites, which were visited on the 14th and 15th of February 2008 are setting their sights squarely on the trucking industry. Some of the entities cited here may not be happy with the attention that is being called to their words, but this information is directly from their sites and is complete and contextual, look at the sites for yourselves. The surest way to avoid the threat of litigation is to run 100% incident free. Since that cannot be expected, hiring quality drivers, running safe legal trucks and complying with federal regs will all help to shrink that target. Installing Electronic On-board Computers such as Cadec’s Series 100 system (for both PowerVue and Mobius TTS) is a reliable method for collecting and storing DOT logs and tracking compliance, vehicle ECM and GPS data. It will help to shrink the target even more. Automatic on-board recording devices (AOBRDs) also show your organizations commitment to safety and efficiency as well as your readiness to defend yourself and your drivers. A closing thought which drives this point home as succinctly as any extra words here is this paragraph, which all but says that companies which choose not to use AOBRDs are leaving themselves wide open.

From the site http://orlando.injuryboard.com/auto-accidents/electronic-logs-can-stop-truck-accidents.php

There are alternatives. One such device is an electronic log mounted on the truck. These logs automatically record when, where and how much the truck has been driven. Although the Federal Trucking Regulations in the United States do not require electronic logs, the individual companies that hire the truckers can voluntarily place the logs in trucks they hire. If a company knowingly hires drivers that fudge the log books then action should be taken to hold them accountable for injuries and deaths to innocent motorists from car accidents caused by interstate trucks. The simple solution of electronic logs is one that a jury should evaluate when deciding whether trucking companies are deliberately choosing to ignore safety and profit by looking the other way while truck drivers violate the safety regulations designed to stop truck accidents.

Author: Karl Olson