Presentation to the Canadian Association of Movers

1
Presentation to the Canadian Association of Movers

• Major Katherine Vigneau
• Department of National Defence Transportation
  Management
• 22 November 2004

2
Topics

• Federal Government Move Management
• FEAMS (Furniture Effects Automated
  Management System)
• Alternative to Scaling Trial
• Value Index Results
• Carrier compliance
• Customer satisfaction
• Claims satisfaction

3
Move Management in the Federal Government
4
CONTRACTS
Contract Geographical location Parties
Domestic Canada and US IDC
International Overseas DND
5
Domestic Moves

• 12,000 - 15, 000 moves per year
• Department of National Defence 75
• Royal Canadian Mounted Police 12
• Public Works Government Services Canada / Central
  Removal System 13
• Average Shipment Weight 9000 lbs
• 3 Service Providers

6
Peak Period
2003 2004
21 June 21 July 3534 4161
627 additional moves in peak period
7
Domestic Contract

• 2 years contract 3 times 1 year option
• Started on 1 April 2001
• On 1 April 2005 ? 3rd option year
• End of contract ? 31 March 2006

8
Domestic Contract

• Draft RFP - 1 Nov 2005
• 4 years plus 3 one year options
• Final RFP - 1 Apr 2005
• Bid evaluations summer 2005
• Contract in place - 1 Apr 2006

9
International Moves

• 500 - 550 Moves per year
• DND only
• 1 Service Provider

10
International Contract

• 2 years contract 3 times 1 year option
• Started on 1 November 2001
• On 1 November 2004 ? 2nd option year
• End of contract ? 31 October 2006

11
International Contract

• Draft RFP - 1 May 2005
• Final RFP - 1 Nov 2005
• New contract - 1 Nov 2006

12
Interdepartmental Committee on Household Goods
Removal Services (IDC)

• Established in 1968
• DND Department of National Defence
• PWGS/CRS Public Works Government Services Canada
  / Central Removal System
• RCMP Royal Canadian Mounted Police

13
IDC Mandate

• To collectively contract with the moving industry
  for the move of household goods of federal
  government employees

14
IDC Roles Responsibilities

• Sets the policies, conditions and tariff for the
  transportation and storage of household goods
  belonging to government employee
• Provisions of moving services, (i.e. ordering,
  quality control, billing, payment and audit) done
  by each member department

15
IDC Objectives

• To improve and maintain the quality and the
  reliability of services provided by the Service
  Providers
• To optimize management efficiencies
• To ensure shipper satisfaction
• To ensure cost-effective delivery of contracted
  services

16
IDC Objectives (Suite)

• To ensure built-in flexibility (trials)
• To ensure compliance with all applicable
  regulations and standards
• To ensure that the contracted functions are
  performed in a safe manner
• To ensure that electronic commerce supports all
  functions of transportation management
• To foster co-operative interaction between the
  government and the moving industry

17
Furniture and Effects Automated Management System

• FEAMS

18
CENTRAL REMOVAL SYSTEM (CRS)

• Antiquated system
• Connectivity problems
• Poor management tool
• User fees to PWGSC
• Decommissioned in 2005?

19
FEAMS Corporate Benefits

• Possibility of early payment incentive
• Improved tracking of expenditures actual costs
• Effective management tool
• Bilingual

20
FEAMS User Benefits

• User friendly, GUI
• Web-based
• Central payment
• Time for more quality control - better QOL

21
FEAMS Modules

• FEAMS V 1.1
• Long Term Storage

• FEAMS V 2
• All other FE business processes
• Domestic
• Cross border
• International

22
FEAMS V1.1 Status

• First module (Long Term Storage) piloted
  successfully on five bases April 2003
• Remaining bases piloted successfully October 2003
• All LTS lots (approximately 1500) are now being
  processed by FEAMS

23
FEAMS V 2 Timelines

• Pilot roll-out Jun 04
• Re-engineer/re-development Jun Sep 04
• Testing Sep-Nov 04
• Training Oct-Dec 04
• CRS use ends 24 Jan 05

24
ALTERNATIVE TO SCALING
25
Alternative to Scaling Trial (ATS)

• 1997 OAG Report

Recommendation at paragraph 21.100 Public Works
and Government Services Canada, in consultation
with the Interdepartmental Committee and the
moving industry, should minimize the risk of
overcharging due to weight bumping and strengthen
the auditability of invoices from contractors.
Consideration should be given to introducing an
alternative to the existing basis for pricing
moves.
26
ATS Objective

• Increase transparency and auditability as per the
  OAG recommendation.
• Answer QOL requirement that members have a
  legible inventory of goods being shipped.

27
ATS Vision

• Move of household goods becomes an automated,
  streamlined process from initial estimate to
  final invoicing.
• Initial electronic estimate
• Updated electronic estimate
• Electronic invoicing
• Automated claims processing
• Auditable using SWL

28
Alternative to Scaling

• Working Group ? Standard weight List (SWL)
• SWL introduced in HGRS contract 1 April 2001
• Electronic Inventory introduced 1 April 2002

29
ATS Observations April September 2004

• Good Points
• Inventories had improved (neater manual
  additions)
• Some contractors doing electronic estimates

30
ATS Observations

• Challenges
• Number of manual entries did not decrease
• Printing updated inventories for member

31
Working Group Major Recommendations

• Master list of exception codes
• Parameters for driver inventories and schedule
  for improvement
• Refined weights
• Include non-standard boxes in SWL
• Reweigh if discrepancies exist
• Emphasize member responsibility

32
ATS The Future

• Further refine SWL to be within 3 error
• 100 electronic inventories
• Cooperation between IDC/industry
• IDC to ensure better knowledge of the process
  among members
• Meetings with relocation specialists
• Use of scaling/SWL as primary/audit

33
Value Index
Carrier Compliance Customer Satisfaction Claims
Satisfaction
34
Carrier Compliance
35
QCI Results
Time 1 Apr 03 to 31 Mar 04 1 Apr 04 to 15 Nov 04
QCI 5563 5827
Satisfactory 4822 5212
Unsatisfactory 741 615
36
QCI Results
2002-03 2003-04 2004-05 (to date)
Satisfaction Rate 87.1 86.7 89.4
37
Service Shortfalls
2003-04 2004-05 (to date)
Total Service Shortfalls 480 480
Packing 152 186
38
Liquidated Damages
2003-04 2004-05 (to date)
Total LD 333 261
Late delivery 87 132
Late pick up 26 24
Scaling 76 53
Although few penalties were given, there was no
improvement in L12 clear inventory.
39
Customer Satisfaction
40
Customer Satisfaction Surveys

• Two methods of gauging satisfaction through
  Government Employee Satisfaction Survey (GESS)
  and Claim Settlement Satisfaction Survey (CSSS)
• Hard copies (at any time, although not included
  in statistics / reports)
• Semi annual phone surveys in conjunction with
  Value Index calculations

41
GESSAverage satisfaction score (scale of 1-5)

• Overall
• Pre-move briefing
• Packing
• Loading
• Unloading
• Unpacking
• Destination assistance

• 3.76 3.86 3.81
• 3.94 4.02 4.04
• 3.82 3.90 3.80
• 4.03 4.13 4.07
• 3.88 3.96 3.83
• 3.46 3.61 3.54
• 3.61 3.77 3.63

42
GESSBreakdown of "Yes"/"No" responses
43
Average claims satisfaction score (scale of 1 to
5)

• Overall
• Destination advice, assistance
• Courtesy and professionalism
• Timeliness of response
• Value of settlement

• 3.2 3.25 3.16
• 3.08 3.19 3.18
• 3.47 3.73 3.69
• 3.29 3.55 3.22
• 3.57 3.45 3.51

44
Claims Survey - Breakdown of "Satisfied"/"Dissati
sfied" responses
45
Value Index - Overall

• Better
• QCI
• LD
• Courtesy

• Worse
• Packing
• Late deliveries
• Timely claims settlement

46
QUESTIONS