Flat Glass Logistics Council

1
Flat Glass Logistics Council

• Issues
• Chicago, May 1, 2003

2
Who are we?

3
Evolution

• Don Osterberg Military Logistics Officer
• Took responsibility for Schneider Specialized
  Carriers
• Recognized key industry problems
• Asked UT for help
• Together we recognized it was an industry rather
  than a Schneider problem
• Amendable to an industry standards committee
  approach

4
Two Conference Calls

• Call 1 Everyone reluctant especially about
  antitrust issues role of group
• Call 2 Who would be willing to participate

5
Two Chicago Meetings

• October 9, 2002
• Six issues raised and discussed by industry teams
• Specified data needed to analyze safety issues
• November 21, 2002
• Reviewed safety data
• Standardized data categories for future data
  collection
• Group decision to move forward and form group

6
Conclusion

• There are major industry problems.
• There is no other group to address these issues.
  
• If this group does not do it, it will not be
  done.

7
What are the major issues?
8
Distribution costs have been steadily decreasing
since 1980.

• Flat Glass has not benefited from this cost
  reduction.

9
Index of Distribution Costs Over 20 years
10
Expectations are changing

• In a world of
• Efficient Consumer Response (ECR)
• Vendor Managed Inventory (VMI)
• Collaborative Planning, Forecasting and
  Replenishment (CPFR)
• Need for greater communication standards for
  efficiencies
• The world is expecting
• Quick response
• Short Lead Times
• Synchronized Delivery
• Greater Variety (mixed shipments)
• Lower landed cost
• Greater flexibility

11
But we say

• Flat glass is different
• Inability to adjust production level
• We acknowledge this.
• But there are many areas where problems are
  self-inflicted.

12
What are these self-inflicted areas?

• Driver safety and worker compensation costs
• Driver retention
• Loss and damage claims
• Capacity utilization
• Lack of supply chain collaboration
• Lack of participation on standards committees

13
Today we will address the first issue Driver
Safety

• In an era of strict OSHA guidelines on safety
  issues, flat glass has not been covered
• OSHA covers plant workers
• DOT regulates safety issues for drivers
• Drivers do not typically load truck

14
OSHA Requirement

• Workers must have protective railing and/or
  tethers when work off the floor
• Limitations on weight employees are expected to
  lift without mechanical assistance
• Special attention must be given to employees
  working on wet or slippery surfaces

15

130 lbs tarp
16
How Would You Like to Explain?

• Drivers working 13 6 above the ground without
  railings or teathers
• Where they carry, spread and secure a 130 tarp
• Surrounded by a product that is famous for sharp
  edges and the ability to cut (sharp as glass)
• Some times working outside where it has rained
  and material is slippery

17
Why are we here today?

• To develop best practice guidelines to reduce
  injuries
• Why?
• Humanitarian you want to protect workers
• Reduce cost of workers compensation
• Keep drivers on the road to reduce cost of
  retraining and recruiting
• Dont want a problem to occur and have OSHA and
  DOT impose solutions
• Supply chain interruptions

18
How important is transportation to delivered cost
of glass?

• High percentage
• 16
• Low percentage
• 9

19
How important are losses to transportation costs?
20

21

22

23

24

Did not have hire data for part of sample.
25
Probability of Injury

• 10 percent of work force
• Higher rate for new employees

26

27

28
Summary

• High level of driver turnover
• High cost of driver recruitment
• High cost of driver training
• High probability of driver injury especially the
  first year
• High cost of injury
• Rapid decline in availability of new drivers

29
Summary (cont)

• Loading and unloading procedures are not in
  conformance to OSHA guidelines because the
  drivers are in a no-mans area
• Unless this group does something to make area
  safer, standards will be imposed.

30
Mission

• How to develop best practice guidelines to reduce
  loading and unloading accidents?
• How do you secure and tarp loads?
• Faster
• Safer
• How can drivers be protected while securing and
  tarping loads?

31
Other Issues

• There are many other issues but they must wait
  until subsequent meetings.
• Safety is our first issue. We need to do it
• For humanitarian reasons. You cannot hire an
  employee to be injured.
• Do it now for cost reasons.
• Do it before OSHA and DOT make you do it.

32
Bright Spot

• One carrier here uses different methods
• Did not have a single injury in 2001.

33
NEW SLIDE

• Group Vision The Flatglass Logistics Council
  will help make the flatglass supply chain safer
  and more responsive to customers with lower cost
  for consumers. The Council is an organization of
  flatglass logistics professionals and firms
  involved in manufacturing, transportation, and
  fabrication of flatglass, who are interested in
  improving the safety and supply chain management
  process in the industry. It is primarily
  interested in identifying best practices,
  developing standardized training programs, and
  adapting information and other standards that
  will improve logistics practice in their
  respective organization
• Group Mission
• 1.Develop improved safety practices in the
  transportation/ handling of flat glass and
  educate firms on the use of these practices.
• 2.Identify best practices in the supply chain
  management and educate the industry in the use of
  these best practices
• 3. Develop industry standards that facilitate the
  labeling, packaging, and distribution of flat
  glass and educate the members on the use of these
  standards and encourage their adoption
  industry-wide.

34
(No Transcript)
35
(No Transcript)
36
(No Transcript)
37
(No Transcript)
38
(No Transcript)
39
(No Transcript)
40
(No Transcript)
41
(No Transcript)