RYDER INTEGRATED LOGISTICS

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Fleet Safety Getting Measurable Results
Paul Farrell, CEO SafetyFirst Jeff Lester,
former Vice President - Safety, Health
Security Ryder System, Inc. David Hopps, VP -
Risk Management, Safety Environment The
ServiceMaster Company
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Agenda

• Introduction
• Continuous Improvement Model
• Fleet Safety Management System
• Measurement
• Questions and Answers

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Who Is SafetyFirst?

• Provide Fleet Safety Services to both
• Private Companies and
• Insurance Providers
• Clients in all industry types
• Construction
• Service Contractors
• Social Services
• Manufacturing
• Distribution
• Communications

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INTRODUCTION
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Fleet Safety Results

• Motor Vehicle Collisions remain the leading cause
  of workplace death (USA)
• NHTSA states that during CY2000
• 36,249 drivers/passengers died
• 3.1 million injuries

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Distribution by Vehicle Type
Source - Nat'l Safety Council Accident Facts, 2003
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All Crashes by Loss Type
Source - Nat'l Safety Council Accident Facts, 2003
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Fatalities by Loss Type
Source - Nat'l Safety Council Accident Facts, 2003
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What is Fleet Safety?

• Coordinating the efforts of managers and
  employees to
• Minimize the potential for collisions, and
• Prepare to manage collisions that do occur
• Assure compliance with laws / regulations that
  apply to your particular fleet operations

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Typical Fleet Safety Details

• Recruiting, screening and hiring drivers
• Finding at-risk or high-risk drivers
• Training drivers
• Reporting, recording, investigating and analyzing
  crash data
• Regulatory compliance
• Assuring maintenance/fitness of vehicles

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Fleet Safety Results

• Are you satisfied with the results that are
  produced from these efforts?
• Why do crashes continue despite our best efforts?
• Drivers are governed by behavior
• Interaction with a dynamic environment the
  real world

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Fleet Safety Results

• To achieve better results there are two keys
• Identify opportunities for improvement
• Introduce or reinforce fleet safety practices

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Continuous Improvement Model
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Who Is Ryder?

• 4 Billion Revenue
• Logistics and Leasing Maintenance
• 1 in Markets Served
• 30,000 Employees
• 9,000 Vehicles Operated
• Pick-ups, Straight Trucks Tractor-Trailers
• Hazardous Materials
• 150,000 Leased/Rentals
• 1,500 Locations

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Identification Phase
Identify

• Situation Assessment
• Analyze Relevant Data
• Fleet Safety Management System Gap Analysis

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Develop and Deploy Phase

• Develop Initiatives (Prioritize)
• Cross-Functional Teams
• Low Hanging Fruit
• Deploy Initiatives (Strategy and Timetables)
• Determine the Best Method for Deployment
• Establish Realistic Rollout Schedule

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Measurement Phase

• Audit Protocol
• Measure Standards to Ensure Adequacy Compliance
• Data Analysis
• Collect Information Regarding the Impact of
  Standards
• Goals Metrics

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Evaluation Phase

• Identify Strengths (Benchmark among the best
  internally externally)
• Identify Weaknesses
• Criteria for Evaluating Safety Excellence

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Effort vs. Cost
TYPE OF VALUE ADDED
E Executive-Driven
Creating Business Advantage

• Impact on Business Strategy
• Create Market Differentiation

L Line- Driven

• Integrate into Line Mgmt
• Manage Efficiently/Effectively

Adding Value
Value to the Company
S Staff-Driven

• Prevent Problems
• Proactive Safety Health Management

Compliance

• Solve Problems
• Reactive Safety Management

P Problem-Driven
Fire Fighting
Cost Effort
Program Sophistication/Maturity
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Fleet Safety Management System
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Who Is ServiceMaster?
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Who Is ServiceMaster?

• 4 Billion Revenue
• 1 or 2 in Markets Residential Commercial
• 40,000 Employees
• 26,000 Vehicles Top 3 Private Fleets
• Class 1 8
• Hazardous Materials
• 1,000 Company Locations - 4,000 Franchisees
• Six Sigma
• Total Cost of Risk - 130 Million

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Born to Drive
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A Little Short
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Fleet Safety Management System
Elements

• 1. Leadership and Administration
• 2 Employee Selection, Assessment, and
  Placement
• 3. Orientation and Training
• 4. Inspections
• 5. Accident / Incident Reports, Investigation,
  and Analysis
• 6. Work Rules, Procedures, and Permit
  Systems

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Fleet Safety Management System
Elements (continued)

• 7. Occupational Health and Wellness
• 8. Insurance / Claims Management
• 9. Purchasing and Engineering
• 10. Communications Promotions
• 11. Recognition Rewards
• 12. Regulatory Compliance Management
• 13. System Evaluations

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Fleet Safety Management System
1. Leadership and Administration

• Functional Leader
• Adequate Time, Training, Resources
• Proper Reporting Relationship
• Written Safety Management System
• Policy Statement
• Safety, Health, Security/Loss Prevention,
  Injuries, Collisions, Substance Abuse,
  Regulatory,
• Responsibilities
• Functions All Employees Management Levels

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Fleet Safety Management System
1. Leadership and Administration

• Accountability
• Integrated into Business/Priorities/Plans,
  Disciplinary Actions, MBOs, Performance
  Management,
• Employee Involvement
• Improvement Teams, Six Sigma, Safety Committees,
  
• Government Regulations
• Monitoring of Federal, State Local Regulations

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Fleet Safety Management System
2. Employee Selection, Assessment, and Placement

• Application Requirements
• Company Specific Regulatory
• Minimum Hiring Requirements
• Experience, Collisions, Driving Convictions, Road
  Tests, Regulatory, Drug Test, Exam,
• Screening Investigations
• MVRs Background Checks
• Interview Selection Process

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Fleet Safety Management System
3. Orientation and Training

• Orientation
• Management
• Hourly
• Training
• Classroom OJT
• Management Fundamentals of S H
• Hourly
• Initial Recurrent Training
• Vehicle Specific
• Defensive Driving
• Regulatory Compliance Topics
• Remedial Training

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Fleet Safety Management System
8. Insurance / Claims Management

• Three Prong Allocation
• Past Performance premium allocation
• Current Performance - Deductible Charge Back
  System
• Incentive System to get them to look forward
• Employee Injury / Illness Management Process
• Settlement Authority
• Return-to-Work / Transitional Duty

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Fleet Safety Management System
9. Purchasing and Engineering

• Vehicle Specifications
• Technology/Tools
• GPS, Onboard Computers, Collision Avoidance (e.g.
  Eagle Eye), Recorders (e.g. DriveCam)
• Hows My Driving? Decals
• Facility (Building Equipment)

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MEASUREMENT
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Goals Measurement at SVM

• What Do We Measure?
• How Do We Set Goals?
• How Do We Motivate Compliance / Performance?
• What Do we Learn From Collisions, etc.?

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Goals Measurement at Ryder

• What Do We Measure?
• How Do We Set Goals?
• How Do We Motivate Compliance / Performance?
• What Do we Learn From Collisions, etc.?

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Questions and Answers
?