Vulcan Threaded Products takes things personally

By Jeff Berman, Senior Editor -- Logistics Management, 6/1/2006

When Steve Monson joined Vulcan Threaded Products as logistics manager in September 2003, he had his work cut out for him. The Pelham, Ala.-based manufacturer of threaded steel rod was struggling to find truckers to haul its loads.

Vulcan, which shipped about 10 loads a day, was competing for flatbed capacity against other Birmingham-area steel shippers that were rolling out 80 to 200 loads a day. Those shippers could also offer good pay for straight-shot loads with no tarping required, while some of Vulcan's loads paid less and required tarping plus four to six stops.

Capacity was especially tight in the summer; Monson recalls times when more than 3,000 loads were posted on message boards but only 14 trucks were available within a 100-mile radius of the plant. The company’s excessively long loading times and low pay, moreover, made the work unappealing to drivers. Orders sometimes waited seven to 10 days for pickup, which increased inventory-carrying costs and led some customers to cancel orders.

To top it off, Vulcan did not have a full-fledged traffic department, and Monson reckons that he was the sixth or seventh person to take on that responsibility in five years. The situation was so bad, in fact, that drivers didn’t want to work for the company.

"We heard stories about truckers on the CB, talking about how they would never drive for our company again," Monson says. "We chased trucks year ‘round, nickel-and-dimeing dispatchers over rates and using anyone and everyone to haul our freight. There was no loyalty."

Monson was determined to overcome those difficulties. But rather than throw technology at those problems, he took a common-sense, personal approach to making Vulcan Threaded Products a desirable workplace for drivers.

Reach Out and Learn Something

Monson’s first step toward becoming a "preferred shipper" was to go out on the loading docks and introduce himself to the drivers. "Our goal was to make them feel welcome, find out where they were from, and get to know them," he says. "It was refreshing to hear that we were one of the few [shippers] in the Birmingham area—or the only ones—doing this."

By reaching out, Monson learned what the drivers’ needs and concerns actually were. Misinformation from dispatchers and the high cost of food and fuel were common complaints. By far the biggest issue was how long it took to get loaded. "Some of our loads would require drivers to load in three or four different locations around the plant and tarp in between doors," he says. "When they would get to the next door, they would have to wait in line again. ... It was not unusual for the trucks to be here, six, seven, or eight hours loading or waiting to get loaded."

Monson handed out business cards with his direct phone line and his cell phone number and urged drivers to contact him day or night with any type of problem. He set out to explain his company’s operation to both drivers and dispatchers. "Most of the time, ‘not knowing’ frustrates the drivers. But when we tell them why another truck was moved around them to load, it goes a long way," he says.

He also met with Vulcan’s forklift drivers, truck loaders, and crane operators to educate them about drivers’ needs. He told them about the hours-of-service (HOS) rules and explained how long loading times and delays affect drivers’ livelihoods. "If the wheels are not turning, they are not making money," Monson says. "This gave the other guys some perspective on what the drivers were up against."

The next step was to cut loading times. Monson began scheduling loads rather than allowing drivers to come in at will. Most trucks now load in one or two bays, and the shipper is adding more materials handling equipment and docks, with the aim of reducing all loads to one-door pickups, Monson says. Today the average loading time (including wait time) is less than three hours.

In 2004, Vulcan kicked off "Driver Appreciation Week." This popular event is held in August, when most drivers are outside tarping trucks in 90 degree heat. Barbeque lunches and cold drinks are served, and drivers are entered into a raffle for XM satellite radios. Giveaways like thermoses that read "Thanks for taking a load off of our mind" and company-logo hats spread goodwill and help drivers feel like they’re part of a team, Monson says.

A Two-Way Street

Before long, drivers were calling Monson and asking their dispatchers for work from Vulcan. Monson next set his sights on capturing more capacity. In early 2004 he noticed that 10 to 15 trucks a day were delivering raw materials to Vulcan’s plant, then leaving empty to haul freight for another shipper. Working with Purchasing Manager Jeff Hayes, he gradually took control of routing most inbound shipments so he could offer drivers both inbound and outbound loads. "That way, they can load here in Pelham, go to Dallas and unload at our vendor’s plant, reload in Dallas, and come back here," he explains. Vulcan now routes about 90 percent of its inbound freight.

The final challenge was to build long-term relationships with carriers. Vulcan would promise them consistent, year-round business, but only if carriers would commit to providing a certain amount of equipment and hauling at least one outbound load per day. After sending out a request for proposal, Monson selected a handful of carriers that now handle most of the company’s freight. The rest of Vulcan’s loads are reserved for other carriers that have provided good service in the past but don’t qualify to be core carriers.

Vulcan now ships out an average of 17 to 18 loads a day. Because he can now count on sufficient capacity, Monson no longer needs to spend entire days on the phone hunting down trucks. He also has been able to reduce the number of transportation brokers his company uses for spot loads from 35 to just eight.

The shipper’s image has changed so much, Monson says, that drivers are telling their dispatchers that they only want to drive for Vulcan and are willing to wait—in some cases for 24 hours or more—for those loads. "Drivers now want to drive for Vulcan because we treat them well," he says. "We load them quickly and pay a fair rate year-round. When there is no freight in the winter, drivers are looking for it, and we can help them out. It is a two-way street: We can’t do it without them and they can’t do it without us."