The Sales Connection - Julie Myers

The Sales

Connection

The FedEx Custom Critical Sales Newsletter: 2014 Issue 3

Healthcare

Council Initiatives

Page 4

? 2014 FedEx

The Sales

Connection

Welcome,

In this edition, you will learn about a newly

The FedEx Custom Critical

Sales Newsletter: 2014 Issue 3

created position to support the FedEx Custom

Critical fleet, CSA scores and Healthcare Council

Page 3:

New Fleet Specialist Position

key initiatives. You will also find out who won

New UK Transit Procedures

the 2014 President¡¯s Club and learn about new

procedures for shipments transiting through the

United Kingdom. On the back cover, you¡¯ll be

able to find out a little more about Darin Ayers,

a National Account Manager.

Page 4:

Healthcare Council Initiatives

Page 5:

CSA Program Overview

Page 6:

President¡¯s Club Winners

We hope you enjoy this edition of The Sales

Connection. If there is a specific area that you

A Soaring STEP Event

would like covered in upcoming editions,

please contact Julie Myers in Marketing at

Page 7:

Legal Corner

Page 8:

Get to Know Me: Darin Ayers

julie.myers.osv@.

Best regards,

Forrest Medley,

Managing Director, Sales

Page 2: The Sales Connection

New Fleet Specialist Position

With a new pay plan that is based on a flat rate,

mileage is vital, particularly loaded mileage. To help

ensure contractors are offered maximum loaded miles,

FedEx Custom Critical created a new position called the

fleet specialist. This new role also will help increase

fleet utlization.

The main duties of the fleet specialist are to offer

increased loaded miles, help keep owner operators

moving and serve as a main point of contact at the

company. Each fleet specialist is assigned

approximately 50 vehicles.

Each day, the fleet specialists look over their assigned

vehicles¡¯ activity and loaded miles. They also look out

for situations in which vehicles are being sent to areas

New UK Transit

Procedures

Lisa DeMali and Katherine Taylor,

Air Expedite

Due to increased air

security regulations in

the United Kingdom, the Air Expedite team has

implemented new procedures for all shipments

that transit through the U.K.

Transiting through the U.K. is defined as a shipment

that will move to the U.K., then uplift from the U.K. to

another destination. For example, all shipments moving

to Ireland will transit through the U.K. and will be

affected by the new procedures.

that don't have a lot of outgoing freight. In these

situations, they work to get the truck out of the area

and back into a better area for freight. Additionally,

when owner operators need to head home for

maintenance, holidays, events, etc., fleet specialists will

work with them to try to identify loaded mileage for the

trip home. However, it is always up to the owner

operator to choose which runs to accept and turn down.

The fleet specialists do not pick loads for them.

Fleet specialists began working with Surface Expedite

tractors on July 7. To start, this program is focused on

tractors only (including percentage and flat rate pay

plans) and will eventually expand first to Surface

Expedite straight trucks and then eventually to Surface

Expedite cargo vans.

Containers eligible for the exemptions must be

accompanied by the appropriate documentation which

Air Expedite will provide the customer prior to shipment

departure. This document, known as the Consignment

Security Declaration (CSD), must be completed by the

customer, and two copies of this document must move

with the freight.

The Air Expedite team will include the required

paperwork and instructions with the TempTale

packet, or it will be sent electronically if the customer

prefers. Much of the FedEx Custom Critical sales

force has customers who ship inbound to Ireland on

a regular basis. We want to be proactive in our

approach to ensure that you have the ability to provide

timely and robust information to those customers

who may be affected.

These security regulations call for all shipments to be

screened prior to departure from the U.S. (IND/MEM

hubs). Screening can be one of the following:

? X-Ray

? Opened and inspected

? Screened with security-trained dogs

This also includes all Envirotainers? and CSafe?

containers. Due to the size of the containers, these

would typically be opened in a temperature-controlled

location and searched by the security dogs, which could

cause possible excursions with the freight.

Thanks to the due diligence of Air Expedite Leadership

as well as the FedEx Security Team, we have identified

exemptions that will allow us to move certain

containers without the need to have the containers

opened in-transit. This will apply to security screening

on shipments that fall under specific categories.

Page 3: The Sales Connection

Healthcare Council

Initiatives

Rhonda Close, Human Resources

The healthcare market is a tremendous

growth opportunity for FedEx Custom Critical and is the

primary driver of our Temp-Assure and TVAL business.

In December 2013, we formed the Healthcare Council

to help drive our healthcare temp strategy forward.

The Healthcare Council consists of ELT members,

managers and individual contributors from across

the company and meets six to eight times per year.

Neil Peirson and Jim Parkinson attend meetings on

an as-needed basis to provide insight from the

sales organization.

The primary purpose of the Healthcare Council is to

identify projects and other work efforts that align with

our growth strategy.

The Healthcare Council will:

? Ensure we are working on the things that allow us

to achieve our healthcare temp business objectives.

? Bring visibility to the strategy and to the

required work.

? Bring focus and accountability to the work.

On the right are a few of the projects for the Healthcare

Council and focus areas for FY15:

Increase Temp-Trailer Capacity

By the end of January 2015, we will have 43 new

temp-control trailers ordered, manufactured, tested,

delivered and ready for our use.

Conduct Healthcare-Temp Research

A study is underway to better understand the needs of

customers shipping smaller temperature-controlled

freight (one to two pallets). We also will continue to

benchmark best practices for achieving zero

temperature excursions.

Promote Temp-Control

We plan to aggressively promote our temp-control

offerings to current and prospective customers. This will

include tactics such as speeches at events, healthcare

shows, advertisements, press releases, email

campaigns and more.

Provide Product Knowledge

Throughout the year, we will distribute materials such

as an updated Temp-Assure Services presentation,

updated literature, a Temp-Assure question-and-answer

reference sheet and other support materials to increase

product knowledge. We will also be conducting

in-house Temp-Assure forums and providing webinars to

share information regarding specific product offerings.

Implement Ameriscan?

Ameriscan is the system that will automate temp-data

receipts and allow us to control the temperature-control

unit remotely.

If you have questions regarding the Healthcare

Council, please contact Forrest Medley.

Page 4: The Sales Connection

CSA (Compliance, Safety

& Accountability) Program

Overview

Kellie Toth, Safety

All commercial motor freight carriers, drivers, shippers

and fleet owners are affected by CSA safety reporting

and scores. FMCSA (Federal Motor Carrier Safety

Administration) implemented the CSA program in

December of 2010. The program includes seven

BASICs (Behavior Analysis and Safety Improvement

Categories): Unsafe Driving (moving violations),

Hours of Service, Driver Fitness, Controlled Substance

& Alcohol, Vehicle Maintenance, Hazardous Materials

and Crash Indicator. Two of the BASIC scores are

hidden from public view: Crash Indicator and

Hazardous Materials.

The program uses the past 24 months of safety

performance data to rank motor carriers against each

other which results in assigning a percentile score for

each BASIC. Safety performance data is accumulated

from two sources: roadside inspections and DOT

reportable crashes. DOT-reportable crashes involve one

of the following: fatality, injury requiring immediate

medical attention from scene or a tow away due to

disabling damage. States issuing the roadside

inspection or crash report submit the data to MCMIS

(Motor Carrier Management Information System). The

data is then formulated by the FMCSA into the CSA

methodology for scoring in each BASIC.

FMCSA has three categories for motor carriers:

passenger carriers, hazardous material carriers and

other carriers. Each category of motor carrier has

intervention thresholds. Exceeding the threshold can

result in intervention from the FMCSA, which can range

from warning letters, targeted roadside inspections,

on-site investigations, cooperative safety plans and

notices of violations/fines.

FedEx Custom Critical is categorized as a hazardous

materials carrier. The BASIC thresholds associated with

a hazardous materials carrier are as follows:

?

Unsafe Driving, Hours of Service and

Crash Indicator = 60%

?

Driver Fitness, Controlled Substance & Alcohol

and Vehicle Maintenance = 75%

?

Hazardous Materials = 80%

Each BASIC includes a list of violations which are

assigned severity weights that range from one to 10

points. The severity weight of the violation is then

time-weighted by multiplying it by three, two or one.

New violations will receive the heaviest time weighting,

multiplying the severity weight by three and as time

passes, the weighting decreases.

For example, a driver receives a roadside inspection

with a violation for an improper lane change (violation,

citation or warning are all viewed the same by CSA and

receive the same severity weight). The CSA program

has assigned a severity weight of five for an improper

lane change violation. Time weighting is applied to the

severity weight. Time weighting, in association with

age of the inspection, is noted below:

Violation age:

?

0-6 months¡ªtime weighted by 3=15 points

?

7-12 months¡ªtime weighted by 2=10 points

?

13-24 months¡ªtime weight by 1 = 5 points

CSA scores are updated monthly by the FMCSA,

based upon the MCMIS download. The CSA

methodology will formulate a new monthly score by

adding new violations, removing violations exceeding

24 months and using existing data to create the

percentile ranking for viewing.

Motor carriers are able to challenge CSA data that is

erroneously documented under their DOT number

through the FMCSA program DATAQs. Submitting a

DATAQs challenge entails having the motor carrier

research the violation or crash, formulate an appeal

and provide supporting documentation based upon

FMCSA regulations. Once the DATAQs challenge is

submitted, a designated officer from the state of

issuance will review and decide if the challenge will

be accepted or denied. FedEx Custom Critical¡¯s

Safety department is very diligent in the review

process of its CSA data to ensure only those

violations or DOT-reportable crashes applicable to FedEx

Custom Critical are reflected under our DOT number

and are used to formulate the CSA scores.

Page 5: The Sales Connection

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