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 created position to support the FedEx Custom Critical fleet, CSA scores and Healthcare Council key initiatives. You will also find out who won 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.

We hope you enjoy this edition of The Sales Connection. If there is a specific area that you would like covered in upcoming editions, please contact Julie Myers in Marketing at julie.myers.osv@.

Best regards, Forrest Medley, Managing Director, Sales

The FedEx Custom Critical Sales Newsletter: 2014 Issue 3

Page 3: New Fleet Specialist Position New UK Transit Procedures

Page 4: Healthcare Council Initiatives Page 5: CSA Program Overview Page 6: President's Club Winners

A Soaring STEP Event Page 7: Legal Corner Page 8: Get to Know Me: Darin Ayers

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

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.

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.

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--time weighted by 3=15 points

? 7-12 months--time weighted by 2=10 points

? 13-24 months--time 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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