CCJ

September 2014

Fleet Management News & Business Info | Commercial Carrier Journal

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COMMERCIAL CARRIER JOURNAL | SEPTEMBER 2014 45 INNOVATORS ROEHL TRANSPORT Marshfi eld, Wis. so it became a matter of how we could do it better and make sure our best per- formers are getting the top pay." In many performance-based pay programs in the trucking industry, driver compensation systems are related to time on the job, often taking effect only after a driver has been employed for at least a year, with additional pay increases on subsequent anniversaries. "We didn't like that approach," says Koepel. "Someone who is relatively inexperienced could be a high performer, and why should they have to wait fi ve or six years to experience the highest pay levels in the organization? If they are per- forming at a high level, let's offer them a pathway to a high level of compensation as well." Developing a new plan With its philosophy that the people that do the most and the best work should reap the rewards, Roehl introduced its Your Choice Pay Plan to its drivers in the third quarter of 2012 with a soft launch, then fully implemented the program in January 2013. At its core, the Your Choice plan measures drivers in six main categories: s 0RODUCTIVITY s /NTIME SERVICE s 2OADSIDE INSPECTIONS I n manufacturing circles, "lean" is a familiar concept. It has been adopted widely in the North American manufacturing industry starting about 15 years ago – though the concept is much older – and most modern production plants around the world employ some or all of its core principles. /NE OF THE MAIN PRINCIPLES IN LEAN MANUFACTURING INVOLVES IDENTIFYING AND ELIMI nating the seven wastes in the production process, which include waiting, overpro- duction, over-processing, unnecessary motion, excess inventories of components and unnecessary transport and handling. Identifying and eliminating these wastes help a production facility drive out hidden costs and become more profi table. Many of these manufacturing wastes exist today in the trucking industry. Detention time, out-of-route miles, roadside violation inspections and excessive maintenance delays are just a few examples that quickly can erode productivity. It was with a nod to lean manufacturing that Roehl Transport decided to take a fresh look at its own processes in 2011. The Marshfi eld, Wis.-based carrier – which provides dry van, refrigerated, fl atbed and dedicated services – long had offered tradi- tional safety bonuses and other incentives for its drivers. Roehl began to explore pay for performance for its employees, and the culture of innovation among the com- pany's management team had executives wondering how to improve on the concept. "It's all about the idea of continuous improvement, good change and progress," says Greg Koepel, Roehl's vice president of workforce development and administration. "We already preferred the idea of pay for performance, and in fact had been doing it, The fleet develops its Your Choice Pay Plan to improve driver productivity and satisfaction and drive out waste. Roehl Transport lets drivers choose their path to success BY JEFF CRISSEY A BETTER WAY TO PAY

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