Fleet Excellence – Customer Service

1. Attention Attendees: • Thank you for attending! • The presentation will start in a few minutes at 1:00 PM Central. • Please use your computer speakers to listen to the event. If you have audio issues, dial-in info is below. • You will be muted during the event. • Please use the Question feature to text questions to “Q & A”. We’ll try to answer them during the Q&A period if they are not covered in the presentation. • The slides and recording will be posted in 1-2 days at http://www.jjkeller.com/nptcinfo Fleet Excellence – Customer Service This webcast will cover ... NPTC Benchmark Data Findings and Member Customer Service Best Practices, Industry Best Practices, The Orscheln Experience, and Question & Answer Moderator Dr. Gary Petty, President & CEO, NPTC Panelists Tom Moore, Vice President of Education, NPTC Tom Bray, Editor – Transportation Management, J. J. Keller & Associates, Inc. Erle Bergstrom, CTP, Transportation Manager, Orscheln Farm & Home LLC

2. Dr. Gary Petty President & CEO National Private Truck Council

3. Disclaimers and Housekeeping • The content in this webcast is intended for information purposes only and should not be construed as providing legal advice. • We welcome your specific questions but reserve the right to modify the questions to make them applicable to a general audience. • Housekeeping issues: • You will be muted during the event. • Please use the Question feature to text questions to the Q&A Panelist. We’ll try to answer them during the Q&A period if they are not covered in the presentation. • If you lose sound at any point, you can dial-in by phone using the number and Pass Code listed below. • If you lose the program window and need to re-login be sure to enter a different e-mail address to avoid being denied access for multiple logins. Gary Petty National Private Truck Council

4. Tom Moore, CTP Vice President of Education National Private Truck Council

5. Why Do CompaniesOperate Private Fleets? Tom MooreNational Private Truck Council

6. Measuring Customer Service Tom MooreNational Private Truck Council

7. Identifying the Customer Tom MooreNational Private Truck Council

8. Identifying the Customer Tom MooreNational Private Truck Council

9. Differentiating Customers • Focus on the right customers • Bring more value • Interact more effectively • Customize treatment Tom MooreNational Private Truck Council

10. Defining CustomerService Attributes • What really matters? • Abilities • The right product at the right location at the right time in the right condition and at the right price • On-time • Damage-free • Emergency response • Control • Appearance • Experience • Other “Abilities” • Reliability • Dependability • Affability • Accessibility • Opportunity for the private fleet to provide unique service that cannot be outsourced. Tom MooreNational Private Truck Council

11. Customer Service Migration Tom MooreNational Private Truck Council

12. Sample Survey Questions • Samples survey questions: • In your dealings with ABC Private Fleet, how would you rate your overall level of satisfaction? • The process for getting your concerns resolved was: • Relative to on-time delivery, how satisfied are you with the service? • Relative to cargo damage and claims, how would your rate our performance? • Relative to quality of service, how would you rate our performance? • How would you rate your experience with our staff? • How would you rate the price? • How easy are we to do business with? • The customer service representative was courteous, handled my call quickly and professionally. • Provide balanced range of satisfaction levels to choose from; allow participant to add detail for low scores Tom MooreNational Private Truck Council

13. “If you measure it, it will improve.” • What could you measure? • How fast could you get the results? • Hiring standards • Training protocols • Communication • What would that cost? • What would it cost if you didn’t improve it. Tom MooreNational Private Truck Council

14. How Does It Look In theReal World Tom MooreNational Private Truck Council

15. On-Board Technology Increases Tom MooreNational Private Truck Council

16. Building Blocks of Customer Service Tom MooreNational Private Truck Council

17. Tom Bray Editor, Transportation Management J. J. Keller & Associates, Inc.

18. The Customer is Always Right! • You may be very successful doing business by carefully meeting the reasonable expectations of your customers, which include getting: • the right product • to the right place • in the right condition • at the right time • at the right cost. • But now you have to determine if you are doing all of that in the right way! • Educate Drivers and CSRs on the “Front of the House” Business Tom BrayJ. J. Keller & Associates, Inc.

19. Think of Everyone as Your Customer! • Build a relationship • Get to know the customer • Know your company /division Tom BrayJ. J. Keller & Associates, Inc.

20. Progressive Customer Service • The Happy Customer • One point of contact • Be courteous at all times • Thank the customer for continued business • Provide consistent and reliable service • The Unhappy Customer (keep smiling!) • Respond to complaints immediately • Show concern for the customer's unhappiness • Try to help fix the problem • Take measures to prevent a recurrence Tom BrayJ. J. Keller & Associates, Inc.

21. Progressive Customer Service • The Angry Customer (handle with care!) • Remain calm and courteous • Show empathy • Apologize even if the problem is not your fault • Accept responsibility for helping to fix the problem • Offer solutions • Take part in implementing a solution • Follow up on the success of the solution • Educate the customer after the situation is resolved, if necessary • Deliver bad news early and honestly • Remember: Attitude is a Choice! Tom BrayJ. J. Keller & Associates, Inc.

22. 7 Mistakes of Customer Service • Assuming only the Customer Service Representative is responsible for customer service • Never saying you are sorry because that’s an admission of fault • Over automating the customer service experience • Not obtaining sufficient information to book a load • Not listening to the customer • Taking on too much of the customer’s work • Getting confrontational with the customer Tom BrayJ. J. Keller & Associates, Inc.

23. 7 Tips for Customer Service Success • Benchmarking • Continuous scorecarding • Mystery caller program • Test your drivers in the field • Sensible automation • Build a profile of customer touchpoints • Assume that nobody cares about your problems Tom BrayJ. J. Keller & Associates, Inc.

24. Customer Service Chain • The means through which customer service is deliveredfrom the moment the customer comes in contact with your company to the time the job has been successfully completed. • Example of the customer service chain: • Customer calls to inquire about lead times and talks to receptionist • Customer calls back to book load with CSR • CSR conveys information to Trip Planner • Trip planner communicates expected delivery time to CSR • Trip planner works on scheduling with Dispatcher • Dispatcher communicates load information to Driver • Driver picks up, transports, delivers and unloads load in manner agreed to by CSR • Customer confirms load as delivered meets requirements • Customer is invoiced Tom BrayJ. J. Keller & Associates, Inc.

25. Driver Care • Drivers aren’t mushrooms in the closet. Recognize and respond to their needs in the field because they are on the customer service frontlines. • Sources of driver stress include: • avoiding accidents and traffic delays • ensuring safety of vehicle • avoiding fatigue • keeping equipment maintained on the road • meeting pick-up and delivery schedules • completing paperwork properly and on time • passing inspections • sustaining economic security for self and family • meeting physical demands of the job • getting home to spend time with family. Tom BrayJ. J. Keller & Associates, Inc.

26. Providing Good Service to the Driver • Address drivers by name • Get to know drivers, so when they visit the terminal they feel like a valuable part of the company • Don't stick drivers away in cold, impersonal driver rooms as though they were second class citizens • Be accessible and available to them • Answer their questions in a timely manner • Give them accurate, helpful information • Be fair, consistent, and avoid preferential treatment • Keep them informed about changes in the company • Make them feel like the integral part of the team that they are, involved and appreciated. • Give them reasons, not just orders Tom BrayJ. J. Keller & Associates, Inc.

27. CSR/Driver Checklist:Phone Etiquette • Don’t use the phone while driving • Answer the telephone promptly, identify yourself and get the caller's name and number early during the call • Speak up so the caller can hear you and minimize noise • Listen attentively, ask questions, take notes and don't interrupt • Don't eat or drink while using the telephone • Represent your company courteously and respectfully • Limit touch points--transfer with care, use only if necessary • Limit placing callers on hold--be considerate, use only if necessary • Take messages with care-- proper spelling, pronunciation, verify phone number and time when caller can be reached Tom BrayJ. J. Keller & Associates, Inc.

28. Erle Bergstrom, CTPTransportation ManagerOrscheln Home & Farm LLC

29. Orscheln Farm & Home LLCFleet Operations • Fleet consists of : • 54 Power Units of varied types (36 Leased OO’s, 18 company-owned, 100% EOBR) and 200 53’ Trailers • 54 CDL Drivers • Orscheln has 154 retail outlets located in 9 states (MO, IA, NE, KS, OK, AR, KY IL, IN) serviced from one Retail Support Center. • Private Fleet transports 97% of RSC freight outbound to Orscheln Retail Stores, and 32% of inbound freight to RSC. Erle BergstromOrscheln Farm & Home LLC

30. Orscheln’s Culture of Customer Service • Customer service is embedded in Orscheln culture • Hiring • Training and Communication • Performance and Performance Reviews • Everyone is your customer and everyone is responsible for customer service • One executive oversees warehouse and logistics—no pointing fingers when cargo is damaged, short, not on time, etc. Erle BergstromOrscheln Farm & Home LLC

31. Orscheln’s Hiring Process • Look for prior customer service experience • Describe processes and ask what responsibilities they are willing to perform • Inquire with previous employers • Key Point: every prospectivehire will tell you they “put the customer first” and “customer service is a top priority” it is your responsibility to validate those statements Erle BergstromOrscheln Farm & Home LLC

32. Orscheln’s Training • Conduct standardized customer service training usingvideo and classroom training • Trucks are a rolling billboard—our customers are on the roadways with us and evaluating our drivers all of the time • Procedural training covers all possible scenarios • Materials handling (unloading truck with pallet jack, loading trailer, etc.) • Cargo securement • Store and dispatch communications • Warehouse training • Key Point: put driver in up and down stream personnel’s shoes to help them understand their impact on others. Erle BergstromOrscheln Farm & Home LLC

33. Driver Checklist:Ways to Provide Good Customer Service • Pick up and deliver to the right location • Be on time, call ahead if a delay is inevitable and apologize for delays • Be pleasant and courteous at all times, avoid confrontation and build a rapport with customers • Handle every load with care • Adhere to trucking industry regulations, follow company and client policies, and drive safely • Offer your suggestions for improving customer service and be receptive to changes made to improve customer service • Be mindful of your personal appearance, be professional and project a good image of your company • Keep the vehicle clean and in good repair • Be knowledgeable about your company • Follow procedures for freight problems Erle BergstromOrscheln Farm & Home LLC

34. Orscheln’s Cargo Management Procedures • Getting the “right stuff” there at the “right time” requires proper cargo securement • Make sure cargo is staged and placed in trailer in amanner that is conducive to unloading • Pay special attention to cargo securement to ensure cargo will not shift and become damaged in transit • Establish a trailer seal procedure that ensures two people are always signing off on removing and securing trailer seals • If store stocking is required, make sure driver understands the customer’s needs • Key Point: never cut corners on cargo security it impacts time to unload Erle BergstromOrscheln Farm & Home LLC

35. Orscheln’s Communication • Consistent delivery day • Email dispatch log preceding day • Online shipment tracking refreshed every 30 minutes • Driver emails ETA before departure • OBCs in 100% of power units – in process of developing capability to track equipment using GPS/OBC to project ETA en route and automatically email tracking notices to stores • Call store if delay is possible • Key Point: your customer has labor scheduling concerns that you need to be sensitive to and communication is key to maintaining their satisfaction Erle BergstromOrscheln Farm & Home LLC

36. Orscheln’s Assessment • Survey 10-12% of store managers each week • Survey assesses • Delivery time—early arrival is just as bad as being late • Equipment appearance • Image • Office personnel • Survey results used in personnel performance evaluations • Key Point: you must be committed to acting on survey findings—good or bad Erle BergstromOrscheln Farm & Home LLC

37. Question & Answer Please submit questions to “Q&A” using the Q&A tool Tom BrayJ. J. Keller & Associates, Inc. Erle BergstromOrscheln Farm & Home LLC Tom MooreNational Private Truck Council Gary Petty National Private Truck Council

38. Closing Remarks Checkout the archive of past topics at: http://www.jjkeller.com/nptcinfo PowerPoint slides up in 1-2 days Recording up in 1 week Topics for 2010: October 20 – Fleet Excellence – Driver Recruiting & Retention Gary Petty National Private Truck Council