Transcript
WEBVTT
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Welcome to the road forward, a
podcast for trucking industry leaders. This is
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the show for industry that's like you, hard working, honest leaders who know
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there's promise around the next bend,
an exciting future for the trucking industry and
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a chance for your company to thrive. If you see the opportunity ahead but
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don't want to travel the tough road
alone, join us, as we talked
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with business leaders finding their way forward
and a changing industry. Let's get into
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the show. Welcome to the road
forward. I'm Flynn Holdbrook, your host.
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I've got Dane noised with me from
Panhandle Express today. Thanks for joining
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me, Dane. Nice to be
here. Plant, thanks for having me
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on. So Dane's company, Panhandle
Express, has Dan what are you a
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hundred thirty trucks. Now we've got
the capacity for a hundred thirty trucks.
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Were not quite there at this time
because of drivers. Yep, I think
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you're in the same boat as everybody
else we've had on the show recently.
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So they're located in the Texas panhandle
and they all primarily agricultural commodities and panhandle
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has been a long, long term
customer of our software company, trucks by
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WHO sponsors the podcast. In case
you don't know, I called up with
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Dane last week and he was telling
me a little bit about this big business
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transition that he went through in two
thousand and fifteen. So his company has
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been around since two thousand and seven
and in two thousand and fifteen they kind
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of had this drastic change in the
makeup of the business that really forced him
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to reevaluate his strata. They know
want to dive into that a little bit.
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Sure I'd like to visit with you
about it. So Flint and two
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thousand and fifteen, as you mentioned, we had to reinvent ourselves. Up
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until that point, from two thousand
and seven to two thousand and fifteen we,
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as you mentioned, supplied transportations today
girl agricultural industry, but but at
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that time we focused on a real
lean customer count. We had five or
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six customers that made up about ninety
percent of our business, and much of
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that business was was focused around the
transportation of coproducts here in the panhandle from
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the FTH and all industry. We
also marketed the coproducts to feed yards,
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dairies and ranches and and had the
luxury of controlling the freight out of the
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eth and all plans. Well,
as things oftentimes do, the world changed
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drastically and we went on. One
day we went from having about two hundred
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loads guaranteed week after week to about
fifty loads a day and we had to
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quickly redefine who we were and how
we how we approached our customer base.
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But, with that said, you
can imagine the the strategy meetings, the
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acrimony, the questions that we all
had about what to do going forward.
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And we really had. We really
had only a couple of options. One
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is, we could reduce the asset
base and and continue on with the existing
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business. It was good business and
profitable, or we could redef on,
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reinvent payhandle express, go out to
the market and find the customers that that
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we could establish relationship relationships with and
create a sustainable pathway forward. And we
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chose the ladder, but it wasn't
without a lot of tumultuous thought process.
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Well, so redefining ourselfs reinvent payhandle
express and and coming up with our basically
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with mission statement and a vision that
the entire and employ based truckers admin fleet,
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the entire employee base of paying.
How Express could could stick a fork
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in and truly believe in and and, as you all know, it's really
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easy to lose focus. Your in
a hurry and you want to make sure
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that that the world turns out right. So your first gut reaction is to
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go establish those relationships with customers and
have the customers be the number one priority.
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And in all fairness, customers are
important facet but for long term sustainability,
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we came to the conclusion that ultimately, safety had to be our number
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one focus. And the reality is, it's is. That doesn't mean we'd
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lose track of our customers. We
will learn track of our our employees,
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but safety for the entire organization,
for the entire animal had had to be
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a focus. And that's easy to
say and a lot of people have that
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in their mission statement at safeties are
number one priority, but we wanted to
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live it. We wanted more than
just a statement on a piece of Athan.
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Wow, so, so Dane,
what? Let me let me just
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get this straight, and I want
to clarify for listeners. All of a
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sudden, seventy five did I do
that math right? Seventy five percent of
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the loads that you were hauling went
away and you you were left in this
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situation where, okay, we have
these two options, right, we can
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be smaller or we can completely redefine
ourselves and figure out how to go out
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and get that business back, whether
it's that or different business. And I'm
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going to guess that you had a
very short window of time to do this
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in. When that sounds dawning when
I hear you replay exactly what I said,
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but that's exactly right, and it
was. It was a short window.
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We actually had about a hundred and
eighty days. We knew when that
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day was going to come, but
we had a hundred and eighty days to
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gear up, determine a strategy and
then put that strategy into action. And
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and I can't tell you it was
as smooth as we'd like to have had
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it been, but but we actually
went through that pretty pretty seamlessly and and
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and part of the reason we did
that is everybody on the entire team,
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including drivers, knew what the new
mission was, knew what we were going
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to look like, and it wasn't
it wasn't a faint attempt. We gritted
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our teeth and and moved right on
through it right. So, all right,
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I'm now I'm really curious. How
did you how did you decide?
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So I'm just trying to put myself
in your shoes and I'm faced with this
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challenge. How did you end up
deciding that safety should be number one on
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top of, let's say, our
priorities, right our vision, because I'm
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sure that there was a lot of
discussion there and I know we're going to
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talk a little bit more. I
at least I want to talk a little
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bit more about safety, but I'm
just curious for those listening who may be
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struggling. How do we define our
strategy? How did you decide that safety
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was number one? So flent frankly, the industry decided for us. And
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if everybody remembers back to two thousand
and fifteen through two thousand and twenty,
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the regulatory environment and the constraints of
CSA and some of the new challenges and
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barriers for the transportation industry were really
starting to mature. So we had a
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regulatory component that helped us decide.
We also knew that if we were going
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to be sustainable, we needed a
customer base that appreciated safety and put us
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a value on that and preferred that
their suppliers were capable of performing in a
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safe manner and having the right CSA
scores, the right regulatory compliance component and
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understanding that when our drivers are on
our customers locations there's a certain amount of
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risk associated with that for the customers, and the customers are we're starting to
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get their arms around it and we
determined that that there was, there was
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a not only a stickiness factor to
customer retention but but truly a value added
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component to our safety program for our
customers. And in quite frankly, the
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insurance industry helped us make that decision. Everybody knows what what the insurance rates
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started to do do in the mid
you know, in two thousand and fifteen
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on through two thousand and twenty and
even today. And so if we were
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going to be able to operate competitively, if we were going to attract the
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right type of the customers and we
had regulatory compliance component that we wanted to
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adhere to, it became pretty obvious
that that if we focused on safety and
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our culture revolved around safety, ultimately
we would be sustainable. Now there's a
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lot of loose ends to that and
that sounds pretty pretty simple. But ultimately
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that was that was the motivating factor
for it. And so so I'm curious
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how did, how did your employee
base, right, your drivers and your
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staff react to that change? How
and and and your customers for that matter?
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I mean how did you guys experience
getting everybody to March in the same
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direction and understand that, internalize that, as this is now part of the
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company culture? I think that that's
something a lot of carriers really struggle with.
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Right we want to say safeties number
one, but then we consistently do
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things or make decisions that would indicate
safeties not number one. Sure, well,
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it's not easy in it and it's
taken a lot of time. I
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wish, I wish we could have
I wish I could say we it was
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easy, we turn it on too
switch and everybody started following the drummer and
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we headed out over the hills.
But that's not quite the case. So
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it's been a combination of many factors
to get that cultural change to actually be
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real. Part of it's come from
compensation. Part of it's come from a
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real clear message or mission that everybody
that's easy to understand and it's simple that
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and they have to know the why, to being able to explain the why.
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It obviously resides and that thought process
resides at the top of your company.
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So so everybody in a management role
has to truly believe and if they
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don't truly believe, it's probably best
that they do something different. It's something
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you can just talk about. You
have to live it and they have to
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see it top to bottom. So, Flint and all fairness, there's been
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numerous initiatives that we've taken, some
of them more successful than others, and
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it's also taken time and some of
our more long term employees have really had
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a radical transition. And in order
to do that, and as I've mentioned,
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it's multifaceted, we had to come
up with a tool and, in
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all fairness, it took us three
or four years to really define what it
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was. Is it going to get
us over the Hump? What was it
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going to get us to the step
where we are today and and where we
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still maybe we're not perfect, but
we're a lot closer than than where we
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were six seven years ago. And
and so, through conversations with several of
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our suppliers, insurance under riders,
consultants, peers, we determine that that
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we ultimately wanted to get a tool
to help us get there, and that's,
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quite frankly, when we were when
we were introduced to the concept that
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that trucks by offers the single platform
that can help us manage not only our
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safety but are programs that that ultimately
we rely on to make some of our
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goal yeah, so if you're listening
to this episode, I would encourage you
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to take a look at last week's
episode, which was with Jonathan Shaver,
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who talked a lot about change management
in an organization and and laid down a
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framework on how to make some of
these big strategy changes. And it sounds
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like, from what Dans telling us, that they need you guys nailed it,
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like you were right down the fairway
with what Jonathan suggested last week on
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the show on how you communicate with
your employees, how you set the corporate
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vision and and how you get everybody
marching in the same direction. So good
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job. Kudos to you guys for
being able to make that transition so quickly
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and efficiently. And I know there's
always multi facets and there's a carrot on
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top of all of these discussions,
but it sounds like it went at least
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relatively smoothly, and so I want
to dive just a little bit deeper.
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What was your experience when you mentioned
our tool? How was that received by
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employees as it pertained to safety?
Right, how did you because I think
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a lot of people really struggle with
new technology. How does that Mesh,
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let's say, with the culture and
with the goals like what generally, what
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was your experience, because you almost
went through multiple changes here, right.
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You you had to change the corporate
strategy, you also had to implement technology.
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I guess give us just a little
bit more about how that win and
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and what your experience was. So
I'm not sure I'm going to be able
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to do this exactly in chronological order, but I'll give you a little bit
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of what went on. So the
first thing we had to do is start
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majoring our performance and we had to
measure some of the lead indicators, that
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was that we're was resulting in positive
change and identify those that had minimal or
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no impact whatsoever. So things come
to mind. Driving our speeding. We
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started watching speeding specifically and we implemented
a tool utilize and utilizing technology to watch
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all the speed events in our in
our trucks, so we had a tool
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out there doing that. We started
watching our hours of service and combing through
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them with a fine tooth comb and
at that point we were on paper logs
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and then went to elog product and
and and gathered that up and answer our
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hours of service compliance became perfect.
We started communicating and and trying to show
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our customers what we were doing.
You know, we had the vision,
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we had had the goals, we
wanted to count our safety record, but
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we really didn't have anything tangible that
we could sit down on a customers desk
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and show them. Here, this
is what we do and this is why
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we're different than our competitors. So
that was one of the components. Safety
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meeting after safety meeting with our drivers, the entire staff, the at a
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Panhanda express safety meeting the entire staff, driver, managers, add men,
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human resources, everybody's involved in our
safety meetings, and those were held quarterly
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with the entire crew and monthly with
our drivers. We had monthly tailgate meetings
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with our drivers and and we focused
on what happened to be the animal that
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we were trying to conquer the at
the time. So we talked about seat
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belts at one meeting, we talked
about speeding at another meeting, we talked
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about road conditions and winter driving at
another, and that was on a monthly
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basis. So so, as I
mentioned, it wasn't smooth and it took
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a tremendous amount of work. And
then when we were introduced to the trucks
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spy platform, what we found is
is that we could intermingle all of these
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different components of our safety program have
it interface with our business, with the
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operation side of our company, and
we had a lot less stress, a
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lot less friction. The safety and
operations and administrative portions of our business kind
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of went into one animal and and
and one component and it was much more
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it was much easier to manage and, quite frankly, the success we've seen
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in the last two years on all
facets of our business has been impressive.
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Everybody, everybody and all of the
components are kind of working together and we're
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heading a direction, direction we really
like. Yeah, that's that's that's really
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that's exciting. I'm and I'm look, I'm really proud to be a part
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of that, of that story right
that our company could be a part of
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that story. They know. I'm
just curious. At the end of the
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day, this all comes back to
people and it sounds like use you and
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your team spend a lot of effort
and energy making this transition and you mentioned
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competitive advantage. So how have you
seen this play out in the market with
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your customers? Has this been as
successful and giving given you a competitive advantage
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as you expected? I think so. I think so. Our customer retention
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record is really impressive. We have
most, if not all, of the
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customers that we went out in after
the two thousand and fifteen transition. We're
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still doing business with them today.
We're able to bring tangible evidence that that
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what we say we're going to do
from a safety standpoint, from a performance
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standpoint. We're able to take that
information and show them. They feel it.
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They know at their services where they
want, but the reality is is
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they're also getting that service done in
a manner that there's no concerns about liability
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on their their side of the equation. I think they're proud to do business.
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We're with us and I'm quite frankly, where we're not that we're not
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the low price provider out of there
in the market and you can't be if
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you're going to offer the products and
and the service that we do, and
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we're not embarrassed about that or uncomfortable
discussing it. And and so so we've
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been able to do that. The
other side of the equation point is is
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we're a track team the right kind
of new customers were we continue to grow.
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As the driver market allows, we
will continue to grow and and we've
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got a pretty good vision on where
we're going to be in three to five
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years and the number of units we
want to operate in, the and geographic
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area we want to operate in and
there's some identifiable customers that we'd like to
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attract and, quite frankly, the
performance reporting that we're getting from trucks by
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and has allowed us to go out
and attract new customers, and so I'm
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real proud of that opportunity as well. Yeah, that's that's exciting. So
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if somebody's listening to this and they
feel like they're on this treadmill day and
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you know, you know just like
I do, this as a hard business.
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If you don't have a niche,
trucking in general as a hard business,
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if you don't have a niche and
some type of competitive barrier. Right.
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So if someone is listening to this
and thinking wow, that's really interesting.
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Maybe safety could be our competitive differentiator. What, what advice do you
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would you give somebody, having gone
through all of this, were to actually
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see results now on the other side. As I know, it's taking a
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long time, but what advice would
you give them? Embrace barriers. Obviously
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you're buried the barriers in the industry
or your friend, and so embrace them.
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So many folks fit there are not
comfortable with it and complain about it
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and try to work around the barriers. But but in all fairness, regulatorier
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barriers, performance barriers, driver attraction
and and retention, those are barriers that
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you need to embrace. Figure out, figure out through strategic meetings, what
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it is that you're going to do
about any particular barrier that's out there and
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embrace it and enjoy it, because
it's going to be a it's going to
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be a hurdle that your competitors are
going to struggle with. That that's one
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thing. So so look at them
as your friend. Make sure that your
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vision is sold both up and down
the leadership chaine and the vision and the
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mission, because people won't perform unless
they know the why. It's really easy
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to show the how and and and
give the map or the playbook forward for
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the how, but unless the folks
know the why and truly believe in it,
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I think you're going to continuely struggle. And we're not champions at that.
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We work hard at it and we
continue to try to articulate exactly what
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the company's mission is, and the
more we do it, the more successful
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we seem to be. Yeah,
that's that's really good advice. So overcommunicate,
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be sure that you're talking about the
why and train for the how and
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embrace the barriers. That's that's really
solid advice. I think they I appreciate
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that. Sure. So, Dame, if somebody's listening to this and and
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they think hey, I really want
to get a hold of you, what's
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the best way? You can contact
me with my email at address. It's
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d noise, dny see at panhandle
expresscom. We also you can also visit
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our website at pay and handle expresscom. Very good and I'm curious. So
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kind of last question here, Dane, since this is the road forward,
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what is on your mind for you
or your company over your road forward for
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the next twelve months. Well,
at present, the the challenge that that
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resides in every department of our company
is driver retention and driver recruitment and how
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can we be a company that the
drivers out there, they're in tight supply,
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want to, want to come to, want to embrace and want to
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make a career out of working for
paid Hando Express and, quite frankly,
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will probably live that for the next
twelve, eighteen months. We've got some
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really exciting ideas. Our compensation has
has changed radically. The safety bonuses that
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we offer quarterly are significant and we're
real proud of the program we've put in
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place. We launched a new program
in January of this year. That is
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the primary component is our driver safety
score and, quite frankly, our average
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driver score increased from the fourth quarter
of two thousand and twenty one. Our
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average score was just under nine hundred, and we can go through the metrics,
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but it was just under nine hundred
and we had about twenty drivers under
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a hundred fifty and we consider e
fifty the threshold that that's not acceptable.
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Well, after the first quarter of
two thousand and twenty two, we had
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every drive, we had all but
two drivers in our fleet attain a driver
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score that allowed them their their coreterly
bonus. So so we made some radical
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moves and in ninety days in our
driver scores are are impressive and we're starting
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into the second quarter in and those
scores are up above what anything that we
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ever imagine. With that we have
really felt that that culture change has happened.
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Our drivers of body and they're enjoying
the competitiveness of the of the program
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00:21:26.319 --> 00:21:30.039
and they're able to that that's a
tangible number that they're comfortable living with and
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00:21:30.039 --> 00:21:34.559
they're comfortable with the scoring system and
and it's been real impressive. So so
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those are some things that we're real
proud of and opportunities we offer our drivers.
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Yeah, that's that's really that's really
cool. And I think everybody is
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struggling day with recruiting and retention,
right, and it sounds like you guys
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00:21:48.720 --> 00:21:51.480
know that there's more word to do
there, but you're coming up with fresh
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00:21:51.559 --> 00:21:53.920
ideas. You know what's the all
saying? If you repeat the same thing
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00:21:55.000 --> 00:21:56.960
over and over again, and I'm
going to busch on my George Bush,
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00:21:57.000 --> 00:22:00.799
I'm going to butcher the saying,
but I think we all know it right.
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00:22:00.839 --> 00:22:03.440
We have to have fresh ideas and
find new ways to accomplish what we
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00:22:03.519 --> 00:22:07.759
need to. Dan, thanks so
much for being with me today. You
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00:22:07.880 --> 00:22:10.440
Bet, but I enjoyed it.
Thank you. Yes, sir. So,
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for those of you listening, things
going to stay on after the show.
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00:22:12.519 --> 00:22:15.880
We're going to we're going to ask
him the fast five. So if
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you don't know about the fast five, these are five rapid fire questions that
296
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we ask every guest on the podcast
and we then email them out to our
297
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email subscribers after the show. So
if you have not subscribed to go to
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the road forward podcast CASTCOM. There's
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the page. They're typing your email. That's the road forward podcastcom. And
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if you're listening to this, look
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show and taking a second to leave
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310
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much for joining us. And if
you are listening to this and you're thinking
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00:23:21.799 --> 00:23:29.119
what is remember that our industry is
changing rapidly and you need to sit back
312
00:23:29.279 --> 00:23:37.400
and think strategically about your businesses road
forward. If you manage a truck feet,
313
00:23:37.440 --> 00:23:41.079
you go to bed every night driving
that three am phone call, because
314
00:23:41.119 --> 00:23:45.319
that call is never a good one. Either your drivers tell you they have
315
00:23:45.400 --> 00:23:48.559
a flat tire and the shipment's delayed, or they were shut down and take
316
00:23:48.599 --> 00:23:51.039
it it at the way station.
If the thought of those middle of the
317
00:23:51.160 --> 00:23:55.240
night calls keeps you up at all
hours. truckspy can help trucks by gives
318
00:23:55.279 --> 00:23:59.920
managers total visibility into what's happening on
the road. Companies use our hardware to
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00:24:00.079 --> 00:24:03.799
make sure their fleets are productive and
safe, so that managers like you can
320
00:24:03.839 --> 00:24:07.799
see in real time where their trucks
are and what they're doing. More trucks
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00:24:07.839 --> 00:24:11.839
make it on time and without issues
or losses, helping you rest easy.
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00:24:11.200 --> 00:24:17.119
Learn more at trucks by DOT IO. You've been listening to the road forward,
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00:24:17.400 --> 00:24:21.400
the show for trucking industry. That's
like you. If you want to
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00:24:21.440 --> 00:24:23.839
hear from other business owners who've seen
trends come and go, all the while
325
00:24:23.920 --> 00:24:29.519
building lasting businesses that keep America running, make sure you're subscribed to catch more
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episodes. To easily find the show
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the road forward podcastcom. Until next
time, keep your eyes on the road
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00:24:36.880 -->
forward.