BEST PRACTICES. Danfreight Systems Inc

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1 BEST PRACTICES Danfreight Systems Inc

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3 WE KNOW YOUR CONCERNS The synergy between our companies makes us very aware of your concerns because we are on the one hand a Carrier (DFS), on the other a Shipper- Receiver (VEGKISS PRODUCTS) and a Grower (B & B GARDENS).

4 INTRODUCTION: Danfreight Systems inc.? Private for hire Carrier (average 65 return trips per week) What do they do? Specialize Carrier between Quebec and the U.S. West Coast (Outbound = General freight, Inbound = 100% produce) Where can they be found? Joliette, QC ,

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7 IT S NOT JUST A QUESTION OF HAVING A NICE TRACTOR-TRAILER, OTHER ELEMENTS ARE REQUIRED.

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13 ALWAYS REMEMBER, WHAT IS THE PRINCIPLE TASK AT HAND?

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17 WHAT ARE BEST PRACTICES?

18 LIKE A GOOD RECIPE YOU NEED ALL THE RIGHT INGREDIENTS

19 THE RIGHT INGREDIENTS: GOOD EQUIPMENT PROPER PAPERWORK THE HUMAN FACTOR ATTENTION TO DETAILS

20 GOOD EQUIPMENT: POWER UNITS must be well maintained, can only be achieved with constant preventive maintenance. TRAILERS - must be well maintained, clean, good suspension, structural integrity inside and outside. REEFERS - must be well maintained, sensors capable of detecting all variations in the temperature.

21 PAPERWORK: BILL OF LADING COMMERCIAL INVOICE (Outbound) CONFIRMATION OF SALE (Inbound) CERTIFICATE OF INSPECTION (Outbound) CERTIFICATE OF COMPLIANCE OR PHYTOSANITARY CERTIFICATE (Inbound) MANIFEST Form 7533 or 7512 (Outbound) MANIFEST FORM A8A (Inbound) PAPS, PARS, CSA-PAD, ACE

22 PAPERWORK B.O.L. SHIPPER name, point of origin clearly indicated. CONSIGNEE name and address of final delivery clearly indicated (phone number very helpful). QUANTITY total number of skids or total number of boxes clearly indicated. WEIGHT total Gross weight of the shipment (very useful for the carrier). DESCRIPTION clearly specify what the product or produce is (sometimes only the product code is available, confusing for the driver). SPECIAL INSTRUCTIONS clearly indicated in the body of the bill (eliminates misinterpretation or ambiguity).

23 PAPERWORK Commercial invoice, Confirmation of sale Make sure the broker has a copy before the Carrier arrives at the border to process and have shipment released. If not, the Carrier could be delayed, fined or returned for not complying with minimum pre-notice requirements. Having a copy available for the carrier is very beneficial in accelerating the release (would be faxed with his PAPS or PARS and could verify for the release number before arriving at the border).

24 PAPERWORK - CERTIFICATES Only original certificates with original signatures are accepted in the release process at the border.

25 PAPERWORK - BONDED SHIPMENTS It s extremely important for shippers to indicate to Carriers, if a produce was purchased in Mexico, resold to a Canadian Importer and was not cleared at U.S. Customs. Technically, the shipment is bonded and in Transit through the United States. The Bond must be cancelled upon leaving the U.S. or else the Carrier could be severely fined.

26 THE HUMAN FACTOR: TRAINING LOADING AND UNLOADING PROCEDURES MONITORING THE TEMPERATURE APTITUDE AND ATTITUDE

27 THE HUMAN FACTOR - TRAINING Whether it be orientation, integration, continuous or Post-incident, well structured training programs with qualified instructors are a valued investment in time and resources. The more time you invest in training new employees the less probable you are of having to manage a major mistake in the future.

28 THE HUMAN FACTOR - TRAINING Make sure that your employees have all the pertinent information relating to their work assignment. Make sure that all your employees know how to properly execute their work assignment. Make sure that all your employees understand why it s important to execute their work assignment in a particular manner.

29 TRAINING continued MANY TOPICS NEED TO BE COVERED: Company policies and procedures (especially operations). Proper operation of the equipment (tractors versus fuel economy, reefers versus cargo claims). U.S. and Canada regulations (weight and dimensions versus tickets, service hours versus the logbook). U.S. and Canadian Customs (what to do, what not to do, all the new procedures on both sides of the border).

30 THE HUMAN FACTOR DRIVER SHORTAGE Very important to us because: Not all drivers want to work as a team driver. Not all available drivers are qualified to drive in the states (non-english speaking, criminal record) Not all drivers want to work in the U.S.A. Not all drivers want to be on the road for 6-7 days at the time. Not all drivers are able to sleep in a moving vehicle.

31 THE HUMAN FACTOR Loading & unloading Knowing what to observe and verify. Shipment count. What to do when encountering discrepancies. Drivers refuse on dock (Shipper s load & count) Properly noting O.S.D. (over, short or damage) Name and signature of shipper s Representative (warehouse or dock worker)

32 THE HUMAN FACTOR - MONITORING TEMPERATURES Make sure the trailer temperature is appropriate for loading. Make sure (beyond a shadow of a doubt) of the required product temperature at loading. Clearly know what the tolerable variances in temperature are permitted at loading and during transit. Monitor every 6 hours, Reefer temperature, Trailer temperature, Produce temperature. Report any significant discrepancy immediately to the dispatcher.

33 THE HUMAN FACTOR Aptitude & Attitude There s no substitute for experience, however, experience without the proper attitude can be very detrimental to the task at hand. The proper attitude makes all the difference between being proactive and being content to react after the fact because a situation warrants it.

34 ATTENTION TO DETAILS: CUSTOMERS know what your customers expect of you. DRIVERS know what obstacles they are confronted with. DISPATCHERS know their frustrations (before, during and after) pertaining to shipments. MAINTENANCE what do they require?

35 SYNERGY: CUSTOMERS DRIVERS STAFF

36 CONCLUSION - WHAT IS THE BEST PRACTICE? A sincere desire and willingness to collectively attempt to continuously perform all work-related task to the best of our knowledge.

37 WHAT ARE THE PRESENT AND FUTURE CHALLENGES? SERVICE STANDARDS VERSUS LOGBOOK REGULATIONS (maximum driving time). WAITING TIME VERSUS LOGBOOK REGULATIONS (loosing potential driving time versus technically in service and required to be log while at customers). INSURANCE COST VERSUS HIGH DEDUCTIBLES, how does it impact on a claim? FUEL COST VERSUS FUEL SURCHARGE BAD DOCUMENTS VERSUS SEVERE FINES

38 THE WHEELS KEEP ON TURNING TO BETTER SERVE OUR CUSTOMERS. BEING A BIG CARRIER IS GOOD, BUT BEING THE REFERENCE IS BETTER. NEVER LOOSE SIGHT OF HOW MUCH IT S REALLY COSTING YOU.

39 TALK THE TALK! WALK THE WALK! THANK YOU!