NEW SUBCONTRACTOR GUIDELINES? CHEMICAL ROAD TRANSPORT, INCL. MULTIMODAL

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1 NEW SUBCONTRACTOR GUIDELINES? CHEMICAL ROAD TRANSPORT, INCL. MULTIMODAL Bernhard Haidacher, LKW Walter Michael Koch, Bertschi

2 Agenda Current version from 2005 Latest SQAS contents/requirements Bulk example Packed example Challenges Final group discussion and recommendation on next steps...

3 Current guidelines from 2005 The introduction includes a review back to The situation in general, but also the aspects in subcontractor management have changed since the last version was published. Multimodal mentioned at the end of the scope. Guidelines are text-based with one overall flowchart, however this document is still valid.

4 Link to latest SQAS guidelines Managing subcontractors already part of the Core questions, which has been updated with CSR- and Security topics. Fully-integrated drivers seen as own drivers in the Transport Service part. Questionnaire asks for a list of subcontractors as well as their categorization by the main LSP. PPE, training, equipment aspects etc. are constantly evolving.

5 Bulk examples/inputs Internal guideline for subcontracting implemented. Clear flow-charts on the involvement, use and evaluation of transport partners available. To be approved the subcontractor is audited with a detailed, centralized and SQAS-based questionnaire (re-assessment after three years at the latest). Data entered in TMS -> otherwise no order allocation possible.

6 Bulk examples/inputs If the subcontractor is SQAS assessed (and grants access to the report) only one chapter becomes non-applicable, the others are still to be completed. No full-integration in the starting phase. The representative of the company signs a subcontractor policy/summary (two-pager).

7 Bulk examples/inputs Subcontractor drivers receive the same information as own drivers (are often planned directly). Support for the induction training and e.g. regarding technical specifications provided. Fully-integrated drivers have to attend one of the yearly >60 Driver Training Sessions, however, also non-fully integrated subcontractors are invited. Product trainings carried out European wide.

8 Bulk examples/inputs Subcontractors included in (safety) spot-checks, entered in the same database as the ones for own personnel. Non-conformities are handled by main LSP (separate category). Complaints, claims and Near Miss reports are montly evaluated and trends identified. Annual Driver-Goals and a manual handed out.

9 Bulk examples/inputs Annual review meetings organized with a little questionnaire. Last years performance reports shared and possible actions identified. The new App is also rolled-out to the subcontractors. In the Netherlands, some transport partners were even involved in trials. General target are longterm-cooperations.

10 Packed example / Transport partner management Your full TRUCK loads in ONE hand!

11 Available loading space in Europe "The internationally operating European carrier has less than 5 trucks on average." Source: IRU Our function Selection of appropriate carriers Review and evaluation (audits) Control of our pan-european network more than 13,500 transport partners more than 60 years of know-how Flexible supply of loading space all over Europe Your full TRUCK loads in ONE hand!

12 Transport partner management Selection of carriers/transport partners Selection of carriers/transport partners Company data, commercial register, licences, insurance Quality Must be in accordance with our management systems Type and condition of vehicle fleet Guidelines for cooperation Evaluation by independent members of the transport partner management team Your full TRUCK loads in ONE hand!

13 An on-site audit focuses on two areas: Quality Training/Coaching Guidelines for cooperation Manages the cooperation between transport partners and LKW WALTER Defines standards for vehicles, equipment and drivers Includes general customer requirements and rules of conduct Appearance Company location, fleet and drivers Key performance indicators (KPIs) Loading and unloading in accordance with the transport order Environmental behaviour, environmental data (e.g. fuel consumption), safety non-compliance, etc. LKW WALTER Driver Handbook and Driver Training booklet Behavioural advice Different factsheets Your full TRUCK loads in ONE hand!

14 Transport partner audits Your full TRUCK loads in ONE hand!

15 Transport partner management Quality measures and continuous improvement process Control of the transportation process Direct driver contact, telematics systems, smartphone/tablet solutions Performance assessments (KPIs) Annual audits 47 checkpoints in Europe Checking the condition and features of vehicles, personal protective equipment (PPE)) "Last Mile Instruction" to safely comply with factory specifications Long-term partnerships Experience ensures quality Your full TRUCK loads in ONE hand!

16 Transport partner management Transport partner assessment Based on audit results and KPIs from ongoing cooperations Carried out by independent auditors from the transport partner management team Preset usage approvals and prohibitions in planning software Free use This transport partner complies with all criteria Limited use Test phase at the start of the cooperation Regional restrictions Customer-specific and product-specific restrictions No use Cannot meet the requirements Blocked in the planning software Your full TRUCK loads in ONE hand!

17 Success through partnership A transport partner is being honoured for 40 years of cooperation Your full TRUCK loads in ONE hand!

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