QUANTITATIVE RESEARCH REGARDING PERFORMANCE MEASURES FOR INTERMODAL FREIGHT TRANSPORTATION

Transcription

1 QUANTITATIVE RESEARCH REGARDING PERFORMANCE MEASURES FOR INTERMODAL FREIGHT TRANSPORTATION EXECUTIVE SUMMARY PREPARED FOR: PREPARED BY: The Minnesota Depatment of Tanspotation Division of Tanspotation Reseach And Investment Management Tanspotation Building 35 John Ieland Boulevad St. Paul, MN C.J. Olson Maket Reseach, Inc. 708 South Thid Steet, Suite 105 Minneapolis, MN #564, Octobe 15

2 i- ; BACKGROUND AND OBJECTIVES F i. -= i. 6 t t?- I 1 BACKGROUND The Inte-modal Management System (IMS) is one of the six management systems equied by the Inte-modal Suface Efficiency Act (ISTEA) of 1 1. One of the goals of the IMS is to achieve the most efficient movement of feight. The IMS will identify the key linkages between one o moe modes of tanspotation, define stategies fo impoving the effectiveness of these modal inteactions, and implement these stategies to enhance the oveall pefomance of the tanspotation system. The Tanspotation Reseach and Investment Management (TRIM) division of the Minnesota Depatment of Tanspotation (Mn/DOT) was given the esponsibility fo developing the IMS fo Minnesota. In addition to TRIM staff membes, a Feight Advisoy Team s majo task fo 15 is to futhe efine the list of peliminay pefomance measues peviously identified in 14 so that specific data needs can be identified and ageed upon. In ode to accomplish this task, TRIM staff concluded that a eseach study was necessay and appopiate in ode to finalize a list of pefomance measues fo intemodal feight tanspotation and to futhe the development of the IMS fo Minnesota. The outcome of this decision was the selection of C.J. Olson Maket Reseach Inc. to conduct the eseach, pefom the analysis and ende a epot elating to this study. Olson Maket Reseach, in conjunction with membes of the TRIM staff and epesentatives of the IMS Feight Advisoy Team collectively, established the eseach paametes fo this study. Funds fo this maket eseach poject wee povided by the TRIM Division, Opeations Division and Meto Division of the Minnesota Depatment of Tanspotation. i-' 1 OBTECTIVES The pimay objective of this study is to povide infomation elative to the development of a set of pefomance measues fo intemodal feight tanspotation. To accomplish this objective, data was collected, pocessed, and analyzed on the basis of the following categoical pespectives: l Detemine the pecentage of shippes/eceives using Inte-modal Feight Tanspotation in Minnesota. l Rate a list of peviously identified pefomance measues fo Intemodal Feight Tanspotation in Minnesota.

3 F 1 I i- i. l l l Detemine the impotance of cetain factos in making modal choices. Detemine espondent satisfaction with cuent feight tanspotation sevice. Detemine how Minnesota feight uses define quality sevice. l Suggest a ole fo the Minnesota Depatment of Tanspotation (Mn/DOT) in facilitating o impoving feight tanspotation and inte-modal feight tanspotation in Minnesota. f i 1 2

4 I- METHODOLOGY PHASE I - QUALITATIVE p An initial qualitative study was completed in June 1335, using focus session techniques, in ode to develop the suvey instument fo the quantitative, Phase II study, that followed. Sixteen paticipants, divided into two goups, wee ecuited fom lists povided by TRIM. One goup was composed of nine individuals who wee shipping/eceiving manages o supevisos fom manufactuing fims. The second goup was composed of seven individuals epesenting feight caies. The two focus sessions wee conducted at the Olson Reseach facility, with all questions and esponses audio taped and tanscibed fo analysis puposes. The goups wee modeated by D. Ronald Palosaai, a fee-lance consultant. Caolyn Olson of Olson Maket Reseach, M. Lee Bady, Maketing Diecto of Mn/DOT, membes of the TRIM staff and epesentatives fom the IMS Feight Advisoy Team obseved both sessions. A witten epot and ecommendations esulting fom this qualitative study wee pepaed by Caolyn Olson and povided to M. Bady. The findings wee also pesented oally to the IMS Feight Advisioy Team. PHASE II - QUANTITATIVE * I 1 ii- P I-. A suvey questionnaie, developed fom the Phase I qualitative study ecommendations and incopoating suggestions povided by Tim staff membes and the IMS Feight Advisoy Team membes (that included epesentatives fom both the public and pivate sectos), was pepaed fo petest evaluation with ten shipping/eceiving manages and ten feight caies. The petest inteviews wee conducted in the Olson Phone Cente, and the esults wee eviewed by Caolyn Olson and Lee Bady. The final vesion of the questionnaie was appoved befoe data collection began. A sample of shipping/eceiving manages, feight caies, Minnesota manufactues, etailes, and those in the agicultual industy was puchased fom a national lists vendo. A total of 85 1 espondents wee included in the Phase II study. Fou hunded and sixteen (4 16) wee located in the eight county Twin City metopolitan aea, and fou hunded thity-five (435) wee located in outstate Minnesota. Of the total, 433 epesented manufactues, 136 epesented the etail secto, 182 epesented the agicultual secto, and 34 espondents epesented caies. All telephone inteviews wee conducted by tained data collection pesonnel fom the C.J. Olson Phone Cente. Once the telephone inteviewing was completed, the questionnaies wee edited fo accuacy and fo in-depth pobing and claifying of openended esponses by an Olson supeviso. The completed questionnaies wee then coded, and the data enteed and coss-tabulated using SPSS softwae. 3

5 SUMMARY OF FINDINGS INTERMODAL FREIGHT TRANSPORTATION USERS P 1 i L Of the 757 non-caie espondents that wee inteviewed, when asked the question DO YOU SHIP AND/OR RECEIVE COMMODITIES INTERMODALLY, THAT. IS, USE MORE THAN ONE MODE OF TRANSPORTATION FOR A SINGLE SHIPMENT, OR NOT?, 73% answeed NO and, ecipocally, 21% answeed YFS. It should be noted that some of the espondents who answeed NO may not be awae of what they have shipped o eceived intemodally, as those decisions may have been made by wholesales o distibutos who ae intemediate points in the supply chain. In consideing the data on the basis of geogaphic location, 75% of the Meto Aea espondents, epoted that they did not use intemodal feight tanspotation when shipping o eceiving, while 25% epoted that they did. Eighty-thee pecent of *the Outstate Respondents epoted that they did not use intemodal fo shipping/eceiving, and 17% epoted that they did. (SEE FIGURE A) F&ue A INTERMODAL USERS/NON-USERS F3! E I i I Shippes/eceives indicated that an aveage of 38% of thei total shipments ae shipped/eceived intemodally. Looking at the data by geogaphic egion, esults show that 35% of the Meto and 42% of Outstate shipments ae intemodal. Agicultual espondents esnondents ---I- indicated that 44% of thei shipments ae intemodal, compaed to 35% fo manufactues and etailes, on the aveage. 4

6 I: PERFORMANCE MEASURES RATINGS Respondents wee asked to ate the impotance of vaious pefomance measues. Mean scoes wee computed fo these atings based upon a scale of 1 to 4, with 1 being not at all impotant and 4 being vey impotant. Oveall, the most impotant, based upon the mean ating scoes of all espondents wee: CARE OF GOODS IN TRANSIT (3.4), LOSS AND DAMAGE CONTROL (3.3), DELAYS IN TRANSIT TIME (3.33) and COST OF i 1 The least impotant pefomance issues, based upon the mean ating scoes of all espondents wee: NUMBER OF CUSTOMERS USING INTERMODAL (2.21) and VOLUME OF GOODS MOVED VIA INTERMODAL (2.45). T-tests of means wee computed fo all possible pais of issues that measue the pefomance of intemodal feight tanspotation. These tests indicate that thee ae statistically significant diffeences fo the oveall mean scoes between all possible pais of issues. An initial eliability analysis indicated that all pefomance issues included in the questionnaie constitute a eliable scale of pefomance measues of inte-modal feight tanspotation. (Conbach s a =.86 1). F i * 5

7 SERVICE QUALITY i Respondents wee asked to ate the impotance of vaious factos when CHOOSING A SPECIFIC MODE of tanspoting feight. Mean scoes wee computed fo these atings based upon a scale of 1 to 4, with 1 being not at all impotant and 4 being vey impotant. Oveall, the most impotant factos of Sevice Quality to the espondents wee: DELIVERY TIME REQUIREMENTS (3.68), and COST (3.60). Mean impotance scoes fo COST tended to incease as sales volume inceased. Mean impotance scoes wee simila between the Meto Respondents and the Outstate Respondents. (SEE PIGURE C) :. MODE SELECTION FACTORS TOTAL

8 When asked the open-ended question What does sevice quality mean to you? moe than half (5%) cited TIMELY DELIVERY and moe than one-thid cited UNDAMAGED GOODS. (SEE FIGURE D)! MEANING OF SERVICE QUALITY i, L * IMPORTANCE/SATISFACTION RATINGS BY CATEGORY The MANUFACTURER, RETAIL and AGRICULTURAL SHIPPER/RECEIVER espondents consistently gave the highest mean impotance scoes to the following factos: DELIVERY TIME REQUIREMENTS, COST and CUSTOMER SERVICE REQUIREMENTS. The CARRIER espondent goup, howeve, gave the highest mean impotance scoes to the following factos: CUSTOMER SERVICE REQUIREMENTS, TRANSPORTATION EQUIPMENT QUALITY, and DELIVERY TIME REQUIREMENTS. Oveall, the feight tanspotation sevice attibutes that espondents wee MOST satisfied with wee: OVERALL SAFETY OF MODE (3.60) and AVAILABILITY OF RELIABLE EQUIPMENT (3.51). The attibutes that espondents wee LEAST satisfied with wee: RATES (3.10) and COMMUNICATION BETWEEN MODES PROVIDING SERVICE (3.37). (SEE FIGURE E, NEXT PAGE) 7

9 IMPORTANCE FOR SHIPPERS AND CARRIERS 6 Impotance and satisfaction compaison data is available fo thee of the atings; DELIVERY TIME, COST/RATES, and EQUIPMENT QUALITY/RELIABILITY. In the fist two cases satisfaction atings wee lowe than impotance scoes indicating a degee of dissatisfaction. In the last, EQUIPMENT QUALITY/RELIABILITY, it appeas that most espondents ae moe satisfied with this sevice attibute than the level of impotance they place upon it. (SEE FIGURE I? P i - I IMPORTANCE VS. SATISFACTION 3. G8 1

10 i E The MANUFACTURER, RETAIL, AGRICULTURAL, and CARRIER espondent goups consistently had highe mean satisfaction scoes fo OVERALL SAFETY OF MODE and the lowest mean satisfaction scoes fo RATES. Geneally, esponses indicating dissatisfaction with feight tanspotation modes and sevice wee significantly less in numbe than the positive esponses to the seven satisfaction factos. The facto with the highest pecentage of espondents, although in the lowe ange, indicating dissatisfaction was RATES, with 14% giving that esponse. Concen with COMMUNICATION BETWEEN THE CARRIER AND SHIPPER/RECEIVER was the next highest aea of dissatisfaction, with only 7% saying they wee not at all o not vey satisfied. SUGGESTED ROLE OF MN/DOT WITH REGARD TO FREIGHT TRANSPORTATION AND INTERMODAL FREIGHT TRANSPORTATZON IN MINNESOTA About one-thid, 34%, of the 851 espondents in the suvey, DID NOT KNOW what how Mn/DOT could FACILITATE OR IMPROVE FREIGHT TRANSPORTATION in the state. Eighteen pecent suggested EQUIPMENT CHECKS and 13% suggested ROAD REPAIRS. Nine pecent equally suggested NO GOVERNMENT REGULATION and LESS GOVERNMENT REGULATION. (SEE FIGURE G) l&we G ROLE OF MdDOT IN FACILITATING OR IMPROVING FREIGHT TRANSPORTATION Fifty-thee pecent of the espondents answeed DONT KNOW to the question of the ole of Mn/DOT in FACILITATING OR IMPROVING INTERMODAL FREIGHT TRANSPORTATION in the state. Seven pecent answeed NO ROLE/STAY OUT OF IT. (SEE FIGURE H, NEXT PAGE)

11 ROLE OF Mn/DOT IN FACILITATING OR IMFROVING INTERMODAL FREIGHT TRANSFORTATION I * s 1 CLOSING STATEMENT The findings pesented in this epot will be used to futhe the development of the Intemodal Management System (IMS) fo Minnesota. Specifically, these findings will assist Mn/DOT staff and IMS Feight Advisoy Team membes to futhe efine the pefomance measues peviously identified. It is anticipated that those pefomance measues deemed most impotant by the espondents will be futhe eviewed and studied so that standads can be identified and citeia fo satisfactoy pefomance developed. These pefomance citeia and standads will then guide M&DOT and the IMS Feight Advisoy Team in the development of stategies to impove inte-modal feight tanspotation in Minnesota. P 10

12 .. CJ. OLSON MARKET RESEARCH, INC. INTERMODAL II July 15 #564, SAMPLE LISTING PAGE: START: END: NAME: TITLE: COMPANY: PHONE: Inteviewe: Date: FROM SAMPLE SHEET: RESPONDENT GROUP 8 COUNTY METRO GREATER MINNESOTA/OUTSTATE... 2 VOL. CODE: EMP. CODE: QUOTA GROUP MANUFACTURER (SHIPPER/RECEIVER). 1 AGRICULTURAL PROD. (SHIPPER/RECEIVER)... 3 ETAIL (SHIPPER/RECEIVER)... 2 CARRIER... 4 INTRO Hello, this is calling fom Olson imaket Reseach in Minneapolis. We e calling on behalf of the Minnesota Depatment of Tanspotation. We e conducting a 10 minute suvey about the vaious modes of shipping feight and need to speak with the peson in chage of the tanspotation and/o logistics fo you company. A. Would that descibe you esponsibility, o is that someone else? (CIRCLE CODE) SPEAKING (CONTINUE) SOMEONE ELSE,... 2 (ASK FOR APPROPRIATE PERSON AND REPEAT INTRO) B. In which of the following kinds of businesses is you company involved? (READ& CIRCLE CODE) Agicultual poduction Manufactuing o poduction... 2) Retailing... 3 ~(CONTINUE WITH QI) Wholesaling... 4 j (CONTINUE WITH Ql) Distibution..... SJ Utility Company (TALLY QB & END INTERVIEW) Sevice Company, othe than tanspotation... 7 (TALLY QB & END INTERVIEW) A caie sevice... 8 (SKIP TO YELLOW PAGE, Q) OTHER (WRITE IN) 7 (CHECK WITH SUPERVISOR) I 2 1 S/16/5-1:20

13 . C.J. OLSON MAFXET i =SEA~(X, 1~. July 15 INTERMODAL II #564 I. Which of the following modes of tanspotation do YOU use fo shipping, eceiving o caying commodines? (READ & CIRCLE CODE) Tuck... 1 Rail... 2 Bage/wate... 3 Ai... 4 OTHER (WRITE IN) Ia, When shipping o eceiving, do you usually use... (READ AND CIRCLE CODE) A fo-hie caie... 1 A couie like UPS o FED EX... 2 You own fleet... 3 OTHER (WRITE IN) Do you ship and/o eceive commodities intemodally, that is, use moe than one mode fo a single shipment, o not? (CIRCLE CODE) YES... 1 (ASK QZA) NO (SKIP TO Q3) 2a. About what pecent do you ship and/o eceive intemodallv? (WRITE IN) % (ASK Q3 - (28 IF SHIPPER/RECEIVER. IF CARRIER, SKIP TO Q ON YELLOW PAGE) 3. What majo commodities do you eceive? (WRITE IN) (ASK Q3A IF YES (1) IN (22) 3A. Which of those commodities do you eceive intemodally - using moe than one mode pe shipment. 7 (WRITE IN)

14 l C.J. OLSON MARI(ET RESEARCH, INC. INTERMODAL II July 15 # What ae the majo commodities that you &? (WRITE IN AND CIRCLE CODE) NONE *... 8 (IF NONE, SKIP TO Q7) (ASK 4A IF YES (1) IN 42) 4A. Which of those commodities do you & intemodally? (WRITE IN) 5. Whee do most of these commodity shipments oiginate, o begin? (READ AND CIRCLE CODE UNDER BEGIN) BEGIN END Locally, within 7 county Meto Aea Within the state, outside the Meto Aea Regionally Nationally Intenationally A. Whee do most of them end? (READ ABOVE AND CIRCLE UNDER END) 6. Thinking about the commodities you shiu out fom you location, how soon afte shipping do you expect them to be deliveed?(read AND CIRCLE) Same day... 1 day days days days days days days... longe than 7 days... OTHER (WRITE IN) * g/16/5-1:20

15 C.J. OLSON MARKET RESEARCH, INC. INTERMODAL II July 15 # Thinking about the commodities you eceive fom you location, how.soon afte they ve been shipped fom someplace else do you expect to eceive them? (READ AND CIRCLE) Same day day days days days days days days... 8 longe than 7 days... OTHER (WRITE IN) 7 S. Who usually chooses the shipping method fo you majo commodities? (READ AND CIRCLE CODE) You, you company... 1 You supplie/eceive... 2 A Thid Paty o boke... 3 You custome... 4 OTHER (WRITE IN)... 7 (SKIP TO Ql 1) 4 a/16/5-120

16 C.J. OLSON h$wket RESEARCH, INC. INTERMODAL II July 15 #564 [YELLOW PAGE - ASK CARRIERS ONLY -. What ae the majo commodities you cay? (WRITE IN) I A. Which of those commodities do you cay using moe than one mode, that is, intemodally? (WRITE IN) 10. Whee do most of the shipments you handle begin? (READ AND CIRCLE CODE UNDER BEGIN) BEGIN END Locally, within the 7 county LMeto Aea Within the state, outside the imeto Aea Regionally Nationally Intenationally ~. Whee do most of them end? (READ ABOVE AND CIRCLE UNDER END) 1 OB. Appoximately how many full-time employees does you company have in Minnesota? (CIRCLE CODE) l lo i PLUS... DON T KNOW

17 c.j.olsonmarketresearch, INC. INTERMODAL 11 July 15 #564 1 OC. In which of the following goups did you total evenues fo 14 fall? (READ LIST AND CIRCLE CODE) Unde 1 million to 4. million to. million to 24. million to 74. million to 1. million to to. million billion plus... DONT KNOW... 8 REFUSED 7

18 -- CJ OLSON MARKET RESEARCH, INC. INTE~MODAL II l July 15 #564 I ASK ALL I I. Now, talking about intemod.al. tanspotation, S p ecifically, that is the use of moe than one mode when shipping o eceiving, likeail-tuck, tuck-bage, o tuck-ai. Thinking of a 4 point scale whee 1 means not at.all.impotant and 4 means ve+ impotant, please tell me what numbe on-the Scale best mdicates how Impotant you think each of the foll&ng issues ae m measumz the uefomance of intemodal feight ~anspo~ation in Minnesota. (STARTING WITH CHECKED ITEM, READ EACH ONE, ROTATING ORDER, CIRCLE CODE) Not at all vey impotant impotant p& a. numbe of customes using intemodal tanspotation b. volume of goods moved via intemodal c. value of goods... d. physical estictions and thei effects on access to, and opeation of, intemodal tansfe locations (REPEAT SCALE) e. cost of tanspotation when using intemodal... f. delays in tansit time... g. cae of goods in tansit (handling of goods, tacking) 11. loss and damage contol fo goods moved via intemodal What does the tem sevice quality mean to you? (RECORD WORD FOR WORD, PROBE AND CLARIFY) *;

19 cj o~on~~~~s~r~h,i~~- INTEIU~~DAL II #564 J& using a 4 P oint scale whee 1 means not at all impotant and 4 means zm impotant, please teii me what numbe best descibes.hqw Impotant each of the follo~ng factos ae when choosing a specific mode fo tansuoting feight. (STARTING WITH CHECKED ITEM, READ EACH ONE, ROTATING ORDER, CIRCLE CODE) a. weight of shipment... b* cost... c. poduct value... d. size of shipment..... e. delivey time equiements... f. destination... g. tanspotation equipment quality... It. equipment availability i. custome sevice equiements... j. poduct type... k. ability to tack shipment in oute... Not at all vey impotant impotant n..... I 7..., m L *.* I I * DK ; 8 B/16/5-120

20 OLSON MARKET RESEARCH, INC. INTERMODAL II # Geneally speak&& how satisfied ae you with feight tanspotation sevice, in the following aeas... would you say you ae w satisfied, somewhat satisfied, not vey satisfied o not at all satisfied with.. : - (STARTING WITH CHECKED ITEM, READ EACH ONE, ROTATING ORDER - CIRCLE CODE) Not at all Not veiy Somewhat vey satisfied satisfied satisfied satisfied DE: * * 1... _ L a. oveall safety of the mode... b. condition of feight upon delivey *...* c. delivey time d. communication between caie and shippe/eceive e. communication between modes poviding sevice... f. ates g. availability of eliable equipment I * *....4., * (IF RATED (1) NOT AT ALL SATISFIED OR (2) NOT VERY SATISFIED, ASK Q14a - Q14b FOR EACH) 14a. Why is it you ae not at all satisfied with the oveall safety of the mode? (RECORD WORD FOR WORD, PROBE AND CLARIFY) 14b. Why is it you ae not at all satisfied with the condition of feight upon delivey? (RECORD WORD FOR WORD, PROBE AND CLARIFY) -I- S/16/5-1:20

21 C.J. OLSON MARKIT RESEARCH, INC.. INTERMODAL II July 1% #564 14~. Why is it you ae not at all satisfied with the delivey time? (RECORD WORD FOR WORD, PROBE AND CLARIFY) 14d. Why is it you ae not at all satisfied with communication between the caie and shippe/eceive? (RECORD WORD FOR WORD, PROBE AND CLARIFY) 14e. Why is it you ae not at all satisfied with communication between modes poviding sevices? (RECORD WORD FOR WORD, PROBE AND CLARIFY) 14f. Why is it you ae not at all satisfied with the ates? (RECORD WORD FOR WORD, PROBE AND CLARIFY) 14g. Why is it you ae not at all satisfied with the availability of eliable equipment? (RECORD WORD FOR WORD, PROBE AND CLARIFY),,-- 10 S/16/5-120

22 MARKIT RESEARCH, INC. INTERMODAL II #564 l 5. In you *opinion, what ole should state tanspotation agencies like Mn/DOT play in facilitating o Impoving feight tanspotation in the state? (RECORD WORD FOR WORD, PROBE AND CLARIFY) I& what should lmn/dot s ole be in facilitating o impoving intemodal feight tanspotation in the state? (RECORD WORD FOR WORD, PROBE AND CLARIFY) Ii. How many feight handling locations do you have in... (READ AND WRITE IN) The Twin Cities Meto Aea... Outside of the Meto Aea, but within MN... NONE... (GET FRONT PAGE INFO, THANK RESPONDENT AND END INTERVIEW) IN?XRV/EWER: BEFORE TURNING /N THE QUESTIONNAIRE TO TffE SUPERVISOR, CHECK TO A4AxF CERTAIN THAT THE QUEST~ONNAIREIS COMPLETE, AND ALL OPEN QUESTION RESPONSES ARE WRI7TEN LEGIBLYAND HA VE BEEN KlLLYPROBED AND CZARIFIED J 11 L, 8/16/5-1:20