couriers

Couriers Steer Away From Outsourcing, Toward Savings
  • Reconfiguring routes and bringing contracted routes in house
  • Hiring an additional employee to reduce overtime and outside courier costs on the weekends
  • Purchasing new technology for central dispatching that enables better tracking of packages

What can your team do to evaluate where savings can be found? What else could your team do to be more productive and not have to use contractors?

 

Laureen Lazarovici Fri, 09/30/2016 - 16:05

Communication Drives Success

Submitted by Jennifer Gladwell on Tue, 08/19/2014 - 16:23
Region
Request Number
nw_process center_transportation_ir_jg_tf
Long Teaser

Courier drivers in the Northwest improve communication and morale after going through an Issue Resolution--and move forward on revamping routes for greater efficiency.

Communicator (reporters)
Jennifer Gladwell
Editor (if known, reporters)
Tyra Ferlatte
Notes (as needed)
No photos in assets, will need to get something. jg 7/15
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A driver helps get vans loaded for the daily runs.
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By the Numbers

These figures provide quick insight into some of the challenges the Transportation department faces.

  • 50 employees
  • Serves 32 medical offices, 28 dental offices, 14 administrative offices, 10 hospitals
  • 75 percent of employees start at different locations
  • 24-hour operation
  • 29 courier schedules; seven large van freight schedules Monday through Friday; four weekend routes
  • Drive 1.5 million miles a year
  • More than 380,000 time-sensitive stops
  • Save approximately $1,500 per month on shipping expenses by preventing the need for outside shipping services
Status
Released
Tracking (editors)
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Story content (editors)
Deck
Courier drivers in the Northwest improve routes after fixing communication and morale issues
Story body part 1

The Transportation department in the Northwest is coming out of a tumultuous time. A lack of trust between managers and employees created a barrier that affected morale—and made it difficult to focus on improving routes and processes.

The department uses a robust but complex process for optimizing its routes. For maximum efficiency, it has to integrate a variety of work streams and figure out where there are redundancies that can be eliminated. Because of the complexity of the process, however, it had been more than 15 years since the criteria and requirements for the transportation system from the customer’s point of view had been reviewed.

Eventually, the UBT worked out a thorough route-modernization plan based on data-driven service requirements and metrics that established parameters on how to revise and design its routes.

But before it got there, it had to fix its communication, which broke down so badly the team entered into an issue resolution. In the Northwest, the LMP Education and Training department is responsible for facilitating issue resolutions.

Blame-free solutions

“There was a lot of tension in the department, and people were nervous about losing their jobs as a result of our work around revamping routes. Poor communication was a problem,” says Greg Hardy, sponsor and manager of the department.

The issue resolution process uses interest-based problem solving, and that helped the team focus on a common goal: Serving its customers was the top priority and improving communication was a necessity. From there, other agreements came more easily, and the department was able to maintain staffing levels and improve processes as a result of its efforts.

Improved communication improves service

As a result of the improved communication, the team was able to improve service levels and achieve the efficiency and cost savings it had strived for.

“We have a group of dedicated workers who want things done the right way,” says logistics supervisor Chris Dirksen, the team’s management co-lead.

When it came to improving communication, the team members’ first step was to get a baseline measurement of what they were trying to improve. They created a survey that would measure not only communication but also morale and UBT effectiveness. Once they had that information, they created a SMART goal: to improve employee perception of communication, morale and UBT effectiveness by 15 percent within three months, raising the overall survey score from 2.55 to 2.93 by February 2014.

As the team began to investigate the issues, it discovered email was not a good form of communication. Fewer than 20 percent of the team members knew how to log on and use Lotus Notes. The team brainstormed ways get employees to use Lotus Notes email and frontline staffers began to instruct and coach one another.

Three months later, the team sent the survey out again and found it had met its goal. Perception of communication improved 48 percent, morale improved by 56 percent and UBT effectiveness improved by 21 percent. The team scored 3.4 on its survey, exceeding its stretch goal of 2.93, and anecdotal reports are that the communication success is continuing now that the team has successfully completely the issue resolution.

New ways to communicate

Team members use several means now for communicating with one another, including email. A communication board has been set up in the department’s headquarters, near dispatch, that includes information about the projects the team is working on, notes from UBT meetings and a copy of the department’s weekly e-newsletter, “Heads Up.”

In addition, the team has gone from a representative UBT to a general membership UBT and now has regularly scheduled meetings throughout the region, so that all employees are able to participate. “This has been our biggest success to share information,” says UBT union co-lead Nickolas Platt, a courier driver and member of SEIU Local 49.

“It’s cool to watch from meeting to meeting how more people show up each time,” Hardy says. “The engagement of the team has increased as we began to see improvement, and people could see change.”

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Reduce Outsourcing and Bring Courier Jobs in House Jennifer Gladwell Wed, 04/02/2014 - 16:31
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Region
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Headline (for informational purposes only)
Reduce Outsourcing and Bring Courier Jobs in House
Deck
UBT saves big after objecting to outside contractors
Request Number
pdsa_Colorado_Couriers_jg_tf
Long Teaser

The Colorado Couriers department is set to save $375,000 in a year after an objection prompts a close look at its use of outside contractors. From the Spring 2014 Hank.

Story body part 1

The Colorado Couriers team is busy with 41 Kaiser Permanente facilities, more than 400 non-KP locations, and about 180,000 pickups and deliveries a year.

When it comes to outside contractors, the SEIU Local 105 contract requires that Human Resources provide the union with specific information about outsourcing, including who is doing the work, the affected job classification, the number of hours involved and what facilities were impacted.

That information wasn’t being provided, so Dominic Jones, a courier driver and Local 105 steward, objected.

“I saw that we were contracting out regular courier service, and it didn’t make any sense,” Jones says. “I knew that it was costing the company more money.”

As a result, the unit-based team took a close look at the department’s processes.

Team members collaborated with couriers in Northern California, who had done similar work, and discovered they could hire another employee, improve routes, reduce use of outside contractors—and still save money.

First steps were to work with internal customers to assess their needs, then reconfigure and bring routes in-house that had been contracted out.

They hired an additional employee to reduce overtime and outside courier costs on the weekends, and purchased new technology for central dispatching that enabled better tracking of pickups and deliveries.

Drivers got smartphones to receive information in real time, which made it possible to monitor drivers’ locations using GPS and find the closest driver for an unscheduled pickup.

In addition to new technology, the team worked with the region’s labs to ensure pickup times met the lab workflow.

“I am very supportive of the work our unit-based team has accomplished,” says Jones, who feels his concerns were addressed by the changes. “We are still outsourcing stat work that we can’t get to, but we are in the process of hiring on-call drivers, which will ease that burden.”

The team exceeded its stretch goal and saved an average of $25,577 a month, a cost reduction of 48.2 percent. By the end of 2013, the team’s effort had resulted in a cost savings of $145,165, and projected a savings of more than $375,000 for the following year.

“We had many painful conversations about how to make this work,” says manager Terry Wagner. “But the team’s input was invaluable. Each individual has been a contributor at some point.”

For more about this team's work to share with your team and spark performance improvement ideas, download a poster.

 

Communicator (reporters)
Jennifer Gladwell
Editor (if known, reporters)
Tyra Ferlatte
Team co-leads Terry Wagner (left), Mail Services supervisor, and Anthony Lopez, a courier and SEIU Local 105 member
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Status
Released
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