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In some cases, I have seen mills go to great lengths to negotiate strong contracts for their long-haul freight, only to ignore what was happening on their own property, perhaps because of the location of their mills. You can't do much about the location of your mill, if you happen to have arrived after the grand opening. But you might be able to do something about the shuffling of trucks, containers and rail cars about your site.

I once went to a national chain truck depot to pick up a personal item that had been drop shipped to me there (a garden rototiller). On a board outside the dispatcher's office was a list of "missing trailers." There was a reward of a USD 50 savings bond for anyone who found them. I inquired about this peculiar situation. It was explained to me that they knew these trailers were on site, because every trailer coming in and leaving was scanned for its bar code. They just did not know where they were physically located on the property. This had been going on for years.

I have seen similar situations on paper mill and converting plant sites: trailers parked everywhere with no rhyme or reason. I happen to know of at least one mill that remade an urgent order because they couldn't find it. It was a small order--one truckload--and the records at the loading dock showed they had shipped it. However, they could not find it. Fortunately, it did turn up later, so it was not stolen, it was simply misplaced. But what did it cost to break into the schedule to remake this order?

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In another situation, a tissue mill with a large converting plant attached, a shipment of product was found at convenience stores in a nearby town. This products' UPC codes showed it had never been officially released from the mill. This was theft, pure and simple.

Theft can occur on inbound freight (think copper cable, stainless steel) as well as outbound goods. And it all happens on your site, under your nose, so to speak--all because of sloppy inside-the-fence logistics.

However, the biggest waste of all inside the fence can be spotting services. If your layout (remember, you arrived after the grand opening) is such that your trailer marshalling yard is in an awkward location compared to your loading docks, you can incur significant costs. Pouring new concrete pads is cheap, if the real estate is available. Bring in a recognized traffic consultant and see if you can rearrange things to reduce costs.

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Problems can occur with rail as well. I once knew a remote mill that depended heavily on rail for inbound and outbound freight. Unfortunately the mill had only one spur, which held eight cars. The nearest yard was over sixty miles away. It made sense to build more and longer spurs and add a shuttling engine. The demurrage and the delayed cars paid for it almost instantly.

So, as you look at your transportation conditions, don't just focus on the long haul. The biggest savings may be inside your fence.

Do you have any interesting stories about inside-the-fence traffic problems? If so, please share them in our quiz this week.

Safety concerns abound when moving and spotting equipment on your site. Lane striping, regulations and lighting help tremendously.

Be safe and we will talk next week.

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