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Proposal For A Cost-Efficient Fully Integrated Management Model
For Upstream, Oilpatch Logistics Operations In An Online Environment
2. Secondary Regional Carriers Basic Responsibilities of Primary
Regional Carriers 3.
Secondary Responsibility of
Primary Regional Carriers 5.
The Role of Industry Express In
Regional Operations 8.
The Role of Datanalysis in Audit 9.
The Role of Datanalysis in Freight
Payment 10.
ADVANTAGES 11. No More Foxes Guarding The Chickens 12. Simplification 13. Portability 14. Improved Quality 16. Regional Cost of Logistics Reduced 17.
Long Distance Logistics Costs Reduced 18. Long Distance Efficiency and Dependability Enhanced 20. Finally! 21. DISADVANTAGES Client may select primary regional (250
miles & under) carriers, according to capability and extent of regional
coverage. These carriers perform the bulk of client’s regional hauling.
A client specific, dedicated, 800 number will be furnished by IEX, and
will be referred to a primary carrier’s 24 hour dispatch center.
Re-positioning primary carriers is easily accomplished by changing referred
numbers. Basic Responsibilities of Primary Regional Carriers Primary regional carriers accept ALL loads,
SERVICING those that fall within the reasonable purview of their operational
status. Primary carrier selection is partially based upon a commitment
to service a significant, defined, percentage of all loads placed.
Primary carriers will be continually reviewed to determine their willingness
and ability to fully discharge their commitment to regional hauling
operations. Secondary Responsibility of Primary Regional
Carriers Primary regional carriers PLACE regional loads
they CANNOT SERVICE, with secondary regional carriers. Primary carriers
are accorded limited access to the “truck locator” feature
of the logistiex.com website, to facilitate determination of current
equipment availability of secondary carriers. Use of the website is free
of any cost to all motor carriers. (See
chart) Standardized contracts, prepared by IEX Group, Inc., are executed with all selected carriers. Contracts accurately reflect the different responsibilities of primary and secondary carriers. All contracts require participating carriers to post their available equipment on the logistiex.com website. The
Role of Industry Express In Regional Operations In the event primary regional carrier is unable
to timely place loads it cannot service with a secondary regional carrier,
it will immediately contact Industry Express, Inc. (IEX). IEX will
then bear full and complete responsibility to ensure that such loads are
promptly, and properly, serviced. A negotiable fee will be charged
for each intra-regional load handled by IEX. Primary regional carriers are responsible,
under the contract, for re-directing any load over 250 miles, between
states, or otherwise exceeding contract limitations, to IEX. IEX will
select appropriate carriers, negotiate spot-market rates, and issue specific
shipment contracts, covering all long-distance operations. IEX has furnished
continuous service response (24/7/365) since 1986. All invoices of all regional carriers, including
those of IEX, are addressed and directed to client, via Datanalysis, Inc.
(DTN). The invoicing process reflects the direct nature of the relationship
between client and the various regional carriers (See chart). The
occasional contentiousness between primary and secondary carriers, which
derives primarily from issues related to brokerage, is completely eliminated.
No regional carrier bears any responsibility for another regional
carrier’s charges. No regional carrier bears any responsibility
for payment of another regional carrier’s invoices. The Role of Datanalysis in Audit All invoices will be exactingly audited by
DTN, and will reflect - with perfect accuracy - actual operations performed,
at contract prices, before they are submitted to client. Invoices
are compiled and batched according to client’s directed accounting
references. The Role of Datanalysis in Freight Payment o
Unless client otherwise directs, DTN master
invoices are submitted to client bi-monthly. DTN also performs carrier
settlements on a bi-monthly basis. o
All shipment documents and records are maintained
on file by DTN. o
DTN furnishes extensive and customized reportage,
according to client’s requirements. ADVANTAGESNo More Foxes Guarding The
Chickens Brokerage – an
operational methodology best suited to less demanding modes of motor
carriage - is eliminated. Primary regional carriers’
expense (cash flowing secondary carriers, providing additional personnel,
record keeping, etc.) is significantly reduced. Relationships of clients
and carriers are direct. Of compelling importance, a “fox guarding
the chickens” management concept - featuring carriers determining
and reporting their value to clients - need be suffered no longer.
o
Direct client/carrier relationships are
inherently less complex than indirect, brokered relationships. Claim
settlement disputes, penalties under sub-contractors laws, and other issues
that will inevitably arise from the indirect relationships of brokerage,
are completely eliminated. o Eliminating primary carriers’ expense of brokerage ensures that clients’ logistics costs are matched to actual services provided. The IEX Group, Inc. management model can be
effortlessly exported to, and operated throughout, any geographic region
in which a client operates. When the model is fully operational,
client will have implemented the only genuine, viable, logistics management
model, covering the continental entirety of its upstream, hard commodity,
logistics effort. Both primary and secondary regional carriers
are expected…..and required…..to provide their services at
levels of quality mandated by the client. EVERY carrier knows it
is contracted to, and working directly for, the CLIENT. The most
rudimentary inquiry would demonstrate that no oilfield carrier wants to
work for another oilfield carrier….when they could be working for
a CLIENT. Only the IEX model allows all carriers to demonstrate
the respect a client’s valuable business is due. o
Client provides for continuous, regional logistics
scheduling capabilities - nationwide - instead of a limited capability
along the Texas and Louisiana Gulf Coasts. o
No longer hamstrung by brokerage, the quality
of client’s regional service improves immediately. o
Under IEX, long distance service becomes the
very best the logistics industry has to offer. Regional Cost of Logistics Reduced Brokerage, gratuitous rate structure, and ungovernable
applications of extra fees, are eliminated. The most effective audit
process in the logistics industry eliminates invoice errata and
duplicate payments. Centrally dispatched operations become free
of extra cost. Client’s regional logistics costs
are immediately reduced by up to 15%. Long Distance Logistics Costs Reduced Brokerage booking percentages are replaced
by reasonable, “per-load” fees. Fixed, necessarily high,
long distance rates of regional carriers are replaced by shipment specific,
individually negotiated rates. Client gains immediate access to
the nationwide pool of available, oilfield capable, hauling equipment,
which resides exclusively on our logistiex.com website. As a result,
long distance costs are immediately reduced an average 21%. Long Distance Efficiency and Dependability
Enhanced Industry Express, Inc. (IEX) pioneered, and
has perfected, the process of individually contracting long distance shipments,
to which is added the simultaneous notification of, and continuous advisement
regarding, operations, to all involved parties. No motor carrier or
brokerage operation can make that claim. Dedicated exclusively to executing
long distance, oilfield motor carriage, as an agent of its clients, IEX
effectively distances itself from all competing organizations. Using logistiex.com, clients put the Internet’s
total connectivity assets to extensive use, not only significantly reducing
costs, but generating a continuing increase in the overall efficiency
of oilfield motor carriage. Implementation of the IEX Group, Inc.
management model will force carriers to operate more efficiently - a positive
impact on the oilfield logistics industry. The final advantage is one of great simplicity
and compelling logic: Client is no longer required to accept the
onus of employing a flawed concept, in which the fox is set to guard the
chickens. In adopting the IEX Group, Inc. management model, the
client recovers, and remains in, full and complete control of its logistics. DISADVANTAGESWe haven’t found any and we’ll
move to eliminate those you can find! |
