Bridgestone Commercial Truck Tires

I N D U S T R Y V i e w

Because she's more valuable to the trucking industry just the way she is.

In this special 8-page section, we talk with Beth Franklin, president and CEO of Star Transportation, with Ofelia San Pedro, president of Ryder Energy Distribution Co. and vice president for global procurement for Ryder System, Inc., and with Cheri and Gordon Lowe and Mary Jane and Ken Olson, wife and husband team drivers.

What we learned is that women bring an important balance and complementary talents to the job and that the trucking business benefits enormously by having women in responsible roles.

BETH, WHEN WAS STAR TRANSPORTATION FORMED?

Beth Franklin, president and CEO, Star Transportation: "Star was born during deregulation in 1980. My father, David Dortch, owned Humboldt Express, the largest LTL truck line in Tennessee. Daddy realized that a truckload operation would be profitable, so he formed Star as an independent company and put the ownership in his children's names. Star became a separate company when Humboldt was sold."

WHAT BROUGHT YOU TO STAR?

"Since Daddy had Humboldt to operate, he suggested that I come to Star. I left a pretty successful gift shop business, which I put into the hands of my mother, and went to Star.

"When I arrived, I did a little bit of everything and fell in love with the business. I saw the potential, and was very impressed with the people. It's paying off, too. Star will do $58 million in revenue this year a far cry from where we were 9 years ago."

WHAT IS STAR'S NICHE?

"What we do best is Just-In-Time delivery, and we concentrate most of our lanes east of the Mississippi the east coast is our heaviest lane, and we also serve California and Texas.

"When you have customers like E.I. DuPont and General Motors requiring one- or two-hour delivery windows, you get good at it and can make it available to all your customers. That includes smaller pickup and delivery customers. When we ask, 'What time of day would you like it delivered?' it really impresses them."

WHERE DO YOU LOOK FOR GROWTH?

"We are very careful in our growth strategy. We try to match our growth to that of our current customers, plus add some new business. We want to better serve our customers' needs, instead of just increasing the size of our fleet.

"We look for growth 3 ways. If our current Fortune 500 customers require more trucks, we assign them. Then we look at our smaller customers to see how we can increase their growth.

"Second, we look for driver-friendly freight. Our drivers should be driving, not loading, so we make sure there is a loader service available for them.

"Third, we look for acquisitions. Even though we are only a $58 million carrier, we are very interested in fleets with 50 to 125 tractors that might mirror the type of services we're providing. This industry is ripe for mergers and acquisitions.

"And, we also look at our customer base to see if there are any services we can provide for them other than moving freight."

HOW DO YOU PLEASE YOUR CUSTOMERS?

"Basically, we give them whatever they ask for.

"Our on-time service runs at 98.6 percent some customers get even higher numbers. We use AMSC satellite communication to track every load. We know when the driver delivers what day, what time, which location.

"We do our own dispatching even dispatch for Goody's Family Stores is done at their location, but by a Star employee. Both use the same satellite system, 24-hours a day, 7 days a week.

"Our Customer Service staff maintains constant contact with our customers we know their hours, when they need pickups, when to reserve loads for them."

HOW SUCCESSFUL IS STAR'S RELATIONSHIP WITH ITS DRIVERS?

"We've learned that drivers prefer to have the same dispatcher, or 'Fleet Manager.' So we split into fleets of 50 or 60 drivers, and each Fleet Manager's bonus depends on the success of those drivers.

"Safety is a very important issue and one that affects a fleet manager's bonus so we require 3-day safety-orientation classes for each new driver. They learn that any service failure or accident, preventable or not, is reviewed with every driver.

"We feel we have such an investment in these men and women that we're very strict on past driving records. We're not interested in job hoppers we get 100 applicants for every opening we're as interested in retention as we are in recruiting.

"We bring spouses in during counseling. We also have a Rider Program, so spouses and children over 12 can go with mom or dad for a week on the road to see what the job is like. We try to make our drivers interested in long-term relationships with Star, so we have to get the rest of the family interested too.

"All of these things make our driver turnover rate 30 percent below the national average."

WHAT CAN WOMEN BRING TO THE INDUSTRY?

"There's an advantage to being a woman in the trucking industry. We are very conscious of family and children and spouses at home. We know how important it is to bring our drivers home each week.

"Being a woman CEO is unusual in this industry. There are not a great many of us, but we will see more. In 5 to 10 years, many will move up. As a result, I'm probably the most competitive person you'll ever meet. I'm competitive about everything."

WHAT HAS MADE STAR SUCH A SUCCESS?

"Our people. We give them the opportunity to run their departments and have fun doing it. Their successes make Star Transportation a success.

"Two things motivate people money and laughter.

"There are plenty of challenges and issues that come up in trucking every day, so everybody has to keep a sense of humor. And we reward their good humor with a profit-sharing bonus program for a job well done. Every employee is in the program after they have been here one year. That's very unique in the trucking industry."

WHAT'S THE FUTURE OF STAR TRANSPORTATION?

"Controlled growth. Acquisitions. More laughter, more profits and a great quality of life at work for all employees!"

EDITOR'S NOTE: Under Beth Franklin's leadership, Star Transportation has shown a 150 percent increase in revenue, and the rate increases every year. In 1993, Beth was voted "Industrial Business Woman of the Year" by the National Association of Women Business Owners, and Star Transportation was named "Minority Industrial Business of the Year."

OFELIA, WHAT DOES THE WORD "MENTOR"
MEAN TO YOU?

Ofelia San Pedro, president, Ryder Energy Distribution Co. and vice president for global procurement, Ryder System, Inc.: "Mentors are
'wise or trusted counselors or teachers,' and they've been crucial in my life and in my career."

WHO WERE SOME OF YOUR MENTORS?

"One of the first was my father. He came to Cuba from Spain when he was just 14 years old, then proceeded to work his way up from a salesman to a successful wholesale distributor during the time he was there."

AND THEN?

"And then, we came to America when I was just a very small child. I think I got that entrepreneurial spirit from my father, but things really came into sharp focus when I was in college, studying industrial engineering.

"I was working as a management engineer in a hospital, and as a result of that experience, I decided I didn't want to become an engineer, but wanted to be in executive management for a big company.

"Part of the reason for this was that one of the industrial engineering professors had become my mentor."

WHAT INFLUENCE DID HE HAVE?

"He believed that just having an engineering degree was not enough. He suggested that I take as many courses as I could in business, to round out my education.

"I took his advice, and from that point on, I knew what I needed to get to achieve my goal. Because I knew what I wanted, I was able to focus on how to get it, and avoid the false starts that so many other people have had to go through."

AND YOU BECAME A MENTOR YOURSELF, DIDN'T YOU?

"Yes. I got my degree in industrial engineering and my MBA from the University of Miami, and became a professor myself, teaching industrial engineering for about 10 years.

"I loved teaching always have it's such a wonderful opportunity to develop and bring out the best in others. But my goal was still to get into management, so I left the university to go into business."

HOW DID YOU COME TO WORK FOR RYDER?

"I joined Ryder as an auditor in 1979, and I was fortunate to be present at the creation of Ryder Energy Distribution in 1981. It was a very turbulent time in energy, after two oil embargoes, and Ryder had hired a retired top executive from Mobil to head up the new company. "Fortunately, he believed in mentoring too, and was very happy to share his knowledge and experience with me as we created this miniature oil company within the Ryder organization."

Ofelia San Pedro is responsible for over $2 billion in annual purchases for Ryder, including more than 600 million gallons of fuel (enough gallon cans to circle the earth 2-1/2 times) and over $80 million worth of tires (enough to stretch from Ryder's Miami headquarters to Jacksonville).

BUT IT'S NOT REALLY "MINIATURE," IS IT?

"By some standards, I suppose not. As a company, we purchase well over 600 million gallons of diesel fuel and gasoline each year, not to mention all the motor oil, lubricants, additives and antifreeze we need for more than 700 Ryder locations. That's not big by Mobil standards, but it's a lot for us."

WHAT DOES YOUR "VICE PRESIDENT FOR GLOBAL PROCUREMENT" TITLE ENTAIL?

"That makes me responsible for everything else we buy, including our trucks, cars and other equipment, along with about $80 million worth of tires each year. All together, our procurement activities run over $2 billion per year."

TIRES ARE LESS THAN 4 PERCENT THEN?

"Yes, but an important factor in our business. Anything we can do to extend the life of tires and improve their reliability can make a big improvement in our profitability.

"We work closely with many of our suppliers, including Bridgestone. If we can work together to improve maintenance and reduce costs, we are willing to share those savings with our suppliers. Because we share the savings after performance has improved, we both have a big incentive to make sure these
programs work.

"That's a key idea for me: It's far better to encourage people, to incentivize them to do the right thing, than to try to forbid them to do the wrong thing."

IS THAT PART OF YOUR MENTORING STYLE?

"It certainly is. As a woman, I believe that my approach is focused more on collaboration and consensus-building than on command and control. Women tend to value sharing and teamwork, and that's vital in today's business. Our world moves too fast and is too complicated to do everything alone."

ARE YOU A QUICK DECISION-MAKER?

"You have to be. Change is so rapid that if you deliberate too long, your competition may get an edge. That doesn't mean you don't study things. I try to take a very fact-based approach to decisions, but it's important to remember that nobody makes the right decision every time.

"If you're afraid to make mistakes, you'll end up not making decisions at all. So I think that if we make the right decision about 80 percent of the time, we can stay ahead of the competition, learn from our mistakes, and keep making progress."

DO YOU STILL HAVE MENTORS?

"Absolutely. In fact, I recently acquired a new mentor, the president of our logistics division. He has a background in procurement and in national defense logistics, so there is a lot I can learn from him."

WHAT ARE THE CHARACTERISTICS OF A GOOD MENTOR?

"Good mentors must be secure in themselves and in their jobs. If they're afraid that they're going to be displaced, they won't be comfortable enough to share freely what they've learned.

"Good mentors like working with people and love bringing out the best in others. That's what I look for in my mentors, and what I try to provide to those I mentor."

WHAT ADVICE WOULD YOU HAVE FOR WOMEN WHO ASPIRE TO TOP EXECUTIVE LEVEL?

"Who you are is even more important than what you know. Being able to shine and rise above comes from developing the elements of leadership, being a risk- taker, and being flexible. Personal integrity and a sharp focus on your goals are indispensable elements of success."

issue about "Women in Trucking" would be complete without examining the increase in female truck drivers.

Real Answers interviewed two wife and husband driver teams Cheri and Gordon Lowe and Mary Jane and Ken Olson both are Florida-based owner-operators with Landstar Ranger.

CHERI, HOW DID YOU AND GORDON GET TOGETHER?

"I lived in Florida, where Gordon was doing construction work When we met, he asked me if I wanted to get married and drive a truck.

"Even though it was a 2-part question, all I said was 'yes' I was afraid to say yes only to one. We got married, and I got a chauffeur's license that qualified me to drive a truck but I knew absolutely nothing about it."

WHO TAUGHT YOU TO DRIVE?

"Gordon taught me everything I know. If I had it to do over, I'd go to driving school. He expected me to catch on fast, and I didn't even know how to drive a stick shift automobile."

Gordon: "I didn't do that badly she's driven over a million miles with no accidents."

HOW WELL DID YOU ADJUST TO TRUCKING?

Cheri: "It was hard for me to appreciate the road. I'd never been any further than 100 miles from my home. On holidays, I used to cry and want to go home. Once I got used to it, I wanted to be on the road all the time.

"I missed my home, but now I feel my real home is on the road with Gordon. I never want to retire that would be a nightmare."

IS TRUCKING A TOUGH LIFE FOR A WOMAN?

Gordon: "When we began team driving, over 20 years ago, it was very difficult for Cheri. There were few facilities including showers. I had to stand outside the shower door to keep men out."

Cheri: "Now there are a lot of women driving truck stops cater to them.

"As more and more women enter the industry, they clean it up. There is more discipline we demand clean talk over the CB. Whenever I hear, 'You should be home changing diapers' I reply, 'This highway is my workplace, and I expect to be treated as a professional.'"

WHAT DO YOU LIKE MOST ABOUT TRUCKING?

Cheri: "It's not just the love of the road. It's the freedom of being my own boss. If my business fails, it's my fault."

Gordon: "And, when you're in a truck stop and want another cup of coffee, that's all right. No one's going to order you back to work."

WHAT DO YOU LIKE LEAST?

Cheri: "Finding a safe place to park your truck on the highway.

"Many articles have been written about driver fatigue. But when you know you're tired and need to rest, finding a place to stop is difficult. Rest stops are either closed or overcrowded. You see trucks parking on exit ramps. That's not a safe place to be."

Gordon: "The trucking industry has plenty of problems. It's difficult to solve them all, but you can start by nibbling at them. And we're 'nibblers.'"

MARY JANE, WHEN DID YOU START DRIVING A TRUCK?

"I started driving when we bought the truck in 1988 after I attended the 'Husband Screaming & Yelling School of Truck Driving.'"

Ken: "She has a degree in social work, and she gave that up to drive a truck."

WHICH DO YOU LIKE BETTER?

Mary Jane: "Oh, this why would I send him out on the road by himself?

"My family was a little upset they thought I was abandoning my education. But you can never do that. It always stays with you. I call it my 'prerequisite for truck driving.'"

WHAT IS THE HISTORY OF THIS TRUCK?

Ken: "This is the only truck we've ever had. It's a 1984 Peterbilt 359. We bought it used in 1988.

"Payments were $1,400 with a thousand dollar monthly maintenance bill. At first, we could barely manage our expenses and keep it on the road."

Mary Jane: "I've cried through more states than most people have driven through. We knew nothing about trucking when we first got into it."

HOW DID IT BECOME THE BEAUTIFUL TRUCK IT IS TODAY?

Mary Jane: "We finally managed to figure it out with a lot of help from other drivers. Since then, we just keep remodeling like a nice house that you don't want to leave."

Ken: "We just completed our latest renovation stretching the wheelbase from 245 inches to 327. Behind the custom, 160-inch sleeper is a headache rack for our downhill skis; golf clubs are in the side box, and our Harley's in the drom box."

WHEN DO YOU FIND TIME TO USE ALL OF THAT?

Mary Jane: "We plan our own routes, take the loads we want with no planned dispatch. If we don't want to go downtown New York City with a 327" wheel base, we don't go.

"We've traveled through national parks on our Harley, we swam with manatees and dolphins, and we've done more things in the time we've been driving than most people do in a lifetime."

End

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