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Sometimes, we get an opportunity to see the future by observing an organization that’s already there – an organization doing today what most of us dream of doing tomorrow. Recently, we visited U.S. Xpress Enterprises, Inc. in Chattanooga, Tennessee, and spent some time with co-chairman Max Fuller. What we learned is that U.S. Xpress is “hanging five” as it surfs the wave of change – and enjoying every minute of it.

What makes U.S. Xpress different from other large transportation companies?
Max Fuller, co-chairman, U.S. Xpress: “Not so much what we do, as how we do it. Basically, we operate through two subsidiaries, CSI/Crown, Inc. which provides logistics services for the floor covering industry, and U.S. Xpress, Inc., representing about 90 percent of our business, which offers truckload time-definite and expedited services.”

Time-definite?
“It’s an evolution of the ‘Just In Time’ concept. It means that we pick up and deliver at exactly the time our customer specifies, anywhere. Instead of ‘Just In Time,’ we have to be ‘Exactly On Time.’”

Is precise timing that critical?
“Absolutely. Productivity demands that products flow continuously from producer to consumer. If things go too fast, you need warehouses. If they go too slow, you have shortages.

“One of our customers manufactures big-screen TVs. Because they’re so expensive, they need to make them to order. It takes about a day to build one, and in just three days, we can deliver it practically anywhere. Four days ago, that new big-screen TV in someone’s living room didn’t exist.”

Is that true of everything?
“It’s getting more and more that way. The pace of change is so rapid that manufacturers have seen new technology make warehouses full of computers become almost worthless – overnight. They need the

flexibility to change plans at a moment’s notice. “‘Exactly on time’ transportation makes that possible. Right now, we can send a truck from New York to Los Angeles in 65 hours, from Seattle to Miami in 73 hours. We can do it on time, we can do it legally, we can do it safely – and at a very affordable cost.”

How can you be so sure?
“We have the systems in place. Our satellite tracking capability tells us exactly where every truck is at all times. We’re constantly monitoring weather, road construction and traffic delays. We have in-truck electronic mail, and we’re testing in-truck cell phones. Someday, every truck – maybe even every trailer – will be a ‘node’ in our information system.”

It sounds as though you’re as much in business of transporting information as of transporting goods.
“Sometimes, information about the freight is as important as the freight itself. That’s why we established our own Internet-based customer service system, Xpress Connect, so our customers can get price quotes, proof of delivery and track their shipments by linking their computers to ours.

“Nearly half our customers track their shipments using Xpress Connect. We’re billing electronically, and we can even send delivery status reports directly to our customers’ pagers.

“As our computer systems link with theirs, it’s almost as though we become one company.”

With all this computer technology, are you worried about the Y2K bug?
“In a way, Y2K is one of the best things that ever happened to us. It forced us to look at our systems, and in the course of updating them, we took the opportunity to upgrade many things that we might have neglected otherwise.

“Our computers are now better, faster and more productive than they’ve ever been – at least in part, because of Y2K.”

Won’t all this technology and speed make everything more expensive?
“Exactly the opposite. The economic miracle of the last part of this century is how technology has enabled us to increase productivity.

“It costs a lot of money to ship imported goods here, and for many

countries, their only competitive edge is low labor costs. America is going to be able to compete in the next millennium because of productivity, part of which comes from our ability to move goods quickly and inexpensively.

“Putting stuff in warehouses costs money and actually slows down the process of getting it from manufacturer to consumer.”

Isn’t the technology itself expensive?
“Look at it from the point of view of our business: there are now LED safety warning lights available for trucks. Conventional, incandescent brake lights are less expensive initially, but don’t last as long, and are more easily damaged.

“LEDs save in the long run, and bring additional, sometimes unexpected benefits.”

What are those?
“It takes about a second for incandescent brake lights to reach full brightness. LEDs light up instantly. That’s one second of extra reaction time for the driver behind one of our trucks, and the FHWA says it could make a huge reduction in accidents, perhaps as much as 90 percent.

“We’re already using Eaton’s VORAD collision warning system on our vehicles. It works like radar to help prevent accidents, and between that and ABS, our accident costs are down by 75 percent.

“With electronic braking, that could cut stopping distances another 40 percent, improving safety even more. The technology pays for itself in savings.”

So safety is more than just good citizenship, it’s also good business?
“Absolutely. People are stunned when they learn our transit time speed is about 45 miles per hour. It looks as though safety and technology cost, but the return on investment can be huge.”

What about the driver part of the equation?
Are drivers becoming high tech too? “Ours are. We’ve learned that about 37 percent of our drivers own personal computers, and they’re adjusting very well to new technology in the cab. In fact, one of the things we’re able to offer is in-truck email that they can use to stay in touch with their families.”

That must help with driver retention.
“We know it does.”

What are you doing to recruit and keep the best drivers?
“First, we asked ourselves, ‘Who has the fewest retention problems?’ The answer seemed to be smaller fleets, where there are more personal, direct relationships.

“In a big operation, dispatch is usually organized on the basis of regions, which means drivers are constantly being bounced from

one person to the next. There’s little opportunity to build relationships.

“We couldn’t make ourselves small, so we decided to ‘think small’ instead. We created ‘Driver Managers.’ They’re the direct contact with drivers, wherever they are, and act as advocates for the drivers in their group. They have the opportunity to learn each driver’s workstyle, and can develop long-term relationships that help increase retention.”

Is driver retention where you want it to be?
“Our turnover is about one-third less than the industry average. We hope to do better still.

“And interestingly, the driver shortage is not all downside. If you think about it, it’s actually a constraint, preventing an oversupply condition in the trucking industry. It has created better wages and working conditions for drivers, and has allowed more women to enter the field.”

How many of your drivers are women?
“About 26 percent. The industry average is about 5 percent. And a lot of them are part of teams, working with their spouses. That helps with retention too.”

Your facilities in Chattanooga are incredibly attractive and modern. Is that also part of your plan? “It is. When we built our new headquarters, we decided we wanted to create a place where people would want to come to work. Unemployment is low. We’re competing with every other industry in America for the best people. So an attractive place to work, with the very best tools available, is another competitive edge.”

What can smaller fleets do to follow your example? “Smaller fleets need to exploit their strengths. Often, they can provide incredibly flexible, personalized service that larger fleets can’t. And, we know they often do a better job of keeping good employees – again because of that personal touch.

“As time goes on, the kind of technology we’re using will become more and more available. In a way, ‘early adopters’ like us are the ones who get the kinks out of the system. Satellite tracking was troublesome when we were on the ‘bleeding’ edge of that new technology. But now, it’s effective, available – and very affordable.”

What will trucking look like in five years?
“I’m pretty sure we won’t even recognize it. I find that exciting, and I’m looking forward to it.”