Will There Be Anyone
There for Your Transferee
On Moving Day?
Chris Kline - Sr. Vice President, Business Development – Graebel
Marc Van Kley – President, COO – Beltmann Group Incorporated
Karen Hill – Mobility Project Manager – Seagate Technology
Don Fisher – President – Fisher and Son Consulting, Inc.
Industry Trends
►
►
Increased demand
Driver/Labor shortages
► Rising mover costs
► Higher expectations
► Demand will exceed capacity
760000
740000
720000
700000
680000
660000
640000
620000
600000
580000
560000
Shipments
2000
2002
2004
Will There Be Anyone There for your Transferee on Moving Day?
Things your mover would like you to
know about what’s happening today:
–
The driver shortage is real and it will get worse
–
Tariff changes create additional challenges
–
Costs are increasing
–
Government regulation is increasing
–
Changes in industry structure and buying practices
may increasingly “commoditize” service and create
an emphasis only on price
–
Your policies, and your processes, are affecting your
transferees’ satisfaction
Things you should know about your
mover and their performance:
–
How happy are your transferees with the service they are
receiving? What are the trends?
–
What are your true costs related to moving? Are costs
increasing or decreasing?
–
What is your mover doing to reduce your risks related to the
moving process?
–
What is your mover doing to address transferee productivity
and convenience?
–
What additional opportunities exist to drive savings and
value? Are these being presented to you? Are you
listening?
–
What factors are inhibiting maximum service and efficiency?
How you can use your knowledge to
impact service and improve value:
–
Engage
–
Fully understand the process
–
Get creative and choose to work with flexible, creative
partners
–
Understand how policy relates to satisfaction
–
Understand and consider where your relocation dollar
goes and where value is being added
–
Use data – insist on improvement
The Corporate Perspective
►
Seagate's outsourced model
– Domestic & International Program
– One Worldwide Relocation Provider
– 3rd Party currently manages movers with limited
input from Seagate
The Corporate Perspective
►
Improvement Opportunities
– Mover & Transferee Advocacy
• Claim Settlement: Signing acceptance of delivery
documentation and damage is found later (rushing
employees)
• Movers trying to accommodate demanding employees
(sometimes outside of policy)
– Cost Control
•
•
•
•
•
Vendors haven't read the policy – Increased Cost
Special/Extra charges
Efficiencies: Surface verses Air/Lower cost alternatives
Mover Agreements
Potential conflict of interest
The Corporate Perspective
►
Improvement Opportunities
– Performance
•
•
•
•
Improved Transferee Satisfaction
Increased Capacity
Special Treatment
Partnership
The Corporate Perspective
► Going
Forward
– Greater input in mover selection & management
– Increased visibility to process & outcome
– Strategic Partnership
Relocation: Efficiency and Savings
International & Domestic Household Goods:
What You Should Know About Outsourcing
and
Negotiating the Best Value
Relocation Models
►
Model 1- Outsourced: Use relocation firm &
their transportation contracts
– Reduced Administration
– 3rd party holds agreements & controls terms
– 3rd party audits their performance & cost
– 3rd party typically derives some benefit
– Mover serves 3rd party priorities first
– Limited by 3rd party expertise
Relocation Models
►
Model 2 - Direct: Mover direct agreements &
management
– Total Control
– All administration & management in-house
– Limited expertise
– Fragmented process
Relocation Models
►
Model 3 - Hybrid “Best of Both Worlds”
– Reduced administration & increased control
– Initiation & authorization via 3rd party
– Mover/partner selection
– Contract terms & service provisions negotiated
directly with movers
– You pay less & mover makes more
– Independent audit & review
– “True” partnership
Protecting Your Program
►
Know your program!!!
►
To maximize or even realize cost savings
and service enhancements, consider
hybrid model
►
Take control of your transportation
relationship
►
No need for additional staffing
►
HR satisfies their mandate
RFP Review and Ratings
 Weight
 % of Work from 3rd Party Providers
 Capacity of Equipment
 Network To Partners
 Quality Top 5% of Drivers
 Creative Discount Programs
 Claims Ratio & Average Claim  Volume Incentives
 Management of Carriers
 Discount under Tariff 400N
 Having a Global Presence
 Total Score and Comments
RFP Review and Ratings
Eliminated for Interviews:
Weight
Capacity of
Equipment
Quality top
5% drivers
Claims
Ratio &
Avg.
Claim
51
15
10
Having a
Management of Global
Carriers
Presence
9
55
% of work
from 3rd
party
providers
Network to
Partners
Creative
discount
programs
Volume
Incentives
Discount
Under Tariff
400 N
40
45
15
20
15
Score
0
0
0
0
0
0
0
0
0
0
0
Rating 1 to 10
Comments
Summary - Positioning your program
►
Know, Understand & Own Your Program
–
–
–
–
–
►
Process
Movers
Total cost
Selection criteria
Performance metrics
Develop Strategic Partnerships
– Transferee satisfaction
– Ensure Capacity
– Manage total cost
►
How To Get Started
– Meet with movers
– Ask questions of your current supplier manager
– Hire a consultant or reach out to industry peers