1. The importance of a single gray pool

2. Chassis Challenges in Memphis
Chassis models are not keeping up with demand
Chassis pools are not interoperable & Freight is restricted
Chassis costs are rising…costs felt by shippers/truckers
Chassis quality is very poor and equipment is aged
Chasing chassis is a waste of time and money
Chassis repositioning costs are escalating

3. What is the impact?
Freight does not move: waiting on adequate supply and quality of chassis
Chassis in M&R are stockpiled while freight is at a standstill
Freight costs are escalating in terms of:
Demurrage Lost Turn Time Delayed & Lost Sales Chassis Repositioning Administration
Memphis Supply Chain Innovation Team

4. Where are the chassis? Railroad? Depot?
Memphis Supply Chain Innovation Team

5. Chasing Chassis! Chassis are not in the right place at the right time
Ocean Carriers are responsible for chassis for Store Door Moves
Ocean Carriers are not responsible for chassis on CY Moves
In Memphis, we don’t have a choice, rail’s operational procedures vary
(mounted vs grounded operation)
Rail operations are under contract with Ocean Carriers for chassis provisioning upon train arrival
Memphis Supply Chain Innovation Team

6. Problem with captive chassis pools in memphis
Ocean Carrier A
Ocean Carrier B
Ocean Carrier C
Ocean Carrier D
Mandates Red Chassis
Mandates Green Chassis
Mandates Purple Chassis
Mandates Blue Chassis
Problem with captive chassis pools in memphis
WHICH CHASSIS WILL THEY USE? ? ? ? ?
POOL
M&R
Memphis Supply Chain Innovation Team

7. Result of Captive Pools
Rising COSTS and wasted TIME
Handcuffed chassis usage
Access is limited
SUPPLY is an on-going problem with limited visibility
EVERY STAKEHOLDER GETS STUCK!
BCO’s and forwarders can’t move freight
Railroads don’t move trains fluidly
Ocean carriers lose opportunities and equipment turns
Truckers are wasting time searching for chassis
A single gray pool offers efficiency gains and simplicity
Memphis Supply Chain Innovation Team

8. Gray Pool provides Efficiencies
Rail perspective
Trucker perspective
Memphis Supply Chain Innovation Team

9. OBJECTIVES FOR A MORE EFFECTIVE MODEL
Quantity
- Improved inventory
Quality
- safe, reliable, road-worthy assets
Interoperability
- All assets in region can be deployed as required for best collective use
Choice
- Fair and Effective access for merchant haulage moves
OBJECTIVES FOR A MORE EFFECTIVE MODEL
Memphis Supply Chain Innovation Team

10. Memphis Supply Chain Team seeking: Single GRAY CHASSIS POOL
Interoperability and Adequate SUPPLY
Quality chassis: (M&R concerns, Safety concerns)
Pool Manager Accountability for supply/quality
Memphis Supply Chain Team seeking: Single GRAY CHASSIS POOL
Key Stakeholder involvement in rule-making/ Board of Advisory with members of the Memphis Supply Chain Team
Memphis Supply Chain Innovation Team

11. The chassis model is broken…
A GRAY POOL IS NEEDED
IN MEMPHIS IMMEDIATELY
Memphis Supply Chain Innovation Team