1. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Managing by the Numbers: CSA and Driver Management This webcast will cover... Driver Incentives, PSP and Hiring Criteria, Red Flag Violations And Driver Coaching, Kraft Foods Driver Management Program, Question & Answer Moderator Dr. Gary Petty, President & CEO, NPTC Panelists Tom Moore, Vice President of Education, NPTC Tom Bray, Editor – Transportation Management, J. J. Keller & Associates, Inc. Scott Willert, Senior Manager, Private & Dedicated Fleets, Kraft Foods Jeff Jones, Senior Manager Logistics Operations, Kraft Foods Attention Attendees: +Thank you for attending! +The presentation will start in a few minutes at 1:00 PM Central. +Please use your computer speakers to listen to the event. If you have audio issues, dial-in info is below. +You will be muted during the event. +Please use the Question feature to text questions to “Q & A”. We’ll try to answer them during the Q&A period if they are not covered in the presentation. +The slides will be posted in 1-2 days and the recording in 7 days at http://www.jjkeller.com/nptcinfo

2. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Dr. Gary Petty President & CEO National Private Truck Council

3. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Introduction Driver Incentives, PSP and Hiring Criteria – Tom Moore Red Flag Violations And Driver Coaching – Tom Bray Kraft Foods Driver Management Program – Scott Willert & Jeff Jones Housekeeping issues:  You will be muted during the event.  Please use the Question feature to text questions to the Q&A Panelist. We’ll try to answer them during the Q&A period if they are not covered in the presentation.  If you lose sound at any point, you can dial-in by phone using the number and Pass Code listed below.  If you lose the program window and need to re-login be sure to enter a different e-mail address to avoid being denied access for multiple logins. Gary Petty National Private Truck Council

4. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Introduction and Disclaimers The content in this webcast is intended for information purposes only and should not be construed as providing legal advice. This is an introductory course and is intended to highlight critical safety and compliance topics. Time constraints limit our ability to go in depth. We invite you to ask questions. We will answer them throughout today’s webcast. Gary Petty National Private Truck Council

5. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Tom Moore, CTP Vice President of Education National Private Truck Council

6. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Hiring Criteria NPTC Best Practices:  2+ years’ driving experience in relevant equipment  Minimum age: 25  Clean driving record Tom Moore National Private Truck Council

7. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 FMCSA’s Pre-Employment Screening Program Provides 3 years’ roadside inspection and 5 years’ crash history tied to an individual driver’s record stored in MCMIS Enrollment and ordering:  Complete an agreement, which includes an acknowledgement of employer’s FCRA responsibilities  Pay annual fee of $100, or $25 for carriers with less than 100 power units  Obtain signed driver authorization and pay $10 for each requested driver history  Driver can request a personal driving history for a fee of $10, but you should provide them with a copy of the report whenever adverse action is taken  Website: http://www.psp.fmcsa.dot.govhttp://www.psp.fmcsa.dot.gov Tom Moore National Private Truck Council

8. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Sample PSP Record Tom Moore National Private Truck Council

9. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Sample PSP Record Tom Moore National Private Truck Council

10. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 PSP Benchmarking Before you make a decision, benchmark your current driver pool  Extract records for each of your drivers from CSMS  Score their violations and crashes  Rank your drivers based on their scores  Establish a threshold for acceptance  Score each PSP record and compare it to your threshold for acceptance Use caution!  Work with your insurance provider and legal counsel to establish the thresholds  The data may be misleading. For example, intrastate drivers may not have much of a record. Tom Moore National Private Truck Council

11. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Incentives FMCSA research indicates safety incentives reduce the incidence of insurance claims, workers' compensation claims, and crashes by 65 percent. Types of incentives include: money/savings bonds, bonuses, gifts, discounts at truck stops, and recognition Keys to success: Tom Moore National Private Truck Council Managerial vigor Rewarding the "bottom line" Attractiveness of the reward Progressive safety credits Simple rules Perceived equity and attainability Short incubation period Stimulating peer pressure towards safe conduct Employee participation in program design Prevention of accident under-reporting Rewarding multiple levels of the organization Supplementing rewards with safety training Maximizing net savings versus maximizing benefit-cost Involving the family

12. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 CSA-Specific Incented Behavior Clean inspections Milestone for miles/time without a violation Crash-free milestones Completion of refresher training DVIR accuracy with spot check Others? Tom Moore National Private Truck Council

13. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Tom Bray Editor, Transportation Management J. J. Keller & Associates, Inc.

14. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Interventions Drivers are selected for investigation by FMCSA  At the time of a carrier intervention  If they are over the 90 th percentile in DSMS An FMCSA driver intervention involves  Personally intervened with if have “Red Flag” violations  Notice of Violation  Notice of Claim Tom Bray J. J. Keller & Associates, Inc.

15. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Tom Bray J. J. Keller & Associates, Inc. Red Flag Violations ViolationDescriptionBASICSeverity 395.13(d)Driving after being declared out-of-serviceFatigued Driving10 383.21 Operating a CMV with more than one driver's licenseDriver Fitness8 383.21(a) Operating a CMV with more than one driver's license†Driver Fitness8 383.23(a)(2)Operating a CMV without a CDLDriver Fitness8 383.51(a)Driving a CMV (CDL) while disqualifiedDriver Fitness8 391.11(b)(5) Driver lacking valid license for type vehicle being operatedDriver Fitness8 391.15(a)Driving a CMV while disqualifiedDriver Fitness8 392.4(a)Driver uses or is in possession of drugsDrug & Alcohol10 396.9(c)(2)Operating an OOS vehicleVehicle Maintenance10

16. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Unsafe Driving Violations that affect BASIC Measure and Score:  Speeding  Failure to wear seatbelt  Failure to obey traffic control device  Following too close Speeding violations appeared on more than 170,000 inspection reports in 2010 claiming the top spot, and seat belt violations are #7 with over 70,000 Tom Bray J. J. Keller & Associates, Inc.

17. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Coaching: Speeding Ask questions:  Are routes too long to compete in the allotted time?  Are dispatchers encouraging you to speed?  What are the benefits of exceeding the posted speed limit?  Do you think police will allow you 5 to 7 over the speed limit? Conduct a driver ride-along or ride behind and observe driver behaviors. Look for evidence of:  Speeding  Impatience with other drivers  Extreme speed fluctuations Coach drivers on defensive driving technique Correct the myth that speeding saves time Tom Bray J. J. Keller & Associates, Inc.

18. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Coaching: Failure to Wear Seat Belt Ask questions:  Does wearing a seat belt make you uncomfortable? Why?  What are the benefits of not wearing a seat belt? Install fluorescent color seat belt to help monitor usage. Conduct spot checks and continuously reinforce usage. Discuss dangers of not wearing seat belt. Explain the proper way to use seat belts:  The belt should be close to the body (no slack).  Adjust the seat belt so that the lap belt is as low as possible across the stomach from hip bone to hip bone.  Diagonal torso strap should lie across chest and away from neck, slope up and back to the top fixing point and not be twisted. Adjust height of the top fixing point to make this easier. Tom Bray J. J. Keller & Associates, Inc.

19. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Fatigued Driving Violations that affect BASIC Measure and Score :  Form and manner  Logs not current  Over-hours violations  No logs  False logs The above-listed violations account for 5 of the top 10 violations Tom Bray J. J. Keller & Associates, Inc.

20. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Coaching: Driver Logs Form and Manner Ask questions:  Do you know how to complete a driver log? Show me…  When are you updating your log? Make sure driver understands that your company does not tolerate making inaccurate or false log entries Walk though series of events and ask driver to log them Provide driver with a log calculator and include logging instructions in log book or on back of each loose leaf log Audit logs regularly and provide immediate notice to driver when an error occurs. When drivers with a history of logging violations have a series of logs without an error, recognize them Tom Bray J. J. Keller & Associates, Inc.

21. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Fitness Violations that affect BASIC Measure and Score :  No or expired medical certificate  Non-English speaking driver  No license  Class and endorsement violations Non-English speaking and medical certificate violations are #5 and #10, respectively Tom Bray J. J. Keller & Associates, Inc.

22. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Coaching: Driver Qualification Ask questions:  Do you have your med card in your wallet at all times?  When was your last physical?  When does your card expire? As a spot check, periodically ask driver for med card as they are getting into their truck Explain driver physical qualification requirements to driver Tom Bray J. J. Keller & Associates, Inc.

23. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Drugs and Alcohol Violations that affect BASIC Measure and Score :  Possession/use/under influence alcohol during or within 4hrs of duty  Driver uses or is in possession of drugs Tom Bray J. J. Keller & Associates, Inc.

24. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Vehicle Maintenance Violations that affect BASIC Measure and Score :  No/defective/inoperable light  Brake defects/adjustment  Tire tread  No annual inspection Tom Bray J. J. Keller & Associates, Inc.

25. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Coaching: Vehicle Maintenance Ask questions:  Are you completing a thorough pre-trip and post-trip inspection?  Is maintenance repairing your equipment completely and returning it to you in a timely manner? Spot check DVIRs and equipment PM and inspection history. Identify instances where DVIR missed something maintenance caught and discuss with driver. Walk through a vehicle inspection and explain what to look for. Spend time on lights, brakes and tires. Help driver develop a CSA checklist to cover items not typically on a DVIR. Tom Bray J. J. Keller & Associates, Inc.

26. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Cargo Related Violations that affect BASIC Measure and Score :  Damaged or loose tie-down  Failing to secure vehicle equipment or load  HM placard missing, damaged, or obscured  HM package not secure  Shipping paper errors Tom Bray J. J. Keller & Associates, Inc.

27. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Coaching: Cargo Securement Ask questions:  Do we provide sufficient time to secure your load?  Do you have a complete set of securement devices?  Is all securement equipment in good repair? Walk through cargo securement procedures allowing driver to demonstrate. Demonstrate how to load the trailer and secure it. Show driver pictures of improperly secured loads and the consequences of failure to secure a load. Tom Bray J. J. Keller & Associates, Inc.

28. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Crash Indicator What affects this BASIC?  DOT recordable crashes (preventability is not a factor, all crashes count)  Based on injury or fatality vs. no injury and the release of a hazardous material (cargo) Tom Bray J. J. Keller & Associates, Inc.

29. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Coaching: Crash Ask questions:  What was the cause of the accident?  Do you know what steps to perform post accident?  Do you periodically check to make sure your accident kit is complete and that the camera is not expired? Walk through a simulated post accident. Ask drivers to sit in on another driver’s post accident for experience. Conduct ride-alongs and focus coaching on areas identified in prior accident cause analysis. Conduct defensive driving refresher coaching. Tom Bray J. J. Keller & Associates, Inc.

30. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Scott Willert Sr. Manager, Private & Dedicated Fleets Kraft Foods Jeff Jones Sr. Manager, Logistics Operations Kraft Foods

31. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Kraft Foods Fleet Operations Scott Willert Kraft Foods Fleet consists of :  1,450 Power Units of varied types  1,530 Trailers  1,873 CDL Drivers Kraft Foods maintains two fleets…

32. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Impact of CSA on Kraft Foods Re-evaluated hiring practices Re-defined driver and management training, specifically, as it applies to CSA Participating in best practice discussions with other companies Kraft continues to reinforce stringent procedures that were in place prior to CSA. Reset scope of 3PL compliance management company reporting practices Scott Willert Kraft Foods

33. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Hiring Criteria & Onboarding Process Due to the number of facilities and to ensure consistency we utilize a 3 rd party for all on-boarding criteria. Current Criteria  2 years’ driving experience in class A equipment  Clean driving record  Preventable motor vehicle accident free  Successful completion of road test  Successful completion of written evaluation Scott Willert Kraft Foods

34. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Coaching and Incentives in a CSA World Kraft uses two methods to educate drivers relative to items noted on roadside inspections  Discussions at three annual driver safety and feedback meetings  Required quarterly online driver training Driver coaching has not changed after launch of CSA. Kraft historically has and continues to use roadside inspection and crash reports as a means of identifying areas of focus for driver coaching. Kraft does not incent drivers for clean inspections. Our philosophy is it’s a job requirement to operate in compliance. Jeff Jones Kraft Foods

35. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Elog Driver Coaching Intervention Kraft uses an Elog to track driver hours of service. The Elog generates a violation report that we use in coaching our drivers. Scott Willert Kraft Foods

36. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 DQ Management Driver Coaching Intervention Kraft sends reports (sample below) to regional managers. The report lists each driver’s upcoming qualification document renewal/expiration event Sent 90 days before the event; updated monthly until complete Regional manager notifies each driver and discusses what needs to be done. DocumentTypeStatusDoc DateExp Date Annual Review (391.25)Maintenance 90 DAY NOTICE4/6/20104/5/2011 Copy of Operator's License (391.11) VS4Maintenance REMINDE R 4/12/200 6 2/12/20 11 Medical Exam Long Form (391.43) VS1Maintenance 60 DAY NOTICE 3/13/200 9 3/13/20 11 Medical Exam Wallet Card (391.43) VS3Maintenance 60 DAY NOTICE 3/13/200 9 3/13/20 11 Jeff Jones Kraft Foods

37. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 EVIR Driver Coaching Intervention Regional managers discuss Incomplete Inspections report (below) with affected drivers Regional managers also use third party deficiency reports to discuss driver EVIR reporting errors Jeff Jones Kraft Foods EVIR Report - Incomplete Inspections DateAssetFirst Name Last Name Repair Count Defect Count Config LabelManualVerified Extractor DeviceDuration 10/27/2010 18:36N2902000 TRACTOR POST-TRIP00UNK0:05:02 10/27/2010 3:335428501 TRACTOR PRE-TRIP00UNK0:11:08 10/25/2010 13:251009706 TRACTOR POST-TRIP00UNK0:05:26 10/25/2010 3:172870600 TRACTOR PRE-TRIP00UNK0:04:33

38. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Driver Engagement After a Roadside Inspection Kraft requires drivers to submit copy of roadside inspection to terminal management upon return to terminal Regional management reviews EVIR to compare to roadside inspection, identifying any driver oversights Third party logistics provider provides data to cross-reference versus reports received Regional management discusses report with driver, identify root causes and corrective actions Regional management can also direct driver to complete computer based training modules Jeff Jones Kraft Foods

39. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Question & Answer Please submit questions to “Q&A” using the Q&A tool Gary Petty National Private Truck Council Tom Moore National Private Truck Council Tom Bray J. J. Keller & Associates, Inc. Scott Willert Kraft Foods Jeff Jones Kraft Foods

40. Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 502719690 Closing Remarks Checkout the archive of past topics at: http://www.jjkeller.com/nptcinfo http://www.jjkeller.com/nptcinfo  PowerPoint slides up in 1-2 days  Recording up in 1 week Topics for 2011:  May 11 – The EOBR Rule and Elogs  July 13 – Fleet Excellence: Driver Wellness  October 12 – Fleet Excellence: Driver Discipline and Coaching Gary Petty National Private Truck Council