STEPS Acme Truck Business Continuity

8/2/2019 STEPS Acme Truck Business Continuity

1/34

BUSINESSBUSINESS

CONTINUITYCONTINUITY


2/34

MISSION STATEMENTWe the ACME team are committed

to providing efficient andeconomical transportation

services in a safe, timely, andcourteous manner-

around the clock!


3/34

Service Points

Acme also has offices in

Bakersfield, CA and Vernal, UT!


4/34

Truck InventoryLALA TXTX Other TOTALOther TOTAL

Pick upsPick ups 209209 115115 99 333333

One tonOne ton 109109 8989 1414 212212MinifloatMinifloat 153153 177177 5050 380380

Single AxleSingle Axle 4747 1313 77 6767

Tandem AxleTandem Axle 345345 369369 3434 748748

OtherOther 99 66 11 1616

TOTALTOTAL 872872 769769 115115 1,7561,756


5/34

Acme started in 1960.We are currently averaging

6,075 shipments per week, with over 70 offices

based in 8 states, serving the U. S. & Canada!

0

20000

40000

60000

80000

100000

120000

140000

160000

8

3

8

4

8

5

8

6

8

7

8

8

8

9

9

0

9

1

9

2

9

3

9

4

9

5

9

6

9

7

9

8

9

9

0

0

0

1

0

2

0

3

0

4

0

5


6/34

Acme Safety Team

5 driver qualification specialists

5 driver safety instructors / truck inspectors

4 DOT compliance specialists 7 loading supervisors / truck inspectors

5 safety / risk managers

Plus over 70 terminal managers


7/34

Haul/Claim Ratio

1998

1999

2000

2001 2002

2003

2004

400

500

600

700 1998

1999

2000

2001

2002

2003

2004

Year Ratio

1998 487

1999 550

2000 612

2001 552

2002 536

2003 630

2004 587

Haul/Claim Ratio

Number of trips

divided by number ofchargeable accidents

Safety Statistics

DOT Accident Ratio

1998

19992000

2001 2002 2003

2004

0

0.5

1

1.5 1998

1999

2000

2001

2002

2003

2004

Year Ratio

1998 1.36

1999 0.86

2000 0.93

2001 1.01

2002 1.08

2003 0.98

2004 1.29

DOT Accident Ratio

DOT Recordable

accidents per million

miles traveled.


8/34

TRIR

1998

1999

2000

20012002

2003 2004

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

1998

1999

2000

2001

2002

2003

2004

Year Ratio

1998 5.54

1999 4.232000 3.90

2001 2.89

2002 2.61

2003 2.83

2004 2.62

OSHA Total

Recordable Incident

Rate of worker safety.

TRIR

Safety Statistics


9/34

Potential risks that impactPotential risks that impact

Business ContinuityBusiness Continuity

Fire

Theft

Vandalism

Flooding

Hurricane


10/34

Pre-Katrina Hurricane PlanPre-Katrina Hurricane Plan

Scope: 6 persons for up to 3 days

Harden corporate office with back upgenerator power and fire suppression

system Daily and weekly back up tapes for

computers stored off site

SunGuard policy for last 5 years; responsetime less than 48 hours

Designated meeting place at Houston

office


11/34

K

A

TR

I

N

A


12/34


13/34

Acme Truckcorporate office


14/34

Effects of storm surge


15/34

What We Did RightWhat We Did Right

Had a business continuity plan

Closed out the billing and sent payroll by Fedex

Take computer back up tapes with us

SunGuard policy for previous 5 years (testedannually)

Start up servers in Philadelphia on a timely basis(about 40 hours)

Evacuate!!! Kept invoices (over 6,000 a week) and payroll

(1,500 drivers) current during the ongoing weeks.


16/34

Unpleasant SurprisesUnpleasant Surprises

Only half of corporate office peopleavailable

People spread out between Lafayette,Houston, Dallas

Shortage of hotels

Lack of cell phone communication Computer security so tight that it took

up to 6 days to open network


17/34

Unpleasant SurprisesUnpleasant Surprises

Displaced for 3 weeks

Postal service problems with brokerageinvoices (20% of sales)

Postal service problems with cash collections

Vendors unavailable such as

forms/paperwork and drug screening


18/34

SolutionsSolutions

Multiple vendors for critical services

Bank payment processing center for cash

receipts Truck stop scanning for brokerage

New data center


19/34

Multiple VendorsMultiple Vendors

Drug screening now have 3 vendors thatare used continuously on a regional basis

Forms added a new vendor in Houston

who has all critical supplies establishedand be ordered from on a quarterly basis

Cell phones Blackberry devices have an

Austin area code allowing them to be usedas cell phones even if Gulf Coast areacodes are jammed


20/34

Cash ReceiptsCash Receipts

Acmes bank, AmSouth, has a longestablished payment processing center in

Nashville, TN using state of the artequipment

Corporate office has daily access to payment

data and images of all mailed materials

The end result is better cash flow than whenpayment was mailed to Harvey pre-Katrina


21/34

ScanningScanning

Individual Acme truckers canuse truck stop scanning for asmall fee

Brokerage carriers are able touse truck stop scanning

Also, we can send customers

invoices by fax or email


22/34

New Data CenterNew Data Center

This is the solution for many of ourunpleasant surprises

Located in Austin, Texas

Holds complete duplicate of all currentservers (mirror site)


23/34


24/34

New Data CenterNew Data Center

Will have small permanent IT staff

As an evacuation site, it has 8 large emptyoffices (room for 10 desks each) fordisplaced employees


25/34


26/34

Mirror SiteMirror Site

All services are duplicated: Dispatch, Rating,Billing, Acme Web, email, Blackberry, documentimaging

Data is backed up every minute from Harvey toAustin (except imaging which will be done daily)

This huge project was completed in 8 months.


27/34

Mirror SiteMirror Site

Estimated downtime for an unexpectedemergency is less than 2 hours

When IT functions are rolled over to Austin,the link for terminals automatically follows(minimizing security and network problems)


28/34

InvestmentInvestment

Initial Costs Computer Hardware

$270,000

Computer Software $250,000

Property upgrade $150,000

Phone/Wiring $65,000

Total Initial Investment $735,000

Monthly Cost Property

$8,000

Communications $2,800

Taxes $2,000

Utilities $2,000

Total Monthly Cost $14,800


29/34

Evacuation SiteEvacuation Site

Available for any terminal or office

Can house entire corporate office staff

Large phone system in place Pre-wired for additional computers and

phones

Numerous hotels / restaurants within 5 miles


30/34

Distance to AustinDistance to Austin

220 miles from Corpus Christi

170 miles from Houston

310 miles from Lake Charles

380 miles from Lafayette

515 miles from Harvey


31/34

Chapter 4-10 Contingency Plan for

Emergency Situations

In the event of a hurricane, the following protocolwill apply for the corporate or Logistics office:

1.when a hurricane is 72 hours away and the

office has a least 10% threat zone, then theAdvance Team will evacuate to the Austin datacenter,

2.when category 2 is 48 hours away and the office

has a least 25% threat zone, then ALL personnelshould evacuate to Austin,

3.when category 3 or higher is 48 hours away andthe office has a least 15% threat zone, then ALL

personnel should evacuate to Austin


32/34

One hotel room will be provided by Acmefor each displaced manager and staff coming toAustin to work. The room will be directly billed toAcme.

For those that decide not to go to Austin,they must contact their manager by phone or

email every 3 days for a status report.

Other considerations


33/34

Information Technology Manager shouldhave a message posted to intranet and public

web site with instructions and updates.

Information Technology Manager shouldpost a voice mail message with toll free accessproviding instructions and updates.

Other considerations


34/34

Thank you for thisThank you for this

opportunityopportunity

STEPS Acme Truck Business Continuity

Documents

Transcript of STEPS Acme Truck Business Continuity