Wadhams Enterprises: Driving Growth
Transportation
Wednesday, 01 August 2007
rp Wadhams Enterprises - American Executive - RedCoat Publishing
Steve and Rick Wadhams explain what it takes to run a successful transportation company in today’s tight economy.

In 1949, Red Wadhams started a transportation company with a single truck and a vision. The company began delivering canned milk to customers across upstate New York and over the next few years added bagged feed, fertilizer, and seed to the mix. In 1964, the company began transporting bulk milk, rather than canned, and by 1969, it had a fleet of 12 farm milk trucks and 10 tractors it leased to another carrier.

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Rick and Steve Wadham
Red’s two sons, Rick and Steve, joined the company during the 1970s and, through a series of strategic moves, formed the company known today as Wadhams Enterprises, which comprises five transportation entities.

ARG Trucking Corp. transports gasoline, distillates, propane, heavy oil, and liquid asphalt throughout upstate New York, Western Massachusetts, Southern Vermont, Northern Pennsylvania, as well as Quebec and Ontario. Earl T. Wadhams, Inc. continues the family’s original business with a fleet of 41 milk tankers that transport bulk milk from farms in upstate and central New York to processing plants throughout New York, Pennsylvania, New Jersey, Massachusetts, Connecticut, Vermont, and Ohio. Express Services Co. is a transportation broker serving the 48 contiguous states, Canada, and Mexico. Howard’s Express provides general commodities LTL (less-than truck load) services throughout New York, New Jersey, and portions of Pennsylvania, while RIST Transportation offers general commodities TL (truck load) services along the Eastern Seaboard from Maine to South Carolina, as well as several Midwestern states.


Containing costs

Rising fuel prices have taken a toll on the transportation industry nationwide, so to keep costs down, Wadhams Enterprises is considering urchasing several “idle-free” auxiliary power units for vehicles that make frequent overnight trips. On the table are the Bergstrom No-Idle Thermal Environment, which heats, cools, and provides electric power using deep-cycle cell batteries, and the Cummins Comfortguard System and Mechron Cab Comfort System, both of which generate electricity via a small diesel engine.

The units, which cost up to $8,500, are expected to pay for themselves within two to three years, and Wadhams Enterprises runs its trucks for an average of seven years. “Because we are a regional carrier and our drivers don’t live in the trucks as much as coast-to-coast carriers, we have to carefully consider where we use this technology to get the best return,” said Rick, vice president. Satellite units on Wadhams Enterprises’ TL trucks let fleet managers know how long each driver idles per trip.

According to Steve, president and CEO, the company is encouraging drivers to use progressive shifting to consume less fuel. In addition, the company programs all of its power units to shut down automatically after a few minutes of idling and is encouraging its drivers to use cruise control to prevent excess fuel usage and unnecessary engine wear. “All this information is fed back to our fleet managers so they can coach employees on fuel savings,” he said.

Employer of choice

Although Wadhams Enterprises continues to grow, the movement of businesses requiring transportation services away from rural New York has prompted the company to focus on recruitment and retention. Several years ago, the Wadhams brothers made a conscious decision to become the area’s employer of choice, and, as a result, the carrier of choice.

Wadhams Enterprises is currently offering a $2,000 sign-on bonus for qualified drivers and a $1,000 recruitment bonus. But the company’s ulture is a bigger motivator than money. Steve explained that a culture committee spent a year developing a set of corporate principles: be impeccable with your word, always do your best, don’t make assumptions, and don’t take things personally. To disseminate the message, the company engaged its managers and driver supervisors (a.k.a. dispatchers) in classroom training.

According to Rick, a large portion of training focuses on helping driver supervisors understand what drivers are going through emotionally during their first few months on the job. “If a new driver has been used to the typical nine-to-five job and being home every night and weekend, he or she may struggle for a bit in the service industry. Hours aren’t set in stone, and the job is demanding,” he said, adding that many new employees are men and women who have recently made a career change.

“Training has helped our driver supervisors communicate better with our drivers, letting them know what to expect every day instead of just saying, ‘Here’s your load. Call me when you are empty,’” Rick added.

To further support communication, Wadhams Enterprises has assigned a group of drivers to each driver supervisor. The driver supervisor becomes a go-to person when a driver has questions or concerns and is evaluated annually based on the performance of his or her assigned drivers, including log-book violations, turnover rate, claims, and safety. “In this business, you need to show concern for employees. We are teaching our supervisors that this will not only make their jobs easier, but also benefit the company as whole,” said Rick.

The extra mile
Wadhams Enterprises is going above and beyond federal and state training and safety requirements and is currently installing training PCs at each terminal. While waiting for the next assignment, employees can watch informational videos that walk them though, for instance, progressive shifting, how to use stability control technology, how to save fuel, and safety tips and techniques. After each training module, drivers answer a few questions, and the results are recorded.

“The original intent of the training PCs was to increase safety awareness as we are self-insured,” said Steve, adding that Wadhams Enterprises has a full-time safety director and three training and safety supervisors on staff that hold safety meetings at each terminal on a quarterly basis.

Over the last several years, many Wadhams Enterprises drivers have been recognized by the NY State Motor Truck Association for safe driving. They also have participated in the New York State Truck Driving Championships, a truck and tractor-trailer rodeo that puts drivers’ skills and knowledge to the test via a 40-question exam, pre-trip inspection, and obstacle course.

To drive safety home, the company recently osted signs at each terminal depicting a father holding a young child’s hand. The message reads, “Safety, because someone is waiting for me.”

“We want our employees to see that message every time they leave a terminal. We are promoting safety because our employees are like family to us, and we want everyone to come home in the same condition they came to work,” Steve concluded.

 
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