The E3 Difference

Execute Excellence Every Time

How can hiring UST save money compared to in house logistical management?

Our delivery teams and warehouse crews are simply more productive and efficient. UST employs contractors for delivery services – not employees. These contractors provide their own trucks, insurance, fuel, tools, helper staff (usually the second man on the truck, rarely do our contractors use three men on a truck) and cover all other expenses. Because UST pays our contractors a commission for the work that they perform instead of paying them by the hour, we do not have to pay overtime. Our delivery teams are paid only for work completed, thereby motivating them to produce as much delivered retail as possible. Our warehouse teams are paid a modest hourly wage and rewarded with bonuses based on productivity and quality of work.

Performance-based Pay

Our performance-based pay model is designed to reward the strong and eliminate the under-performing. Based on client feedback we select a group of key measures by location and build a pay program in which drivers are paid a minimal base rate for completed stops, along with substantial added performance pay if they meet the required numbers.

Damage/Service Failure Accountability

UST believes that hiring contractors versus employees makes a huge difference in efficiencies. As owner-operators, contractors are independent small business owners with a pride of ownership that employees do not have. Work is distributed to the top performers first, so contractors are competing with each other for workload. This results in all teams striving to prove their capability every day to ensure high load volumes and higher earnings for themselves. The contractors are on a “you break it, you buy it” program. They treat the merchandise as money, because to them, it is. With in house logistical management the retailer has to swallow expenses incurred for late or poor deliveries, the expenses of redelivery, team errors and customer property damages. UST drivers are much more careful to avoid these situations, resulting in cleaner deliveries and better service levels.

Better Processes

Each week UST carefully monitors and measures our performance in eighteen categories, including completion percentages, on-time delivery, survey responses, damage percentages, productive stop rate, return rate, exchange rate and service tech visit rate. “What gets measured, improves” is our mantra when it comes to improving productivity. On-going monitoring and measuring of all aspects of our business exceeds that of in house operations, and of our competition.

Reduced Exposure and Expenses

When you hire UST, all Workman’s Comp claims, vehicle accidents and damage to customer property are our responsibility. All training, recruiting, uniforms, supply replenishment and equipment/personnel demand fluctuations become UST’s responsibility, eliminating our clients’ expenses for stagnant equipment. These types of expenses are not easily captured in the accounting process but are estimated to be as much as 1.5% of wages.