The Keep It Kool Program has made a measurable difference for Kool Pak and for our customers. By every measure, claims were reduced in fiscal year 2009. We closed the year on June 30 with the lowest claims ratio ever recorded in Kool Pak history, far below the average of carriers across the U.S.
As everyone in the industry knows, just a handful of temperature claims can be serious damage. The industry goal is to reduce claims to a level of one half of one percent of revenue (.5%). While most carriers are reluctant to share their numbers, we kept it kool in 2009 with our claims ratio at just .2%. That's worth talking about.
With the entire company participating and working in competitive teams, we can really make a difference in customer satisfaction, while reducing costs for the company. Now we're in the midst of another year's Keep It Kool Program, and we're proving it can be done again.
This program proved to be one of our most important achievements for last year. To find out how we can safely handle your products through the entire cold chain management process, please contact us today!
In April 2008, Kool Pak initiated a unique, company-wide claims awareness program that has proven to be highly successful in reducing claims, increasing customer loyalty and improving customer relations. Aptly named the Keep It Kool Program, it's created positive results for everyone involved:
What's unique about the Keep It Kool program is that it was designed as a lighthearted contest to engage every Kool Pak employee. Employees are organized randomly into teams and develop humorous names, such as TEMP-tations, Serial Chillers, and Kool Aid, often including references to temperature, since temperature claims have the greatest impact.
In designing the program, we recognized that the fragmented nature of LTL does not include regular feedback to those who handle the freight. While we train all drivers extensively in claims prevention, this program provides a feedback loop via incident reports, called Snarks. In many instances, we found that potential claims were avoided by drivers or warehousemen who remembered the correct procedure because of a previous Snark.
The Keep it Kool Program has initiated competitive banter throughout the Kool Pak organization, and it has greatly increased awareness of the causes and negative effects of claims on the business. Team loyalty is often intense and builds relationships throughout the company that would have been improbable without the company-wide component of the contest. And it's worked. Snark counts have dropped from 63 on our first month to eight in August of 2009, and we've also experienced a remarkable drop in both claims filed and the dollar amounts of claims.