But when the trucking industry underwent deregulation in , such bureaucratic wrangling became much less of a part of the way Schneider and other trucking companies did business. Truckers were freed to compete directly for customers. Around the same time, many large manufacturers and retailers were changing their business pattern, switching to so-called just-in-time delivery.
Just-in-time meant that instead of warehousing huge stocks of common items, factories ordered raw materials as needed, and shipped finished goods directly to retailers. This cut costs associated with large inventories, but it put intense pressure on truckers.
A truckers' delay of as little as 20 minutes could cause retailers annoying back-ups as they tried to get their goods out to waiting customers.
Don Schneider was quick to realize that his company had to change massively in order to adapt to the new business climate. Two major changes were in employee relations and in new use of technology.
In the early s Schneider began giving its drivers bonuses based on performance, while also eliminating perks like reserved parking spaces for upper echelon employees. Deregulation allowed the company to hire non-union drivers, which it did, while pledging to keep its union employees. In , all 1, drivers belonged to the Teamsters union. As the company grew, the percentage of unionized drivers became smaller.
By the early s, only Teamsters were left, out of a crew of roughly 10, drivers. Attrition of the union allowed Schneider more freedom to set its own policies for employees. This gave the company more flexibility, which it needed to adapt to the increased demands of its customers. Schneider also pioneered the use of satellite technology in trucking.
Traditionally, drivers on the road would find a phone at a truck stop and call a company dispatcher for a periodic check-in. This was sometimes a frustrating process, as pay phones were often engaged, or the dispatcher busy and unable to accept the call.
Schneider National made a large investment in computer and satellite technology in to give it a new way to communicate with drivers. Each truck was linked by satellite to the company's home base in Green Bay. Specialized software ran continuous updates on the many variables of the business, not only keeping track of where each truck was, but logging how many hours the driver had slept, fuel use, and average time it took to unload at each customer's facility.
Changes in routes could be beamed directly to the driver on the road, and if a customer needed an empty trailer in half an hour, the computer could determine which driver was nearby and eligible for another load. Schneider was the first major trucker to make use of satellite technology, and soon the rest of the industry was scrambling to keep up.
Meanwhile, Schneider prospered financially. The trucking market in the s was characterized by intense competition and recessive prices, yet Schneider managed to grow at around 20 percent annually. Because the company was privately held, it was able to reinvest freely with an eye to long-term profits, and Schneider continued to put money into technology and new ventures.
With its rapid growth, Schneider needed to expand its facilities in the early s in order to accommodate more drivers. The company began work on a huge facility in Memphis in , building a driver service center and operations center and enlarging an existing maintenance center. The driver service center gave drivers a place to relax, rest, and shower while their trucks were being refueled or repaired. Originally planned in the late s as home base for about drivers, by the early s the Memphis site grew into a hub for close to 1, truckers.
Schneider also employed its high technology at its new service center. We carry merchandise and materials for two-thirds of the Fortune companies — meaning we have a direct impact on the economy.
Schneider is built to last. We remain stable and strong because we conduct our business with the utmost respect for our associates, our customers and the world around us. Schneider is an equal opportunity employer. We do not discriminate in hiring, or in any other employment related decision, on the basis of race, color, creed, religion, national origin, sex, age, gender, disability, sexual orientation, marital status, veteran status or any other classification protected by law.
Schneider is also proud to be ISO certified. ISO is a series of international standards for quality assurance systems. Basically, it means that Schneider is officially considered a world-class organization. Schneider Transport logo adopted. Schneider Transport merged with Packer City Transport.
Purchased Kampo Transit, a truck regional milk and fuel oil hauler. Installed a state-of-the-art computerized control system light-years ahead of the competition. Don Schneider named president of the company. The holding company, Schneider National, Inc.
The first bulk fuel site was installed at the Wise Garage in Dayton, Ohio. Christensen Oil was purchased to provide sufficient fuel of the appropriate quality. ICC granted Schneider state authority to carry all commodities except explosives and bulk. Founder Al Schneider died. Opened Canadian office. Schneider National launched intermodal service offering.
Opened Mexico office. Schneider Communications sold to Frontier Communications. Schneider Dedicated conducted largest-ever private fleet conversion for Kimberly-Clark. Opened office in Venlo, the Netherlands. Purchased Highway Carrier Corporation. Purchased Builders Transport. Purchased Landstar Poole. Purchased Tranzact Payment Service.
Schneider National welcomed its first Ride of Pride, military-themed truck into its fleet. Schneider rolled out new Regional service offering. Schneider completed conversion of intermodal fleet to a container-only fleet.
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