Industry partner critiques MTMC's moving program.

Charles McDaniel is a straight shooter.

And McDaniel, President of The Hilldrup Companies, of Stafford, Va., brought that kind of frank talk to an Industry Day Briefing at MTMC Headquarters Alexandria, on Aug. 27.

In a conference room packed with Passenger and Personal Property employees, McDaniel provided his candid, personal opinions on MTMC's moving program--without reservation.

For all, it was a learning experience. For many, it was an uncomfortable experience.

"I am absolutely committed to the view that military members deserve the best possible move," said McDaniel, whose company that has been in his family since 1940.

MTMC only needs to look at its own policies and rules, said McDaniel, to understand why acknowledged problems exist in the program.

In general, said McDaniel, MTMC does not use properly the industry leverage it receives for the more than half-million moves it conducts every year. For years in the past, MTMC paid noncompetitive rates that were too low. Now, in some areas, the military pays overly generous rates for the service it gets.

"You are one of the biggest customers in the world--and ought to be treated as such," said McDaniel.

MTMC's methodology of rotating companies for business has had unintended consequences, said McDaniel.

To maintain market share, moving firms create "paper companies." These companies have no assets and only a nominal business organization and structure. They are designed strictly to garner business within the orderly rotation of the awards of personal property business.

The MTMC rules provide opportunities for the moving industry to adapt the regulations to its singular advantage, he said.

McDaniel cited additional advantages to having multiple companies:

* If a bad move occurs, and a local transportation officer issues a suspension, a firm with paper companies has others to fall back on to maintain business.

* In times of high volume, a moving company has the option of using its paper company with the highest rates.

"You set it up--you've got to take it apart," said McDaniel, of MTMC's personal property program, especially paper company rules.

Broadly speaking, McDaniel suggested three ways for MTMC to reduce the costs of Department of Defense moving costs:

* Reduce the total number of moves.

* Cut organizational overhead.

* Make cultural changes.

In the third category, McDaniel said the military's traditional inclination to take leave in permanent-change-of-station moves means the majority of Department of Defense shipments require temporary storage, which requires double handling and added costs.

With normal inflation, the costs associated with individual moves will not allow for moving charges to be reduced, he said.

As an organizational theme, McDaniel told MTMC personal property employees they should "adopt the best practices of commercial customers." Large national firms are prized customers of moving companies. Industrywide, 40 percent of personal property moves are national accounts; military business is 14 percent.

How do national accounts measure the work of movers?

"If you don't perform, they kick you out," said McDaniel. "Your reward is that if you give good service, you get the work. It's competition. Good movers have moved away from the military to national accounts."

Within Hilldrup, McDaniel said, his firm now does 5 percent military work--formerly, it did 80 percent.

Standards are now set by national accounts, and the moving industry itself, in such innovations as: full-value coverage, customer surveys, satellite tracking, employee training, improved equipment and performance-based contracts.

Supply and demand are key factors in the busy spring and summer moving season, he said.

"I'll tell you for sure," said McDaniel. "Dispatchers and movers look at revenue on jobs. They allocate tracks on revenue and customer loyalty."

McDaniel said he was "in general agreement with the new direction of MTMC" as the command develops a new moving initiative.

Key elements, he said, should include the following:

* Use of the commercial tariff;

* One-year rate filings;

* Local transportation office control;

* Best-value approach;

* Full replacement coverage;

* Claim settlement by movers; and

* Military use of a customer survey.

"There's only one question you need on a customer survey: `Are you happy with your move?'"

Movers who do not perform should be out of the program, he said.

"You need more judgment and fewer rules," said McDaniel.

McDaniel's presentation drew considerable interest from MTMC employees.

"You hit a lot of our goals and ideas," Col. Silvia Anderson, MTMC's Deputy Chief of Staff for Passenger and Personal Property, told McDaniel.