Tuesday, June 3, 2008

Private Fleets Fighting Back – Saving Thousands with Fleet Management

Northwest Food Products Transportation increases fuel economy, saves $500,000 in fuel in first year with Cadec. “One of the greatest cost savings achieved from our Cadec investment has been in the area of fuel economy. With our Cadec software, we were able to monitor their use of progressive shifting, a driving technique that can help save fuel by ensuring that trucks are running at lower RPMs. Increasing fuel efficiency by just one-tenth of a mile saves NFPT $100,000 annually. Through monitoring with Cadec, we were able to increase MPGs by a half-mile per gallon, saving $500,000 in fuel in the first year alone. That savings alone more than paid for our investment in Cadec. Maintenance costs also went down by 4.5 cents a mile. By reducing sudden decels and increasing use of progressive shifting, we had far fewer brake jobs on our hands.” Roger Nordtvedt, General Manager; Northwest Food Products Transportation

Automation helps CN Brown ensure timely delivery, improve safety and reduce operating costs in their fuel transportation business. “Cadec enables us to monitor and reduce idle time.That directly impacts the amount of fuel our fleet uses. Even with increases in fuel and operations costs and an additional 90,000 miles on the road in 2007, C.N. Brown was able to cut its overall fleet cost by three cents per mile as compared to 2006 – resulting in a total savings of $57,000. “Cadec’s software played a significant role in that,” Ken Cannell, Transportation Manager; CN Brown

G&C Foods Takes Control of Rising Transportation Costs, anticipating $300,000 savings in first year. “Within one week, we saw drastic reductions in both speeding and excessive idling. Our reports went from 80 percent red to just a few drivers in the red, and over time we’ve seen more improvements. Our ability to track this behavior with Cadec had a major impact on driver behavior... Penalties for Hours of Service violations are dramatic, and no matter how meticulous you think you are, paper logs are subject to basic human error. Cadec automates the whole process for us, recording hours of service, pickups, dropoffs… everything that we used to record by hand. Drivers don’t even need to think about it. Cadec ensures our records are accurate and complete.” Larry Clark, Transportation Manager; G&C Foods

“Our overall transportation expenses for 2008 will be about $6 million. If Cadec helps reduce that by just three percent, that’s $180,000 in savings. But when we consider all the areas Cadec can contribute to – reduced fuel consumption, safety improvements, better logging compliance, better return tracking, and improving our ability to collect on invoices – we think our savings will be closer to $300,000 per year. Cadec will be the key to reducing our transportation costs while improving service to our customers.” David LePage, President; G&C Foods

Morning Star anticipates cutting repair and maintenance costs in half “Most years we spend about $1.5 million on repair and maintenance, including accidents. A rollover, for instance, costs about $80,000, and even a minor incident can cost $10,000. We think that monitoring for safety through Cadec, and associated remedial training, can help us cut that $1.5 million in half.” Paul Pimmetel; Morning Star Foods

To read the complete case studies on each of these companies visit http://www.cadec.com/resources.php

Author: Frank Moreno