Trucking companies can take steps to save money on fuel by focusing on their drivers. Fleet Owner Magazine and Truckload Carriers Association are hosting a webinar next week on this very topic entitled: Strategies and technologies for coping with the high cost of fuel.
The concept is not new, but is gaining a lot more attention this year due to the high cost of fuel in the US. By measuring and then altering driver behavior, trucking companies can dramatically reduce their fuel consumption. In the past, these tactics were used in an effort to improve safety, identify & retain strong drivers and increase customer service. Measurements were commonly focused on speeding incidents, rapid decelerations, unknown stops and on-time arrivals. Today’s measurements are now more focused on idle time, MPG and out of route miles.
“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.” Northwest Food Products Transportation
"Engine idling once averaged 40% of the time engines were turned on but has dropped to 3%. Speeding events averaged about 16,000 per month but now have fallen to 200 per month.” Nicholas & Co.
“Monitoring drivers through Cadec and associated remedial training can help us save $750,000 in one year.” Morning Star
“Poland Spring achieved a 41 percent reduction in idle time and will save about $21,000 in fuel in 2008 with Cadec.” Poland Spring
“Our savings will be close to $300,000 per year. Cadec will be the key to reducing our transportation costs while improving service to our customers.” G&C Foods
Driver scorecards and key performance indicator dashboards are now a critical component of fleet management systems to gain executive-level visibility into transportation operations. For more information, check out these useful links:
www.cadec.com/resources
www.blueskytech.com
Wednesday, July 30, 2008
Wednesday, July 16, 2008
Smart in the Office/Smart in the Truck – Doing more to perfect data collection and positively impact performance through in cab technology
While a few system providers have offered onboard fleet management tools for several years that include computing power, memory, touchscreens, and even a database in the cab of the truck, there has certainly been an uptick recently of more vendors joining that club. Clearly the industry sees benefit in doing more on board. There is no shortage of good reasons for this.
Customers have discussed with me an array of results they will achieve by leveraging technology in the cab, and even beyond the cab with handheld devices, sensors, etc. Eliminating paperwork not only makes life easier for the driver and for administrative personnel…it also drives accuracy. Reduced errors mean better customer service and a direct path to better results at the bottom line.
Efficiency increases by accurately capturing and communicating in a timely and actionable way the events that occur in the field. One industry veteran told me that, “the best data is data captured as close as possible to the point at which it happens.” With the right onboard tool, the quantity and quality of actionable data improves. No averages…no gaps. The beauty of the newer technology on board is not only the capture of this information, often in an automated or minimal keystroke way, but also the ability to manage the communication of that data so that it gets to the right place at the right time….IN A WAY THAT MAKES FINANCIAL SENSE.
Sorry to yell there, but it is an important point. Recognizing the value of doing more on board is one thing. Pulling it off in a cost effective manner is something else. This is where the focus comes off of the onboard device, and on to the applications and overall system architecture. Without this part being right, the value of the onboard device cannot be optimized.
A powerful onboard computer whose cost to use is unaffordable does not get the desired result. Think about the possibilities…..handheld POD….temperature, tire pressure, weight, rollover sensor and other monitoring…..cameras….fatigue detection….onboard navigation…driver entertainment and training! The capabilities and their potential impact are remarkable. Happier, retained, safer drivers…attracted from the younger pool of people in the workplace is an example. This technology migration is a meaningful, positive trend for the industry which, when done right, creates a big win for everyone in the supply chain, as a friend in the food distribution industry puts it….from “farm-to-fork.”
Customers have discussed with me an array of results they will achieve by leveraging technology in the cab, and even beyond the cab with handheld devices, sensors, etc. Eliminating paperwork not only makes life easier for the driver and for administrative personnel…it also drives accuracy. Reduced errors mean better customer service and a direct path to better results at the bottom line.
Efficiency increases by accurately capturing and communicating in a timely and actionable way the events that occur in the field. One industry veteran told me that, “the best data is data captured as close as possible to the point at which it happens.” With the right onboard tool, the quantity and quality of actionable data improves. No averages…no gaps. The beauty of the newer technology on board is not only the capture of this information, often in an automated or minimal keystroke way, but also the ability to manage the communication of that data so that it gets to the right place at the right time….IN A WAY THAT MAKES FINANCIAL SENSE.
Sorry to yell there, but it is an important point. Recognizing the value of doing more on board is one thing. Pulling it off in a cost effective manner is something else. This is where the focus comes off of the onboard device, and on to the applications and overall system architecture. Without this part being right, the value of the onboard device cannot be optimized.
A powerful onboard computer whose cost to use is unaffordable does not get the desired result. Think about the possibilities…..handheld POD….temperature, tire pressure, weight, rollover sensor and other monitoring…..cameras….fatigue detection….onboard navigation…driver entertainment and training! The capabilities and their potential impact are remarkable. Happier, retained, safer drivers…attracted from the younger pool of people in the workplace is an example. This technology migration is a meaningful, positive trend for the industry which, when done right, creates a big win for everyone in the supply chain, as a friend in the food distribution industry puts it….from “farm-to-fork.”
Tuesday, July 15, 2008
Driver Scorecards Help Manage Employees
In a recent “Trucks at Work” blog posting, Sean Kilcarr discussed Dealing with the Bad – highlighting different methods and techniques for dealing with bad employees. See his post here.
Another method for dealing with bad drivers in the trucking industry that is growing more common is driver score cards. Many private fleets have adopted this practice to help their safety initiatives, fuel conservation, incentive-based pay and driver retention. Scorecards are a very powerful means of behavior modification. There are some businesses that post their driver scorecards every week in their driver's break room for all to see. The exposure gives credit to the strong drivers, and puts pressure on those that need improvement (peer pressure and management pressure). Driver scorecards and KPI (key performance indicator) dashboards are available as stand-alone products, as part of consulting services and in some fleet management solutions.
Information on Cadec’s GYR Driver Scorecard can be found at http://www.cadec.com/solutions/fleetSafety.php#anchorOne
You can also check out how some companies are using the Cadec Driver Scorecard in the Resource section at www.cadec.com.
Author: Frank Moreno
Another method for dealing with bad drivers in the trucking industry that is growing more common is driver score cards. Many private fleets have adopted this practice to help their safety initiatives, fuel conservation, incentive-based pay and driver retention. Scorecards are a very powerful means of behavior modification. There are some businesses that post their driver scorecards every week in their driver's break room for all to see. The exposure gives credit to the strong drivers, and puts pressure on those that need improvement (peer pressure and management pressure). Driver scorecards and KPI (key performance indicator) dashboards are available as stand-alone products, as part of consulting services and in some fleet management solutions.
Information on Cadec’s GYR Driver Scorecard can be found at http://www.cadec.com/solutions/fleetSafety.php#anchorOne
You can also check out how some companies are using the Cadec Driver Scorecard in the Resource section at www.cadec.com.
Author: Frank Moreno
Thursday, July 10, 2008
The “Perfect” Foodservice Delivery
Is there such a thing as the “Perfect” delivery in the food service industry? There are so many variables that impact delivery costs. Let’s review some of these common issues and what they tend to result in:
Routing – out of route miles not only have a have dramatic impact on fuel consumption, the resulting delays can have a negative impact on customer service with late arrivals and missed delivery windows. Additionally, when drivers select or are assigned routes that will exceed their available hours of service, the company is at risk of facing non-compliant fees.
Paperwork errors – if you’re in the delivery industry, the amount of paperwork you process is unfortunately very familiar. Manifests, driver logs, inspection reports, invoices, delivery routes, credits/returns, physical assets (pallets, bins, crates, etc.) are manually processed on a daily basis.
Shrinkage – no, this is not a reference to a great 80’s sitcom. What this refers to is lost profit based on not getting paid for things allocated in your operating plan. In addition to spoilage, and OSD (overs, shorts and damages) a common contributor to shrinkage is theft – disappearing inventory from the delivery truck. It’s always funny when the items that are reported “missing” from the drivers are the cases of T-bone steaks, and never the broccoli.
These are just a sample of the types of issues that plague foodservice delivery. The question is, are these problems accepted and commonly written off? Or, is there an alternative with best practices and technology to help improve customer service, reduce costs and increase business productivity? Is the perfect delivery attainable?
Well, today’s new technology addresses many of the challenges facing the delivery process. The combination of fleet management, wireless communications, on-board/in cab computing and handheld computers/scanners with mobile delivery applications provide new levels of visibility and automation beyond the warehouse, into the delivery vehicle and onto the loading docks of customers.
Routing systems can track each driver and their available hours, and assign routes that fit within their availability based on known drive times. On-board computing systems can not only provide GPS tracking for real-time route validation, many systems can alert when drivers go out of route, track & calculate out of route miles, identify unknown stops and measure the time between stops. Additionally these systems can provide instant messaging to drivers, verify delivery locations and run in-cab, turn-by-turn navigation applications. There is now more visibility than ever before into routing and driver performance to optimize delivery routes, and with web-based applications and standard interfaces such as XML and web services, these once-disparate systems can now integrate seamlessly to automate many processes, improve customer service and reduce fuel consumption.
In many companies, deliveries create unless amounts of paperwork. Forms and documents constantly require manual, human data input, which businesses base their entire operations on. These labor-intensive administrative processes are subject to error in nearly every step they touch – particularly in item counts. Inaccurate counts can impact inventory, customer service, forecasts and ultimately profits. Unfortunately, paper-based processes are often “counted” or have data inputs multiple times, further increasing the chance for errors. The adoption and integration of handheld computers, bar code scanners, mobile delivery applications and soon RFID alleviates many of these error-laden processes, and automates data capture.
Controlling inventory and asset loss is a critical step towards increasing profits in delivery operations. Electronic manifests combined with scanned inventories for each delivery provide an accurate count of every item on a specific truck and details on where those items need to go. With mobile delivery applications, every item on a vehicle must be accounted for at all times. This helps to avoid incorrect items at a site, incorrect item quantities at a site, items delivered to the wrong site, items that don’t belong on a truck, items that are manually picked at the delivery site and items that are missing from the truck. By having every item electronically scanned and accounted for, the opportunity and potential for theft is reduced if not eliminated and the cost of shrinkage is avoided.
While the Perfect Delivery may still be a challenge, it is more attainable than ever before. The implementation of these integrated systems and efficiencies may not yield errorless delivery operations, the impact on productivity and cost savings is clearly compelling enough for any private fleet, LTL or TL for-hire fleet.
Please comment on your thoughts on whether the "Perfect Delivery" is possible and why.
Author: Frank Moreno
Routing – out of route miles not only have a have dramatic impact on fuel consumption, the resulting delays can have a negative impact on customer service with late arrivals and missed delivery windows. Additionally, when drivers select or are assigned routes that will exceed their available hours of service, the company is at risk of facing non-compliant fees.
Paperwork errors – if you’re in the delivery industry, the amount of paperwork you process is unfortunately very familiar. Manifests, driver logs, inspection reports, invoices, delivery routes, credits/returns, physical assets (pallets, bins, crates, etc.) are manually processed on a daily basis.
Shrinkage – no, this is not a reference to a great 80’s sitcom. What this refers to is lost profit based on not getting paid for things allocated in your operating plan. In addition to spoilage, and OSD (overs, shorts and damages) a common contributor to shrinkage is theft – disappearing inventory from the delivery truck. It’s always funny when the items that are reported “missing” from the drivers are the cases of T-bone steaks, and never the broccoli.
These are just a sample of the types of issues that plague foodservice delivery. The question is, are these problems accepted and commonly written off? Or, is there an alternative with best practices and technology to help improve customer service, reduce costs and increase business productivity? Is the perfect delivery attainable?
Well, today’s new technology addresses many of the challenges facing the delivery process. The combination of fleet management, wireless communications, on-board/in cab computing and handheld computers/scanners with mobile delivery applications provide new levels of visibility and automation beyond the warehouse, into the delivery vehicle and onto the loading docks of customers.
Routing systems can track each driver and their available hours, and assign routes that fit within their availability based on known drive times. On-board computing systems can not only provide GPS tracking for real-time route validation, many systems can alert when drivers go out of route, track & calculate out of route miles, identify unknown stops and measure the time between stops. Additionally these systems can provide instant messaging to drivers, verify delivery locations and run in-cab, turn-by-turn navigation applications. There is now more visibility than ever before into routing and driver performance to optimize delivery routes, and with web-based applications and standard interfaces such as XML and web services, these once-disparate systems can now integrate seamlessly to automate many processes, improve customer service and reduce fuel consumption.
In many companies, deliveries create unless amounts of paperwork. Forms and documents constantly require manual, human data input, which businesses base their entire operations on. These labor-intensive administrative processes are subject to error in nearly every step they touch – particularly in item counts. Inaccurate counts can impact inventory, customer service, forecasts and ultimately profits. Unfortunately, paper-based processes are often “counted” or have data inputs multiple times, further increasing the chance for errors. The adoption and integration of handheld computers, bar code scanners, mobile delivery applications and soon RFID alleviates many of these error-laden processes, and automates data capture.
Controlling inventory and asset loss is a critical step towards increasing profits in delivery operations. Electronic manifests combined with scanned inventories for each delivery provide an accurate count of every item on a specific truck and details on where those items need to go. With mobile delivery applications, every item on a vehicle must be accounted for at all times. This helps to avoid incorrect items at a site, incorrect item quantities at a site, items delivered to the wrong site, items that don’t belong on a truck, items that are manually picked at the delivery site and items that are missing from the truck. By having every item electronically scanned and accounted for, the opportunity and potential for theft is reduced if not eliminated and the cost of shrinkage is avoided.
While the Perfect Delivery may still be a challenge, it is more attainable than ever before. The implementation of these integrated systems and efficiencies may not yield errorless delivery operations, the impact on productivity and cost savings is clearly compelling enough for any private fleet, LTL or TL for-hire fleet.
Please comment on your thoughts on whether the "Perfect Delivery" is possible and why.
Author: Frank Moreno
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