The Fleet Business Authority
Issue link: http://heavydutytrucking.epubxp.com/i/236631
Lawsuits, accidents, insurance premiums and safety-related infractions can be huge cost drivers, particularly with fines and penalties imposed by the DOT's Compliance, Safety, Accountability enforcement program. mobile communications and telematics to monitor and manage mpg, speed, idling and provide in-cab navigation and even real-time driver coaching. John Erik Albrechtsen, manager of operations of Paul's Hauling based out of Winnipeg, Manitoba, notes that the combination of mobile communications and navigation is critical to the fleet's operations. The company uses ALK's navigation and route planning systems. "The navigation is important," he says. "We can be sure where our trucks are going and we don't want them in places they can't operate." If a truck goes off-route, that information is relayed via the mobile communications system to the planner. "So the planner can figure out...was it an abnormality or is there something in the route that needs to be adjusted." More than fuel Fuel isn't the only area where technology can help reduce cost per mile, says Randy Seals, customer advocate at McLeod Software. Costs could be further reduced by using all the available data from a fleet's management software and other systems that allow "the people behind the scenes to make better decisions," in terms of which truck gets which load, driver hours of service, safety and maintenance. Take maintenance costs, for example. Maintenance software that Other ways to measure costs C ost per mile is used by trucking companies of all types to monitor and control various costs. But it's not the only way fleets measure costs. Some look at cost per stop, cost per hour or other measuring sticks. If miles are not the revenue generator, or even when they are, fleets want to get a more overall picture, according to Tom Flies, chief operating officer, Cadec. "A trend with private fleets, and for-hire fleets are catching on, is looking at cost per hour to operate a truck," he says. Cost per mile is still important, but these fleets want to optimize the fleet as a whole."And optimizing time is really the name of the game." An increasing amount of fleet-generated data combined with analytical tools allows fleets to move beyond the cost per mile measure. "Software allows a customer for the first time to determine what their revenue per hour, costs per hour and finally profit per hour," says Randy Seals, customer advocate at McLeod Software."By putting all that information together and analyzing it, we can find those." For LTL and delivery fleets, cost per stop is often the metric. Chris Otey, transportation manager at Goody Goody Liquors in the Dallas/Ft. Worth area, says that while vehicle mileage and fuel are considered in costs, they don't do cost per mile, but rather cost per stop."We figure how long it takes the driver to get to each stop and how long he should be there depending upon the delivery."That allows them to get an idea of how much each stop should cost. Carrier Logistics' Weinberg notes that time per stop is also a valid metric."Carriers want to get in and out as fast as possible. Technology such as geofencing can help by letting the customer know that your truck is close to their building and to make sure there is a loading dock available." 40 HDT • JANUARY 2014 automates scheduling, parts ordering/ inventory has been available for some time. Newer technologies integrate the shop more closely with other parts of the trucking operation, with telematics systems generating engine fault code alerts and engine performance data. Automated driver vehicle inspection reports tools eliminate paper, ensure more timely service and catch problems in the yard rather than on the road. These technologies have made the vehicle more connected to the shop and fleet management functions. Mike McQuade, chief technology officer at Zonar Systems, says, "The concept of a connected vehicle is to collect the data, evaluate it in the cloud and give feedback in real-time. The magic happens with data that is real time." While automated systems keep track of scheduled maintenance and telematics systems can signal when problems are brewing on a truck, much of the time a truck spends outof-service for maintenance or repair is not related to wrench-turning, according to Michael Riemer, vice president products and channel marketing at Decisiv. Service management software helps fleets manage the overhead that adds to service time by automating the paperwork and communication between the truck owner and service provider. Safety and compliance Safety is another area where technology can help cut cost per mile, according to Louis McAnally, vice president of operations for PeopleNet, although it's not quite so easy to quantify. Lawsuits, accidents, insurance premiums, and safety-related infractions can be huge cost drivers, particularly with fines and penalties imposed by the DOT's Compliance, Safety, Accountability enforceent program. "Start by electronically monitoring hours of service," McAnally says. Electronic logs can cut down on time www.truckinginfo.com