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How Does a Fuel Management System Work?

Posted on August 30, 2017 | by Jimmy Song

Welcome back to Fuel Management System 101 – in this post, we will answer the question “How does a fuel management system work?”.

Let’s start with a history lesson!

History of Fuel Management

Fuel management is the process of controlling fuel usage and fuel cost. Fleets have been managing fuel for many, many years. Before they used computers, fleets relied on manual controls. This mostly meant that fleets collected data through pen and paper.

Then, when computers arrived, fuel management became a lot easier. Fleets used spreadsheets and ID chips to record fuel data.

Of course, in today’s generation, fuel management systems became even easier. The arrival of the Internet allowed fleets to not only collect data but also to collect it in real-time. Fleets can then store the data and create cool reports to measure and reduce fuel expense.

The Modern Fuel Management System

How does a fuel management system work with modern technology? Not all fuel management systems are alike.

Some systems are still quite basic and are limited to using fuel cards and spreadsheets. Other systems include black box devices that allow fleets to dig deeper into fuel data.

The Geotab system is a great example of the latter. Geotab’s fuel management system works by plugging a black box device in the vehicle. The device then collects fuel data and can be used to create reports. Here’s a video preview.

The video shows some of the fuel reports that the Geotab system creates. These reports are where all the fuel management magic happens. The reports provide data on where attention is needed the most and shows fleet managers how to improve fuel savings.

How does a fuel management system work to provide these savings? Let’s explore some of the most powerful reports.

Trended Exception Reports

A huge part of managing fuel is to understand its consumption. Fuel consumption can be reduced by cutting down on bad driving habits.

Fuel management systems capture driving data and compares performance from driver to driver. Managers can create exception reports based on fleet policy. These reports then tell managers which drivers need additional training and which vehicles need maintenance service.

Fuel Tracker & Fuel BI

Another big part of managing fuel is the purchase of fuel itself. Fleet managers are responsible for buying fuel at the best value.

Fuel management systems monitor how much fuel was purchased and when and where it was purchased. This information is then compiled in a report, where fleets can use the information to find the best places to fuel and to find suspicious transactions.

CO2 Emission Report

Reducing CO2 emission is not only good for the environment but it can also help fleets with their bottom line. In several states and provinces, there are regulations on controlling greenhouse gas emissions. The best performing fleets may earn a tax benefit.

Fuel management systems help businesses reduce CO2 emission by creating reports to compare vehicle performance. It highlights which units need the most work in order to become greener.

Still have questions on how does a fuel management system work?
Reach out to a fuel consultant to book a demo.

Sources:
Bell Performance: Fleet Fuel Management Systems Help Save $$$
Geotab: 8 New Custom Fleet Management Reports
Business Weekly: Viewpoint: A Look at Upcoming Trucking Industry Trends

Do I Need a Fuel Management System?

Posted on August 28, 2017 | by Jimmy Song

Businesses with vehicles often ask, “Can I manage fuel all by myself or do I need a fuel management system?”

On the business expense report, fuel accounts for 70% of variable cost. For that reason, fleet managers are paid big bucks to control fuel expenses. Fleet managers often target fuel as the #1 expense to control.

What happens to fleet managers who are successful in controlling fuel cost? They get rewarded and recognized. In a list of Top 20 Fleet Managers Under 40, several managers were recognized because of their effort to manage fuel.

So, let’s get started.

The answer is “YES” if you care about the following.

1) I care about buying fuel at the best value.

Fuel management includes buying fuel at the best value. Does this mean I can just search for where is the cheapest gas station? This sounds easy – why do I need a fuel management system if I can just look it up for free?

Well, effective fuel management is a bit more complicated. Fuel price is a big factor for buying fuel at value, but there are other factors that are equally as important.

Jeff Pape, Global Transportation & Marketing Manager of US Bank, explains that effective fuel management requires looking at these other factors:

Are drivers using preferred vendors?
Where is the location of the fuelling station and how far do drivers have to deviate from set routes?
Does the fuelling site support trucks?

Pape mentions cheap fuel might not be worth it if the location of the fuel station offsets the price. Imagine a driver spending fuel just to drive to “discount” fuelling stations, only to consume more fuel than the amount of money saved at the pump. This is not just wasteful for fuel but also wasteful for valuable delivery time.

The most successful fleet managers, as a result, choose to use a fuel management system. They understand that saving money at the pumps is a bit more complicated than watching for the cheapest price.

2) I care about making sure fuel is efficiently consumed.

Congrats, we found the best value for fuel. What’s next? After spending so much effort on purchasing fuel, fleets should also care about how fuel is consumed. A great way to present fuel savings is to increase the efficiency of fuel consumption.

Fleet managers rely on fuel management systems because they monitor costly habits. In fact, some fleets saved about 40% on fuel by focusing on these two categories.

Idling. A huge waste of fuel is when drivers idle. Drivers may make several stops throughout the day in order to service a customer. Imagine how much fuel is wasted if these drivers stop several times a day and for 10-15 minutes each time. PNL Communications, for example, saved fuel by cutting idling costs by 60%.

Driving habits. Bad driving habits also lead to excessive fuel consumption. When drivers speed or accelerate & brake harshly, they burn through fuel quicker. In order to control these costs, a fuel management system can be used to report and coach drivers. Fleets can experience an 18% increase in fuel savings by correcting driving habits.

3) Wait a minute, I have a small fleet. Do I really need a fuel management system?

Small fleets are split on the issue. Half of small fleets still manually manage fuel, while the other half use a system. Of the half that have not yet set up a system, there is growing acceptance. 37% of these fleets plan to upgrade their fuel management system, while 50% expect to rely more on technology in the coming 5 years.

Small fleets are investing in fuel systems because they too are seeing the business savings. It’s nearly impossible to find a business owner who does not care for saving at the pump nor care for increasing consumption efficiency.

Even 1-person owner-operators are joining the trend. Owner-operators use fuel management tools to monitor cash flow. The system helps them see how much money they are spending in order to make money. In addition, owner-operators are saving money by using fuel systems to fill in fuel tax reports instead of hiring accountants.

Let’s return to the question of “Do I need a fuel management system?”.
If you want save money on fuel, then the answer is 100% yes.

Sources:
Fleet Financials: 5 Things You Can Do Now to Reduce Fuel Expenses

Government Fleet: 20 Under 40: Fleet’s Future Leaders

Work Truck: Effectively Managing Fuel in Truck Fleets

Fleet World: Future of Fleet Survey

American Trucker: Cash Flow Tips for Owner-Operators

Back to School with School Bus Tracking Systems

Posted on August 22, 2017 | by Jimmy Song

13 year-old Niriham Shah got it right with back to school preparations – he took initiative and built a school bus tracking system. He created an app and called it “Bus Wiz”. Bus Wiz lets people track the location of school buses. Shah said that he can now plan ahead for when he should be at the bus stop by using the app.

The Back To School Guide

Back to school is around the corner (and for some areas, school is already in session!).

Shopping is a big part of preparing for back to school. For students, parents, and teachers, the shopping list might include items such as clothing, pens, crayons, markers, and so forth.

What about school buses? School bus companies also have items on their shopping list. One item might include bus tracking hardware. Let’s take a look at some of the hottest hardware.

School Bus Tracking Systems Shopping List

1) Driver Monitors

Road safety is especially important when there are school buses filled with kids. In a study of Toronto school buses, there were 1557 collisions between 2010 and 2015. Of those collisions, how many collisions were preventable?

80%. 80% of collisions were due to driver error. For this reason, companies are turning to school bus tracking systems to monitor driving behaviours. Driver monitoring lets administrators set driving rules and create reports which can then be used to train drivers with bad driving habits.

Example:
Stafford County Public School uses Geotab GO7 Devices to train its drivers. Whenever a rule is broken, the system issues an audible warning to the driver. This lets drivers correct their behaviour in real-time.

And what do the drivers think? Stafford County’s director of transportation said that drivers initially hated the devices – but since then they have changed their mind and accept the system. They realized that the devices actually protects them from false accusations by creating a driver history report.

2) Location Tracking

“Where is my kid?”

Kids get lost from time to time. Some kids take the wrong bus, some kids get off at the wrong stop, and some buses miss their stop. For this reason, location tracking is next on the shopping list.

Parents can already track buses in real time with most bus tracking hardware. The next step, however, is tracking students in real time. Student tracking, as a result, is now being combined with school bus tracking systems.

A good way to track students is through a log-in portal. Students can log-in by carrying a scannable personal item. The portal then creates a record of boarding and exiting time.

Example:
Several schools in Texas started the “Smart Tag” project. Smart Tags are badges that students can wear. These badges are scanned when the student gets on the school bus. The system then registers that the student has arrived and can send an email to parents and administrators.

Parents commented that Smart Tag provided peace of mind. They can now take comfort in knowing that their kid got on the right school bus.

3) Cameras

What’s the best way to stop bullies? A great tip is for kids to surround themselves with helpful friends.

For a school bus bullying victim, a helpful friend might be a camera system. Camera systems capture everything that happens on the school bus rather than relying on bystanders to tell on a bully.

Example:
Marshall County included cameras as part of their school bus tracking system. The cameras were useful when bullies got caught red-handed and could no longer deny their wrongdoings.

It also stopped bullies on the road. Cameras were used to catch drivers who refused to stop when the school bus was parked at a stop. This improved safety while kids got on and off the bus.

Wishing you all the best for the upcoming 2017/2018 school year,
from all of us at GoFleet!

Sources:
Fox 13: Lakeland Teen Develops Bus-Tracking App
The Star: 1,500 School Bus Crashes Since 2010, but Contractor Info Remains Secret
School Bus Fleet: How Fleet Telematics Tools Help Track, Improve Driver Behavior
Fox Business: Texas Schools Create High-Tech ID Badges to Track Students on Buses
WPSD Local: Administrators Hope Cameras will Improve School Bus Safety for Kids

Bus Fleet Tracking Systems: A Success Story

Posted on August 21, 2017 | by Jimmy Song

Bus Fleet Tracking Systems are in High Demand.

Why are bus GPS tracking devices improving bus transportation?

The bus industry revolves around serving customers but unfortunately, riders complain of similar issues all around the world. These range from late buses, aggressive drivers, and accidents.

Buses with GPS tracking devices fare better than buses without; let’s take a look at a success story.

Smart Nation Singapore

Singapore is one of the world’s most advanced countries. One of its initiatives is called “Smart Nation“. Smart Nation’s mission is to empower people through technology and create a better society.

Improving transit is part of the Smart Nation initiative. The Singaporean transit system includes a fleet of trains and buses.

Buses are the popular choice because they cover all of Singapore, whereas trains only serve major centers. Despite its extensive coverage, Singaporeans “have a love-hate relationship” with their buses.

Many riders complain that buses take over half an hour to arrive instead of the scheduled 10 to 15 minutes. Other riders complain of uncomfortable rides where buses are overcrowded and drivers are aggressive. Singapore’s buses, however, improved in the following categories after installing bus GPS tracking devices.

Customer service

Bus fleet tracking systems provide data including real-time location, traffic, and weather. All of these data pieces create happier customers.

With the system, buses are now able to accurately report real-time location. This gives bus riders reliable information on bus arrival times and bus crowding. Customers found this info to be useful when planning their transit around Singapore.

Buses are also able to use this data to take dynamic routes. By relaying data such as congested areas and weather alerts, buses are given the smartest route to take, reducing wait time and customer complaints.

Smoother Rides

Singapore improved ride experience by collecting driver data from their bus fleet tracking system. Driving habits are assessed and reports are created to cut down on bad driving habits.

At GoAhead, one of Singapore’s bus operators, they have a policy of rewarding who they call “green drivers”. Green drivers are drivers who score less than 2 events per hour. These events – ranging from speeding to harsh braking – are aligned with creating a smoother ride experience.

This program worked – green drivers were given monetary rewards. Since July 2016, driver incidents were reduced by 150,000 incidents per month!

Better Society

Singapore’s bus fleet tracking system aligns with the Smart Nation mission of improving society.

Let’s look at the environmental impact. Buses started measuring fuel usage patterns, including idling. Idling is a key metric because it indicates when drivers are leaving their buses on while not being used. Bus drivers were coached to reduce idling, which led to reduced fuel wastage and greenhouse gas emissions.

In addition to making Singapore greener, buses are also safer. Many buses installed Mobileye, an anti-collision device that alerts drivers of impending collisions with cyclists or pedestrians. This provides peace of mind, as Singapore is one of the world’s most populated areas.

When implementing a successful bus fleet tracking system, Singapore’s buses are a great example of providing better customer service, smoother rides, making for an overall better society.

For more information please check out:
Real-Time Bus Tracking and Fleet Management Solutions

Sources:
The Motley Fool: 6 Ways Singapore Could Change Under the Smart Nation Program
Channel News Asia: Digital Tools Help Bus Operators Cut Accidents, Bad Driving Habits
Smart Naiton Singapore: Many Smart Ideas One Smart Nation
Work Singapore: Public Transportation in Singapore
Business Day: Rewards for Light-Footed Go Bus Drivers

Advantages of Wireless Temperature Monitoring

Posted on August 15, 2017 | by Jimmy Song

What are some of the advantages of wireless temperature monitoring?

Improving Customer Service
Preventing Spoilage
Complying with Laws

Before discussing these benefits, let’s take a step back.

Even before wireless temperature monitoring existed, fleets had to control temperature to ensure food is not spoiled. Spoiled food can lead to nasty food related illnesses. Anyone who ate spoiled food can probably relate to this video:

Fleets traditionally control temperature through onboard trailer monitoring. Trailers produce temperature reports throughout the trip and these reports are reviewed afterwards.

This approach, unfortunately, is reactive rather than proactive. Fleets often realize issues only after the food is spoiled, or worse, when the customer finds out.

Let’s delve into the most important advantages of wireless temperature monitoring.

Better Customer Service

A common customer complaint is that cargo is not handled properly. Some customers require documentation to provide proof that the load is kept at an appropriate temperature.

In some cases, carriers were sued by their customers for improper handling. There is a long history of court cases dating way back to 1856. After many battles and decisions, courts ruled that carriers can be held legally accountable for food spoilage.

In order to respond to customer service demands and to avoid lawsuits, fleets turned to real-time temperature reports. These reports are sent to customers and updates them about the load’s temperature throughout the trip.

A business owner commented that this system “removes any doubt” and “I wouldn’t want to go to court in a dispute without the data.”

Preventing Spoilage

Outdated temperature systems increase the risk of food spoilage. In old systems, fleets rely on drivers to check loads and report issues to dispatchers. Drivers, from time to time, fail to notice temperature changes or fail to report it to dispatchers.

A key advantage of wireless temperature monitoring systems is providing real-time alerts to prevent spoilage. How do these alerts happen?

Fleets can set a temperature range rule. The system then records and monitors temperatures. In the event that temperature is outside of the acceptable range, the system warns the office. This allows dispatchers to alert the drivers and to schedule service before the load gets spoiled.

Preparing for Compliance

For some industries, carriers must comply with the Food Safety Modernization Act (FSMA) rule. The FSMA’s goal is to combat foodborne illnesses. Carriers are affected by FSMA because the rule requires carriers to take “extra care when planning temperature requirements.”

How can carriers provide extra care? Part of the requirements include providing a report on trailer temperature upon the customer’s request. A smart step for preparing for these requirements is to investigate systems that provide such reports.

How can fleets get the advantages of wireless temperature monitoring?

There are several solutions that can provide these advantages. A good starting point is to research reefer temperature kits and Bluetooth asset tags. Both of these solutions provide temperature monitoring and could be a fit depending on business needs.

Check this out to learn more about these alternatives:
A Guide to Wireless Temperature Monitoring Systems

Sources:
Heavy Duty Trucking: Remote Temp Monitoring
Geotab: Get Ready for the FSMA Transportation Rule Deadline
Lexology: Shipper’s Liability for Dangerous Cargo

A Guide to Wireless Temperature Monitoring Systems

Posted on August 14, 2017 | by Jimmy Song

A common question that fleets ask when they begin their research is, “What is the best wireless temperature monitoring system for our business needs?”

There are many wireless temperature monitoring systems, each fitting different business needs. Two alternatives include Bluetooth tracking tags and a reefer monitoring system.

In order to determine the best fit, there are two important questions to ask.

1) What am I trying to track?

I am trying to track a smaller item, such as a cooler. For small assets, a good alternative is a wireless temperature monitoring system using Bluetooth. These systems are small enough to be attached to small assets.

I am trying to track a reefer unit. Temperature controlled trailers can be tracked with either a Bluetooth tag or a reefer monitor.

2) Who needs to see the temperature data?

Only the driver needs to see the data. The Bluetooth tag can send temperature data to the driver. The reefer monitor can also send data to drivers.

I need the information to be sent to a customer or back to the office staff. The reefer monitor would be the better solution because it sends real-time reports and alerts to remote locations. The Bluetooth tag, however, cannot transmit data beyond 250m.

After answering these questions, let’s look deeper into these two alternatives!

GoBeacon Bluetooth Asset Tracking Tags

Great fit for: Tracking smaller assets, sending temperature info to drivers is sufficient.

GoBeacon Bluetooth Asset Tracking is a wireless temperature monitoring system using bluetooth. The asset tags provide data about an asset, including temperature. This data is sent to a nearby cellphone.

Here’s a video on how it works.

Real-life example

One business delivered cold goods to local customers. They wanted to ensure their products met customer expectations.

They stored the goods in a cooler and attached a GoBeacon sensor. The driver then installed an app on their phone. This app gave temperature updates to the driver and alerted the driver if they needed to replace ice packs.

As a result, the business decreased spoilage rates, which in turn, led to greater customer retention.

Valor Reefer Wireless Temperature Monitoring System

Great fit for: Reefer trailers, Sending temperature data to a remote office is required.

The Valor system is a great option for creating and sending real-time temperature reports. These reports are sent back to the office or to the customers.

In addition to reports, fleets also set appropriate temperature ranges. If the systems detects a temperature that is out of bounds, alerts are sent to both the driver and to the office.

Real-life example

One fleet operated reefers that carried ice cream (yum, perfect for summer weather). The fleet used the Valor system to prevent ice cream from melting.

The office set up temperature rules that kept the ice cream at its yummy state. When trailer cooler systems malfunctioned and the temperature was out of bounds, alerts were sent to both the drivers and the dispatchers. The dispatchers then scheduled service to meet the driver on the road.

This allowed the fleet to reduce wasted inventory and achieve higher customer satisfaction.

Four Questions for Fleet Dispatchers to Solve

Posted on August 9, 2017 | by Jimmy Song

What exactly is fleet dispatching?

Fleet dispatching is a job where someone communicates with drivers and customers in order to schedule driving assignments. Dispatchers have a hectic workload between managing drivers, customers, forms, and everything in between.

What are some questions that fleet dispatchers must solve in order to create a smooth communication process? In order to adapt, dispatchers are increasingly relying on dispatching software to solve the following questions:

Question 1: What is the best way to communicate with my drivers?

One of the biggest responsibilities for fleet dispatchers is to communicate with their drivers. Dispatchers need to talk with drivers to figure out their location, get a job status, and to send drivers on their next job.

For a long time, the best way to communicate is through phone calls. Unfortunately, this could turn into a game of phone tag. One business we worked with shared a list of different excuses on why dispatchers could not reach their drivers through phone including:

“Sorry m’aam, I didn’t hear your call. My phone was on silent.”
“Sorry sir, my phone battery was low.”
“Sorry m’aam, I had to turn my phone off.”

Not very impressive for their dispatchers! The dispatchers now rely on a two-way communication tool. This allows dispatchers to locate drivers without calling them. The dispatcher can also send messages back and forth through pop-up chats instead of playing phone tag.

Question 2: How can I work through language barriers?

Trucking is becoming more diverse. There are a lot more foreign-born drivers and as a result, a lot more language barriers. In states such as California and New Jersey, foreign-born drivers make up of more than 40% of total drivers.

For fleet dispatchers who might not share the same language as drivers, how can they communicate? A lot of these dispatchers are turning to auto-translating dispatching software solutions.

These solutions support different languages which allows dispatchers to send instructions in English, while the driver receives the same instructions in their native language. The driver can then respond back while having that response translated back into English for the dispatcher.

Question 3: What’s the easiest way to plan routes?

Dispatchers are responsible for finding the most profitable loads and for assigning drivers to these jobs. Other than simply finding the closest driver, dispatchers need to consider other factors such as available hours of service, weather conditions, and road traffic.

Thankfully, dispatchers do not need to plan all of these factors in their head. The easiest way to plan routes is using a Route Optimization tool.

Route optimization is a program that plans the best route for dispatchers. The system finds available drivers and plots them to the most efficient route. It also allows dispatchers to give drivers the best route to take while accounting for variables such as weather and road conditions.

Question 4: Are forms properly completed?

Dispatchers are responsible for completing forms – a lot of forms. As with any data entry job, errors can occur. Some of the common errors range from typos & calculation errors to misreading clumsy handwriting.

Many dispatchers are moving away from clumsy data entry with an automated billing system.

Here’s how the system works. Drivers can electronically upload information such as signatures when the job is complete. The system then fills in other data such as vehicle information, driver information, and time stamps. From there, the necessary information is printed and stored in the accounting system. This system, as a result, saves administration work and prevents errors.

Click here for more information on Dispatching and Routing.

Sources:
The Road: An Inside Look at a Truck Dispatcher’s Job
PRI: America’s trucking industry faces a shortage. Meet the immigrants helping fill the gap.
Entrepreneur: Contracts 101: The Critical Paperwork You’ll Use as a Freight Broker

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3 Technologies to Control Tire Expenses

Posted on August 1, 2017 | by Jimmy Song

Why is it important to control tire expenses?

Tire expenses are the third biggest expense for most fleets. In order to control expenses, fleets must consider capacity, tire pressure maintenance, and tire purchases.

Capacity

Tires can only hold so much weight. Think about table legs. If someone were to pile a mountain of heavy objects, what happens to the table? It collapses, of course.

The same concept applies to tires. For every 10% of overcapacity, tire life is reduced by about 16%. The best practice for managing tire capacity is to set rules on maximum load and to ensure tire specifications can handle such a load.

Tire Pressure Maintenance

Tire pressure maintenance is an important part of tire health. In fact, not only does it improve a tire’s life cycle, tire pressure maintenance also leads to fuel savings. Consider the following statistics.

Underinflation is the #1 cause of tire failure and leads to almost 40,000 accidents in a year. Also, due to higher rolling resistance, under-inflated tires decrease fuel efficiency. For every 10% of underinflation, there is a 1% decrease in fuel economy and a 7% decrease in tire life.

Severe over inflation, on the other hand, is also a problem. It can also cause tire failure as overinflated tires are unable to absorb shock.

Tire Purchases

Tires are becoming more expensive. Michelin, a major tire producer, announced an 8% price increase earlier this year. Michelin explained that rising cost in raw materials has translated to a higher tire bill for fleets.

3 Helpful Technologies

Many fleets are reducing tire costs by investing in helpful technologies. Some of these technologies include Tire Pressure Monitoring Systems, tire maintenance software, and automated tire purchasing.

Tire Pressure Monitoring Systems (TPMS)

Recall the damaging effects of under and over inflation. Fleets developed strict check-up programs to extend tire life.

A popular tool to help extend tire life is a Tire Pressure Monitoring System. These systems are screwed onto tire valves and provide live tire pressure readings. These readings can be generated into a report that measures tire performance. Maintenance managers can then be alerted when there are spikes in tire pressure.

Besides sending reports back to the office, Tire Pressure Monitoring Systems can also alert drivers. The system includes an in-cab display, where drivers can receive real-time readings and alerts for tire pressure and temperature changes.

Tire Maintenance Programs

Just like vehicle tracking, more and more companies are investing in tire tracking.

In fact, look at Michelin. The major tire supplier worked on transitioning into RFID technology over the past 15 years. RFIDs are attachable tags that track objects. Michelin is optimistic that the RFID chips will help fleets manage inventory and reduce inspection time.

Similar to Michelin’s RFID program, there is software that allows fleets to manage tires. For example, the Zendu Maintenance software includes a tire maintenance program. This program receives tire pressure data and automatically schedules a maintenance check-up.

Automated Tire Purchasing

Tire purchases require careful planning. Fleet managers need to find a balance between a fit with their business needs and a fit with their budget.

Fleets can find the best fit by using an automated tire purchase systems. These programs automatically trigger tire orders when current inventory is low. Tire vendors can then submit proposals. From here, purchasers can review tire specifications, cost, and warranty in order to make the best decision.

Want to learn more about these technologies?
Check out our Tire Pressure Monitoring System

Maintenance Management & Purchasing Software.

Sources:
Government Fleet: Managing Tire Expenses
Pamplin Media: What is a Tire Pressure Monitoring System
Truck News: Tire Prices Set to Increase
Waste DIVE: Michelin Adds RFID Tags in Tires to Provide Fleets with Cost-Saving Data
Consumer Reports: How to Save Money When Buying Replacement Tires

Case Study: Protecting Assets with Fleet Maintenance Management

Posted on July 25, 2017 | by Jimmy Song

How important is protecting assets?

Assets are the lifeline of a business.

Think about a sports team. For many teams, their star athletes are their most valuable assets. Over the years, many teams have been devastated by athletes who were unable to play due to injuries.

A recent example is Derrick Rose, the former star of the NBA’s Chicago Bulls. In 2012, he suffered a knee injury. He was never the same player. He re-injured himself several times and missed over 40% of their games due to injury. The Bulls, meanwhile, fell out of being championship contenders.

How did this happen to such a promising athlete? This video explains the science, suggesting that Rose’s injuries could have been prevented by adjusting his play style.

Similar to sports teams, fleets invest in vehicles as their star assets. And, yes, these assets are very expensive.

Heavy trucks easily cost hundreds of thousands of dollars. Just like athletes, assets deteriorate and break down over time. Many fleets protect these assets by investing in a fleet maintenance management program.

The Case Study

Let’s study a fleet that invested in a fleet maintenance management program.

The Problem

The fleet’s maintenance expense went over budget and the fleet’s productivity was lower than expected. Some symptoms include:

Management, drivers and mechanics communicated poorly
Vehicles broke down and were repaired on costly emergency jobs
Repair parts were missing and were low on stock

The Solution

The fleet overhauled its maintenance program and started by investing in a fleet maintenance management system. The fleet noticed several changes.

Change #1: Mechanics were more successful because they had more information.

Effective fleet maintenance management requires communication. Managers, drivers, and mechanics needed to be on the same page. Before the fleet invested in a maintenance system, jobs were sometimes lost. The new program greatly improved communication.

Drivers and managers were able to schedule jobs into mechanics’ calendars. Within these assignments, photos and notes were shared. This created a record for the asset’s history and gave mechanics the necessary information to complete jobs successfully.

Change #2: Costly breakdowns were prevented.

Another part of effective fleet maintenance management is to prevent emergency breakdowns. With the new maintenance program, the fleet used preventative maintenance to diagnose and fix smaller problems before they turned into bigger problems.

The program identified problems through live monitoring. Critical data, ranging from fault codes to tire pressure, were pulled from the asset. Drivers also gave early warnings by electronically completing and submitting daily vehicle inspection reports.

From these warnings, work orders were automatically created and scheduled. The mechanics found these smaller jobs to be much less costly and time consuming than emergency jobs.

Change #3: Repair parts were easier to locate and were more available.

Effective fleet maintenance management is related to the quality of the fleet’s repair parts inventory. In the old inventory system, parts were manually recorded or sometimes not recorded at all. These parts were often lost or were out of stock. The new program was an improvement.

The fleet maintenance program allowed employees to scan repair parts and upload data to the inventory system. The system then displayed the location and quantity of parts. As a result, mechanics were able to easily find the parts, which reduced their job completion time.

Another benefit of the overhauled inventory system was that it replenishes itself. When the quantity of parts was low, the maintenance program automatically contacted listed suppliers to order more parts. This prevented delays from waiting for new repair parts.

The Result

The maintenance program helped improve fleet maintenance management. The fleet reduced costly breakdowns, saved money on repair expenses, and increased asset life.

A Modern Guide to Recruiting & Retaining Drivers

Posted on July 18, 2017 | by Jimmy Song

“I quit!”

These words are inconvenient for any employer. Employee turnover is costly. The Centre of American Progress estimates that a turnover costs 213% of the departing employee’s salary.

How is it this expensive? Costs include lost productivity, time to recruit and train, and harm to company culture. Turnover is especially costly in the trucking industry where there is a shortage of drivers.

In fact, by 2020, Canada is projected to have a supply and demand gap of 33,000 drivers.

The shortage is caused by many factors, including:

Age Gap. The average age for drivers is 46. The industry is struggling to replace aging drivers with younger drivers.

Labour Intensity. Trucking often requires long and unpredictable hours, which increases the difficulty of filling the position.

Employee Turnover. Trucking has a 20-30% turnover rate in Canada.

What are some strategies to attract and retain good drivers?

Key #1: Find New Drivers by Evolving Recruitment Tactics.

Businesses traditionally create job postings and wait on drivers to reply. The challenge, however, is that younger drivers are less likely to be recruited through traditional means. Since retiring drivers need to be replaced, the key for future success is to connect with young drivers.

63% of large trucking companies are attracting young drivers by using digital media. Some techniques include:

Using Search Engine Optimization to Increase Web Traffic
SEO is a fancy word for cutting in front of the line when someone searches for words related to a business. A proven tactic to boost SEO is to consistently publish blog articles with industry keywords.

Creating a Landing Page
Prospective drivers should be greeted by a web page that speaks to them. This page should sell the job opportunity by creating a non-generic message. Some of the most powerful landing pages include video links and driver stories.

Focus on Social Media
Winning employers out-compete other companies by creating positive messages on social media. Effective social media pages tell a story instead of just advertising job posts. Here is a video that teaches these fundamentals.

Key #2: When Recruiting Drivers, Money Talks.

Money makes a big difference. It is the leading factor when choosing a driving job, according to 43% of drivers.

That’s why it’s important to research industry standards and to offer a competitive salary. The most competitive offers can also include benefits such as performance based incentives, health programs, and driver appreciation events.

Key #3: Make New Drivers Feel Like Family.

While compensation is a leading factor in choosing a job, it is not a leading factor for driver turnover. The biggest reason for turnover is fair treatment.

The most important time for building relationships and for reducing turnover is within the first 3 months. The best way to secure loyal drivers is to establish a family-like environment.

Key #4: Train & Monitor How Drivers Should be Treated.

Similarly to making a first impression, businesses must stay consistent. Drivers who feel disrespected are going to leave.

Recruitment directors agree that feeling disrespected comes down to basic controllable things including:

Overpromising companies benefits
Asking drivers for their truck number instead of addressing them by name
Answering “it’s not my job” when drivers ask driver managers for help

Recruitment directors recommend training driver managers. For example, the “it’s not my job” fiasco could be avoided by teaching driver managers whose job it would be and how to relay the question to that individual.

After training, it is also recommended to record and review conversations to ensure drivers feel respected. As some businesses found out, some of these conversations were disappointingly disrespectful – similar to Sara Bittorf’s experience on “Undercover Boss”.

Key #5: Recognize & Reward the Best Drivers.

It’s human nature to seek rewards for performance. If John is a safe and efficient driver, he might be thinking, “how am I getting rewarded?”.

A hot trend in employee engagement is gamifying the environment. Some businesses monitor driver performance and set up scorecards. These scorecards are used to identify and reward top drivers with prizes such as bonuses or days off.

What are the results of gamifying the driving experience? 89% of businesses agreed that this program would improve their engagement.

The reality is businesses cannot control the supply of drivers. However, driver recruiting and retaining is something that is controllable and can always be improved.