Feb-March 2003

What's really involved when you install a vehicle tracking and fleet management system? For a comprehensive answer, look no further than Exel's Bawtry site, where the company has learned how to squeeze value from Isotrak at every turn

Exel's shared-user transport network at Bawtry, near Doncaster, is big. It includes 850,000 sq ft of warehousing, has a core fleet of 34 vehicles, and despatches an average of 10,000 pallets per week in the course of providing logistics services to sixteen customers in the FMCG and manufacturing sectors. There is also a reverse logistics operation.

The vehicle fleet is managed using something called Managed Transportation System, which was developed in-house by Exel itself, and handles all transport activities. However, the company believed that moving to real-time data capture and communications with drivers offered opportunities for efficiency gains, cost savings and improved customer services.

The system it chose was Isotrak's real-time fleet tracking, monitoring and communication system, which has also been deployed elsewhere in the organisation, and in fact started life within the Exel fold. Exel now has about 1,000 Isotrak units installed across 44 operating locations. Bawtry, though, was an early adopter and is a pioneer in shared-user operations.

 

General manager Norman Coward, a strong advocate of the benefits of real-time monitoring of fleet activity, says that before Isotrak was up and running, the traffic office was spending "inordinate time" on manual planning, contacting drivers and dealing with customer queries. Communication with drivers was by mobile phone, and with double- and triple-shifting, he reports, the fleet communications bill had reached the £10,000-a-year mark.

Apart from addressing communications problems, Coward also identified other potential benefits. "The level of investment required in Isotrak meant it was crucial to identify exactly which areas would improve to make a strong business case to go ahead. We identified a range of key benefits including fuel cost management, vehicle utilisation, reduction in nights out for drivers, more accurate scheduling and additional back loading opportunities."

The Isotrak system comprises a computer and in-cab handheld terminal, which connects drivers to the office. The terminal incorporates a roll printer so that messages can be read when the driver is parked, and he is not distracted by screen messages while driving. "We think that is an important safety consideration," Coward says. There is also a GPS module for vehicle tracking, and GSM for text communications.

The system collects data on vehicle location, distance travelled, driving and stationary times, exceptional circumstances and other vehicle performance data, and stores all this remotely at the Isotrak "hub". The hub also handles all inbound and outbound communications and monitors the flow of information to and from the vehicle.

Staff in the traffic office access the system via WebView, a Web-based management and operational reporting system, which gives each office access to its own data. Reports are tailored to meet specific requirements such as resource utilisation, driver debrief and waiting-time analysis.

Exel is using four key Isotrak modules. RouteView and RealTime are designed for scheduling planned journeys, using actual historic journey times rather than mileage. ManifestView allocates resources such as drivers, trucks and trailers to jobs in real time and measures actual performance against plan. FleetView provides the traffic office with an overview of the entire operation, delivering real-time detailed maps of vehicle locations and two-way communications.

However, Isotrak doesn't attempt to do everything on its own, and works alongside existing systems such as Paragon routing and scheduling software and Manugistics MTM.

Exel managers can collect a wide variety of information on subjects such as fuel usage, driver utilisation, miles per drop, waiting times, engine idle times, vehicle location requests, vehicle tracking data and distance travelled. They can also monitor actual versus planned performance. A clever feature is the use of geofencing, by which means an alert is triggered when a vehicle crosses a pre-defined boundary, and customers are warned via fax or email of imminent vehicle arrivals or departures.

"One of the key factors behind the successful implementation of Isotrak has been the decision to install it in both the customer services department and the traffic office," points out Coward. "Customer-facing staff have real-time visibility of the delivery status and ongoing communication with drivers. We can answer customer queries about deliveries much faster, whether they are about a scheduled arrival time or about the actual goods. We have real-time visibility of the fleet, so if a vehicle can't complete an allocated job, we can divert other trucks nearby to complete the delivery, and we can be pro-active about traffic congestion or hold-ups at the delivery point."

Coward recognised very early that drivers needed to be "on board" if the system was to deliver the benefits expected. "It helped that Bawtry drivers are salaried, so any improvement in schedules wasn't going to have an adverse effect on their earnings. But there were natural concerns about using computer equipment, and about the spy-in-the-cab aspect, which we had to address."

Features such as a panic button in the cab for emergencies have helped win them over, says Coward ­ as has investment in training. "My advice is do not skimp on the training. You are, after all, asking employees to make a big change in their working practices. It takes time. In all, 70 staff were trained in different aspects of the Isotrak system." Driver training was done in a classroom environment, with a transport supervisor on hand to give support. Coward says early apprehension disappeared, and drivers later admitted that the system was easier to understand and operate than they had imagined.

Exel has built in provision for agency drivers, assigning them "wild card" PIN codes and a issuing each of them with a laminated in-cab guide.

There was a two-week pilot project to check that KPIs and bespoke EOMM (Exel Operational Management Methodology) reports did accurately measure improvements and efficiency gains. Daily meetings addressed operational issues, especially driver compliance. "We still hold end-of-shift briefings for drivers," Coward says. "It takes ten minutes, and means we can pick up any non-compliance immediately."

Feedback has been very positive, says Coward. "Customers are particularly impressed with an increase in what was already a high on-time delivery performance and the improved communications."

Measurable benefits include a 7.2 per cent saving in fuel costs. Several factors have contributed to this. Better route planning has reduced overall mileage for the fleet. Driver performance monitoring has led to a reduction in engine idling time (often drivers were merely heating their cabs) and identified rogue driving patterns. Confronting drivers with their fuel usage during debrief sessions has resulted in a reduction in over-revving and excessive speed.

Communications have also improved, and now cost less. Use of mobile phones has been eliminated, and text messaging allows status alerts to be sent. The real-time capability of the system allows Exel to divert vehicles round traffic blackspots.

"Isotrak has given us the ability to be involved in a discrepancy or delivery problem as it occurs. Drivers now text customer service on every occasion there is a probem."

Although Coward admits the installation of Isotrak was relatively costly, he says the benefits have made the investment worthwhile. He is planning to add electronic proof of delivery capability later this year and extend the geofencing to other delivery sites.

"Scanning delivery notes at the consignee end eliminates discrepancy investigation and the subsequent need for credit notes, improving cash flow."