Martin Croucher, business development manager of Intermec Technologle.s, explains why you need to use fleet management systems ...
Page 46
If you've noticed an error in this article please click here to report it so we can fix it.
• If you want to sound off about a road transport issue write to features editor Patric Cunnane or fax your views (up to 600 words) to Nicky Clarke on 020 8652 8912.
One recent buzz phrase is, 'if you can't measure it, you can't manage Ir. Hauliers and owner-drivers tell me that, in addition to the escalating cost of fuel, there is one aspect of their job that is having an increasingly negative impact on their profit margins. Lengthening delays at regional distribution centres (RDCs) and on major trunk routes nationally are beginning to make the morning crawl on the M4 lnto London look short and bearable. Horror stories are rife about trucks queueing at RDCs for three or even four hours at a time.
With these sorts of delays hauliers need to look closely at how they can use their assets more effectively.
RDCs tend to be where they are because most of the clients' stores can be reached in less than had the legal driving shift. And the furthest store served by a particular ADC will tend to be no more than four hours away. Most will be within a 2.5-hour driving radius. So the calculations go like this: A truck goes out for 2.5 hours and takes the same time to return to the depot, a total of five hours' driving. There are 24 hours in a day, 20% of a day is 4.8 hours. Therefore the truck is moving goods for about 20% of the day.
Analysing the driver's day further, each drop might be 45 minutes long. Three of those are 2.25 hours, On average, truck engines are idling for 10% of the working day, or 2.4 hours. Adding the 20% to the 10% accounts for just 30% of the day when most trucks are working. The balance of 16.13 hours, or 70%, is non-used time. In some industries this would be called waste! Most industries have to hit asset use figures above 90% for six days a week for 50 weeks a year to make an acceptable return for their shareholders.
Manufacturers, processors and retailers sweat the assets. We need to develop that efficiency and productivity into every link in the supply chain and the transport industry. The secret ingredient is technology.
Times are changing. Big third-party logistics providers are looking now to improve efficiencies to the degree of saving five minutes off a drop. Small improvements in asset use like the above can therefore deliver significant cost benefits.
The way to reduce delays and enjoy the benefits of those small but important improvements in asset use is to equip your fleet with in-cab management systems. Paperless proof-ofdelivery notes, fuel details and pallet returns can all be put on a handheld computer in the cab. Routeing and scheduling details can be sent direct to the driver.
Costs can be reduced by using less fuel as a result of efficient routeing and scheduling. The result is increased productivity by doing the same work for less cost. Theoretically, you should be able to sell the increased capacity you have won!