Keep on Trucking

A variety of automated solutions can aid recyclers in managing their in-house fleets.

Some recyclers opt to outsource their trucking needs, while others rely on in-house vehicle fleets and drivers. While managing an in-house fleet can present a number of challenges to a recycling operation, logistical and otherwise, companies have an array of tools at their disposal that can assist in this task, including real-time GPS tracking and reporting software and scheduling and route optimization software.

Jeffrey Cohen is CEO of Columbia, Md.-based Intergis LLC, a provider of mobile resource and fleet management solutions for small to mid-sized businesses and large enterprises in a variety of industries. The company’s solutions integrate GPS vehicle tracking and navigation technology with automated scheduling, dispatching and route optimization applications and real-time communications tools. Software and developer tools also are available that enable back-office system integration and coordination.

Cohen says a variety of options are available to recyclers to assist in fleet management, from low-tech manual methods to elaborate automated systems. He says manual methods can be labor-intensive and error prone, making it difficult to accurately manage and track all of a company’s vehicles.

Also available are vehicle-based passive-download systems. "When the vehicle returns to a specific location, download is completed via a removable memory device or a wireless connection," he says. "This type of system lacks the value of real-time knowledge, such as alerts and dispatching functions. Dispatchers and fleet managers can’t impact the business when timing is critical (i.e. emergency customer call, driver rerouting or safety issue). Also, this system cannot be effectively used as a security device for the vehicle," Cohen adds.

"Real-time GPS tracking and reporting software solutions make it possible to capture real-time data—to know exact locations of vehicles, driver behavior (speeding, idling, etc.)—and to generate reports to aid in the decision-making process," he says.

Best Practices in Fleet Management

Jeffrey Cohen, CEO of Columbia, Md.-based Intergis LLC, a provider of mobile resource and fleet management solutions for small to mid-sized businesses and large enterprises in a variety of industries, provides the following advice regarding best practices for fleet management:

Capture and store (in a database) all pertinent fleet related data (i.e. vehicle use, maintenance, compliance, etc.);

Use proven financial practices—financial statements should be developed that capture all costs, including labor, supplies, fuel, depreciation and overhead (agency indirect costs) attributable to fleet activity;

Establish appropriate vehicle-replacement cycles—the proper replacement of vehicles minimizes costs and assures safety;

Understand regulations and industry standards—fleets are required to comply with a multitude of federal, state and local laws and policies;

Dedicate staff for fleet management—observe fleet activity and make adjustments based on those observations; and

Focus on the long-range outlook—fleet management should address long-range business plans as operating a fleet is a long-term commitment.

Scheduling and route optimization software is designed to help users complete more stops with fewer resources and less overtime, Cohen says, eliminating labor-intensive and time-consuming routing, scheduling and dispatch tasks through automation.

Cohen answered a variety of questions regarding the benefits recyclers can see by automating their in-house fleet management.

Recycling Today (RT): Of the clients you work with, what are some common complaints that have led them to look at automating their fleet management programs:

Jeffrey Cohen (JC): I want to modify my drivers’ behaviors—reduce speeding, idling and eliminate unauthorized vehicle use. I want to be able to track vehicle location and route in real time. I want to reduce mileage, fuel and labor costs. I want to be able to prove that my drivers were at a customer location on time and improve service and delivery reporting.

RT: How do these tools go beyond GPS to provide recyclers with data they can use to manage costs, equipment and personnel?

JC: Customizable, electronic reports give you around-the-clock access to critical operational information about your fleet. With advanced reporting capabilities, you can make instant real-time decisions regarding delivery routes, dispatching vehicles and modifying driver behavior. Reports are flexible and dynamic, giving you as much (or little) data as you demand. You can run reports on your entire fleet or on specific resources and you can generate reports on demand or on your preferred schedule. Examples of reports include: Stop, Idle, Speeding, Fleet Summary, Travel Summary, Vehicle Maintenance and more.

RT: How can such tools aid in fleet maintenance?

JC: By automating vehicle maintenance reporting, vehicles are kept up to date and operating in optimal condition, improving overall safety and reducing risk. Monitor months, miles and/or engine hours, alerting fleet managers of required predetermined maintenance items. This report can keep your vehicles in top condition by eliminating manual tracking and wasted labor hours.

RT: How do these tools affect driver safety and overtime hours?

JC: With automated maintenance vehicles are kept in top working condition, making them safe for operating. Drivers are also kept safe as their exact locations and statuses are available in real time. Using the latest mapping and reporting technology, you can optimize your drivers’ time and get more done in less time, reducing overtime. You can keep accurate records of hours worked with the automated time-card management feature.

RT: How can recyclers control the insurance costs related to operating a fleet of vehicles by using automated systems?

JC: By monitoring driver behavior, recyclers can eliminate unauthorized use and reduce liability, decrease speeding and reduce the number of accidents, improve theft recovery, decrease losses with better maintained vehicles and enjoy lower insurance premiums.

RT: Can you provide some examples of how your clients have been able to lower their insurance costs by using fleet management software?

JC: When insurance companies find out that our customers are using a GPS tracking and reporting solution to monitor the activity of their fleets, anti-theft discounts, reducing miles driven and modifying driver behavior (reduced speeding episodes) demonstrate better risk management and add up to lower insurance premiums.

RT: How much can recyclers expect to pay for such systems and when can they expect to see a return on their
investments?

JC: The costs incurred depend on the needs of the organization. There are product offerings that can solve simple problems for as little as a few hundred or few thousand dollars as well as enterprise solutions that solve a wide range of problems and can cost into the hundreds of thousands of dollars. But regardless of the size of the solution, the resulting savings offset the expense. The time it takes to see ROI depends on the offering itself, which can vary by customer. Typical return on investment calculations include, but are not limited to, monthly savings for mileage, labor, routing, idling, driver behavior, asset protection and missed opportunities against the cost of the system and more.

Jeffrey Cohen is CEO of Intergis, Columbia, Md., and can be contacted at jcohen@intergis.com.  

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May 2009
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