Running Like Clockwork

Routing software can be an important tool for maximizing logistics efficiency. Following the optimal sequence of stops helps to minimize transport time or distance traveled, which in turn reduces transportation costs.

Several types of routing software are available for a variety of recycling applications. It is particularly well suited for driver schedules with multiple stops because there is usually more of a need to improve routing efficiency.

When combined with other types of software, such as dispatch, inventory management and accounting, it can improve the flow of operations. The latest in routing software focuses on transportation as an integral part of the recycling process.

PAPER CHASE. Routing software vendor EZshred LLC, Independence, Ohio, offers a product geared toward recyclers called RecycleVision. EZshred President Mike Boehringer says, "Due to time constraints, many route managers allow truck drivers to decide their own order of pickups." However, such a situation does not necessarily lead to maximum efficiency.

"Unfortunately, driving the truck is the easiest task for the driver and the most unproductive task for the company owner," says Boehringer. "The timing of lunch with driving past the driver’s favorite fast food restaurant should not weigh heavily in the route sequence. RecycleVision automatically optimizes the stop order of a particular route in order to minimize the miles needed to accomplish the route."

One recycler that has been using RecycleVision for about one year is Shred First Inc., Spartanburg, S.C. Shred First is a destruction company as well as a recycler of paper, plastic and metal, whose recycling services are one-stop pickups. Nick Wildrick, CEO, says that his company needed an information system that would provide its customers with accurate information and quick payment.

"We had to improve efficiency," says Wildrick. "For routing software, particularly important is the ability to look into the future to see where a truck will be. Previously we handled this by e-mail, sticky notes and boards. Our company needed to schedule customers in the same area together. In addition, we needed to place a lot of information on a detailed ticket, including specifics on our pickup as well as directions. We also wanted to be able to track material as it comes into our facility, which would enable us to pay our customers. This required something that was more comprehensive than just routing," says Wildrick.

For Shred First, a benefit of having route optimization software has included keeping its operations costs down. Says Wildrick, "We were able to cut our overtime in half and reduce fuel costs. Other benefits are customer satisfaction and better directions for drivers." Another benefit of the software has been its ability to make changes and notes on the paperwork. If a customer has a unique request such as the need for a container, baling wire or pallets, Shred First can easily bring up the customer’s name and type in the notes.

"Many recyclers are quicker to buy or lease another truck, rather than simply invest a fraction of the money in enhancing their information systems," says Boehringer. "RecycleVision can tighten up their schedules and routes so that they can perform more work with each one of their current vehicles. Currently, we are working on a GPS module that overlays the actual, real-time location of a given truck onto a map of the driver’s route. From this, you can easily determine their route progress, or if they have strayed off the route."

IRON-CLAD HELP. One common characteristic of transportation routing in the scrap metal industry is that just one stop can be handled per truck load, quite the opposite of the multiple stops that are entailed with curbside collection.

Although scrap recyclers may not need specific routing software, they can benefit from more comprehensive transportation management software, say some in the industry.

"Our industry is more geared to just a couple of stops per driver, with the driver returning to home base after pickup or delivery," remarks Tim Beers, director of administrative services at Louis Padnos Iron & Metal Co., Holland, Mich. "There is not much routing that is involved with so few stops. We feel that the need for routing software in this type of industry is very limited," he says.

However, L. Padnos does face a challenge in trying to maximize its assets. Says Beers, "We have only so many available containers, trucks and driver hours, so creating an efficient route each day is imperative. Primarily, our customers’ and vendors’ demands drive the dispatching process," he notes. "Unexpected deliveries and/or pickups are problems that we contend with every day, so creating efficient routes is important in being able to meet those demands."

Beers says that L. Padnos is more interested in software that allows it to use its data more efficiently and effectively throughout the tracking and accounting processes. "We want to better utilize information that originates in our Customer Service Department," he says. "Once the truck drivers receive the information from the Customer Service Department, they can add to this data and then forward the information to the accounting system. This allows us not only to better serve our vendors and customers, but also allows us real-time tracking of containers and the driving fleet."

A good system can reduce duplication of communication efforts. "It has been our desire to reduce data entry and give our vendors information that keeps them better informed of our service—as well as the need to change a driver’s schedule on the fly—that has led to our interest in a new software product," says Beers. "Whether it is routing software, dispatch management software or other types of software, having an integrated system reduces the possibility of duplication of efforts and creates a very efficient system," says Beers.

Bernd Frank, CEO of RECY Systems AG in Unterschleissheim, Germany, which serves the scrap metal and paper industries, says that routing software should be integrated into the dispatch process. "We provide a guide for truckers to use the optimum route, which we integrate into a GPS-based dispatch system that is loaded into an on-board device. The system will give the route, if the trucker needs it. It will direct the trucker to the location and will signal to the dispatch office that the truck has arrived," says Frank.

One of the modules that RECY Systems offers is the GPS module, which is part of the RECY-Container software that the company rolled out at mid-year. Says Frank, "GPS is becoming more economical for scrap companies, with the average cost of the device per truck dropping from about $6,000 to $2,500, plus the GPS service provider’s cost." RECY Systems installed its first GPS module in August.

CURB SERVICE. In addition to private recyclers, municipalities and haulers serving them are also interested in improving recycling routing efficiency.