Road freight fleet management systems evidence on performance

Evidence on performance

A number of case studies are reported by the manufacturers of a number of road freight fleet management systems and also by DfT (2003) itself. These refer to a range of road freight fleet systems which have widely differing features. The information is brief for the most part and as such this report has brought together a collection of case studies that amalgamates the contribution to objectives.

Case Study One – Marks and Spencer (ISOTRAK)

Marks and Spencer chose to equip its General Merchandise distribution operation and vehicle fleet with a system comprising in-cab computer equipment, a handheld terminal for the driver and a control centre. Collecting real-time information, it provides analysis of actual performance against planed and reported feedback to monitor performance against KPIs. The system was installed 3 years ago as a pilot scheme to provide environmental and customer service benefits, however it has since played such a major role in streamlining costs that it has been rolled out to over 240 vehicles. The fleet management system has resulted in a 15% reduction in vehicle mileage and an 8% improvement in fuel consumption, all of which have had a significant impact on the overall operating costs for Marks and Spencer.

Marks and Spencer put the cost savings down to the ability of the fleet management system to close the information gap in the supply chain, the one between the truck leaving the yard and coming back. It gives the fleet operator the ability to access information on the exact position, performance and status of each vehicle in the fleet regardless of fleet size or number of sites. The fleet management system also allows vehicles to be shared between different depots and re-routed away from traffic jams, to accommodate changing pick up or delivery times and immediately respond to backhaul opportunities.

Case Study Two - Sainsburys (ISOTRAK)

Sainsbury’s initially began to trial ISOTRAK at the Sainsbury’s Rotherham depot, before rolling it out to the North Fleet and East Kilbride. The ISOTRAK system comprised of in-cab computer equipment, a handheld terminal for the driver, a control centre at Sainsbury’s HQ and a hub at ISOTRAK HQ. The system collected real-time information, providing analysis of actual performance against planned and reporting feedback to monitor performance. Sainsbury’s planned to implement the system in its entire UK fleet by 2004.

Sainsbury's found a number of tangible benefits from the system which included:

improved and safer communication between transport office and driver via SMS;
real time vehicle tracking allows depots to share vehicles and dynamically re-route vehicles away from areas of congestion, or to accommodate changing pick-up or delivery times;
depots receive automatically notification when a truck is approaching with a delivery ('geofence') to help depot staff ensure space is ready; and,
the greater 'visibility of trucks has helped to improve back-loading, reduce the number of vehicles required and the number of kilometres travelled.

Case Study Three - MinorPlanet

The case studies for companies using the Minor Planet fleet management system are presented in the Table below.

Company	Business	Fleet	Key Benefits	Key Results
Forge Group	Fencing/barriers	3 vans	Fuel: Bills cut by £500 per month; Labour – cut by £1,296 per month; Environment – reduction of idling and greater fuel efficiency reduced air pollution	Saved £21,552 per year on fuel and wages.
Worldwide Mobility	Disability Aids	4 HGVs	Fuel: Bills cut by £700 per month; Mobile phones – bills cut by 10% and improved safety; Insurance premiums – 10% discount given (improved security aspects of vehicle tracking)	Saved £8,400 per year on fuel.
Admiral Signs	Signs	9 vans	Labour: Bills cut by £250 per week; Fuel – rerouting has saved £3,600 per year; Insurance – secured a premium (improved security aspects of vehicle tracking).	Saved £16,600 per year on wages and fuel.
Riggot & Co Ltd	Road markings	12 vans	Labour: Bills cut by £250 per week; Fuel – ability to re-route and on-board navigation have saved 15% on fuel costs; Quality Standards – the fleet management has helped the firm qualify for its Environmental Standard ISO 14001.	Saved £11,040 on wages and 15% on fuel.
Northumbrian Water	Transporting Bio-Solids	19 tankers & 2 ships	Fleet Utilisation: Reduced original fleet from 21 to 19 due to efficiency in route planning and scheduling; Fuel – reduction in idling; Labour – reduced overtime by increasing productivity.	Saved £350,000 on vehicle leasing and £20,000 per year on fuel and overtime.

Case Study Four - Glanbia Food Services & Pinpoint Tracker

Glanbia Food Services is a fresh and chilled food supplier based at Tamworth, Staffordshire operating 120 HGVs. They installed BT Cellnet's Pinpoint Fleet Management System, which uses TRACKER Network's Communicator technology. The system provides real time, 24 hour data on:

vehicle location;
mileage and speed;
fuel consumption;
driver hours; and,
temperature of goods in transit.

Trials established that the fleet management system could save 10% of the current fuel budget of £2 million per year by enabling drivers to be re-routed quickly and efficient, that they followed recognised routes at authorised speeds and reduced vehicle idle time. Even more important to Glanbia was the ability of the system to help them to ensure that the produce they were hauling was in perfect condition throughout the journey by monitoring the temperature of the trailer and alerting the driver if it fell outside a specified range.