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GIFT OF THE CAB?
Page 54
Page 55
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Is it the bosses' mole or drivers' friend? At the end of its current trial run, Eddie Stobart will decide whether to install the lsotrak tracking an communications system across its 800-vehicle fleet. And initial signs are looking good, as David Harris finds out.
Ifan Eddie Stobart truck were to star in a Bond film, the scriptwriters would make good use of its tracking system. A kidnapped driver could press the red panic button to initiate a rescue attempt,and the location beacon concealed in the cab would lead Bond straight to the vehicle through the receiver built into his Omega Seamaster wristwatch. Unlikely? Well, it would be a bit surprising if MI6 sent an agent to retrieve a Stobart vehicle. But other than the secret service connection, the scenario is plausible enough.
The Isotrak system, now on trial in 105 of the company's trucks, would help trace a stolen vehicle, or provide help if a driver at the wheel was in danger.
But the decision to give the system a trial was motivated by less glamorous advantages, admit Stobart's managers.The big benefits are in everyday efficiencies, such as giving transport planners more time, and receiving unambiguous information on important statistics, including drivers' hours and mileages. Finance director David Meir says: 'We knew we had a good transport management system, but it relied on drivers recording things accurately and planners collating the information.Now, we can establish unequivocal journey,tipping and loading times. It reduces the burden on the driver, and helps us to analyse things more accurately."
One reason for this is because the system distinguishes between what is supposed to happen and what actually occurs. Peter Daglish, project and development manager for the general transport system. explains: "Say we're entering mileage for a job from A to B. Previously. that would have been based on planned mileage. But now, if the driver has to take another route for some reason, then thanks to GPS the system knows the real mileage rather than just the planned mileage."
Another advantage is that customers could track their loads. Meir adds: "That's a bit odd because, although customers want this,they don't use it.They just like to know it's there."
For Stobart's day-to-day operations,the lsotrak system helps reduce empty running because any empty vehicles identified by the system can be allocated a new pick-up. It also releases drivers and depot staff from administrative work. Due to the verifiable nature of the information, Stobart can use it for contract renegotiations, or as proof to customers should they not fulfil their side of a contract.
Meir says: "Our costing model with customers assumes a loading time and a tipping time. We can now monitor that accurately, and identify any sites where loading and tipping are taking abnormally long and costing us money. So if we've agreed a loading time of 75 minutes and it is routinely taking 90 minutes, we can prove that to a customer."
The customer then has a choice: either pay a higher rate or improve the loading time. Meir explains there have already been instances in which Stobart vehicles have been fast-tracked in the loading bay after customers have been told loading is taking too long.
On the right 'trak The Isotrak trial finishes in a few weeks, and then the company must decide whether to install the system in all its 800-plus vehicles. It won't be cheapMeir estimates a capital and running costs bill of £2m over the first three years. But set against that is a saving in mobile phone bills alone of £432.000 over the same period, as the Isotrak system has a handheld unit that can be used as mobile phone operating around 50 key numbers. It also features an in-cab monitor.
Nevertheless Meir admits that calculating the value of the system -already in use by Tesco, one of Stobart's customersis not easy. He says:"We have to ask questions about the value of what it enables us to do. For example, it seems good if it frees up three hours a day of planners' time, but we need to know what they are doing with those extra three hours."
Potential add-ons to the current system include incorporating tachograph information and fuel management, neither of which is available yet. But in broad terms, increasing efficiency is crucial to Stobart. Last year, the company had an turnover of around 1130m. but profits were only £5m.
That's not had for a haulier, but is poor compared with many businesses in other sectors. Meir reveals:**Margins are so minuscule that you have to be extremely efficient, so that's the basis on which we will assessing the system."
What it does provide for Stobart,though, is certainty about where its vehicles are and what they are doing.And that is not only for internal consumption; it provides evidence for customers, and could also be used by enforcement authorities.
Stobart has yet to make a decision on whether to go ahead with the system across the fleet, but the smart money says it will. Ai if it does, both Meir and Daglish are expecti what Meir describes as "a very aggressive rc out in the new year".
But will the drivers like it? Meir reveals: "Feedback suggests that initially there wen meetings about a spy in the cab, but once tho get used to it, they quite like what it can do. After all, it does save them some work," And if they ever do have to use the panic button if they are taken ill -it could save their life...even if their angel of mercy is mo likely to be a paramedic than a Bond girl. •