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  • Software implementation going wrong

    Software implementation going wrong

    In 2018, Lidl, the German giant retailer, stopped the implementation of its ERP with SAP after spending 500 million euros in the process. We don’t know why this happened, but usually, there are issues on both sides. (Details: here).

    If 2 giant companies, coming from the same country and having enormous budgets failed in implementation of software, what would be the expectations of a small or medium business regarding a usual software implementation process?

    We try to answer this question by addressing the usual challenges that the software companies and their customers are facing in the implementation process, no matter how small that is.

    • the customer has to allocate resources of people, time and money. Even we talk about a single person, that person will be the Project Manager
    • the Project Manager has to have sufficient time, authority, support and the ability to make decisions
    • there should be enough time available for the required tasks such as: testing the system, data entry, consolidate and organize data
    • the requirements have to be very clear and the customer has to decide internally what to ask. Only when everybody agreed on the specifications needed, only then the implementation should start
    • by using a supplier that has experience on the business side, the customer will receive assistance and the best practices from other implementations
    • an experienced supplier will also advise about customer process changes, if they will be required
    • everybody who will be involved in the usage of the software has to support the implementation process
    • if exists, the IT department has to know about the software and hardware requirements. If the software is in the Cloud and no integrations are needed, there is basically no need for IT involvement
    • the GO-Live moment has to be set when all the users are ready to adopt the new solution
    • the training and the support (during and after implementation) of the supplier should be a mandatory request from customers

    Even you choose to purchase a SaaS software over the Internet and pay it with your Visa card, you still have to follow up the same steps, even if they are a lot smaller.

    Implementing software can be an easy task if it is well prepared and there is involvement from both parties.

  • Fleet management – Excel vs Software

    Fleet management – Excel vs Software

    As a provider of Fleet Management Software, we often hear the question: Why should I use a fleet management software instead of an excel file?

    Well, the answer is: depends!

    We strongly believe that the best way to control the spending of your fleet and to find ways of improvement is to use a fleet management software.

    There are caseses when and Excel file might be a better solution, depending on your fleet size. For example, if you operate a fleet of just 3-4 vehicles maybe it makes less sense to fully use a dedicated software, and a simple Excel sheet would do the job.

    Additionally, if you have up to 30 vehicles or other equipments for which you have full service contracts or operational leasing, then you just need to concentrate on the contract due date, any other cost being taken care of the provider. You need to measure internally the downtime because this is always a cost that is not covered by the suppliers but that can have a huge impact in your P&L.

    Once you go over 30-40 vehicle/equipments then the Excel file might not be enough anymore. There are some reasons that you have to consider when you need to choose between Excel and a software, where software clearly brings you advantages:

    1. Easier to work with complex data. If you need to have links between different elements of fleet management (repair history for example) an Excel file will be a lot more difficult to manipulate.
    2. Automatic processes like reports, alerts, email generation are almost impossible to build in Excel. If you want to integrate GPS data or other telematic data in your fleet management activity, you can’t do it in Excel.
    3. History and traceability can be easily handled by a software. Data is safe and the history cannot be altered by users unlike Excel.
    4. Collaboration between departments and colleagues from the same department is difficult to follow up by using Excel sheets
    5. User authentication and user access right can be handled in the software
    6. A mobile app (a driver dedicated mobile app for example) can’t be integrated in Excel
    7. In a software the reports can be accessed instantly
    8. Data entry may look more complex but actually, with the same amount of work, you get more information from a software.

    One might also argue that Excel-based reporting as a solution doesn’t have additional licensing cost, while Fleet Maintenance Solutions software has a cost. We will argue that this statement is only partially true. In support of our argument, we state that, once you start entering data in Excel, you are already spending time, and time spent by yourself or your employees equals money.

    Of course, you have to pay for the software license more that you pay for Excel, but the software will pay for itself by helping your staff be more productive and by helping you improve the control of your fleet operations. FMS will provide you with the visibility you need in order for you to make necessary adjustments in order to save on maintenance and reduce downtimes.

    Conclusions:

    If you operate a small fleet or you have a small/mid-size fleet and you have full service contracts and you need to keep track of only a few due dates including service contract expiry dates, just a simple Excel file will do the job.

    On the other hand, if you operate more vehicles or if you want to really have control over your costs and find out ways for improvement, then you really need to consider a fleet management software.

  • The financial impact of maintenance downtime

    The financial impact of maintenance downtime

    Downtime is a silent enemy that bucks your budget without making too much of a noise. We do not discuss the downtime caused by operational transport factors (loading / unloading waiting time and the lack of drivers), but we focus only on the downtime caused by maintenance and accidents. An airplane, in order to return the investment, must produce revenues. Revenue is only collected when the airplane is operational, as far as possible as  24 hours a day, 7 days a week. The same calculation applies to trucks. Ideally, they should run non-stop, of course, with the cargo in the semitrailer. Especially in international transport, this is not possible due to regulations on driving times, the impossibility of ensuring a number of drivers and the logistics center work schedule.

    Practically, we are left with a rather narrow window of time when our truck must produce revenue. When the truck is standing still due to planned maintenance and especially unplanned maintenance, money is lost from the two directions: no further revenue and additional costs for returning the vehicle in running order.

    A non-productive day of a truck costs about 250-300 euros. We talk about fixed costs that come together regardless of whether the car is in the race or is still standing.

    When, on a fleet of 50 trucks, we average 15 trucks that lose a working day on average each month, we account for direct losses of at least 45,000 euros each year. In other words, every two years we lose the equivalent of a new tractor unit.

    What can be done?

    First of all, we need to have an instrument measure of these dead times. Usually this is done with software. We can’t take action on an item for which we do not have exact data.

    Secondly, we have to make sure that, internally, we have all the procedures well established. Not to waste time in the dialogue between the dispatcher and the technical department. The technical manager knows very well what to do in all situations but needs a proper way to communicate.

    Thirdly, we need to make sure that we do our best to prevent malfunctions and to effectively plan for preventive maintenance.

    What would these measures be?

    Using a dashboard from which we know the timing of the MOT, tachograph, and usual service, we can make an entry plan so that the lost time is minimal. If we have more than one vehicle in the same day or week, we can make the decision to overtake some of the works in order not to crowd out the service or exceed the terms of service. Good collaboration with dispatch is crucial for vehicles to become available to the service department and this is not easy.

    Technical checks that are not made in time can lead to malfunctions that will make it impossible to continue the trip. In other words, it is in everyone’s interest to have preventative maintenance done on time. Another advantage of planning is the possibility of in-service programming. Exact programming in a partner service leads to saving important hours that would otherwise be wasted waiting.

    A system of recording technical failures signaled by the drivers helps in making decisions by the technical department before a small problem turns into an important one.

    When entering the workshop, for planned or unplanned work, we should resist the pressures of the transport department and technical problems that could lead to a subsequent immobilization should be resolved.

    Increased attention should be paid to tires knowing that most of the road breakdowns are due to a defective tire. Air pressure must be constantly refilled at intervals not exceeding 90 days. The tread depth is an element to be taken into account because a worn tire can lead to an accident or may incur a fine. At the same time, a worn tire can get a puncture easier than a new one.

    When working with multiple workshops, great care must be taken to the total time lost for that work. Not only the hourly labor rate is important. Does not matter if I have a small fee and then I lose precious hours at the queue, or worse, to get back to service for the same defect. The time required for the journey to and from the service must also be accounted for. The comparison between workshops must also take into account the additional time factor of the actual type of work in service.

    As a conclusion, a good organization, compliance with service plans and good maintenance practices, coupled with an exact reporting system, brings significant financial savings practically without any additional investment.

  • Autonomous truck?

    Autonomous truck?

    Words like: autonomous, electrification, zero emissions are more and more used by the transport industry professionals. As history is teaching us that the progress is inevitable, all these technologies that today seem to be out of this world, one day will be the common standard.

    Tests made, mainly in United States have proved that vehicles, both cars and trucks, can travel from point A to point B without any human involvement. And we are talking only about 2018 technology level. Of course, the system is not 100% error free, but the technology exists and it should only be fine tuned.

    We can try to imagine how the future will look like for commercial vehicles.

    Most probably, the first industry to adopt autonomous drive, will be the long haul transport. Inside cities, a commercial vehicle needs a lot more data coming from different sensors and a more complex algorithm to interpret them. Driving on highway require less input from a human driver but the long driving hours have an important impact both at physical and at psychological level.

    First step

    Platooning

    This technology allows the creation of a platoon of vehicles travelling with a shorh distance between them. This truck will still have a human driver, but only the one driving the first truck is actually driving. The ones following are using the adaptive cruise control to keep a constant distance between them and to react at every situation change.

    Second step

    Automatic cruise control

    In this scenario, the truck is driving itself completly but a human driver is still present abooard. In some situations, the driver can sleep in his bed.

    Third step

    Platooning – Leader

    This scenario is similar with the platooning but the following truck don’t have human drivers onboard and are driving completely autonomous. For this scenario, Interchanging parking need to be created at the entry and exit point of the highway. A human driver brigs the truck in the designated area inside the Interchanging parking. The truck will drive itself, following the platoon leader until the destination Interchange parking. Here, a human driver will drive it until the final destination.

    Fourth step

    Autonomous driving from parking to parking

    This is similar with the third step with the difference that the truck will no longer be part of a platoon but will driver completely autonomous between the Interchanging parking. This is the most probable scenario because driving on highway is a lot easier and predictable. A 100% autonomous trip between two Intercanging parking can be achived with today’s technology.

    Fifth step

    100% autonomous driving

    In this scenario, the truck will drive completely autonomous between origin and destination point. The moment in which we will see this in the real world is quite distant into the future.

    Not having a human driver behind the wheel has to be compensated by a huge amount of data coming from different sources and sensors, some of them not present on a usual truck. We need to know, for example, the road grip factor in order to adjust the vehicle speed accordingly. Today, the human factor makes a rough estimation and takes decisions. As the human factor will disappear, this important information has to come from one or more sensors.

    What we see now is only the tip of the iceberg. What is very clear is that the machines will do the repetitive work for us. And driving 1000 km on highway has a lot of repetitive work…

  • 3mm or 1.6mm?

    3mm or 1.6mm?

    In the majority of the European countries, the minimum legal tread depth for the summer season is 1.6mm. Most fleets are adopting a best industry practice and replace the tyres at 3mm. The question we have now is: when should I change the tyres? Once they reach 3mm or closer to the minimum legal depth?

    The answer is not straight forward. The advantage of worn tyres is the low rolling resistance. This translates into fuel saving which is adds to the overall fuel saving strategy. On the other hand, in case of driving in wet conditions, the grip is lower than normal and the safety is compromised.

    To have a more direct answer, we have to analyze the operation that the vehicle is performing. If the truck is doing long haul/international operation, this means that an important period of time is driving close to the maximum speed. In this case, changing the tyres closer to 3 mm is advisable. The vehicle has more grip in wet conditions, and combined with the long trips, the traffic risk lowers.

    On the other hand, if the vehicle is operating locally, with short trips and at low average speed, then it may decrease the average removal tread depth closer to 1,6 mm. Being closer to the base, has also the advantage of being able to change the tyres immediately. The difference between replacing the tyres at 3mm or at 1.6mm can bring an important cost saving.

    If you are not sure what to do, you can always ask us. With our tyre management background, we are able to provide you with an objective advice.

  • Downtime impact in planning

    Downtime impact in planning

    Downtime for unplanned maintenance is always a difficult time for the company. Just to name 3 issues that need immediate attention:

    1. Extra mileage for replacement vehicle
    2. Customer penalty
    3. Driver accommodation
    1. When a truck has a breakdown, the planning department has to quickly find a replacement. This means disturbing normal planning for that vehicle and extra mileage to reach the breakdown vehicle. Then, the driver driving time is not enough and so on. For dispatchers, it’s a nightmare.
    2. The customer can invoice penalty for late arrival. Time slots for unloading/loading may be lost and again more disturbance is created in the planning system.
    3. When the truck is is workshop, the driver needs hotel accommodation. This again is putting extra pressure on dispatchers.

    Just this 3 elements are generating important costs. A basic principle in management states that what can’t be measured can’t be controlled. The management needs a tool to have a clear image about unexpected costs.

    A maintenance management software can provide on one hand the time lost and the reason for the downtime and on the other hand all the indirect costs attached to the breakdown. Once this information is available, incident analysis can be done over a period of time. The company management can take documented decisions which, in the end, will lead to cost cutting and efficiency increasing.

  • PPK contracts

    PPK contracts

    Depending on company size, maybe you were already approached by manufacturers or dealers to enter into a PPK (price per kilometer) tyre contract.

    A PPK tyre contract means that you will no longer buy tyres the traditional way, but pay a fixed rate per kilometer, regardless of how many tyres you change. The supplier will perform all the operations needed, including mounting new tyres.

    If you are facing this challenge, there are several things you should consider apart of the obvious advantages:

    • Entering a PPK contract is limiting your buying/ negotiations options for the contractual period
    • Operational constrains imposed by the supplier may interfere in a negative way with your activity
    • You are no longer in control of the performance of tyres and you loose information about performance
    • Tyre park valuation is not in your control
    • The service level is difficult to be monitored and measured
    • The potential benefits coming from optimization goes to the supplier

    These elements have to be analyzed internally before entering into discussions with the supplier. Because, what can be a very good idea now, may represent a serious problem in 2 years time.

    We are always available to help you with the evaluation process for your options.