Driver Productivity: Where the Rubber Meets the Road

James Wee, Vice President - Sales,

Descartes Systems Group

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Agenda

• Industry Stats/Trends

• Savings Opportunities

• Tools/Data

• Change Management Strategies

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Concerns for Fleet Operators

Private Fleet Concerns (NPTC – 2014)For Hire Carrier Cost Structure

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Driver Stats – Private Fleet on the Rise

• Top 500 private fleets have

increased size by 50% in the

last decade

• Private fleets (up 15% since

2011):

• 78% of outbound movements

• 40% of inbound movements

• US is short 30,000 drivers

today

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Savings Opportunities

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Fuel Management - Government Study

Category

New Driver Pool Medium Driver Pool Veteran Driver Pool

Before After Before After Before After

Sudden accelerations 59 78 61 72 75 93

Sudden decelerations 74 78 75 83 85 96

Idle time 32 100 60 100 75 100

Engine speed (RPM) 93 96 71 83 90 96

Vehicle speed 93 98 88 100 86 100

Overall score 70 90 73 88 92 97

Fuel economy (mpg) 4.7 5.7 5.0 5.8 5.2 5.9

Key Learning: 17% increase in fuel efficiency across all drivers

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Opportunities for Savings

• Out of route miles account for 3% to 10% of a driver’s total mileage at $1 per mile

• Excessive speed is the largest single factor in reduced fuel mileage. Every mph increase

above 55 mph reduces fuel mileage by .1mpg

*Vehicles that average 7 mpg @ 55 mph will average less than 5 mpg @ 75 mph

*Most Class 8 tractors will consume 1.25 Gallons per hour when idling

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Sources of Cost/Risk Leakage

Opportunity Solution Value

Hours / Overtime

30 min/driver/day

Plan vs. actual performance management

$10/driver /day

Out of route miles

3% mileage

Plan vs. actual performance management

$5/driver/day

Speeding

5mph speed reduction

Black box $5/driver/day

Idle time

1 hour / day

Black box $3/driver/day

Accidents Black box (cornering/ harsh braking)

?

Driver Log violations EOBR/ELD ?

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Data/Tools Available

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Setting a Plan

• Calculation of drive times based on street level network

• Calculation of pre-trip/post trip, unload/load time

• Plan continuously improves over time based on mobile data collection

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Route Dashboard

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Real Time Dispatch View

Real time command center

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Route Detail

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

GPS Breadcrumb

Out of route miles

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Scorecard to Engineered Labor Standard

Driver

Avg Start Time

AM Time(Average)

On Time%

% GPS Mileage to Standard

% Time toStandard

BrianCampbell 6:15 14 78 -2.60% -11%

Dale Bjelde 6:00 7 100 0.00% -20%

Don Gaudry 7:12 11 76 23.00% 13%

Jesse Thandi 5:45 15.3 45 -2.20% 22%

Mark Jones 7:34 10 89 -0.60% -11%

Mike Norris 11:34 4.2 32 1.10% 8%

Satnam Sandhu 6:00 12.6 90 2.20% 1%

Steve Wilson 6:32 18 98 0.00% -3%

Average 11.5 76 0.10% -0.13%

Increase driver productivity by 30-60 mins/driver/day

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Fuel/Safety - Reporting

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Driver Performance Detail

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Driver Performance Detail Page 2

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Driver Performance Overview

Driver Overall score

Speed score

(100 total

points)

Idling Score

(100 total

points)

Braking

score

(100 total

points)

Acceler.

score

(100 total

points)

Distance

(mi)

Average

speed (mph)

Idling time

(hh:mm:ss)

Total time

(hh:mm:ss)

Louie Brogni 95.10 100.0 100.0 85.1 97.2 481.18 41.63 1:01:34 33:58:54

Terry O'Brian 92.30 100.0 86.5 89.9 94.3 218.96 41.01 2:37:07 40:23:56

Todd Meisner 91.90 100.0 86.2 89.1 93.5 391.77 42.87 1:29:34 41:05:57

Jim Hunt 91.10 100.0 97.4 74.7 94.6 548.58 39.77 1:45:04 44:52:47

Tom Majeski 90.60 100.0 100.0 80.1 84.5 323.94 41.63 3:39:00 50:24:22

Juan Carlos 86.10 100.0 96.9 78.2 71.9 398.17 41.01 1:21:18 47:51:13

Fred

Sammons84.80 100.0 89.3 74.4 76.2 551.21 42.25 1:45:59 40:48:28

Dave Koepsell 81.20 100.0 84.3 57.1 85.1 306.36 40.39 1:26:28 39:45:38

Jim Herriges 81.10 100.0 92.0 61.4 73.3 473.16 39.77 1:31:43 36:32:05

Dan Elger 80.00 52.0 95.0 80.0 96.0 422.33 44.12 2:59:33 38:10:30

Peter Hubrich 75.80 97.0 65.0 73.4 87.2 219.16 45.98 2:44:17 32:54:54

Ryan Carbon 75.10 100.0 93.3 57.6 49.9 529.28 42.87 1:27:13 45:27:14

Bruce Knapp 73.00 100.0 55.0 56.0 83.0 302.90 41.63 2:09:57 35:39:28

Mike Johnson 70.00 74.0 70.0 79.0 57.0 361.03 48.47 1:21:36 28:49:03

Ryan Schmidt 66.00 100.0 50.0 52.0 62.0 310.95 37.90 1:34:59 41:16:24

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Best Practices / Change Management

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Keys to Success

• Access to data

• Reporting - make it visible and meaningful

• Ongoing coaching/management

• Posting in the break room/Weekly incentives

• Executive sponsorship/Management Alignment

• KPIs tied to core incentive structure

• Regional VP

• DC Manager

• Driver supervisor

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Questions?

Thank you!

#SupplyChainGeek

James Wee

Descartes Systems Group

jwee@descartes.com

For Hire Carrier Cost Structure

Fuel and driver pay are the

largest operating costs

Margins are thin

Private Fleet Concerns (NPTC –

2014)

Strategies Employed – Hourly

Environment• KPIs tied to core incentive structure– Regional VP

– DC Manager

– Driver supervisor

• Ongoing coaching/management

• Posting in the break room/Weekly incentives

Turn by Turn Navigation

Key Value Proposition

• Integrated into POD application

• Save driver time

• Eliminate excuses for plan vs

actual compliance