Investing in Technology Still a Winning Strategy 13 August 2014 Posted in Blog

(as seen in the August 11 issue of Transport Topics)

By Norman Thomas

Vice President of Operations

In the past several years, fleets of all sizes have invested heavily in technology, with the intent of maintaining or creating a competitive advantage.

These investments involve tracking of trailers and their contents, electronic logging devices, in-cab scanning and printing, engine diagnostics, tire-pressure monitoring and many other offerings. The technology also is becoming less expensive, which can be especially helpful to smaller fleets.

Typically, they have made technological decisions on just a few factors and pieces of information. Now, small fleets have the ability to consider more information in the decision-making process — and decide what they want, in what format they want it and who should see it.

But obtaining the data isn’t as important as the decisions that are made after examining the information. Data are of limited use in their raw form, but bringing in the right technology to present the information in an understandable and usable way will give your team the ability to view how each set of data is related to other data. The proper use of this data can enhance fleet efficiency and improve the carrier’s bottom line.

However, fleet managers should never purchase a technology without fully understanding how it will be integrated into the daily function of their trucking business. Make sure that you understand how your new technology works before the vendor steps away and your business has to take ownership of its implementation. This requires having your associates properly trained, which will encourage them to buy into the new processes — the most critical factor to successfully phasing in a new technology for your operation.

Take, for example, a typical load assignment. In the past, the operations department would assign the next available load to the next available truck, with little consideration of whether that truck was in the best position or the driver had the hours available to execute the assignment. This would include on-time pickup of the load, safe transit and on-time delivery.

With real-time data, an ELD properly integrated into the operations system allows trained personnel to acquire the information needed to make the right decisions for your fleet. Just like the large carriers, small and midsize fleets are able to make that smart decisions faster and more accurately than ever. There also is a higher probability the load will be profitable, be on-time, and the driver will be rested and not feel the pressure to drive beyond permitted hours. When the inevitable issues arise, proactive communication and good decisions can save hundreds of dollars.

But it’s not all about operations, regardless of what this vice president of operations tells you. A company operating in the current environment must be nimble, with an awareness of current regulations, ongoing issues with the economy, and have the ability to adjust quickly to the changing issues. That’s where “big data” — and how you can use it — come into the equation.

Additionally, technology is expanding all the time, as providers work diligently to engineer products that help drivers, dispatchers and senior managers make more effective decisions. For example, we are now creating business information tools that can be critical to success of a company or position it to be successful when capacity and drivers are tight.

And not only does technology level the playing field, it also helps shippers find the trucking companies best suited to their needs, thus creating sustainable partnerships that are far more important than typical vendor relationships.

However, in small and mid-sized fleets, bad decisions can have a disproportionately large consequence. Therefore, owners and leadership teams must have a vision and enable the stakeholders to make the needed changes.

Sometimes the answers are hard to find and the solutions hard to implement. Sometimes you see the issue right away and the corrective action is equally as easy to implement. Find the stakeholders in your company, seek out the right technology, and make sure you have a strategy that includes the implementation plan. Review the plan, make adjustments as necessary assign a champion — someone who will be responsible for the implementation and ongoing use of the technology. Then, empower that champion and give him or her credibility through your outward support — which should include accountability for seeing that the technology is working for your company.

Additionally, hold your technology partner accountable, as well. Don’t take their word for what it will cost or what it will produce. Work hand-in-hand with partners to define a measurable ROI and implementation plan, and be committed to the follow up that is necessary. Companies who provide technology to the transportation industry are willing and capable, and want their technology to help you succeed.

But despite all the positives that technology can provide, fleet executives need to ask providers at least a couple of questions: Is this technology really going to have the return on investment we were promised? Can the implementation of the technology provide us with a competitive advantage?

Other questions to consider include: How do we wade through all the press releases, sales brochures, technology shows and sales calls? In which technology should we invest?

Remember, technology by itself rarely has the effect you want or expect. It takes the right partner with the right technology and commitment to implement that technology and use it the right way.