Ageing of the workforce in freight and distribution

Baby boomers are a major part of our workforce today and play a very important part in the freight and distribution industry. I’m told that the average age of a truck driver in New Zealand today is 49. This presents positives and negatives.

The maturity and experience of these drivers makes them very valuable. They know the road, they know their vehicles and routes and get the job done. They are largely professional drivers, many of whom own their own vehicles. Many were able to do that by borrowing against their homes and the average freight company as we have discussed in previous blogs is 0-5 trucks.These operators tend to be very good at their job, but not well versed when it comes to technology. Applications to help them improve efficiencies in their work need to be very user friendly. That is something that GeoSmart puts a lot of energy to.

The flip side is that not a lot of people are rushing to become truck drivers. Many companies don’t really want them until they reach around 24-25 and have burnt out the lead foot testosterone which could be a disaster in a big half a million dollar rig. By that time, a lot of the working stock that might have gone into truck driving have chosen other career paths, or have moved to other shores such as the mines in Australia where they can earn 3 times what they can get paid in New Zealand. We can hope that they will come back to New Zealand with those savings and experience and use them to invest in their driving career back here. These people are of course extremely tech savvy and will expect to have access to applications and services such as Real Time Traffic, Route Optimisation, Car Navigation, Fleet Management and Business Intelligence.

Car navigation with real time traffic

Keeping these ageing drivers healthy and productive is a sustainability policy in itself. Providing them with tools starting with car navigation with real time traffic is a good start. It’s easy to use and whist these people may know the roads like the backs of their hands, they don’t know that there is an accident or traffic congestion that is going to stop them from getting where they are going. They also don’t necessarily know alternate routes they could be using or what the traffic conditions are there. It could be driving out of the frying pan into the fire. A device that tells them there is a 35 minute delay on their current route, but an alternate route will only have a 10 minute delay could be gold for these people. If you are looking at one of these, make sure it provides coverage for the are they are driving in and has the very latest map data as there have been many changes in New Zealand roads over the last year. GeoSmart produces new map updates every 3 months.

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Courier Drivers ‘Have to speed’ but could route optimisation help?

A story in the Taranaki Daily News this morning, statements were made that courier drivers “have to break the law in order to survive”. In effect it said that due to pay rates owner drivers had to drive above the speed limits and work longer hours in order to survive financially.

Whilst the debates continue over regulations, there may be other things that courier companies can implement that may help.

GeoSmart has a solution called Route2GO Lite which we have blogged about before which may be able to help. This cost effective service can calculate the most cost and time efficient order in which to do a set run of jobs. If a driver can do more work in the same amount of time, they will have less pressure on them. They will have the ability to do more jobs in the same amount of time or at least not have to risk breaking the law in order to complete their day’s work. Now obviously this won’t work for all couriers, but it can work for those who have a run assigned to them.

As per this blog, we will happily process a number of historic runs for free, to allow a comparison between the time and distance travelled and the sequence our service would recommend. In effect we can show the improvement at no cost or risk.

A number of Fleet Management companies including eRoad and International Telematics, who use GeoSmart Maps in their systems have a digital hubometer which means that drivers don’t have to get out of their vehicles to note the distance travelled from stop to stop for their logbooks. Of course all good Fleet Management companies have the ability to  show where tracked vehicles have been, at what time as well as driver behaviour including when and where they stopped, which can assist with compliance both from a business practice perspective and for legal requirements. An additional benefit is of course the ability to claim back Road User Charge (RUC) rebates by being able to prove the distance travelled on private roads and property.

Anyone Can Use Route Optimisation with Route2GO Lite, it’s Easy!

Over the last couple of weeks, I have written about Route2GO Lite, which is a web based application which allows you to calculate the most cost effective order to make customer visits on the road. I talked about Furniture Stores and how they and other bulky goods retailers can get an immediate payback. I gave examples of added value things you can do such as creating a reverse order loading list for the truck and how to use a spreadsheet to calculate other factors such as estimated time on site for deliveries.

What is perhaps a little harder to get across is that this application is really simple to use. Large freight and distribution companies and service companies employ fleet controllers, dispatchers and other management staff and possibly highly skilled IT workers, who deal with things like route optimisation.

In New Zealand, most companies have very small fleets, ranging from 1 to 5 vehicles. They can’t afford to employ technical people and just want to get on with the job. The drivers will have key skills, for example a furniture delivery driver will know how to get in and out of tight spots, they’ll know how to carry furniture without damaging it or the house it is going into. They probably have good social skills and develop good relationships with customers. The problem though is that costs are going up and customers are expecting more for less. We have clients at the top end who have taken over smaller companies who can’t compete, those who don’t have an IT Department.

We have great news! You don’t need an IT Department. You don’t need to buy any software. All you need is access to a  PC connected to the Internet and a browser, such as Firefox. That’s it, no special skills (correct spelling is helpful but we have some fuzzy logic), just a desire to improve efficiency, save some time and money and perhaps provide a better standard of service to your customers.

If you’re business is in New Zealand we invite you to give us a try. The best thing to do would be to give us a few lists of routes that have previously been driven, in the order they were done. That way we can give you the ability to evaluate the route based on the order we recommend. If you can put a dollar cost per driven km, you can calculate the immediate Return On Investment. Of course as per the previous links above, there are many more ways you can benefit from this product.

So here’s our offer: We will run up to 5 routes (Up to a maximum of 25  addresses per trip) for FREE. Our preference is for ones you have already driven so we can give you a real comparison. No risk or commitment required. If you are as excited about the result as we think you will be, we will invite you to set up an account with us. You can use it as often or as little as you like. There are no up front costs and no license fees. You only pay for what you use. In effect it is Software as a Service.

Why have we done this? The way I see it is that it is about working smarter rather than harder. You are good at what you do and we are good at our speciality which is mapping and everything to do with Location Based Services.We are a New Zealand owned company. We understand New Zealand business and New Zealand roads. We want to help New Zealand businesses achieve their goals by providing simple solutions that make a difference.

So why would you take us up on our free trial? I don’t know. I could think of lots of possible reasons, such as:

• Reduce costs and be more profitable
• Reduce stress by being able to deliver to your promise
• Be able to compete with bigger companies
• Have happy customers who keep coming back and buying or using more of your services
• Be able to do more jobs without increasing resources
• Not lose sales or work because you don’t have the ability to deliver quickly
• Work smarter rather than harder, rely on science instead of guesswork
• Find out if it is as easy as I say it is
• Have happier staff who know they can achieve what is expected of them
• Have customers who recommend you to their peers

I don’t know why you are in business. It could be to get rich, it might be so you can be your own boss, it could be for lifestyle. Whatever it is, we want to help. Why not contact us today on 09 966 8730 or email info@geosmart.co.nz.