Memorandum by ISOTRAK (RH27)
ENABLING THE
ROAD HAULAGE
INDUSTRY TO
MEET THE
NEW DEAL
FOR TRANSPORT.
"ISOTRAK has the potential to revolutionise
the Industry, as it guarantees to maximise the commercial potential
for both large and small businesses. This system will maximise
vehicle utilisation, reduce fuel costs and enable proactive management
of transport operations. I fully expect the ISOTRAK system to
be used as a model for European Initiatives within the Industry
in the future."
Professor Chris Nwagboso, Head of DTI funded
Expert Team/mission on Intelligent Transport Systems.
ISOTRAK is unique. It is the world's first total
service for Transport Management. As such it is the only service
of its kind.
Designed for large-scale fleet operators, ISOTRAK
provides technology-enabled logistics solutions that enable fleet
operators to:
— Reduce costs by up to 20 per cent.
— Enhance the quality of customer service.
ISOTRAK provides
— The most complete and comprehensive
Site Information System.
— The best integration with customers'
existing systems.
— The most flexible choice of hardware
and communication services to meet the needs of the customer.
ISOTRAK is
A proven system with a prestigious client list.
ISOTRAK provides services for the operations of some of the UK's
leading blue-chip companies, including:
Goodyear Tyre Distribution.
Tradeteam Primary and Secondary Distribution.
St Mary's Hospital Patitient Transport London.
ISOTRAK believes
ISOTRAK believes that now is the time for the
Road Haulage Industry to benefit from innovation in technology
and to harness efficiencies gained to improve international competitiveness.
We believe that the government should support the industry to
adapt to technology, through tax incentives and the recognition
of best practise.
The Challenge
Never has the need for a complete logistics
management system been greater. Not only are logistics operators
in the Road Haulage Industry being forced to reduce costs and
improve customer service, but also operators have higher fuel
and road tax costs to absorb to meet the government's sustainable
distribution strategy. Only ISOTRAK can match these mutually exclusive
objectives, because it maximises real time command and control
of an entire fleet. This enables operators to manage all transport
activities, thus leading to reduced costs and improved customer
service.
Why ISOTRAK
ISOTRAK offers the following which can mean
as much as 20 per cent savings to overcome transport problems.
— Lower fuel consumption up to (9 per
cent).
— Better Vehicle use (reduced by 11
per cent).
— Reduction in pick-up and drop and
waiting times.
— Avoiding traffic congestion.
— Reduction in vehicles running empty—increased
back-haul[29].
— Limit damage to vehicles and improved
driver security.
— Ancillary cost such as mobile phones,
paperwork and site admin reduced.
Management information
The ISOTRAK software allows three different
views of the data.
FLEET VIEW—Showing the real time position
and status of each vehicle providing complete command and control
through two way communication.
MANI FESTVIEW—which integrates with scheduling
packages in order to allocate drivers to cabs and trailers and
cabs and trailers to routes. It will also in real time show actual
scheduling against plans plus overall vehicle or fleet utilisation.
WEB VIEW—which provides up to 100 different
management reports in web browser format. These reports are of
strategic importance because they are used to identify where an
improvement opportunity exists and what can be done.
The Solution
ISOTRAK is the only provider of a complete solution
that combines the capabilities of hand-held, on board computer
systems, with a sophisticated data processing centre—The
ISOTRAK Hub to enable operators to capture real-time information
on individual vehicles in a fleet.
Its open architecture means that it can interface
with any hardware giving maximum flexibility to customers. Up
to 20 sensors are fitted to each vehicle. Information is processed
by the ISOTRAK hub, which is a mission critical data processing
centre connected to client sites.
ISOTRAK provides total visibility of all transport
costs, which in the past have been uncontrollable because they
were invisible, un-measurable and un-provable. As a result it
enables fleet managers to make proven, clear efficiencies, based
upon real information for the first time.
MEETING THE
GOVERNMENT SUSTAINABLE
TRANSPORT TARGETS—THE
WHITE PAPER
ON TRANSPORT
1998
"We must have a pact with the haulier and
the transport operator—increasing efficient delivery whilst
protecting our communities from intrusion." John Prescott
Deputy Prime Minister March 1999
The Government's White Paper on Transport (March
1998) and the subsequent paper "Sustainable distribution
a Strategy" (March 1999), sets out it's the Governments "NEW
DEAL" for Transport and the freight Industry.
ISOTRAK is the only system that can enable the
Road Haulage Industry to meet Government standards and targets
for sustainable distribution in freight transport.
Better protection for the environment
"We want to see greener, cleaner vehicles
that have less impact on our environment"
"We need to reduce the rate of road traffic
growth" (White Paper March 1998)
Isotrack enables fleet managers to have at hand
the management tools to reduce the numbers of trucks on the road.
ISOTRAK users have found:
— Fuel consumption is reduced by 9
per cent.
— Effective Vehicle Utilisation is
increased by 11 per cent.
Less vehicle journeys means lower fuel usage.
As a consequence ISOTRAK can enable road haulage. Fleet Managers
to reduce the numbers of trucks on the roads, thereby causing
less environmental damage.
"We also want to see an absolute reduction in
traffic in those places and streets where its environmental damage
is worst." (White Paper March 1998)
ISOTRAK's Site Information Systems are a suite
of powerful interactive programs which support the day to day
operations of the transport office via the installed ISOTRAK terminal
giving transport controllers the:
— Precise location and status of every
vehicle (down to house number level).
— The ability to communicate with every
driver.
— Access to data to make tactical decisions
for fleet optimisation.
Real-time satellite communication systems enable
driver to site communications to ensure that drivers can be immediately
re-routed away from potential problems and from those areas and
places where environmental damage is worst.
Moving Goods sustainably
"We want to reduce the extent to which
a healthier economy results in high levels of road traffic growth" (White
Paper March 1998)
ISOTRAK gives Road Haulage Fleet managers the
technology and the management tools to respond effectively to
the goals of reducing road traffic growth. Clear management data
is available on every vehicle from ISOTRAK's Hub, which generates
standard and optional reports covering live, tactical, historic
and strategic data. Reports are delivered direct to customers'
site systems over the Internet via ISOTRAK's FLEETVIEW module.
— Helps Drivers improve their performance
by detailing individual MPG and time spent in each rev band as
well as logging all communication. Changes in driver behaviour
result in lower fuel consumption
Reveals bottlenecks so that action can be taken
to reduce waiting times.
Regular reporting enables Road Haulage fleet
managers to make clear management decisions about their fleet,
maximising fleet utilisation and minimising the number of trucks
on the roads.
Delivering the Goods; Sustainable distribution
"We sometimes take for granted how much
our standard of living depends on goods delivered by the transport
system. The question we face is how to deliver goods efficiently
and with least harm to the environment and our health. To achieve
our aims we will work in partnership with the industry to promote
sustainable distribution." (White Paper March 1998)
ISOTRAK enables the Transport industry to deliver
its sustainable distribution objectives. Detailed management reporting
means fleet managers can have a tight control over efficiencies
and costs.
IMPROVING EFFICIENCY
"Vehicles running empty or lightly loaded
lose the industry money, increase pollution and energy consumption
and produce un-necessary pressures on road space." (White
Paper March 1998)
The ISOTRAK system of up to 20 vehicle monitors,
within each vehicle, enables fleet operators to determine the
status of a vehicle, and further gives them the technological
tools to redirect the vehicle if necessary.
"Trials by vehicle manufacturers demonstrate
that further energy savings could be made by changes to driver
behaviour" (White Paper March 1998)
ISOTRAK Driver Debrief, Tachograph Analysis,
Driver Performance and In Cab Equipment, provide Transport Managers
with the long over due tools to "Professionalise" the
role of Drivers within the industry. ISOTRAK provides training
for managers and Drivers on system utilisation with the result
that drivers contribute themselves through the in-cab technology
to a more efficient fleet. The in-depth reports contain information
on idle time, fuel efficiencies, and MPG, enabling managers to
effectively work with drivers to change behaviour. In addition
mobile phone cost savings of up to £500 per vehicle have
been recouped upon the installation of ISOTRAK in-cab communication
system.
Identifying Inefficiencies
Professor MacKinnon's recent research into efficiency
of Road Freight Transport in the UK (The first detailed survey
done worldwide) highlighted a range of inefficiencies in the Industry.
Using 2,400 vehicles, over a 48 hour period, that made 11,900
journeys, and travelled 1.16 million kilometres, it demonstrated
the following inefficiencies.
— 22 per cent of Vehicles travelled
empty.
— Overall only 50 per cent of the available
space in the loaded vehicles was actually filled by a load.
— Vehicles spent only 35 per cent of
the time running on the road, and of that time 20 per cent was
spent empty and stationary.
— Much of the delivery work peaks between
7am and 10am when roads, are at their busiest.
— 25 per cent of trips where subject
to unscheduled delays of on average 50 minutes (most of which
were at delivery points costing on average £4k per annum
per vehicle).
— The difference between fuel efficiency
for an average 38 tonne arctic truck between the top and bottom
range was 7,300 litres of fuel per annum or £5000k.
The Solution
Overall Professor Mackinnon's survey demonstrates
that there are huge efficiencies to be gained within the industry
that can be brought about through efficient management skills.
ISOTRAK technology enables road haulage fleet managers to identify
each of the above efficience in their systems at a glance, and
take appropriate action to remedy each one ensuring efficiencies
are gained throughout the industry.
MEETING THE
GOVERNMENTS' "SUSTAINABLE
DISTRIBUTION STRATEGY"
MARCH 1999
"A sustainable distribution strategy should
consider more than just the transport of goods from A to B."
"The aim of a sustainable distribution strategy
must be to ensure that the future development of the distribution
industry does not compromise the future needs of our society,
economy and environment." DETR Sustainable Distribution:
A strategy
In March 1999 the DETR published its Strategy
for Sustainable Distribution.
The document to sets out a comprehensive integrated
strategy for the sustainable distribution of goods and services
in the UK, in which the Government's objectives are to:
1. improve the efficiency of distribution;
3. make better use of transport infrastructure;
4. minimise pollution and reduce greenhouse
gas emissions;
5. manage development pressures on the landscape—both
natural and man-made;
6. reduce noise and disturbance from freight
movements;
7. reduce the number of accidents, injuries
and cases of ill-health associated with freight movement
ISOTRAK believes that its intelligent Transport
System provides Road Haulage transport managers with a unique
technological management tool to meet one-six of the Governments
objectives on sustainable distribution.
Logistics
The people responsible for the creation, design
and management of ISOTRAK are all logistics specialists. The system
enables fleet managers to maintain an efficient distribution of
goods and services, and to further manager competitive fleets.
The need for ISOTRAK came out of a desire to ensure an efficient,
modern and distribution network, as well as maintaining an effective
management reporting system that utilised the best and most effective
information communication technology developments.
ISOTRAK understand the contribution competitive
fleet management makes to the commercial success of the transport
industry and in its turn to the economic success of the UK. The
ISOTRAK system was created to be an industry leader in its field
and as yet remains unique; the only fleet management system that
incorporates real-time transport management systems, applicable
to both the private and public sector.
Harnessing efficiencies
Businesses in the future will be required to
invest more in distribution as e-commerce takes on a greater role
in individual lives. In addition the freight industry has itself
undergone changes noted in the governments sustainable distribution
strategy.
— increasing scale and specialisation
of manufacturing plants, which require more inter-plant transport
and in some cases can be further from supply sources and markets;
— production of more complex, higher
value products which require more components and/or more sophisticated
processes, often entailing additional transport (eg, processed
and pre-prepared foods);
— wider national and international
sourcing and market distribution, which has enabled producers
to develop new products, cut costs and sell at competitive prices
to more geographically dispersed consumers;
— the strong growth of the service
sector of the economy, which has promoted growth in van traffic;
and
— demands for more frequent deliveries,
as stockholdings have been reduced throughout the supply chain.
Although the freight and road haulage industry
has responded to gain efficiencies, despite these changes, no
other system available presents transport managers with the management
tools to harness the level of efficiencies gained by ISOTRAK.
Most fleet managers still work with systems,
which are little more than pen and paper systems with low technology
support. ISOTRAK provides the real-time management tools that
allow transport managers to
— See exactly where individual trucks
are down to street level.
— Re-route vehicles immediately.
— Make fuel and cost efficiencies through
ISOTRAK's reporting system.
Minimising Costs
3.3. "The market incentives to eliminate
waste, minimise costs and satisfy customers are strong, and will
continue to generate quality and efficiency gains in future." Chapter
3, Towards "Sustainable Distribution"
ISOTRAK is the only fleet management system
at present that provides the tools to eliminate waste, minimise
costs and satisfy customers.
Running on Empty
3.4. "the ratio of empty running of
lorries remains significant, at around 30 per cent, and has been
broadly static for the last 10 years. The incidence of light
running, where vehicles are not loaded to their full capacity,
is greater still. Eliminating all empty or light running is simply
not practicable. There still appear to be many opportunities for
reducing empty or light running, whether through better information
systems, promoting collaboration between operators or introducing
improved vehicle or packaging technologies" Chapter 3,
Towards "Sustainable Distribution"
We concur with the government that "Vehicles
running empty or partially loaded add to noise, pollution, congestion,
health problems and accident risks—costly to industry and
society at large."
ISOTRAK Vehicle monitoring system can support
Fleet Managers in establishing the capacity of vehicles, and aid
them in determining how these may be re-routed or used to gain
better efficiencies.
Environment
3.6. The development of our distribution
system has a substantial environmental impact. Although there
are no more lorries on our roads than there were 10 years ago,
they are larger (on average), and travel considerably further.
Van traffic has also increased substantially. Chapter 3, Towards
"Sustainable Distribution"
ISOTRAK enables road haulage Fleet managers
to make a 20 per cent saving on costs on average 9 per cent fuel
and 11 per cent increase on effective utilisation. If ISOTRAK
systems were installed purely on all fleet transport systems there
would be substantially less trucks on our roads and less fuel
used. We believe that our system can therefore enable fleet managers
to make decisions that drastically reduce the environmental impact
of their transport/road haulage fleet.
Fewer vehicles on the road, means less environmental
damage, and less vehicle emissions. Less vehicle emissions means
that ISOTRAK can help the road haulage industry contribute to
government objectives to meet environmental targets agreed at
KYOTO.
Quality of Life
3.14. The same factors that threaten to
undermine our longer-term environmental objectives also pose substantial
social challenges. Local air pollution can be a significant health
hazard, for example to people who suffer from respiratory ailments.
Noise and disturbance from lorries and other vehicles is already
a serious problem for too many of our citizens, and not only in
urban areas. Chapter 3, Towards "Sustainable Distribution"
ISOTRAK gives road haulage Fleet managers the
technology to respond to local requests for timetable/route rescheduling.
Managers can see at a glance which routes their vehicles undertake
and any potential for rescheduling that may exist.
A SUSTAINABLE MARKET
Road Haulage
ISOTRAK recognises that the liberalisation of the
industry means that there is a substantial competitive advantage
to be gained by Road Haulage users using its Intelligent Transport
System, ISOTRAK, particularly as UK based hauliers already have
begun to expand their activities into the EU.
Fuel Duty Escalator
The road haulage industry in the UK has continuously
expressed concerns that the fuel duty escalator in the UK increases
fuel costs for UK operators. The Government has maintained this
strategy as the primary way of ensuring the industry maintains
fuel efficiency as one of its key objectives.
ISOTRAK enabled Trucks make savings up to 9
per cent on fuel through primarily the ability to monitor, respond
to and change driver behaviour, so fuel usage is kept to a minimum.
ISOTRAK can therefore provide the solution to both the Industry
and Government in this contentious area.
More Efficient Lorries
6.31. Since road haulage will continue to
play a key role in future distribution systems, it is important
to ensure not only that operators and drivers behave as society
would expect, but that they have the best equipment to do their
jobs, safely and efficiently. Efficiency matters, not only from
the standpoint of competitiveness, but because more efficient
vehicle fleet utilisation means lower energy consumption and less
pollution, for any given volume and pattern of distribution. Chapter
6, Sustainable Distribution
ISOTRAK as the market leader in Intelligent
Transport Systems ensure that vehicles do become more efficient,
guaranteeing cutting edge competitiveness, lower energy consumption
and less pollution.
TACKLING CONGESTION
5.8 Congestion is increasingly common on
the trunk road and motorway network, and this problem is forecast
to get worse. There are three broad options for tackling it:
— making better use of the existing
infrastructure;
— providing new infrastructure. Chapter
5, Strategic Planning
ISOTRAK provides fleet managers with the necessary
tools to make strategic decisions on how they can contribute effectively
and responsibly to tackling congestion. The ISOTRAK In-cab communication
systems ensure that there is real-time communication with fleet
headquarters and an effective management reporting system maintains
continuous data, giving managers to hand the tools to work in
conjunction with Local Highways Authorities to tackle congestion.
Keeping Lorries off Lanes
6.49 A survey by the Council for the Protection
of Rural England confirmed that there remains substantial concern
in rural communities about the problem of rat-running by large
lorries. Rural roads were not designed to accommodate such vehicles,
which can damage road surfaces, disturb the tranquillity of the
countryside and intimidate vulnerable groups, such as pedestrians
and cyclists. The Government's position is simple: lorries should
not travel on unsuitable roads unless they have to use them for
collection or delivery.
THE ISOTRAK System enables Road Haulage Fleet
Managers to pinpoint exactly at all times where their vehicles
are, ensuring that lorries can be kept out of rural areas or from
night-time driving, if necessary. In addition the Driver Debrief
Reports contain detailed information giving Road Haulage Fleet
Managers a visual image of driver behaviour, which in turn enables
Fleet Managers to offer strategic advise and information to Local
Authorities on all aspects of road haulage. Detailed management
information also enables road haulage operators and local authorities
to make quality partnership decisions for both Urban and Rural
Distribution based upon facts and not estimates as is currently
the case in the industry. Chapter 6, Sustainable Distribution
RAISING STANDARDS
6.2 Above all, achieving sustainable distribution
will require a progressive raising of standards throughout industry.
Many leading companies are already addressing these wider issues
effectively, operating to standards well above the statutory minimum.
Regrettably, the evidence shows that a minority continue to adopt
a short-term, minimum cost approach to the job in hand, which
sometimes does not even meet the existing statutory requirements.
The Government will work with the leaders in industry, with local
authorities and with their regional partners to raise the standards
of the best still further, while addressing more effectively the
problems caused by those who break the rules. Chapter 6, Sustainable
Distribution
Well Driven Scheme
ISOTRAK supports the Well Driven Scheme created
by the Freight Transport Association and the Road Haulage Association.
It believes the Scheme provides invaluable accountability for
the Road Haulage Industry. ISOTRAK however sees a future in which
the detailed collection of data on each vehicle will superseed
the need for having such a scheme. ISOTRAK Data ensures that not
only are most aspects of Driver behaviour collated and available
for analysis, but that with this reliable information, good driver
behaviour can be rewarded.
ISOTRAK believes that it is through the implementation
of Intelligent Transport Systems that the Road Haulage Industry
can begin to meet the government standards set for the industry.
Encouragement of best practice in the industry
6.19 The Government will encourage and reinforce
best practice within the industry. The approach will be to recognise
those who consistently perform to well above the minimum statutory
requirements in the fields of training, vehicle maintenance, site
operations and other policies relevant to the development of sustainable
distribution. Chapter 6
ISOTRAK believes that its system at present
gives Road haulage Fleet Managers the tools to become best practise
operators in the industry. ISOTRAK is simply not sold to clients,
it is tested, tailored to a clients needs and then training provided
to all users, to ensure the best possible result is achieved for
all clients.
Each client has a 24 hour back up service to
ensure their needs are constantly met. Each Client pays a monthly
fee for the service, so there is no need for a large scale investment
in which it is difficult to see immediate cost savings.
6.19 The Government will work with industry to
develop and codify descriptions and examples of best practice,
which can then be widely communicated throughout the industry
to encourage emulation. Chapter 6
ISOTRAK is a unique system which has been independently
described as a market leader by leading academics in the logistic
field. ISOTRAK also believe that it is an example of best practise
in Intelligent Transport Systems that the Government should be
working with the industry to encourage and widely communicate.
It has wide application not just in the private sector road haulage
industry, but has also been successfully implemented in the health
sector (St Mary's Paddington) and we believe has wider application
throughout the freight and passenger transport sector.
Summary of proposals
We shall:
— widen the scope of the Energy Efficiency
Best Practice Programme to include all sectors involved in supply
chain management and all aspects of sustainable distribution;
including pollution, waste reduction and recycling, safety, training,
new technologies, benchmarking and overall performance improvement;
— publish a new journal of Sustainable
Logistics to disseminate Best Practice information;
— explore ways in which innovation
and best practice can be recognised. Chapter 6
Sustainable Distribution
ISOTRAK believes that it currently provides
a unique system which ensures that the road haulage industry can
meet sustainable distribution standards, and that its system should
be used as a benchmark for quality in the Energy Efficient Best
Practice Programme. ISOTRAK is committed to best practise in the
Industry and recently was the joint sponsor of a new award, the
Logistics Director of the Year, alongside Exel Logistics.
UNDERSTANDING TRENDS
IN LOGISTICS
ISOTRAK has been created and implemented by
Logistics specialists, as such we believe we have the insight
into the future of the road haulage industry. ISOTRAK believes
the future lies not in taxation and enforcement, but in encouraging
fleet managers to implement Intelligent Transport Systems, through
ensuring that there are suitable tax breaks, Best Practise Recognition,
for Fleet Operators who use ITS to maximise efficiencies.
E-Business and ISOTRAK
Most Transport management in Europe has not
changed in the last 20 years. Whilst every other part of business
has been impacted by the introduction of computer technology,
trucks are generally sent off at the beginning of the day, and
apart from occasional contact by mobile phone, the operator is
completely in the dark as to what the truck is doing during the
day and where it is.
ISOTRAK provides a unique service for the real-time
management of commercial vehicle fleets.
ISOTRAK technology has been designed using Internet
building blocks and can use hand-held computers as the starting
point or the end point of an electronic transaction, so streamlining
the flow of information from the customer back, to administrative
systems for billing, customer service systems, for fault rectification
or inventory systems for stock management.
The system benefits both the consumer and the
supplier through more efficient delivery and greater visibility
throughout the delivery process.
In the retail world leading organisations are
investing millions in promoting easier ways of buying, however,
customers still have very little flexibility on delivery windows
and typically get no warning of delays.
In a home delivery operation Isotrak can provide:
— customer visibility of delivery progress
with ETA notification on a web site;
— automatic notification of iminent
delivery on their phone, a GSM phone, pager;
— complete audit trail of deliveries
to a location;
— electronic proof of delivery for
the retailer;
— reconciliation of incorrect deliveries.
In a traditional logistics delivery or collection
operation Isotrak can provide:
— automtic proof of delivery;
— full audit trail of deliveries or
collections on an Intranet;
— reconciliation of incorrect collection
or deliveries;
— automatic notification of imminent
delivery or collection on their phone, a GSM phone, pager, email
or fax machine.
In conclusion, organisations have the opportunity
to take advantage of one of the least productive parts of their
operation—transport—by extending the electronic communication
process out to the customer and so reduce their costs and improve
their customer satisfaction. How many opportunities do retailers
have to do this?
ISOTRAK believes that now is the time for the
Road Haulage Industry to benefit from innovation in technology
and to harness efficiencies gained to improve international competitiveness.
We believe that the government should support the industry to
adapt to technology, through tax incentives and the recognition
of best practise.
February 2000
29 Back-haul is the term to empty or semi-empty trucks
in the industry. Back
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