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NEWS & SOLUTIONS

Transportation executives, under pressure to achieve greater operational efficiency while maintaining service levels, are increasingly relying on technological solutions.Leading-edge distributors are using routing software and onboard computer systems to establish benchmarks for drivers and equipment, improve communications and customer service, and achieve cost savings in fuel efficiency and maintenance.One

Transportation executives, under pressure to achieve greater operational efficiency while maintaining service levels, are increasingly relying on technological solutions.

Leading-edge distributors are using routing software and onboard computer systems to establish benchmarks for drivers and equipment, improve communications and customer service, and achieve cost savings in fuel efficiency and maintenance.

One of the biggest uses for transportation software systems, however, is simply to give transportation managers a handle on the information they need to make better decisions. Associated Food Stores, Salt Lake City, has already installed equipment maintenance software and is in the process of installing yard control and routing software systems in its Salt Lake City facility. The importance of such systems to Associated's operations can't be overestimated, said Darwin Dewsnup, transportation manager.

"Guessing doesn't cut it when you want to reduce waste and increase service to customers," said Dewsnup. "This technology will be the difference between being in business or not by the middle of the next decade."

One reason for the greater reliance on technology is the increasing availability of outsourcing solutions. In-house transportation departments "are getting pressure to justify their existence vs. these third-party people, so costing is getting critical in transportation," said transportation expert Richard Kochersperger, professor at the Center for Food Marketing at St. Joseph's University, Philadelphia.

Kochersperger spoke at a presentation during the Productivity Convention & Exposition held last month in Philadelphia.

"Technological enhancements, specifically computer reports, will be an important future need for transportation," he added. "For the first time, you're seeing the transportation manager say he wants the help of technology, which I think is really good."

Certified Grocers of California, Los Angeles, already uses automated routing systems in three of its four distribution centers, according to Corwin Karaffa, vice president of distribution. "These systems have helped us improve our on-time performance position and to manage our costs by reducing the number of miles traveled while increasing the number of stops," he said. "Technology plays a key role in these improvements."

In addition, the wholesaler is planning to install sophisticated onboard computers by early 1998. "These computers will allow instantaneous communication between the trucks and headquarters, which has significant value in terms of customer service," said Karaffa.

"For example, if a trailer is delayed at one customer stop, the computer can identify the next series of stops so that they can be contacted ahead of time," he said.

Many distributors already use onboard computer systems to track the performance of both drivers and equipment. Winn-Dixie Stores, Jacksonville, Fla., installed onboard computer tracking systems in its more than 1,000 tractors over the past two to three years.

"It has helped us control driver idle time, which burns up fuel just sitting there," said Ray Gordon, director of warehousing and transportation. "It also helps control excessive speed and RPMs on the equipment. Overall, it's made our drivers more professional."

Associated Grocers of New England, Manchester, N.H., a long-time user of onboard computers, may be expanding their use in order to establish reasonable objectives for its drivers. "We've been using the onboard computers for driver logs, fuel tax reporting and to monitor miles per gallon," said Kevin Murray, AG-New England's transportation manager. "Potentially, we'd like to establish the amount of time a driver should take to get to a specific place and how many pieces per hour he should be able to unload," he added.

Simply ensuring that drivers operate vehicles in the right way can bring significant efficiencies to transportation operations, distributors told SN.

"Even improvements of 0.25 or 0.5 miles per gallon is big business," said Robin Whitten, director of customer service and distribution for the Phoenix division of Fleming Cos., Oklahoma City.

"The economics of driving the vehicle the way it should be driven pays off tremendously in fuel consumption," said Prudencio Pineda, senior vice president of warehousing and distribution for Minyard Food Stores, Coppell, Texas.

Minyard plans to add routing software and onboard monitors next year, as part of its two-year program to install on-line shipping and receiving systems. "We're in the process of installing radio frequency and labor standards in the warehouse. When that's completed next June, we'll install the transportation systems, which will be compatible with the warehouse systems," said Pineda.

Minyard also wants to gather data on driving and delivery standards in order to analyze its compensation methods. "We're considering a change in the way we compensate our drivers. Hopefully, we'll go to paying by the load or by the mile rather than by the hour," said Pineda. "A lot of guys I meet around the country have gone to this type of system and made it work."

Distributors are also seeking transportation savings by automating and tracking equipment maintenance. Associated Food Stores will expand its use of maintenance software, from its Salt Lake City facility to distribution centers in Helena, Mont.; Billings, Mont.; and Boise, Idaho, by the end of the first quarter of 1998.

Besides tracking maintenance costs, Dewsnup explained that when all Associated's centers are linked to the maintenance software, the wholesaler will be able to centralize its parts purchasing. "Wherever the part we need is cheapest, we can order it there and transport it internally," he said.