Software
Third of Three Parts
Transformative Technology: Laying the Foundation for High Tech Tools in Today’s Modern Hauler
Today’s technology solutions available for the back office can have a profound and positive impact on productivity, asset use and efficiency across the organization.
Steven Kaufman
In the second part of this series (November 2010), we covered the transformative effects that in-cab technology can have on the driver experience. From the elimination of paperwork to reduced route time, in-cab hardware can be a valuable and highly effective tool in a driver’s arsenal.
With the rich collection of data that on-board systems can send back from the field, the effects on back office workflow can be equally as transformative. This article will focus on the many ways in which modern haulers are benefitting from technology, becoming leaner, tougher competitors in the process.
Exploring the Back Office System
The heart of any on-board system is the database—the main repository for information sent to, and received from, the truck. This database is the main source from which all functions—reporting, integration and real-time dashboards—will flow. Between the database and the truck is a real-time pipeline, sending information to the vehicle (e.g, route changes, new work orders) and field data back from the truck (pickups, skips, breaks).
This symbiotic relationship is the heartbeat of the onboard system. Real-time information means the office knows what’s happening at nearly the same instant as the driver. This brings huge benefits, from more accurate customer service calls to the ability to make on-the-spot changes to a route. It also instantly informs the applications that pull from the database of the latest field conditions, providing all stakeholders with precision whenever they need information about their hauling operation.
However, one can’t simply plug into the database and start extracting information. That’s the job of the user interface surrounding the database. Well-crafted software gives every employee in the hauling operation exactly what they need; things like driver, vehicle and route dashboards for the operations team, preventative maintenance alarms for the repair crew and route profitability information for the financial staff. When done correctly, the user interface can push mission-critical information directly to users as it comes in from the field, obviating the need to run a report every time data is needed.
This layer around the database is called Operational Intelligence. More than just a moniker, it can truly bring a level of knowledge to the operation and transform the way the company interacts, internally and externally. Armed with facts, not conjecture, Operational Intelligence gives insight into the micro-aspects of routes, drivers and vehicles, shining light on the hidden places where revenue is lost and expense is unnecessarily incurred. Understanding and eliminating these micro-aspects can unleash a hauler’s true productivity.
Several key software elements feed into this central Operational Intelligence core. The first is the routing/billing software. Among other functions, this is where routes are sequenced and sent to the truck. Actual pickup data is fed back here for customer billing and route analysis purposes. This is often one of the first integration points in the back office as the system is deployed.
Also feeding the Operational Intelligence core are specialized applications such as route optimization software, time clock/payroll programs and fleet maintenance software, to name a few. These applications benefit from a direct integration to the Operational Intelligence database, sending and receiving data so as to fulfill their individualized function: optimize routes, increase the preventative maintenance posture of the fleet or fully profile the click-in to clock-out time of the drivers.
The Value of the Software Suite
Some on-board systems offer little, if any software of their own, opting instead to send their data directly to one or more existing back office software programs. The most obvious benefit of this approach is simplicity. The hauler does not have to learn any new software programs. However, in some cases, on-board systems can collect far more information than back office software was designed to import. This could leave a gap in the hauler’s ability to fully analyze their operation. As a result, the technology solution may fall short of its transformative goals.
If there is no overlap to existing functionality, a strong analysis engine that processes the data from the on-board system can add unparalleled value to the hauling operation. Mapping, charting, real-time dashboards and post-route analytics can act as a powerful complement to today’s back office software. Any training curve (which should be very modest for well-written software) would be far outweighed by the productivity gains the system would bring.
The “golden ticket” to a complete software suite is integration, where data flows effortlessly between software packages that were originally designed to be stand-alone applications. With integration, parts of the hauling organization that may never have communicated with one another (or did so poorly) can be fully connected. Successful integration requires knowledge and experience far beyond coding, encompassing these additional skills:
Workflow analysis, including an understanding of how information is moving between departments.
System expertise that can analyze what tools are in place at the hauler and what role each is playing.
A deep knowledge of operations and finance so the leaks that are robbing productivity, revenue and driving up costs can be eliminated.
Most importantly, integration requires technology partners who are dedicated to open standards and who are committed to sharing data and creating interfaces that are in the customer’s best interest.
Tying It Together: Hardware to Software Benefits
Having looked at the benefits of technology in the cab, what can those same advancements do for the team in the back office?
Digital Cameras
Photos taken by cameras give absolute verification of what the driver encountered at the customer site—digital proof of what service was rendered (or not as the case may be). This greatly eases the burden on the customer service organization, which no longer has to pit their word against the client. Simply informing the caller that a photo of the locked gate or blocked container was taken by the driver often times resolves the issue quickly and amicably and can lead to an increase in the calls/hour ratio for agents.
Additionally, photos can be mined by staff to search for hidden revenue opportunities such as overflowing containers or consistent extras. Using the pictures, proactive calls can be made to customers in an effort to increase service frequency or container size.
Finally, photos can play an important conflict avoidance role by documenting the pre-existing condition to landscape or driveways, road safety issues, and damage to gates and containers.
Weight Scales
Integrated scales can store the weight of each container with the customer record. Traditionally, scales have been used predominantly in commercial trucks. However, a new (and possibly transformative) application is emerging. Given that the cost to go house to house in a residential setting is fairly even, the variable expense is usually weight. This is the genesis of pay-as-you-throw collection programs, where users pay a base rate for service, plus a second fee based on the volume they generate.
With weight scales, haulers will be in a position to more accurately bill client-by-client, rather than a flat fee structure where haulers hope that route revenue versus disposal expense evens out in the long run. This puts the hauler on the same playing field as utilities, where customers pay for the amount of service that they use.
RFID
RFID readers bring even more accuracy to the data collection process. This can be very effective on large residential routes, where up to 1,200 can be serviced in a single day. As RFID chip prices continue to decrease, the return on investment will continue to improve, further increasing its proliferation.
Jbus (Also Known as CAN Bus or Vehicle Diagnostics)
Back office software that reports on the factory-generated engine fault codes being sent back from the field can have a strong, transformative effect on fleet maintenance. Trucks kept in top-notch running condition are less likely to break down in the field, saving haulers the expense of in-field repairs and eliminating the headache and expense of parsing out a broken truck’s remaining route stops.
Additionally, some haulers have been able to use on-board systems and preventative maintenance codes to save on vehicle insurance premiums, as well as self-certifying their vehicle emissions, thereby avoiding the expense of taking the truck to the smog station.
What’s In It for Management?
While it’s encouraging to review the specific transformative effects of an automation system, the management team can—and should—question the benefits it will bring to their ability to lead the organization. As the decision making body who will fund the system and be responsible for its return on investment, no study of on-board systems would be complete without a brief discussion of the gains it can provide the senior team.
First, and perhaps most important, is accountability. Because the system generates neutral, objective data, underperforming aspects of the organization can no longer shroud themselves in anecdotes or justifications. Problem areas can be easily highlighted and targeted for improvement, leading to a cohesive company-wide commitment to quality and efficiency of operations, with everyone accountable for their individual leg of performance.
Additionally, a technology system can bring a sense of empowerment to each individual in the organization, transforming them from employees to stakeholders. Corporate culture can be greatly influenced by how much power company staff feels they have in order to resolve issues that they encounter. If everyone had access to tools that streamlined functions, eliminated duplicative effort, and cut out manual, repetitive and mundane tasks, the positive effects on morale and productivity would be nearly incalculable.
The adage that says, “If you can’t measure it, you can’t manage it” applies wholeheartedly to the back office technology system. Information from multiple data points, when accurately and reliably collected, allows for the creation of key performance indicators (KPIs) that can be uniformly applied. Staff and management can track KPI trends and use them to target specific areas that need attention, such as decreasing call duration time or increasing roll off pulls/hour. Ask anyone who has been involved in a corporate improvement initiative that has not had measurement criteria and they will likely convey stories of the program’s failure. KPIs, in conjunction with performance trend graphs and regular reporting, are the cornerstones of corporate enterprise that can spur organization-wide transformation.
The bottom line benefit for management is dramatically improved decision making capability based on the real-time information being fed from the field. With the data, statistics and dashboards, managers can quickly assess the state of their operation and make faster, more informed decisions. In the hands of a seasoned executive, that translates to more profits and a leaner, more efficient operation.
Technology Solution as a Transformative Agent
This series has focused on the transformative effect technology can have across a hauling operation, both in the cab and in the office. It has tried to show the many benefits that can be gained in the areas of productivity improvement, revenue enhancement and employee performance, not to mention the impressive return on investment that the system can generate. With haulers facing increasing pressure to compete—and win—a technology solution can be the transformative agent that can remake a hauler into a lean, powerful organization, fleet-footed and ready to tackle the challenges of today’s marketplace.
Technology providers are constantly innovating the ways they can streamline the collection, transportation and disposal of waste for their customers. With the advancements offered by today’s technology solutions, combined with the broad-based benefits that can be realized throughout the company, it is no surprise that today’s modern hauler sees technology as one of its greatest allies on the road to stellar corporate performance.
Steven Kaufman is the founder and Senior Vice President of Routeware, Inc. (Beaverton, OR) He has more 25 years of experience in product development, manufacturing and operations, half of which have been spent in the solid waste industry. He has worked for Intel and Wang Laboratories in the U.S. and Europe, as well as other technology and engineering firms. He can be reached at (503) 906-8588, via e-mail at [email protected] or visit www.routeware.com.