Fleet Management News & Business Info | Commercial Carrier Journal
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FLEETS RAMP UP TECHNOLOGY INVESTMENTS TO BOOST MARGINS, DRIVER RELATIONS, CUSTOMER SERVICE BY AARON HUFF T ennant Truck Lines recently moved from an over- crowded family farmhouse in Orion, Ill., to a $3 million facility in Colona, Ill. Over the next two years, the open- deck carrier plans to grow from 184 to 250 trucks and add 50 new jobs that pay $40,000 a year on average. "It was tough to invest in technology during the recession," says Aaron Tennant, president. "We were watching every dollar that fl owed out of here. Today, although our margins are not where we would like them to be, we are looking forward. We want to invest in any cost-savings technology to help improve on margins and to provide value and solidify our position with customers." When revenues spiraled down in 2008 and 2009, Tennant – like most fl eet executives – had to cut costs dramatically to survive. As business rebounded, fl eets looked to technology to bring more discipline and stability to their operations and more value-added services to their customers. Investments in technology soared, com- pelled by a need to target and remove unnecessary work and waste from fl eet opera- tions while adding value to customer relationships. Successful managers have accelerated their return on investment by engaging employees and drivers in the following areas. FUEL SAVINGS Investing in technology to reduce fuel consumption has paid big dividends for Tennant Truck Lines and its drivers. Tennant created an automated scorecard system that captures data from various sources across its enterprise. The scorecard rewards drivers that meet performance levels in fuel savings, customer service, safety, compliance and other areas. Drivers that achieve all targets earn a monthly bonus of $0.06 per mile. The fuel portion of the scorecard is worth $0.03 per mile. Tennant doesn't tie this incentive to miles per gallon but to driving behaviors that impact mpg directly, which include overspeed, use of cruise control, time in top gear, idling and hard-braking incidents. Tennant has established thresholds for each of these metrics according to equip- We want to invest in any cost-savings technology to help improve on margins and to provide value and solidify our position with customers. 48 COMMERCIAL CARRIER JOURNAL | DECEMBER 2012 " – Aaron Tennant, president, Tennant Truck Lines