How We Cut Our Transportation Operating Costs

In 2014, Maschhoff Transport was faced with increased transport operating costs. Their fuel efficiency was below the national average and maintenance cost per mile on trucks continued to increase. Here’s what they did.

Semi truck The Maschhoffs
Semi truck The Maschhoffs
(File image)

By Steve Bremer, Transport Safety and Recruiting Manager for The Maschhoffs

In 2014, Maschhoff Transport was faced with increased transport operating costs. Our fuel efficiency was below the national average and our maintenance cost per mile on our trucks continued to increase. Our analysis indicated we could not stay competitive transporting pigs unless we updated our aging fleet consisting of 16 trucks. The big question for us was what truck brand would give us the best fuel economy, warranty, driver comfort and safety features?

Put Drivers in the Right Seat
We contacted three truck manufacturers that had local dealerships and shared our intent to initially order eight trucks, followed by a second order of eight trucks within the next 18 months. We provided the manufacturers the conditions the trucks would travel in, weight, load types, interstate miles, local miles, road conditions and more. We listed fuel economy, warranty, safety and driver comfort as our primary objectives selecting a truck.

Utilizing computer modeling by their engineering department, the three manufacturers made recommendations from our specifications. All three agreed to provide us with a three-month trial on the truck they believed would give us the best fuel economy. We did the trial run using the same drivers on similar routes and loads. All three companies recommended automatic transmissions, but one truck brand outperformed the others in fuel economy and warranty offering a 5-year/500,000-mile warranty.

With the blessing of our drivers who performed the trials, we ordered eight new trucks in October 2014, and since then, we have increased our fleet to 60 trucks. Our fuel efficiency jumped 20% and our maintenance costs dropped to $0.08 per mile for a combined our operating cost decline of 22%.

Use Telematics and Electronic Logging Devices to Improve Safety
In addition to improving our operating costs, we wanted to improve safety. We found an easy-to-use telematic fleet management system that tracks drivers’ hours of service (HOS), fuel, driver safety, GPS location, maintenance diagnostics and includes a preventive maintenance program.

The fuel tracking software was extremely beneficial, allowing us to better coach our drivers on driving habits to increase fuel economy. Habits are tracked such as following distances, braking, idling, using cruise control, coasting, rapidly accelerating from stops. Harsh events, such as braking and lane departure to rapid acceleration and excessive speeds are automatically tracked by the system and can easily be pulled for each vehicle by our fleet manager. Not only does this allow the manager to identify and address recurring issues, but it also results in greater safety on the roads.

We also added an artificial intelligence (AI) dash cam that automatically uploads and instantly reviews collisions, near misses, harsh brakes and sudden turns. Using a g-sensor and advanced AI, the camera detects critical events, alerts drivers in real time and sends the event details to the manager.

The electronic logging device (ELD) is a unit that plugs directly into a vehicle engine report and is paired with a mobile app that the driver can use to track and log their vehicle data in real time. We chose an ELD that was easy for the driver to use and one that was easy to use with the livestock ag exemption rule.

Drivers can also be sent messages to the mobile app, with text to speech capability. If the driver is on the road, he will get a voice message rather than a text and he can view the text message once he is parked. In addition, managers can use a dashboard to see the HOS for all their drivers in one central location.

Not only is the HOS paperwork drastically reduced with ELDs, but things like IFTA mileage reporting and driver vehicle inspection reports can be completed much more efficiently when an ELD is paired with a telematic device. The fleet management program allows you to track preventive maintenance items – lube, oil changes, tire service, annual inspections – and send the fleet service manager notice when upcoming service work is due.

By choosing the right trucks for our drivers and upgrading to the latest telematics technology, we have gained the drivers confidence and trust in using technology to improve safety and efficiencies.

More from Farm Journal’s PORK:

Superheroes of the Supply Chain: Truckers Keep it Moving

4 Things to Consider When Handling Heavier Market Hogs

Hours of Service Waivers Extended Again for Livestock and Feed Haulers

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