How smaller haulers can use data and information to level the playing field.
With improvements in internet connectivity [5G] and more data moving to the cloud in less time, end-user expectations on what they can do with data are becoming more immediate. In other words, fleet owners want comprehensible information at their fingertips in real time that helps them better run their business. Further, fleet owners鈥� attention spans are being taxed with the need to digest complicated application dashboards, along with balancing their drivers鈥� in-cab stimuli to maintain safety and productivity. Today鈥檚 fleets also require much better connectivity with their end users鈥攕pecifically with new subscriptions, more accurate billing and real-time route and asset oversight.
Using that as the backdrop of what is currently viewed as 鈥渘ormal fleet operations鈥�, the notion of introducing 鈥榗onnectivity鈥� to an already tech-saturated market segment might (at first) fall on deaf ears. That is until a fleet owner is acquainted with the notion of a truly connected truck and the potential of what it brings to a fleet鈥檚 safety, productivity and its bottom line.
At first blush, the word 鈥渃onnectivity鈥� has different meanings for different people. So, for sake of clarity, I am defining connectivity as: the ability of the asset being digitally 鈥榗onnected鈥� to their fleet鈥檚 back office to facilitate routing, customer service and billing; connected to their maintenance ERP system for real-time/near real-time maintenance assessment of both chassis and body; and connected to dispatch to track the vehicle鈥檚 location and route productivity (which provides the basis for more accurate pricing of services). Finally鈥攂ut of primary importance鈥攎onitoring the asset鈥檚 safety and driver鈥檚 environment are also key components of connectivity.
Currently, a modern refuse collection vehicle might have four different cell services in their truck: one each for safety, routing, engine monitoring and another for positive service verification鈥攅ach with its own subscription cost and cellular connection. This can be further complicated by multiple monitors inside the cab, wiring (installation) complexities and less-than intuitive processes that often times fall on the vehicle鈥檚 operator to manipulate鈥攊n addition to their primary responsibility of safely and efficiently driving a large RCV through crowded neighborhoods or commercial properties to pick up trash.
Data is Fuel; Information is Power
Leck Waste Services, headquarted in Ivyland PA, has operations in Bristol, Coopersberg, Kutztown and Newtown, PA. Running 75 trucks, Leck services 30,000 customers in Pennsylvania, New Jersey and Delaware, working commercial services, roll-offs, septic, portable toilets, transfer trailers, and an MSW transfer station.
In 2018, Leck was seeking a program to provide better coaching for drivers who exhibit behaviors they wanted to call attention to鈥攔educing the number of accidents as well as practices that were unnecessarily hard on their equipment. After looking at various solutions over the course of several months in 2018, Leck approached 3rd Eye庐, part of Environmental Solutions Group. Knowing Eric Monsen, ESG VP, Regional Sales, Leck Waste Systems鈥� President, Jason Leck had faith in their ability to provide reliable data solutions while working with a previous vendor. 鈥淲e were aware of ESG鈥檚 acquisition of 3rd Eye. We knew if the ESG team, which has built trucks for 120 years, was investing in technology, it was something we needed to investigate.鈥�
Environmental Solutions Group鈥檚 (ESG) Connected CollectionsTM Digital Strategy includes SaaS modules like Verif-EyeTM, Optim-Eyes庐, Certif-EyeTM, Magnif-EyeTM and 3rd Eye庐 Safety, where fleet owners can have reams of information at their fingertips to truly help them make better decisions, faster. All of this can be accomplished over one cell connection. The system is based on reporting 鈥榚xceptions鈥�, meaning ESG鈥檚 systems are smart enough to begin looking at a fleet鈥檚 operational data and knowing when to report based on parameters鈥攐r exceptions鈥攖hat have been delineated by the fleet owners. This type of data collection then progresses into reports based on this exception data being converted to comprehensive information and ultimately customized reports that readily make sense to fleets. 鈥淲e started by providing safety data that fleets wanted to help them better handle driver coaching events, such as hard stops, cell-phone use, and distracted driving as well as post-incident fault mitigation,鈥� said Monsen, adding, 鈥渋t was eye-opening when fleets began to look at data revolving these types of behavior鈥攁nd how fleets used that quickly to improve their operations.鈥�
Monsen said that smaller fleet owners have traditionally refrained from taking advantage of these types of technologies in the past because of the expense. With the advent of 3rd Eye
Artificial Intelligence [AI], machine learning, and next-generation software development, the cost and complexity of these systems are now well within reach of smaller haulers who can then use the information to run a safer, more productive, and, ultimately, more pro table operation. In short, it levels the playing field and allows smaller fleets to compete with the larger national fleets and larger budgets.
Seeing Immediate Results
Involving Leck鈥檚 Fleet Manager, COO, Operations, CFO, Director of Safety and the President of the company, the entire implementation process took nine months to put in place because Leck went through a three-month pilot program, then evaluated the results. Then, Leck needed to secure financing, and finally install the system into the fleet.
鈥淎t Leck, we were able to realize a 25 percent savings in insurance cost by implementing 3rd Eye Mobile and using the system to drive coachable events from 157 events per month when we started鈥攄own to less than 10 events a month,鈥� said Leck. 鈥淭his allowed Leck Waste Services to see a six-figure return on annual insurance costs in their Waste Captive insurance program.鈥�
Additional Solutions
With the collaboration between ESG and Leck established, 3rd Eye engineers and Leck management began to look at additional data that could be converted into meaningful information that would help them run a more pro table, more productive operation, while maintaining an atmosphere of uncompromised safety. One of these areas was
Commercial Front Loader overages鈥攖he negative impact it had on Leck鈥檚 bottom line鈥攁nd the missed opportunities for upselling that were not fully realized until the Verif-EyeTM Connected Collections positive service module was introduced to Leck.
鈥淲hen 3rd Eye came to me regarding how I was handling my commercial overages, at first, I didn鈥檛 know how to respond,鈥� said Leck. 鈥淚 mean, we knew that overages were occurring, and we had our drivers taking pictures with their Mobile-PakTM tablets of those containers that were over owing. We estimated we had about 2 to 3 percent of our commercial stops in some type of overage situation.鈥�
When a fleet owner looks at the true anatomy of a scale-house ticket and then backs out the scheduled revenue generated from the route, versus the actual tipping fee charged based on the tonnage that crosses the scale鈥攖he true impact of overage becomes clear鈥攁nd it took Leck by surprise. 鈥淥ur eyes were opened pretty quickly when Verif-Eye identified that we actually had 8 percent overages, which made us realize we needed something that captured overages automatically鈥攁llowing the driver to focus on servicing customers. Bottom line, the additional 4 to 5 percent we didn鈥檛 account for was coming out of our pocket,鈥� said Leck. 鈥淰erif-Eye also provided us with video evidence of those repeat offenders as well as the historical data to go back to those customers to either increase the size of their container or the frequency of their pickup. In the first month we were able to drive $10,000 to the bottom line by right-sizing customers and by capturing insight to customers鈥� accounts that were decreased due to the pandemic. That money fell directly to the bottom line and allowed our company to right size our customers鈥� needs during the post-pandemic uptick.鈥�
To help ESG sales teams better communicate this to end users, a simple online calculator has been developed to allow fleets that run commercial front loaders to assess what their potential revenue could be if they captured overages using their own data. 鈥淕iven the response we鈥檝e received after running the Verif-Eye Commercial Front Loader Overages calculator by a few of our customers, it鈥檚 pretty clear that pictures are worth a thousand words鈥攐r in some cases鈥攑otentially hundreds of thousands of dollars, depending on the size of your fleet,鈥� said Monsen.
鈥淲hen you have customers using their own data鈥攁nd then seeing what the potential is鈥攊t becomes a great way to introduce Connected CollectionsTM as the information we鈥檙e providing them lives up to our mantra of helping fleet owners make better decisions, faster.鈥� The information collected from a customer鈥檚 first exposure to the calculator is saved and then compared to data collected during a full four-week Verif-Eye demo on a customer鈥檚 route. Once a customer sees the actual overage data pulled from their route compared to what they originally estimated鈥攖he potential opportunities become very clear.
鈥淲e have customers who are running overages of 14 percent,鈥� said Monsen. 鈥淲ithout the ability to capture overages and charge back to their end users, the hauler would be upside down in terms of overall profitability. Now these customers have the information they need to work with end users to provide better service while get paid for the efforts.鈥�
Impact on the Bottom Line
Vehicles are getting more and more advanced in their systems and Connected CollectionsTM by ESG provides fleet owners鈥攂ig and small鈥攚ith technologies that previously were only viable to larger fleets with deeper pockets. 鈥淎t the end of the day, we have a much better understanding of our fleet鈥檚 operational cost and overall readiness鈥攖hanks to information provided by Connected CollectionsTM,鈥� said Leck. 鈥淲e have added tens of thousands of dollars to our bottom line through improvements in operational safety, controlling
commercial overages, and identifying and correcting maintenance issues before they become a problem. That allows us to better serve our
customers, which strengthens our relationships with our end users while allowing Leck to compete with larger national fleets.鈥� | WA
Jeffry Swertfeger is Director of Marketing for Environmental Solutions Group (Chattanooga, TN). He can be reached at (813) 957-1846 or e-mail [email protected].