| Bay & Bay Transportation Controls Runaway Diesel Costs With IDSC ExpertFuel from TMW Systems |
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Summer of 2008 found Bay & Bay in an admirable position. During the previous five years, Bay & Bay had grown exponentially. Its truck count had quadrupled. A new division-Bay & Bay Transportation Services--was formed. It purchased another company. A new terminal opened in Fargo. Senior managers were exploring the purchase of an imaging product to reduce paper work and improve billing efficiencies. Then, diesel fuel prices spiked to $4 per gallon. Company leadership began reprioritizing, concentrating on soaring prices at the pump and how those costs were affecting the bottom line, according to Bay & Bay Business Analyst, DJ Kirby. To keep 450 power units and 150 reefers at the Lake Elmo location operating profitably, containing fuel costs emerged as the most urgent issue. |
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The Solutions |
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"At today's much lower prices, IDSC ExpertFuel provides us even more opportunities for savings because the retail pricing spread in the marketplace is now much wider than during price spikes," said Kirby.
IDSC ExpertFuel is TMW's industry-leading fuel purchase optimization system designed specifically for TL carriers. The software integrates with a carrier's existing dispatch and mobile communications systems to reduce fuel expenses systematically, as a normal part of dispatch operations and driver planning. Companies save money both in fuel costs and in out-of-route expense. With access to daily, detailed fuel pricing data feeds from around the country and truck-specific routing engines, IDSC ExpertFuel automatically generates fuel purchase and route plans at the time of dispatch and transmits them to drivers through existing mobile communication systems without staff intervention. The trip plan includes highway-by-highway directions and specific fuel-buying instructions, including the number of gallons to buy at each truck stop. Fueling plans are generated using TMW's unique, patent-pending algorithm to calculate all essential factors--in real-time, and in a matter of seconds. The best route and buying options are dynamically evaluated, taking into account:
• Current fuel prices |
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The Results |
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Fuel Manager Doug Martinson reports, "For the first quarter of the year (2009), we've been able to document a $70,000 savings." IDSC ExpertFuel harnessed multiple technologies to help drive costs down. "There was integration with dispatch using TruckMate. There was integration with our mobile communications provided by QUALCOMM," noted Kirby who also serves as the company's IT lead. "We noticed changes all over. We've been able to develop good partnerships with good suppliers. We've negotiated with our suppliers and watched compliance. There was a big push toward awareness among our drivers about the impact that fuel costs had for us. There was some resistance at first. Now, they are on board," he said. "With fueling in the yard, there is 100% compliance. On the road, the #1 rule is ‘Don't Run Out of Fuel'. The #2 rule is ‘Stop at Our Preferred Providers'," said Martinson. He stressed the importance of keeping drivers well informed. "We have two communications boards. We post all raw data in the drivers' room. There is a drivers' area near recruiting with a flat screen and a short PowerPoint presentation-five or six slides-showing what kind of savings and compliance we are reaching." Martinson indicated that his team will continue learning how to increase the benefits from IDSC ExpertFuel and plans to attend product webinars online provided by TMW for that purpose. Over time, Bay & Bay plans to curb out-of-route miles further for additional savings opportunities. For now, "We're focusing on our trucks with lower MPGs to determine if it is driver-related or something mechanical," he stated. With a firm handle on controlling fuel expenses today and prepared for more pricing volatility in the future, Bay & Bay continues to grow and continues to save with IDSC ExpertFuel software from TMW Systems.
"For the first quarter of the year (2009), we've been able to document a $70,000 savings." |
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Bay & Bay Transportation |
