"When performance is measured, performance improves. When performance is timed, checked and measured, the rate of performance accelerates." (Monson, T. (1978)). Resource utilisation, productivity and customer service are the ingredients that determine business success or failure. Increased efficiency is being demanded by the market in the wake of increased competition, shrinking margins and market volatility. The purpose of this article is to consider the problem of resource management on movable assets and how technology has provided some solution to the problem. The discussion will explore the problem of fleet management by definition and problem analysis. Thereafter, conceptual solutions will be discussed to identify how they are able to assist the manager in the management of movable resources.
Problem definition
Motorised resources range from motor vehicles, materials handling equipment, earth moving equipment and other forms of transportation of product or personnel. These resources have been difficult to manage in that they are designed to move about assisting personnel with the tasks assigned to them. In general, the more mobile and the larger the area covered by the resource the more difficult it is to ensure that maximum productivity is obtained therefrom.
Some may question as to why is this considered to be a problem or how does this problem arise? The answer is simply that when a delivery vehicle for example, leaves the warehouse to deliver goods to customers, the manager has virtually no way of making sure that the driver only goes to the places assigned and returns to the organisation's place of business as quickly as possible.
Drivers in the past have had little control exercised over them once they leave the company's premises.
The hypothesis proposed is that if one could control the actions of staff operating vehicles irrespective of where they may be, resource utilisation would increase. This would impact positively on customer service, productivity and expenditure control.
Solution analysis
From the hypothesis proposed how does one ensure that all vehicles are used in the most efficient and effective manner in the income generating activities of the organisation? The answer would normally be through the use of both prevention and detection controls.
Prevention controls are designed to bring about actions that ensure compliance to policy and procedure. Detection controls are to alert management to the fact that policy and procedure have not been adhered to.
Administrative procedures such as trip sheets, checking of delivery notes and random checks have assisted in detecting deviations and ensuring compliance. However, they do not ensure that efficient resource utilisation is being achieved.
Over the last 24 months technology has provided some products that enable a manager to monitor the vehicle by means of tracking its location periodically. Various software solutions have enabled this information to be available on line, realtime. This has enabled management to be proactive as opposed to reactive in productivity and utilisation of this vehicle.
There are many different products that have been designed over the years, but fleet vehicle tracking products have to a certain extent revolutionised management's ability to address the problem.
Empirical evidence
datatrak south africa was one of the first companies to pioneer this type of product into the market. In general the reaction was, "I know that my drivers mess around on the road, but your product is too expensive in that I do not believe that the benefits would be greater than the costs," Hence the onus was on datatrak to prove to potential customers that the financial returns were positive through the installation of the system.
One example was a customer that examined the product but was concerned about the costs. However, a trial of one month was agreed upon. The result was that during the trial period two disciplinary hearings were held and the customer was surprised as to the extent of abuse by the employees.
Consequently, the entire fleet was installed and at the end of the second month it was reported that even drivers who had previously never achieved target were on target. By the end of the third month the fleet was reduced by 10% and productivity remained well above levels prior to the introduction of the system.
The experience of this customer is not unique. Our experience shows that when customers in general installed our system, they were astounded by the volume of unauthorised use of their vehicles. The product has assisted our customers in the management of their resources which has positively contributed to cost reduction, service levels and productivity.
Conclusion
Vehicle locating and tracking systems are not the only solutions available to management in dealing with this problem. They do, however, go a long way in assisting management in addressing the problem. Each organisation has its own peculiar circumstances and solutions that best suit the individual company should be sought. In the final analysis what you do not measure you cannot manage. What you do not manage you cannot control.
For details contact Dennis de Jongh, Managing Director of datatrak SA on tel: (011) 444 1111, fax: (011) 444 2277.
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