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"Air-Trak gave us the ability to make better business decisions. I don't know how companies can manage a fleet without it."
Jerry Shelgren
Kelsan VP of Operations
The Company
Headquartered in Knoxville, Kelsan serves as the leading "Jan-San" distributor of cleaning supplies throughout East Tennessee. Its distribution network encompasses approximately a 250-mile radius from Knoxville.
Kelsan sells to customers ranging from nursing homes, hospitals, schools and grocery stores to industrial plants, office buildings, retailers, and service stations. The company's fleet includes 20 straight trucks, four tractors and eight service vans, averaging a total of 30,000 miles each week.
The Challenge: Improve Route Efficiency
With delivery vehicles throughout eastern Tennessee, Kelsan had little visibility into where vehicles were at any time of the day. Each driver had a pager for messaging, but there was no way to verify his location. To improve efficiency and customer service, the company evaluated GPS providers for nearly a year to identify the best fit for its fleet.
"We did not commit to anyone because the upfront costs were so large. We are a $50 million distributor, but what they wanted us to pay in upfront hardware, software costs and service fees was prohibitive," said Jerry Shelgren, Kelsan VP of Operations.
Kelsan learned about the Air-Trak system through an article on the City of Charleston, South Carolina and its success in tracking waste management vehicles.
"When we realized that the GPS was embedded in the Nextel two-way phones, and the software was inexpensive, the only upfront outlay was the cost of the phones. The extras we got with the Air-Trak service made it a simple decision," continued Shelgren. "Air-Trak has every feature we wanted and made it easy for us to manage our entire fleet. It gave us all of the benefits of more expensive systems with less upfront costs."
The Solution: Air-Trak on Nextel Phones
Kelsan chose the Air-Trak GPS tracking system on Nextel two-way phones to locate and communicate with drivers. Each driver has a Nextel GPS, Java-enabled phone, which transmits GPS and other data through the Nextel network to the Air-Trak data center. Customer service and branch office staff use the Internet to access the data and locate vehicles in their fleet.
With Air-Trak, managers can remotely configure each Nextel phone independently for a variety of reporting options. For example, they can program the frequency of GPS position reporting and even choose to receive location information when a predetermined speed or loiter-time threshold has been exceeded. Loiter reporting tells managers when vehicles have remained stationary for a designated length of time, and is a unique feature of the Air-Trak system. When vehicles are in rural areas outside of Nextel coverage, Air-Trak stores tracking data and forwards it as soon as coverage resumes.
The Implementation: Putting Air-Trak to Work
Once the decision was made, it took just days to install and train everyone on the new system. Air-Trak software is downloaded wirelessly and installed on Nextel phones, and its simple on-screen menu makes workers instantly more productive.
Kelsan receives GPS position information from vehicles at three-minute intervals. This gives them the opportunity to obtain the driver's exact location in almost real time and input it into the company's RoadNet routing system.
Using Air-Trak, Kelsan managers review route history with drivers one-on-one and replay their actual route compared to planned routes. They also check log accuracy by comparing manual logs with actual routes. With accurate location information, Kelsan's customer service department can locate drivers at a moment's notice and respond quickly to customer requests. Customer communications have been greatly enhanced.
"The system drops bread crumbs and leaves a trail we can see on the screen. We use it to help manage our routes, manage our people, and get input from drivers and staff to improve our efficiency," said Shelgren. "Our stops are now aligned with our routing program. We rely on this."
The company also uses the system to reinforce employee behavior. Managers have been able to address problems such as drivers that were stopping for long periods, making unplanned stops, or taking time from the company. Recently, the company was able to terminate its number one offender by giving multiple warnings. At the same time, drivers are benefiting from better communications, improved routing and customer satisfaction.
The Results: Bottom Line Impact
Within three months of using the new system, Kelsan reduced total miles driven by eight percent and lowered total hours worked by five percent. They were able to eliminate one power unit, at a savings of $2,000 per month, as well as reduce overtime, lower fuel costs, and eliminate one driver. The system paid back the initial investment in less than six months.
"Air-Trak gave us the ability to make better business decisions. We can evaluate what we are doing and how it can be improved," said Shelgren. "It also allows us to manage our drivers and judge their overall performance. Where they are, at what time of the day, is no longer a mystery. We have more control and direct supervision. And our drivers are more involved in helping us run our business."
Air-Trak's ease of use was important to Kelsan. The staff was able to start using the system immediately, yet they have only scratched the surface on the system's capabilities. The company is planning to use such features as geofencing, integration with routing software, and messaging.
"It is now an accepted part of what we do. We are really excited about where we can go with it," said Shelgren. "Air-Trak keeps getting better. It helps us lower our costs and raise our capacity with the same amount of workers and equipment. I don't know how companies can manage a fleet without this system."
Air-Trak's intuitive interface makes managing a fleet simple. Reports summarize route traveled, loiter history and job tasks.
