Gene
Corcoran is my client with the longest tenure. Gene started using fleet
technology within his private fleet in 1986. He is the most competent person I
know at driving fleet efficiency, and a leading expert in tank truck
operations. We sat down for an interview in January 2012.
JB:
Gene, we first met at your Irving, TX terminal in 1994 - and by that time you
already had 8 years' experience using fleet technology. Tell us about it.
GC: I
started my trucking career in 1978. In 1986 we tested the first real, working
onboard computer technology - and we rolled out the US fleet in 1987 and 1988.
I met my wife during this time; she was the corporate onboard computer
project manager, and I was the garage supervisor in Brooklyn, NY.
I've
been working with trucking technology most of my professional life. We
have a long history using fleet technology, and we use fleet technology very
differently than our competitors.
JB: We
seem to be in a "smart phone" society, people load up on technology
they don't fully utilize. Every month I read stories in magazines about
fleets trying to make their technology work - there seems to be a lack of
focus. Many fleets don't seem to have clear goals. When using fleet
technology, how do you avoid making a mistake? Why do many struggle, yet
you make it look very easy?
GC:
Most fleets do the exact same thing. Yet, they all measure efficiency
differently. What are you measuring? Why are you using these
measurements? You have problems - what are they? Answer these questions,
then build your technology plan. When you write it down, it becomes
clearer.
JB:
What do you measure? I imagine it's a long list of key performance
indicators.
GC: No
it's not - we measure time. That's it. Time is the one thing that
all fleets have in common.
JB: Do
you measure fuel economy, driving habits, CSA scores, anything else?
GC:
Yes, we monitor those indicators, but we focus on time to measure our fleet's
efficiency. When we master that element, everything else falls into
place. Our three-step process is very simple:
1. Set
up our trip schedules based on what we think is reasonable. Trip
schedules include loading, unloading, deadhead, and stem time. You can't
charge for stem time, but you're paying for it.
2.
Measure actual performance against this trip schedules. Look at each
trip, and each trip segment - where can we drive out time?
3.
Using actual, recorded information, we periodically move and tighten our trip
schedules. Labor groups and drivers agree that these tightened trip schedules
are reasonable - they are the ones who created these tighter schedules by their
past performance.
JB:
What have you seen for financial benefits?
GC:
When we save 15 minutes per driver per shift, we save big bucks. We know
exactly what this number is, and we know that we'll give up those savings when
we stop monitoring. Data is useless unless you monitor and measure.
JB: How
has this changed your company?
GC:
When you focus on time, you drive all departments to work together.
Sales/marketing, dispatch, maintenance, and drivers must all constantly
communicate and cooperate with each other. If your department does
anything to delay a driver - you must explain the situation.
When
you measure the entire company on route time, maintenance will do those things
that keep the trucks rolling. It's how we justify auto tire inflation
systems, automated transmissions, anything to keep the equipment rolling, out
of the shop, and off the side of the road.
When
you measure time, dispatch must do those things to facilitate the driver
getting on and off the yard. Cooperating with the drivers makes them more
satisfied. Trucks and trailers are ready when the driver arrives for
work, and dispatch has loads and shifts planned.
Dispatch
plans routes and trips to minimize exposure to traffic delays. This in
turn creates less hazardous routes, easing stress on the drivers and reducing
exposure to accidents. Sometimes the routes may be longer - that's OK if
trip times more efficient and the route is less hazardous.
We spec
and maintain trucks so that they don't break down as frequently, and we have a
safer and more reliable fleet. Drivers are happier. Fewer safety
defects improved our CSA scores. Improved CSA scores means we experience fewer
Level 3 inspections, which further decreases our delays.
You
create this cycle where time management drives improvements in all aspects of
our fleet - financial performance, safety, compliance, on-time performance,
maintenance costs, and driver satisfaction.
JB:
What about safety? Don't you see more work-related injuries and traffic
violations, and decreased fuel efficiency as a result of speed?
GC: We
will do nothing that jeopardizes safety. Safety is of paramount
importance. We strictly monitor speed and hard braking occurrences - the
two leading indicators for aggressive and reckless driving. We tolerate
no speeding and only 1 hard brake occurrence every 200 miles. As for
non-driving activities - we allow drivers to move at a normal pace. We
will never tighten non-driving standards to the point that a driver is forced
to move faster than normal. Drivers learn to drive our trucks our way.
JB:
Gene, thanks for your time and your valuable advice.
