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'He who will not economise, will have to agonise' Confucious   Knowledge-sharing is an integral part of the value chain that exists in the SA trucking industry and in the tough economic climate we face today, operators should mine this resource as extensively as possible. Paul Collings explores some of the rich veins of expertise available to transport operators to assist them in the effective day-to-day running of their fleets. There are many others. Use them.  Today’s trucking industry is an amalgamation of disciplines, products and services that constitute a complex ‘value chain’ beginning with the OEM (truck and trailer manufacturers), finance and insurance houses, fuel and lubrication vendors, brake and tyre suppliers, telematics developers etc, and carrying through to the operator rendering haulage services to a client base. Beyond the purchase of the vehicle itself, this value chain constitutes a ‘tool kit’ that enables operators to improve business efficiencies by lowering operating costs, reducing on-road risk and improving turnaround times – all ultimately  helping to boost bottom-line performance. Apart from the products that make up this ‘tool kit’, a rich vein of expertise is available to transport operators to assist them in the effective day-to-day running of their fleets. Knowledge-sharing is an integral part of the value chain and in the tough economic climate we face today, operators should mine this resource as extensively as possible.

MAN Truck and Bus’ Dave van Graan explains how the TGA’s D26 common rail engine technology improves fuel consumption.    Kobus van Zyl, Vice President of Mercedes-Benz Commercial Vehicles espouses the benefits of his company’s ‘Value Chain’, designed to remove operational risk by integrating all aspects of vehicle management, from financing and insurance, to maintenance, driver training, telematics and vehicle replacement.

By breaking the value chain down into its component parts, operators can pinpoint where areas of weakness lie within their business and thereafter, seek help from ‘those in the know’, namely, their suppliers. The commercial trucking industry prides itself on the strong working relationships that exist between suppliers and customers. It is the sharing of knowledge within these partnerships that enables the industry (and the economy in general) to grow. 

With the value chain comprising a set of interlinked products and services (including sound advice) designed to give operators the necessary competitive advantage to survive in tough financial times, let’s take a closer look at some of the key ingredients and what each has to offer in the way of ‘recessionproofing power’. 

Scania SA’s Christoffer Ljungner believes that in-house finance and insurance services to customers helps lower the overall cost of truck ownership.    Eddie Kearney doesn’t believe in vehicle downtime and builds trailers tough enough for Africa’s harshest roads.

Expert advice Vehicle selection Having secured a contract, an operator’s first consideration is the purchase of the best vehicle (truck and trailer) for the given application. Correct vehicle selection is a tricky business and choosing incorrectly can cost dearly in the long run. “A cardinal rule when purchasing or leasing a vehicle is to consider the overall lifecycle costs of the vehicle and not simply buy on price. Truck buyers need to consider what the direct and indirect running costs of the vehicle will be during its service life. Selecting the cheapest vehicle on the market could prove costly in the long run,” says Christoffer Ljungner, managing director, Scania southern Africa.  The direct costs to consider when buying or leasing a truck include: the purchase price, depreciation/resale value, insurance costs, licencing and toll costs, interest, fuel, tyres and maintenance. The indirect costs to bear in mind while surveying the ‘showroom floor’ are: driver retention, your brand/company image, load maximization, safety, the environmental impact of the truck and opportunity costs (having a more versatile vehicle will broaden the scope for new business).  According to Dave van Graan, management board member, group marketing for MAN Truck and Bus (SA), “there is a ‘tried and trusted’ method when it comes to vehicle selection that can be broken down into five areas – operating environment and vehicle layout; vehicle performance (power-toweight ratio and fuel efficiency); health and safety; maintenance; and appearance.”  According to a white paper on vehicle selection drafted by the New Zealand Department of Land Transport (NZ DoLT), some universal rules apply to ensure optimum truck procurement: “The first step is to determine what the vehicle will be used for, the conditions it will regularly be operating under and any other operational or legal constraints. This information will provide the basic requirements for the vehicle including the type of loads that it will be able to carry, how much deck space is required, the type of body to be fitted and how loads will be secured. Don't forget to consider requirements such as licencing and toll fees, static rollover threshold (SRT) and the Department of Transport’s ‘Dimensions and Mass’ restrictions as these will affect the vehicle's configuration including the number of axles, deck length and suspension.”

(For those readers who are not in possession of the Maximum Mass & Dimensions booklet which is published annually by FleetWatch in partnership with Toyota Trucks, copies are available. To buy please phone Eva or Paula on 011-794-2490 or email eva@fleetwatch.co.za or paula@fleetwatch.co.za.) 

“Step two is to consider the overall vehicle performance because this has a major impact on the success of an operation. Once the basic layout of the vehicle has been decided, the next task is to consider specific factors affecting performance, such as engineering and vehicle components. Some of these are required by law to meet vehicle standards.

“Pay particular attention to engine power, torque requirements, transmission gearing, differential ratios, suspension systems, wheels and tyres. You should aim to ensure that there is sufficient power available to handle the work required using the least amount of fuel and with the lowest-possible life cycle costs. Another area to consider is investment in braking technology - for example, ABS brakes can reduce wear on brake pads as well as offering additional safety benefits. Vehicle performance is also affected by the engine cooling system, exhaust system, air conditioning and other engine and transmission-related equipment.” 

Selecting the right trailer for the job is equally important. Payload optimisation is the ‘holy grail’ for hauliers but there’s a fine line between carrying capacity and durability.

“It all depends on the application,” says Eddie Kearney, managing director of the Kearney Group, a leading South African heavy truck trailer manufacturer based in Gauteng. “For long-haul applications that traverse rough terrain, it pays to sacrifice a few hundred kilograms in payload capacity to ensure trailer strength.” 

“In instances where trips are short and back-up is close at hand, aluminium, Domex and other lightweight trailer-building materials definitely give operators a cost-saving advantage simply because a fleet can carry more with fewer trucks,” says Afrit’s managing director, Andre van de Wetering.

What both trailer builders agree on is the fact that truck tractor and trailer need to be ‘harmonised’ to prevent costly accidents, caused by jackknifing in particular. In short, if the truck tractor is equipped with ABS, so should the trailer (although required by law, all too often dysfunctional).

Expert advice

Fuel and rubber saving

The 20 percent reduction in the diesel price in recent months has no doubt brought welcome relief to marginstressed operators. However, with fuel typically accounting for as much as 37 percent of a vehicle’s operating cost when we’re talking about large, long-haul rigs, any savings in fuel consumption can make a significant difference to fleet profitability. 

“A saving of 10 percent in fuel costs can affect profitability by as much as 30 percent,” states the NZ DoLT white paper. 

Of course, the price of diesel could rise substantially at any point and as such, operators need to implement stringent fuel-saving measures, not least of which being devices to prevent fuel theft (anti-siphoning equipment, electronic fuel dispensing and consumption monitoring systems) 

An often overlooked aspect of vehicle selection relates to how engine power affects fuel consumption. “Operators should select vehicles with sufficient power for the application without resorting to horse-power overkill. It is estimated that every extra five horse-power in an engine equates to an additional two percent increase in fuel consumption,” says Van Graan.

Aerodynamic drag

Aerodynamic drag is another often disregarded element that impacts on the overall operating cost of a vehicle. Fitting aerodynamic cab deflectors, reducing inter-vehicle spacing and securing tarps correctly can improve fuel efficiency by at least six percent - and in some cases more than 20 percent (depending on the body fitted and the load carried), says the NZ DoLT white paper. 

“At highway speeds, over half the energy required is used to overcome aerodynamic drag. A reduction of aerodynamic drag of 25 percent will reduce highway fuel consumption by 10-15 percent. Reductions in aerodynamic drag of up to 50 percent have been achieved - however, care needs to be taken to ensure the power-train receives sufficient cooling. 

“Vehicle electronics like road speed limiters and cruise control features can result in fuel savings of up to six percent if set correctly. Vehicles with semi-automatic and fully-automatic transmissions are gaining favour as they now use the same or less fuel than manual transmissions,” the white paper points out.

AN ENGINE geared to run at 1 450 rpm at 100 km/h uses approximately four percent less fuel than one geared to run at 1 600 rpm at the same speed. Idling is more common than you may think - in some operations it can add 20 to 30 percent to engine hours. A fixed drive fan can use 10 percent of the engine power if it operates all the time, but may only be required for 2-5 percent of the time. Consider fitting electrically-driven thermostatically-controlled fans. Determine whether it is necessary for the fans to turn on automatically when the air-conditioning system turns on.” 

TYRES ARE the second largest contributor to truck fleet running costs (after fuel), somewhere in the region of 10 percent. According to Maxiprest’s Philip Nel, “breakdowns caused by tyre failure can ruin years of hard-earned customer confidence and it makes sense therefore to make diligent tyre maintenance part of the daily fleet routine." 

Reducing rubber costs and avoiding tyre failure isn’t rocket science and getting the most from your rolling rubber requires a few simple rules to be observed. 

• Watch those minimum tread depths and retread when the limit is reached. 

• Make sure brakes are wellmaintained to ensure even brakeforce distribution in vehicle trains. 

• Clamp down on excessive speeding. 

• Ensure tyre matching on axle groups and correct pressures for the load being transported. 

• Rotate tyres when necessary to ensure even wear.

• Make sure all wheels are properly aligned and conscientiously maintain rubber, valves, rims and brakes. 

• Get your drivers trained to diligently conduct pre-trip tyre checks. 

World-leading truck tyre manufacturer, Bridgestone, has a simple mantra for effective tyre management called SMART - S stands for correct tyre selection (fit for the application at hand); M stands for maintenance (this includes correct inflation, removing stones from tread, reporting damage etc. Operators can outsource this function to tyre experts); A stands for alignment; R stands for rotation; and T stands for tyre-tracking (tyre management software and related technologies help ensure an expedient ‘cradle to grave’ lifespan for every tyre in the fleet). 

Expert advice

Telemetry saves

The fitment of advanced fleet management systems to vehicles enables operators to closely monitor both vehicle and driver in real-time. With accurate data transmitted from cab to base, fleet managers can proactively limit fuel consumption, vehicle wear and tear and delivery turnaround times. 

“A reliable fleet management system helps control operational activity in terms of route optimisation, driver training, vehicle servicing scheduling, law enforcement (speeding and licensing), green band discipline, fleet optimisation and fuel usage,” says Mark Rousseau, managing director of DigiCore which sells the highly successful C-Track system, among other products. 

“The data reports generated by the system also enable operators to implement performance-based driver incentive programmes which promote driver-retention and help drive business efficiencies.” 

The old adage ‘you can’t manage what you don’t measure’ has particular resonance in tough financial times. Being able to pinpoint where money is being spent unnecessarily is a key benefit offered by fleet management systems. For those operators who would rather focus on their core business (running loads from point A to point B), the outsourcing of the management of fleet data is an effective way to ensure maximum control over drivers and vehicles, reducing costs and on-road risk. 

“Our customer care divisions pro-actively ensure that all systems installed are operating correctly and that vehicle and driver reports are provided to our clients on a constant basis,” says MiX Telematics’ Vermeulen. “We don’t merely provide clients with reports. Rather, these reports are analyzed in conjunction with our clients to help them manage their fleets proactively to ensure maximum vehicle efficiency, driver and public safety and ultimately, to realise actual savings on vehicle operating costs.” 

Commercial vehicles are first and foremost business tools and ensuring they ‘sweat’ as much as possible during their lifecycle is essential if they are to prove profitable. The combination of vehicle electronics and telemetry systems gives fleet managers accurate data on all performance areas regarding truck and driver. 

“Optimising vehicle utilisation and implementing driver training/rating programmes are areas where fleet management systems really assist operators in managing their fleet more efficiently,” says Altech Netstar Fleet Solutions’ Brian Edmonds. “At a time like this, getting more out of your assets and business infrastructure is crucial. Making better use of the fleet management systems already in place will certainly help operators improve their efficiencies and reduce costs.” 

South Africa has a reputation for developing world-class fleet management systems and its hats off to its industry leaders for having the savvy to help customers get the most out of the technology. 

“We believe in the ‘solutions’ approach and try wherever possible to integrate and innovate in providing a total solution for our customers by working with them as a team rather than being merely a ‘box dropper’. Any system updates and/or new reports requested from a specific customer are, by default, made available to all our customers,” Edmonds says. 

The convergence of communications technology (cellular, satellite, internet) with vehicle electronics (on-board computers, CANbus) has ushered in a new era of fleet management where operators can get highly accurate data concerning vehicle and driver performance. The challenge now is  to use this data effectively to improve the skills of that all-important player, the driver. 

Expert advice

Driver Training

No operator can afford to put an untrained driver behind the wheel.

It matters not how sophisticated the business tools are, if the person using them is incompetent, money will be lost. In the world of commercial trucking, it is the truck driver who is the ‘foot soldier’, tasked to manage the equipment effectively while simultaneously promoting the company image. No operator can afford to put an under-skilled driver behind the wheel.

An acute shortage of qualified truck drivers continues to hamper the progress of the road freight industry in South Africa and most operators are aware of just how important a loyal, skilled driver is to the enterprise. While licenced drivers can be sourced from employment agencies on a contractual/short-term basis, there can be no substitute for building a well-trained ‘in-house’ team of positively motivated drivers.

THE KEY to running a successful operation is to fully implement a ‘baseline’ plan that incorporates all the necessary best-practice disciplines. By integrating the best equipment with ongoing driver skills development, operators can effectively lower their running costs,” says Mercedes-Benz Commercial Vehicles chief driver trainer Brian Kerr.

Mercedes-Benz chief driver trainer, Brian Kerr, takes knowledge transfer where it’s needed most, out on the road.

“The driver-training courses available from Mercedes-Benz are based on the principle of knowledge transfer where a comprehensive ‘train-the trainer’ course empowers fleets with in-house driver trainers whose main objective is to train fellow company drivers on a daily basis to ensure ongoing improvement in up-time, safety and cost reduction,” adds Kerr. 

Using the data from customer fleet management systems and in-cab fuel meters, Kerr and his trainees are able to set benchmarks for each vehicle model in respective applications. “It’s important for trainers to impart information to learners in such a way that real improvement occurs. This means using training tools that really communicate with the trainees to clearly illustrate the benefits of what is being taught as far as various driving techniques are concerned, be that driving for economy and efficiency, or for road safety. Grouping trainee drivers of similar aptitudes and skill levels is essential to ensure the best possible training turnaround times. After all, transporters can’t afford to keep their drivers off the road for too long,” he adds. 

Few can argue that truck driving, when seen as a career choice, does not exactly lure the ‘bright young things’ of this world. Kerr believes that operators need to cultivate a nurturing and rewarding (financially) environment within their organisations to attract and develop young drivers.

DriveCam technology - a camera, the internet, expert analysis and feedback enable fleet managers to correct risky driving behaviour before costly trouble hits. In the event of a third party claim, proof of culpability is irrefutable, which is why insurance companies offer DriveCam clients premium discounts.

“The methodologies we use to train drivers make it possible to pinpoint skills gaps in individual drivers and to address skills development swiftly, effectively turning average drivers into ‘kings of the road’ in a very short time frame. Drivers of this calibre not only save the operation money but boost its marketability. They are professionals and should be paid accordingly,” says Kerr.

Improving driver behavior extends beyond issues such as fuel economy and vehicle wear and tear. Road accidents caused by trucks result in hundreds of fatalities every year and cost the taxpayer millions of rands. Apart from the costs of vehicle and driver replacement, a truck accident may also result in punitive damages to third parties (including environmental clean-up bills) being paid by the operator. What is certain is that an accident-prone fleet will carry a heavy insurance bill. 

A relatively new technology to the South African commercial vehicle market is DriveCam, designed to make drivers more efficient and safe through ongoing training using video clips captured on a palm-sized camera installed in the cab of the truck. 

The video event recorder is continually recording on a loop but does not save an event unless an exceptional force, such as hard braking, swerving, sudden acceleration or collision, triggers it. At that point, the video event recorder saves the critical seconds immediately before and after the triggering event. Saved events are downloaded, analysed, scored and used in ongoing driver coaching programs to improve behavior and mitigate driver risk. 

“The DriveCam system allows fleets to capture and observe actual driver behavior and then tie positive feedback (in the form of acknowledgement, dynamic pay, bonuses, etc.) to safe and desired driving behavior and to identify negative consequences to unsafe or risky driving behavior,” explains Louis Swart, MD of Drive Report, the SA agents for DriveCam (a US-based company). 

“When humans measure performance, they focus their energy on - and derive pleasure from - meeting or exceeding the measures set so that positive reinforcement itself becomes the drug that spurs on greater achievements,” says Swart. 

“Once that self-reinforcing loop is established, those external motivations become internalised and when that intrinsic transformation happens, you get long-term sustainable behavior change because people now identify with and stand for something, in this case, being safe and responsible truck drivers, with the effect of saving lives and driving more economically.”

There can be no denying the fact - drivers who are trained and managed in a positive, hands-on fashion, who realise monetary reward for their personal improvements behind the wheel, make for winning fleets. 

Bottom line

In times like these we all need to ‘tighten our belts’ and with margins as slim as they are in the trucking domain, serious ‘fat cutting’ is necessary to ‘roll with the punches’. By acquiring as much knowledge as possible (which doesn’t cost much) from your suppliers and applying it through products, services and in-house processes, you can ensure you build a ‘lean, mean, trucking machine’, equipped with the right wheels, the sharpest tech and the best personnel to not only deliver through this ‘crisis’, but to grow confidently into the future.