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Risk management has always been a focus in transport and fleet management and tracking systems play a pivotal part in managing risk. Orbtech, a Midrand-based fleet management systems provider, is redefining its role in the deployment of fleet management/tracking systems via a methodology that has 'risk management' as its fundamental reason d'être. Paul Collings asked Orbtech's MD, Allen Harrington to elaborate. 

Q: How does Orbtech go about reducing risk for its clients?
A: Orbtech has realised that providing tracking systems to the commercial transport industry is only one component to assist in reducing risk. We have therefore embarked on a "Total Control" concept where we offer the total solution to the client with the emphasis on mitigating the risk factor to an expectable level.

Our risk management philosophy is based on the management of the driver and movement of the vehicle. The transporter entrusts the driver with an asset worth anything from R1-million to R1.5-million and cargo varying in value. The driver then goes on route and is exposed to various elements and conditions that have a huge impact on the profitability of that trip. 

We are now in a position to offer various management solutions to the transporter, which includes proper fleet management with the core emphasis on fuel management. Fuel Manager has the ability to identify fuel fraud and/or theft with each fuel intake and quantifies the possible losses incurred with every intake in litre and in rand value. Our clients are now able to identify the problem immediately and address it accordingly, resulting in huge cost savings.

This software program is also designed in such a fashion that it will highlight problem vehicles and drivers, allowing the fleet operator to focus on the problem areas and manage his risk accordingly. We recently installed our system at a distribution warehouse of a well-known food chain, resulting in cost savings on their fuel bill of R1.5-million within a matter of six months.

We realise that the transporter is focused on the transportation of goods at the best possible rate and the quickest turn-around time. To assist them in running a smooth operation, we have also recently introduced Transport Admin Manager into the market that takes care of the administrative functions around transport, enabling the transporter to focus on his core business.

The system has a strong built-in risk management component and the programme has the ability to upload any file format and images electronically. Incident/Accident management is now managed in a data base environment with the ability to e-mail documents, images, photos and insurance related documentation directly out of the system to the insurance company.

Our Risk management division offers risk management solutions, investigations and risk management training to the industry. We have developed a hands-on, practical training course for the industry, which is structured in such a way that it provides the trainee with hands on practical methods to address risk associated with the industry.

We start off by identifying the negative aspects of the industry and we then create an environment for sound risk management and provide the trainee with the tools to address the risk. The training course is supplemented and enhanced with various policy and procedural documents and ready to use templates. The trainees are also exposed to the correct methods of investigating accidents and hi-jackings. The initiation course is presented over a two-day period

Q: Can different risks be managed by the same system/process - i.e. the risk of vehicle hijacking vs the risk of bad driving or time delays at load/offload sites?
A: This is exactly what we propagate. Risk management is not the focus on one eventuality. It is a full-on management process and structures need to put in place to manage all on- and off-road risks. Various software and hardware components offered in the industry should form part of the process and structures to assist with and compliment the management process. A well-structured Risk Management process forms the base of, and can be applied as a full on operations management application.

Q: What are the risks generally plaguing truck transporters these days?
A: Risk is a compilation of events that cost the transporter money and cannot be broken down or disseminated to a single event. A broad spectrum of issues that need to be addressed as "risk" in transportation include: Breakdowns, bad weather conditions, road works/maintenance, traffic congestion, driver off route, drivers not familiar with the route, minor accident, major accident, hi-jacking, attempted hi-jacking, speeding, unauthorized stops, picking up passengers, fuel theft, load shifts, complete or partial load loss, equipment or partial equipment loss, accident obstruction, driver fatigue, and toll fraud. And there are many more.

Q: Exception reporting seems to be the common method of curtailing risk/damage using FM systems. Does Orbtech have a similar functionality in its systems, or does it go beyond ICT systems to incorporate a 'people process/methodology'?
A: Once again, this should be seen as a component of the Risk Management process. To singularly rely on exception reporting from an FM system is de-focusing the transporter from all other events required to manage the full spectrum of on and off-road risks. 

Orbtech's systems have been designed from the onset to be "managed by exception" but offering our clients full interactive capabilities. This does not, however, detract from the fact that exception reporting should be applied as a tool and not a solution.