This Company has a long history of using cutting-edge supply chain technology. For example, it is a leader in blockchain technology for sharing data securely across the food supply chain to help ensure food safety. The Company’s Center of Excellence (CoE) focuses on continuous improvement in manufacturing and distribution, with data as its life blood.

To find new ways to reduce material handling costs, one of the key data sets the CoE wanted to understand better was the relationship between lift truck safety and productivity.

With Powerfleet forklift telematics already in place across the Company’s entire fleet of lift trucks, the CoE didn’t have to look far to find the data-driven solution it needed.

To gain deeper insight into the cost of lift truck safety vs. operator efficiency vs. material handling velocity, the Company licensed Powerfleet IQ Analytics, a Powerfleet software option, to link data from multiple sources.

Specifically, the Company wanted to use Powerfleet IQ to blend these data ingredients:

• Number of damage-causing impacts recorded by forklift operators
• Time forklift operators spent actively working
• Number of pallets moved by lift truck operators

Before launching a new technology for its material handling workforce, the Company knew from experience it needed to plan carefully and be proactive about the way it would use the data.

One of the pitfalls of data-driven technology, like Powerfleet IQ Analytics, is that the data can be overwhelming. Another challenge is translating the data into action. All too often, a flood of data is received passively, without a clear vision of what to look for or how to react.

For any new system to succeed, the people who will get the data need to know ahead of time what they will be looking for—and exactly what they are supposed to do with it.

The Company knew that for Powerfleet IQ to be most effective, key employees—lift truck operators, line supervisors, facility managers, and corporate management—needed to care about the outcome. The Company had to make more than a financial investment; it had to engage and motivate these stakeholders.

The key to making workers care is accountability. So the Company devised a “carrot-and-stick” plan with both incentives for “good” behaviors and consequences for “bad” behaviors. Using Powerfleet IQ Analytics data, the Company:

• Developed a consistent set of metrics for material handling productivity and safety, regardless of the type and size of a facility, or the makeup of a site’s lift truck fleet.
• Established new benchmarks for pallet moves vs. lift truck motion time and impact events.
• Set up key performance indicator (KPI) scorecards for drivers, supervisors, and warehouse managers.
• Awarded cash bonuses and other incentives for meeting target KPIs.
• Retrained or reassigned forklift operators who failed to meet the benchmarks for safe productivity.

The next KPI scorecard excerpt ranks sites by forklift fleet efficiency, based on the amount of time vehicles spend in motion compared to the time vehicle operators are logged into the equipment. The “Demarest” site makes the most efficient use of its equipment—it has the highest ratio of motion (time vehicles are moving) to login (time drivers are logged in)—even though the site is average in its total hours of equipment usage. Conversely, although “Montvale” seems to be among the busiest sites, in terms of total hours of equipment usage, it is actually the lowest-performing in its ratio of vehicle motion time to driver login time.

The first key role of Powerfleet IQ was to validate data accuracy. One KPI scorecard monitored the health of system components—particularly to confirm that the Powerfleet vehicle-mounted hardware was collecting data normally and attributing it to identified operators. With validated data flowing smoothly, the Company went through a period of analysis over several months, without acting on the data. This enabled the Company to set expected benchmarks without rushing to judgment about individual operator performance. Importantly, the established benchmarks were ratios (not absolute numbers) to normalize performance across operators, vehicle types, and sites with different operating patterns.

• Pallets moved to severe forklift impacts (which have a high correlation to damage) and to medium forklift impacts (an indicator of excess wear and tear over time)
• Vehicle motion time to operator login time to Kronos® shift time

Also significantly, Powerfleet IQ enabled different standards to be set for different vehicle types, and accounted for drivers who operated different types of vehicles in same shift or day.

Based on these benchmark ratios, the Company set up multiple KPI scorecards for different stakeholders: individual drivers (with daily, weekly, and monthly metrics); supervisors (focused on all drivers each shift); warehouse managers (with a view of the entire facility); and corporate management (with stack-ranking of all sites in a single view).

This data hierarchy enabled a rapid, logical flow of information and decisions. Corporate management identified high- and low-performing sites. Facility managers saw where they ranked compared to other sites, and where they stood in relation to the target benchmarks. Line supervisors drilled down to understand which forklift operators were high achievers—and which needed refresher training. And forklift operators could see in black-and-white where they stood.

In the end, the food & beverage Company was able to drive much safer lift truck operations while maintaining high material velocity through its distribution system. The result was an 85% reduction in forklift damage costs with 100% achievement of target pallet moves.

Using Powerfleet IQ forklift analytics, this food and beverage Company was able to change the way it measured and balanced productivity (pallets moved) with safety (forklift collisions) and efficiency (active time on equipment vs. paid time). This data enabled a new approach to material handling discipline, with high-performers rewarded with financial and other incentives, and low-performers trained to improve. The bottom line was a stronger safety culture, with a new way to measure and manage productivity.

• Compliance with key safety metrics increased to essentially 100%
• Accidents and damage decreased more than 85%, while pallet moves remained at target levels
• Company-wide, Powerfleet IQ Forklift Analytics helped add more than $2 million in cost savings to the bottom line

Walmart Stores, Inc. is the world’s largest retailer, with nearly 6,200 stores and wholesale clubs across 26 countries, more than 800,000 associates worldwide, and revenue of more than $486 billion in fiscal 2014. The company has been termed “most admired retailer” by FORTUNE magazine.

Walmart also enjoys a reputation as a leader in supply chain technology and efficiency. It invented the practice of sharing sales data via computer networks with major suppliers and has been a global innovator in the use of wireless technology – warehouse management systems (WMS) and radio frequency (RF) data communication systems, for example – to track and manage the flow of goods though its distribution centers.

Never satisfied with the status quo when it comes to improving operations, Walmart began looking at wireless technology for another application: controlling and monitoring forklifts and industrial vehicles that move merchandise inside its distribution centers. More than 100 such vehicles are utilized in a typical Walmart distribution facility.

Walmart developed a list of required and desired functions for the “ideal” industrial vehicle management system.

For productivity management, Walmart wanted to implement new activity metrics to better analyze and optimize the utilization of vehicles and operators. Management also wished to achieve better asset visibility, including a more detailed understanding of time- motion history. In addition, Walmart wanted to enhance work assignment communication, especially in response to unexpected changes in task priorities.

Intelligent Control

What behavior do you want to manage, and what reaction to that behavior would you like?

For safety management, Walmart wanted to establish reliable vehicle access control, to ensure only properly trained operators could use equipment. A more easily managed method of completing, recording and archiving vehicle inspection checklists was also required. Impact sensing was also on the wish list, to increase visibility of unsafe driving and reduce accidental damage costs. Finally, Walmart wanted to consider how a fleet management system might influence maintenance efficiencies (for planning and executing preventive maintenance schedules, identifying emerging vehicle problems earlier, and establishing a better way to lock-out/tag-out equipment in need of maintenance).

Together, these tools have provided Walmart (1) new ways to drive continuous improvement in material handling operations for increased productivity
and throughput and (2) new process controls for safety management. Just as important, the VMS has proved easy to use for the many Walmart stakeholders who interface with the system – vehicle operators, facility line management, information technology staff, and corporate management alike. In addition, from a technical operating perspective, the system’s wireless communication system has worked effectively alongside other wireless systems and processes, including Walmart’s extensive WMS and RFID systems.

Xerox Corporation, is the world’s leading document management, technology and services enterprise, providing the industry’s broadest portfolio of color and black-and-white document processing systems and related supplies, as well as document management consulting and outsourcing services. (NYSE: XRX)

The Xerox Corporation operates over 100 distribution centers; this study focuses on their Groveport, Ohio DC. This facility throughout supplies over 70% of the Xerox equipment shipped through the country. The Groveport DC is just under 500,000 sq. ft. and utilizes a mix of industrial vehicles, including reach trucks, counterbalance trucks and an order picker.

The Xerox team, led by Warehouse Manager Jerome Osborne, identified several key benefits a VMS would provide his operation, inlcuding: automated, electronic vehicle checklists for OSHA compliance; obtaining data… different areas; improving the overall…vehicle fleet.

Xerox, in partnership with Yale’s Hy-Tek Material Handling, evaluated several systems and ultimately chose the Powerfleet® Vehicle Management System (VMS) from I.D. Systems.

One of Xerox’s key principles is “We value our employees,” so continually monitoring and investing in thesafety of their employees and DC is a top priority.

Industry-wide, industrial vehicle operators often use vehicles carelessly and managers are often not notified of unsafe conditions that may result, including facility, rack and inventory damage. Powerfleet solves that problem by establishing accountability for each and every vehicle. An operator must log in using Powerfleet to drive a vehicle. This ensures that only trained drivers can operate vehicles, and that each operator becomes responsible for the actions that follow.

“An increase in safety and awareness is definitely our number one priority,” said Mr. Baugher. “Near misses are just as bad as actual accidents. It is our goal to do everything in our power to create the safest working environment possible.” Since operators are now accountable for their vehicles with Powerfleet, there is heightened awareness and drivers are more careful of their surroundings. Continental Tire has forecasted a 33% improvement in vehicle-related damage in just the warehouse alone.

Continental Tire previously used paper checklists to complete their vehicle safety inspections. They had a common industry challenge where operators were not actively evaluating the vehicles and were blindly completing the form. Additionally, it took extensive administrative effort from the Production and Safety Departments to collect and manage the checklist paperwork.

Now, the on-vehicle Powerfleet device prompts each operator to complete a safety checklist prior to each shift or vehicle use; failure to do so can disable that vehicle. This not only increases operator accountability, but also alerts management if operators are not inspecting their vehicles. Since the checklist results are captured and stored electronically, Mr. Baugher and the safety team can now review checklist answers and operator compliance through an easy, automated report from their desktop.

In addition to increasing operator accountability, checklists have also increased vehicle maintenance efficiency. By looking at the answers the operators have given, maintenance can now quickly identify any issue with the vehicle and perform the needed work, before it becomes a major repair.

Without a vehicle management system, there is no way to consistently and accurately gather data on industrial vehicle use. With Powerfleet, the Continental Tire team captures comprehensive, detailed vehicle utilization data over time and makes fleet “right-sizing” decisions. They have also increased productivity by evaluating and benchmarking the activity of vehicles and personnel. “The data we are gathering is invaluable,” stated Mr. Baugher. “It’s like having an industrial engineer riding on every fork truck 24 hours a day, 7 days a week.”

By evaluating their vehicle use and productivity data, Continental Tire was able to eliminate a truck from their warehouse. In addition, they were able to reduce the headcount associated with the vehicle by eliminating three vacant staffing opportunities. This change alone resulted in over $100,000 in total savings. Mr. Baugher said, “the only reason we were able to make that change is because we could see the productivity data from Powerfleet. It’s challenging to remove vehicles from departments without data to prove that it won’t impact their day-to-day operations.”

Continental Tire has also increased industrial vehicle productivity by using the Powerfleet text messaging module. Managers in the warehouse send real-time text messages to operators dynamically as work requirements change – for example, if a fork truck is needed unexpectedly at a certain dock door. The operator can instantly answer back to confirm that the task is being completed. This change has virtually eliminated the need for 2-way radios in the warehousing facility.

Continental Tire deployed the Powerfleet Maintenance module to schedule preventive maintenance based on actual vehicle use, instead of on a calendar basis. Continental Tire’s maintenance is outsourced; when a vehicle is coming due for service, the module lets the service provider know, and the vehicle is scheduled accordingly. “It’s crucial to have a strong notification system in place to make sure we maintain our vehicle warranties,” noted Mr. Baugher.

To avoid work disruption, Powerfleet’s automated preventive maintenance notifications allow the service provider to pro actively plan the best day and time with a department to free up each vehicle. On the day of service, the service provider can use Powerfleet’s Vision software to instantly see the real-time location of the vehicle on a map of the facility. This means more time is spent servicing vehicles with less time spent searching
for them.

In Long Beach, CA, a Knight Transportation driver reported that his truck and trailer were missing. The security department immediately enabled Emergency Track on its Powerfleet for Logistics system to begin the trailer location process. It was discovered that the trailer traveled throughout the previous night ending its journey in Rialto, CA at 8:51 a.m. The authorities were notified of the stolen trailer and were told exactly where it was parked, based on the last location delivered by the Powerfleet system. Surveillancewas immediately established across from a large warehouse facility.

Mission Success– The missing trailer came out of the warehouse hooked to a different tractor. The rig was followed by police and the driver was arrested. The authorities recovered all 111 televisions valued at over $100,000, as well as the tractor. Interestingly, a container was also retrieved containing fabric worth over $250,000 that wasn’t yet reported stolen. Several more arrests were made at the scene.