Supply Chain Efficiency Brodie von Berg MiX Telematics
2 Global Presence 17 offices and more than 130 fleet partners serving customers in approximately 120 countries worldwide efficiency • safety • compliance • security
3 Solving our Customers’ Problems Helping our customers to address transport related challenges Efficiency Safety Compliance Security • 4%+ fuel wastage • 1.2m killed each year • Fatigue, failure to • There are over 7 • Under-utilised fleets on the worlds roads wear seatbelts, and million stolen • Excessive • High risk profile across speeding are major vehicles registered maintenance costs the Middle East contributors to with Interpol crashes in the ME globally efficiency • safety • compliance • security
4 Truck Operating Costs Share of Total Average Marginal Cost, 2015 1 The major cost impacts to the income statement are: Fuel 0.08 Truck/Trailer Lease/Purchase • Wages Repair & Maintenance 0.25 • Fuel & Tires Truck Insurance Premiums 0.31 • Depreciation of Asset Permits & Licenses Tires • Repairs & Maintenance 0.14 Tolls Driver Wages 0.1 0.01 0.06 We can reduce cost impact by addressing: 0.03 Driver Benefits 0.01 • Utilisation Operating Costs for Traditional Longhaul Truck, 2016 2 • Driving style • Unnecessary Fuel Burn Total Wheel Costs 17% 34% Operating Depreciation, Fuel Costs, Lubricants, Adblue, Repair Costs 1. American Transport Research Institute (2016) An Analysis of the Operational Costs of Trucking: 2016 Update [Online] Lease/Purchase available at: http://atri-online.org/wp-content/uploads/2016/10/ATRI-Operational-Costs-of-Trucking-2016-09-2016.pdf 2. data derived from: Strategy& (2016) Truck Study 2016 [Online] available at 49% https://mackinstitute.wharton.upenn.edu/wp-content/uploads/2016/10/PwC-Strategy_Truck-Study_2016_SMS- Conference-Berlin_160921_v01.pdf efficiency • safety • compliance • security
5 Efficiency In today’s marketplace, operators are under increasing pressure to deliver more with less due to tighter budgets & margins. Improve fleet utilisation Reduce maintenance costs Reduce fuel costs • Minimise: • Optimise routing • Reduce wear and tear • Speeding • Improve dispatching • Reduce miles driven • Excessive acceleration • Reduce miles/km driven • Preventive maintenance • Excessive idling • Reduce fleet size • Reduced accident damage Reduce their fleet size by Reduce wear and tear by up to Save between 4% and 15% on between 10%+ 15% fuel costs efficiency • safety • compliance • security
6 Influencing Driver Behaviour 1 Identify Driver . Feedback . . 2 Monitor Vehicle and 5 Recognition . . Vehicle and 4 3 Store and Manage Data Driver Reports efficiency • safety • compliance • security
7 Planning and Execution Variables Demand Planning Execution Completion efficiency • safety • compliance • security
8 Planning and Execution Variables Demand Planning Execution Completion efficiency • safety • compliance • security
9 Manual Planning – Lower Volume / ADHOC efficiency • safety • compliance • security
10 Manual Planning – Lower Volume / ADHOC efficiency • safety • compliance • security
11 Manual Execution – Lower Volume / ADHOC efficiency • safety • compliance • security
12 Integrated Planning/Execution – Higher Volume MiX Telematics TMS Journey API Database efficiency • safety • compliance • security
13 Dashboard Exception-Based Management efficiency • safety • compliance • security
14 Completion & Auditability efficiency • safety • compliance • security
15 Completion – Data Options MiX Telematics TMS Journey API Database Vehicle utilisation Driver performance Trip records Asset availability Vehicle performance Driver working hours reporting efficiency • safety • compliance • security
16 Challenge: Fleet Breakdown – Middle East Expert opinion of fleet sizes in the Middle East Region. High proportion of trucks are in <=10 vehicle fleets. Ref: Arthur D. Little (2016) The Truck Industry in the Middle East [Online] available at: http://www.adlittle.com/downloads/tx_adlreports/ADL_Truck_Study_ME_01.pdf efficiency • safety • compliance • security
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