Radio location cuts distribution costs
Debra Young
Published: 07 Jan 2003 11:57 GMT
OMI proposed integrating its yard management system with a real-time locating system from California-based WhereNet. The WhereNet system is composed of a local infrastructure of antennas, location processors, and WhereTags -- wireless radio-frequency transmitters -- that would be permanently mounted on AFS-owned trailers, tractors, and dollies, as well as temporarily tagged on third-party vehicles as they enter the AFS distribution centre. The system works in tandem with wireless LANs and bar code data-capture products to provide AFS personnel with up-to-the-second business information from a single integrated tracking system.
The solution provides AFS real-time location and telemetry information on each of the several hundred trailers and associated equipment the company employs. It enables AFS to pinpoint the location of yard resources within 10 feet.
The constant visibility of assets and inventory eliminates manual yard searches, speeds fleet turnaround, and protects the quality of refrigerated groceries by moving them quickly to the proper storage areas.
"WhereNet allows us to track, locate, and monitor transportation assets and the contents of every load of lettuce, Popsicles, and chicken in real time, all the time," said Van de Merwe. "It's a real competitive advantage because it helps us better utilise our equipment, which drives down our operating expenses."
For the nearly 600 grocers AFS serves throughout eight US states, there's an added advantage: food arrives at the store fresher than before, he explained.
Bridging the data divide
Locating and tracking mobile assets has always been a challenge for the grocery industry. By the time information gets uploaded into a database, the assets have already moved, so the data is obsolete.
Radio tags bridge the data divide by transmitting tracking and location information in real time. "We get a line of information transmitted about every four minutes that identifies every asset and tells us its location in the yard," explained Van de Merwe. "We could program the tags to transmit even more frequently if we chose to." Even at four-minute intervals, the accuracy of the data is enough to improve operations, he said.
While data accuracy is certainly the backbone of the operation, it's how that information integrates with the yard management system that allows the real productivity gains. These gains are compounded by the efficiency of using a comprehensive warehouse management system, and routing and scheduling applications.
ROI expectations met
Using the WhereNet system, AFS realised a complete ROI in six months on its operation, and continues to exceed its business goals. Accurate data feeding the yard management systems makes AFS more efficient. For example, AFS has:
- Reduced data entry employees from 125 to 2.5. (employees previously used on data entry are now responsible for more value-added labour.)
- Realised fuel savings of more than $500,000 a year.
- Saved more than $100,000 a year in food spoilage by preventing trucks from having to idle in the yard on hot summer days.
- Reduced monthly leased trailer expenses from $45,000 to zero.
- Reduced the number of AFS-owned trailers from 252 to 167.
- Reduced the number of $80,000 tractors from 92 to 62.
- Reduced weekly deliveries from 1445 to 950.
- Reduced the total number of routes from 503 to 320.
- Reduced drivers from 123 to 83, saving between $40,000 and $50,000 a year on each salary.
- Reduced the "drop time" of trailers at the distribution centre from six to eight hours to 15 minutes.
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