Ryder makes trucks smarter

Jun 23, 2008 (The Miami Herald - McClatchy-Tribune Information Services via COMTEX) -- R | Quote | Chart | News | PowerRating -- If you think that filling up your car is expensive, just be glad you don't have a 240-gallon tank and a vehicle that gets five miles to the gallon.

With diesel prices at record highs, Miami-based Ryder System is offering a new high-tech tool to help its customers save fuel.

The product, called RydeSmart, is one of several on the market that enables customers to instantly track the fuel consumption, idle time, speed and other vital statistics of every truck in their fleets.

Is Bill the Driver going too fast? Managers back at the office will know immediately, and can contact him and point it out.

Is he leaving the truck to idle too long while it's stationary? The device can automatically turn the ignition off after a preset number of minutes.

It may even have safety benefits: The device's software can be programmed to alert managers to patterns of repeated, sudden changes in speed -- a sign that the driver may be tailgating.

RydeSmart is a part of the latest generation of GPS devices, which have been used in trucking for years, said Steve Sturgess, executive editor of Heavy Duty Trucking magazine and an observer of the industry for more than three decades.

Wireless business services giant Qualcomm sells a similar service directly to trucking companies. Ryder's largest competitor, Penske, declined to be interviewed for this report.

"It's all about being able to manage the driver from a safety point of view but also from a fuel economy point of view," Sturgess said.

RydeSmart uses Global Positioning System, or a satellite-based tracking device, attached to each truck's engine. This enables managers back at the office to know, in real time, not only the truck's location but also how it is being driven and even whether it's in need of repair.

The RydeSmart software can be programmed to notify managers of whatever conditions they care to specify, from the truck leaving its regular route to an engine problem that needs repair.

Managers can use the service for a variety of purposes, from simplifying paperwork to saving gasoline to quickly identifying trucks available for new assignments.

SIGNIFICANT REDUCTION

Maria Elena Ibanez, president of the El Latino food company in Doral, said RydeSmart has helped her reduce transportation costs 17 percent.

Ibanez, a computer engineer, founded her company five years ago and used mapping software to carefully design her delivery routes for maximum efficiency. She was a test site for RydeSmart.

"The first week, we caught unauthorized use of the truck," Ibanez said. "They didn't know we were watching. They were going over the speed limit. They were not doing the routes in the order they were supposed to. Idle times were up to 45 minutes."

But when she showed the RydeSmart reports to her drivers, she was able to solve many of these problems quickly. She showed them how her routes were faster, and pointed out that they could go home -- with a full day's pay -- if they made all their deliveries and finished earlier. And she explained how expensive an idling refrigerated truck can be.

"They were very surprised," Ibanez said. "They didn't realize it was costing us a lot of money. We took it as training. This is to help you be more productive."

A BIG BROTHER?

While you might think that drivers wouldn't like having an electronic Big Brother watching them, that's not necessarily the case.

The Teamsters union, which represents thousands of truck drivers, doesn't object to such devices.

"We are familiar with this type of device," said Mike Scott, president of the Miami-based Teamsters Local 769. "What we try to do is protect our members, so these devices, which are very important to employers, are not used as sole sources of discipline. If it's being used as an instructive tool, to assist the driver in being more effective at their work, we support that."

Ryder began to test RydeSmart in December 2006 on 5,000 of its 120,000 North American trucks. The company began to sell the service in January, and has so far recruited about 200 customers with about 2,000 other trucks, according to Juliet Johansson, vice president of marketing for Ryder's Fleet Management Solutions Division.

RETENTION TOOL

Johansson said Ryder isn't charging customers for installation of the device, just a monthly service fee ranging from $30 to $90 a truck. She said the company views the service as primarily a way to help retain customers in a competitive business.

"We are not using this as a profit center," she said.

Ryder provides a variety of truck-related services, such as leasing and maintenance, to other businesses.

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