Premier Third Party Logistics Provider Realizes Performance Gains with PeopleNet
PITTSBURGH-NPTC ANNUAL EDUCATION MANAGEMENT CONFERENCE & EXHIBITION, April 25, 2005-PeopleNet announced today that Ruan, one of the nation's foremost providers of third-party logistics solutions, has selected the PeopleNet onboard computing and mobile communications system as their off-the-shelf standard onboard offering.
"We are pleased that Ruan has joined the esteemed ranks of third-party logistics providers and dedicated fleets that have chosen PeopleNet," said Ron Konezny, Chief Operating Officer for PeopleNet. "The PeopleNet system is an attractive option for these segments because it is modular and flexible. From our in-cab hardware to our suite of leading-edge applications, it can be custom designed to deliver optimal functionality and return on investment."
Ruan has built a solid reputation in the third-party logistics industry by providing customer-focused supply chain solutions. In essence, the company builds unique distribution management solutions for a diverse range of more than 200 different customers. System-wide, the company operates 2,000 power units and 3,500 drivers.
"Each company has its own unique needs, and our services are developed to fit those needs," says Marty Wadle, Manager of Logistics Solutions for the company. "We offer a full suite of supply chain solutions including dedicated contract carriage, logistics management, bulk carriage, warehouse management and brokerage." To support its diverse service portfolio, the company undertook a search for the best provider of onboard solutions.
Ruan utilizes continuous quality improvement and statistical process control in its decision making processes. So it was no surprise Wadle applied that same robust discipline to Ruan's search for a mobile communications provider to become the system tool of choice.
Wadle and Stephen Crabtree, Manager of Onboard Technology, employed the Johnson Controls Inc. (JCI) fleet, a user of Ruan's dedicated contract carrier service offering for the past 11 years, as a test fleet to determine the best onboard resource. The fleet of 250 units provided the team with a wealth of operating data from which to benchmark the various service providers.
Starting with the JCI San Antonio terminal, where 30 units are based, they invited bids from eight mobile communications providers, subjecting them to multiple measurements that correlated with the quality-oriented performance information available in the JCI operation.
From a high-level perspective, the team wanted to know what each of the providers offered in terms of real-time information on key performance measures. According to Wadle "We were also looking at the ability to move to paperless logs to streamline our back office compliance and payment functions, in addition to getting more operating information."
From the initial list of eight providers, they culled the list to three finalists based on their cost and service options. They then equipped three trucks with each of the finalists and monitored service levels on the web and rated each on their functionality, paperless log keeping, tracking and reporting. "The PeopleNet system out-performed each of its competitors," Crabtree explained, "based on system performance, detailed reporting and affordability, the decision was clearly PeopleNet."
Another advantage was the ability to capture enough information on what the driver was doing (driving, loading or unloading and time at each stop) on a real-time basis to institute an activity based compensation system that has already begun to produce impressive results within the JCI fleet.
They put together a return-on-investment based upon improvements in miles-per-gallon, reduction in idle time and a fewer out-of-route miles. They predict a payback of less than one year - a forecast they sold to their executive committee. Based upon their experience rolling out the PeopleNet onboard service solution at Johnson Controls, they now anticipate rolling out similar solutions in Ruan's diverse customer base.
Headquartered in Minneapolis, PeopleNet is the fastest-growing provider of Internet-based onboard computing and mobile communications systems to the transportation industry, including truckload, LTL, private, and service fleets.
The company serves several Fortune 500 companies in the U.S. and Canada and has signed more than 1,000 customers since its inception more than 11 years ago. For more information about PeopleNet, call 888-346-3486, e-mail info@peoplenetonline.com, or visit www.peoplenetonline.com.
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CONTACT:
Ellie Walradth
PeopleNet
