FleetSmart Profiles: Highway Trucking

Instinct Trucking Ltd. – Edmonton, Alberta

Multifaceted Fleet Management Program Pays Dividends

Instinct Trucking Ltd. has grown steadily since its founding in 1989 – and fuel efficiency is a cornerstone of the company's success. On-board computers, driver training and incentive programs, policies to limit vehicle idling and speed and a strict maintenance regime are among the measures implemented by Instinct Trucking over the past decade. As a result, average fuel consumption across the fleet is an impressive 33.6 litres per 100 kilometres.

On-board computers support efficiency measures

Instinct Trucking, a company based in Edmonton, Alberta, specializes in the transport of bulk liquids. The company operates a fleet of 30 tractors and 90 tank-trailers (mostly B-trains) that deliver products throughout Manitoba, Saskatchewan, Alberta, British Columbia, Yukon Territory and the Northwest Territories. The fleet logged more than six million kilometres in 2000, a 30 percent increase over the previous two years.

During its first six years of operation, Instinct Trucking used mechanical tachographs to monitor such factors as vehicle speed, braking, engine r.p.m., unloading times and the number of hours worked by drivers. While the tachograph program was successful at first, Jerry Semen, owner of Instinct Trucking, explains that over time these devices became cumbersome to use because the data cards had to be read manually.

In 1995, company management addressed this issue by installing on-board computers, which store a wide range of operational data that is then read and analysed by an office-based computer. This minimizes administration costs and allows data analysis to take place in a fraction of the time previously required to read the tachograph cards.

In the intervening years, the monitoring system has served as a building block for other fuel efficiency measures, proving to be money well spent.

Data used to administer driver incentive program

The monitoring system, for example, provides data for Instinct Trucking's driver incentive program. Driver performance is one of several factors considered in determining wage increases, awards and special driving assignments.

"Being a trucker is not easy, so creating a good work environment is key to attracting the best people," says Mr. Semen. Toward this end, Instinct Trucking has adopted a number of incentive measures for drivers. These include scheduling three successive days off so drivers can enjoy time with their families, providing proper work and safety gear and matching any investment drivers (and other employees) make in the company. The measures have contributed to an extremely low rate of driver turnover at Instinct Trucking – about 10 percent annually, in an industry where 50 percent driver turnover is not unusual.

Mr. Semen reports little driver resistance to the on-board monitors. "Younger drivers seem to like it better than the older drivers, but we're finding that the more and better tools you give your drivers, the better drivers you get."

No doubt a big selling point for drivers is that the monitoring system prepares driver logs automatically. The on-board computers also monitor driver work hours more accurately and support a payroll system that, according to Mr. Semen, "Provides us with a much better picture of our labour costs than we had before."

Driver training complemented by speed and idle policies

Driver training is an important aspect of Instinct Trucking's fleet management program – and again, the on-board computers have played a key role.

Instinct Trucking has an intensive training program that all drivers must take in their first three months on the job. The program – which includes elements from SmartDriver, the driver training component of Natural Resources Canada's FleetSmart program – instructs drivers on progressive shifting and other fuel-efficient driving practices. As part of this training, fuel efficiency is monitored by the on-board computers and proper driving techniques are reviewed with new company drivers, as necessary.

The training program is complemented by company policies on idling and speeding. For example, Instinct Trucking requires drivers to limit vehicle speed to 90 kilometres per hour, a policy that is monitored by the on-board computers. The overriding concern is safety – and the policy has paid major dividends in terms of reduced accident rates and insurance claims.

"The monitoring provided by the on-board system plays a big part in our safety record", says Mr. Semen. From a safety perspective alone, he would like to see on-board computers installed on all commercial trucks.

The on-board computers also help the company enforce its policy of keeping engine idling to a minimum. By continually monitoring and reinforcing this policy, Instinct Trucking has reduced idling time on a typical run to only about two percent of engine running time.

A strengthened bottom line

The combination of initiatives undertaken by Instinct Trucking since 1995 has strengthened the company's bottom line. For example, Mr. Semen estimates that the use of on-board computers has improved fuel efficiency by five percent and that the initial $100,000 cost of the system was repaid in fuel-cost savings in only six months. Adhering to a rigid vehicle maintenance program has further improved fuel efficiency by an estimated two percent.

"Our tractors operate an average of 22.5 hours a day and we are committed to making on-time deliveries to customers, so we just can't afford to have vehicles break down," explains Mr. Semen.

Instinct Trucking has also launched a new spec'ing and procurement strategy to standardize the fleet. In turn, this will simplify vehicle maintenance and reduce maintenance costs. Like its other fleet management initiatives, this forms part of the company's commitment to continuous improvement – a commitment that has helped make Instinct Trucking a fuel efficiency leader in Canada's transportation sector.

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