2 page Case Study - Posted 2/25/2009
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Manufacturer Saves £200,000 a Year with Satellite Tracking System
United Biscuits (UB) is a leading European manufacturer of biscuits and snacks. It operates a fleet of lorries that transport goods from 11 factories in the United Kingdom and four in Northern Europe. In January 2006, the company implemented a lorry tracking solution based on Microsoft® Virtual Earth™ mapping technology. Employees can now locate and direct their vehicles efficiently in real time, reducing operating expenses and carbon emissions.
Business Needs
Established in 1948, UB produces some of the most recognisable snacks and biscuits throughout the United Kingdom, including McVitie’s, Jacob’s, McCoy’s, and Hula Hoops. These products are manufactured in factories located throughout the country and transported to different retailers.
To transport these goods, the company administers a fleet of 200 trailers, 50 drivers, and 25 tractor units with additional resources supplied by contractors. Operators based in Ashby de la Zouch manage these vehicles—planning customer deliveries, monitoring journeys, and bringing stocks back to the central distribution hubs in the midlands.
Operators have to keep the supply process functioning efficiently. Until recently, it was difficult for employees to get a clear view of operations. They relied on static maps with unclear delivery points, which made it difficult to plan the best routes. Also, if a delivery was late, the operator had to contact the driver to find out where the shipment was. Plus, plans of routes and schedules were made 48 hours in advance, so if a customer booking was changed or a road was closed, it was difficult to keep on schedule.
Late deliveries had further implications for the business. Factories have no storage facilities, so if a vehicle can’t immediately transport a load then production must be shut down until storage becomes available. This wastes valuable time and money.
Drivers also have to be more efficient. With rising fuel costs and a continuous need to be more environmentally friendly, UB wanted its drivers to be forerunners in reducing unnecessary mileage.
The executives of the company realised they had to introduce a real-time tracking solution that could:
- Identify where all vehicles are at any time
- Create flexible plans and schedules
- Store the exact location of all customers
- Provide accurate data to improve driver efficiency
Solution
In the second half of 2005, the managers of UB examined a range of systems before choosing a Microsoft Virtual Earth tracking solution developed by Masternaut Three X—a Microsoft Gold Certified Partner. The product uses Virtual Earth to provide rich imagery such as road maps, satellite and aerial photography, and 3D objects. Users can take advantage of integrated developer tools to layer location-relevant data onto maps.
UB uses these tools to “geofence” customer destinations, drawing virtual boundaries around sites such as warehouses and delivery depots, and labelling them with necessary information. When a company trailer enters one of these areas, the application records the exact location, logging it in the company’s systems, which are hosted by Masternaut Three X.
With satellite tracking in each vehicle, operators at UB can view the real-time locations of trailers from their desktop computers. The bird’s eye imagery of Virtual Earth gives them a stunning isometric view that clearly shows the exact location of delivery points, even if two customers are at the same location.
The system also has integrated reporting functions. Drivers insert a personal key into their vehicle’s dashboard that measures specific details about their driving habits, including data on the number of hours they drive, if they accelerate or break too quickly, or if they leave their engine on idle.
Operators and drivers can access this information through a Web-based portal hosted by Masternaut Three X. They can also view the same data on large plasma screens, which are placed throughout the company’s central office.
Rob Wright, National Logistics Controller, UB, says: “Our choice of product was assured by the service level agreement of guaranteed up time provided by Microsoft. Also, with Masternaut Three X hosting the solution, it can look after all our maintenance and security needs.”
Benefits
Virtual Earth has transformed the way UB manages its transport fleet. Operators can perform their jobs more efficiently, quickly locating lorries and altering plans instantly. The reporting functions analyse the data provided by Virtual Earth and help drivers conserve fuel, which saves money and improves the company’s green credentials. UB saves more than £200,000 (U.S.$288,670) a year using the system. Wright says: “With Virtual Earth we know exactly where our vehicles are—and where they should be. We have improved efficiency, decreased working capital, and dramatically increased green benefits.”
- Fuel economy improved by seven per cent. Employees can analyse the data provided by reports and train drivers to reduce their fuel consumption, saving £80,000 a year.
- Efficient fleet management. Deliveries are completed faster, which has resulted in the removal of 10 trailers, saving the company £10,000 a year.
- Better supervision of contractors. Operators can control the routes of contracted tractor units because all trailers are fitted with locators, saving £70,000 a year.
- Real-time amendments to plans. Planners can easily alter routes, using the best placed trailers to keep to schedule, saving an estimated £40,000 a year.
- Less confusion and delay. Staff can locate exact destinations using bird’s eye imagery and pass that information to drivers.
- Benefits to environment. Direct routes and improved driving skills are part of initiatives that reduced the company’s lorry miles by three million miles in four years. This decreased emissions by 19.2 per cent, a total of 4,700 tons of carbon dioxide. UB reduced its emissions so successfully that it reached the finals of the Motor Transport awards in two categories—low carbon and efficiency, and environment.
- Enhanced driver security. Operators can locate the exact position of drivers and how long they have driven, increasing driver safety and making sure they rest sufficiently.
For More Information
For further information about Microsoft products and services, please visit
www.microsoft.com/uk
or call 0870 60 10 100*
For hearing impaired customers with a Minicom, contact: 0870 50 30 400*
*Lines are open 8am–6pm, Monday to Friday. Please note, numbers prefixed 0870 will be charged at national call rates. For details of national call rate charges, please contact your telecommunications provider.
This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Document published February 2009
