Regional LTL Carrier Converts to PeopleNet's Onboard Computing System
PeopleNet Technology Enhances Pitt Ohio Express' Direction as Virtual Transportation Company
MINNEAPOLIS - October 11, 2005 - PeopleNet, the leading provider of onboard computing and mobile communications systems to the nation's transportation industry, today announced that Pitt Ohio Express, one of the nation's leading less-than-truckload (LTL) carriers, has equipped a portion of its fleet with PeopleNet's tracking and mobile communications system.
"This is a significant development because it demonstrates that onboard computing and mobile communications makes sense in the LTL segment," said Ron Konezny, PeopleNet's Chief Operating Officer and Chief Financial Officer. "For too many years, LTL carriers considered the technology too expensive and perceived that it didn't meet the demanding needs they faced in their operating environment. The new feature-rich technology available in our g3 mobile communications solution now provides the tools and the resources the LTL market needs."
A regional LTL freight carrier, Pitt Ohio Express operates a fleet of about 600 tractors, 1500 trailers, and 300 straight trucks in a service area that includes Pennsylvania, Ohio, Virginia, West Virginia, Maryland, New Jersey, Delaware, and parts of Kentucky, Indiana, Michigan, New York and Illinois. Pitt Ohio also can deliver other services such as pool distribution, truckload, and other supply chain solution internally or through strategic partnerships.
"Within the supply chain arena in which we operate, we were looking to increase our value to our customers," says President Chuck Hammel III of the decision to implement the PeopleNet solution. "We liked the technology because it allowed us to improve our efficiency by improving our times between stops and pickups and deliveries."
Beyond the technology, Hammel says he valued the PeopleNet culture. "They understand their limits and they were willing to make changes to their product to make it fit our operating environment rather than forcing us to adopt our processes to their product."
According to Scott Sullivan, Vice President of Information Technology for the company "One of our goals is to retain a customer focus by operating as a virtual transportation company," . "We must provide information on over 10,000 loads a day when people ask for it (Pitt Ohio is currently experiencing 13,000 hits per month from customers tracking their loads). We must continue to provide a 98% on-time pick-up and delivery record. And we have to do this in an environment while protecting our operating ratio."
Information is at the hub of everything that Pitt Ohio does and drove the decision to begin a proof-of-concept evaluation of the PeopleNet system at the company's Pittsburgh terminal location.
"PeopleNet offered an attractive solution," says Sullivan. "First the company offered a single suite of products in one unit that tied in beautifully to our home office. The unit captures GPS locations for the 40 units in the evaluation; it also improved the communication between the dispatch and the drivers for pick ups and deliveries."
To date, the more accurate dispatch instructions have saved drivers time. The exact time saved is being researched, but is some cases time saved is upwards towards an hour from a day in reduced paperwork and more effective distribution of work. Plus the system provides more information about how long they're spending on serving the customers' needs.
Sullivan also notes that the company was taking advantage of the PeopleNet system to capture operating and performance information. Not only does this enhance the company's maintenance scheduling process, to date, he has seen some trucks improving over 5 percent in fuel economy at the Pittsburgh terminal.
Finally, Sullivan was drawn to PeopleNet's over-the-air-programming (OTAP) in which updates to the system are sent out over the Internet, thus avoiding pulling units out of service to update the system's performance.
Perhaps more important than the benefits themselves were the way they were communicated and embraced by the rest of the organization. Sullivan developed a cross-functional steering committee comprised of the company's CEO, CFO and the vice presidents of safety and operations.
Starting with only one unit in one truck, he was able to translate the value to the executive steering committee during the first 90 days of the trial. Keeping them involved in the process helped gain the approval to invest the resources into the terminal-wide proof of concept.
Sullivan also helped ease the transition to the PeopleNet technology by empowering a working team comprised of IT, safety, maintenance, finance and the Pittsburgh terminal manager, to anticipate and handle any problems in the trial phase.
The PeopleNet system has become the standard for GPS-based location tracking, two-way data communications, electronic driver logs, and Internet-based fleet business tools to provide consistent, reliable communication between business owners, dispatchers, drivers and shippers.
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 1,100 customers since its inception 11 years ago. For more information about PeopleNet, call 888-346-3486, e-mail info@peoplenetonline.com, or visit www.peoplenetonline.com.
For more information, contact: Brian McLaughlin, (888) 346-3486 ext. 247
bmclaughlin@peoplenetonline.com
