Cheetah Software Systems - Case Studies: Temco

LTL Carrier Boost Efficiency and Profitability via Dispatch Automation

Drivers are a big expense for any logistics provider. But for an LTL with hundreds of drivers, they become by far the largest item on the budget. As a result, driver efficiency can make or break any carrier.

"We needed to automate how we send our drivers out and give better tools to both our drivers and dispatchers," says Clete Cordero, Vice President of Business Improvement for Benton Express, an LTL carrier based in Atlanta, Georgia.

Benton automated its dispatching operations using Cheetah Delivery software from Cheetah Software Systems in conjunction with Nextel phones. This enabled the company to maximize driver productivity while reducing payroll, improving customer service and expanding the number of deliveries without having to add more vehicles.

Manual Processes Breed Inefficiency

Benton Express is a family-owned regional LTL carrier that has operated in the south east for the past 73 years. It employs thirty five dispatchers as well as 350 drivers. They are spread across a network that spans 27 terminals in Georgia, Florida, North Carolina, South Carolina and Tennessee. Some terminals and dispatchers have as many as 40 drivers to deal with while a few terminals have as few as 10 drivers. All suffered from efficiency issues stemming from the fact that they had to manually handle the entire dispatch and routing process.

Even at the smaller terminals, Benton Express dispatch staffs were embroiled in clerical work and would spend the majority of the day talking to drivers. Dispatchers answered the phone, wrote up tickets, called the driver, read the pick ups to the driver, and handled any confusions or issues. They had to deal with up to 40 drivers coming to see them in person each day, as well as calling them numerous times from the road. This climate made route planning a real challenge. Constant interruptions made the dispatchers' job difficult and time consuming. Reliance on dispatcher expertise to manually plan the best routes was no longer a viable approach.

To make matters worse, dispatchers would be called to meetings during the day and this exposed another major weakness in the system. Whenever someone was called to a meeting, it would take a great deal of time to turn over the dispatching details to other staff. It took ages to lay out who drivers were, what was going on with each of them, what their routes were and other pertinent details as everything exists in the dispatchers' heads. Yet even after lengthy discussions, important details would sometimes be omitted.

The in-built inefficiency of this business model expressed itself in low margins, poor service and high operating costs. According to Cordero, pickup and delivery drivers are the biggest expense on Benton's P&L (profit and loss) statements.

"Whether they were all good or all bad, we didn't have a lot of tools to help our drivers to maximize their jobs each day," says Cordero.

Overcoming Implementation Resistance

Benton searched for a knowledgeable and experienced partner that not only understood day-to-day transportation issues, but passed on that experience while training personnel on new technology. After an extensive evaluation phase, the company selected Cheetah Software Systems as the best fit for its operations. And since Benton's 350 drivers already employed Nextel phones, Cheetah could be deployed with no additional expense at the vehicle side of the equation. As these drivers were already experienced users of the Nextel phones, this meant a much lower learning curve for the system as a whole.

On the dispatch side, however, some initial resistance had to be overcome. Benton Express prides itself in maintaining a stable employee base with many dispatch staff being with the firm for fifteen years or more. Staffs were certainly doing the best job that could be done under the existing circumstances. But manual systems breed inefficiency. And those involved in often heroic efforts to deliver on time can sometimes take time to realize the benefits of automation.

Cheetah Delivery changed all that. It allows management to see at a glance a route that the dispatchers lay out and compare them to automated routes. The system provides factual information that can be used to improve routes. As a result, it eliminated opinion and speculation as to the most efficient route.

"With Cheetah, a dispatcher can now handle route changes on the fly," says Cordero. "He puts in the pickup location and gets ongoing routes updated with choices and then sends out new routes with a simple click of a button. The new system has freed up the dispatcher to spend the time to review the information, determine the best route and proactively do his job and make good decisions rather than handle reactively."

When it comes to meetings during office hours, the dispatcher can turn over the job in a matter of seconds. This makes staff more flexible and interchangeable which is especially valuable in smaller facilities.

"We have been able to grow rapidly and handle far more without having to add drivers," says Cordero. "Expansion can really cost a company yet we are saving money, allowing us to fuel this growth."

Customer Service Excellence

"Cheetah Delivery has made a huge impact on customer service and gives a customer data in real time," says Cordero.

"Before implementing Cheetah, we would have to call the driver, try and get a driver to give the information on where he was and estimated arrival time," says Cordero. "Now we can look on a terminal and see where they are and give accurate information. We also enable our customers to access to this information on-line, which they love."

A recent situation highlights these gains. A customer called and reported he did not receive a very expensive airplane part or, if delivered, did not know where it went. With Cheetah Delivery, Benton immediately verified customer receipt of the package, who signed for it and when. As a result, the customer found the part, and explained that finding it would bring savings of hundreds of thousands of dollars.

"Cheetah has been incredibly supportive and its after-sales support is great," says Cordero. "To this day, we still have a weekly conference call to make sure there are no issues and check that everything is running well. Cheetah really cares about us and our business."