Continental Tire Reduces Fleet & Increases Safety with Powerfleet Vehicle Management System

This case study focuses on Continental Tire’s Mt. Vernon, IL, manufacturing plant and warehouse for passenger, light truck and commercial tires. This facility manages the complete tire development process, from design to production to delivery. The Mt. Vernon manufacturing facility is one of the largest within Continental, with approximately 70 acres under one roof.

The Continental Tire team, led by Fleet & Rolling Stock Manager Nathan Baugher, identified several challenges that could be resolved with a Vehicle Management System (VMS). Initially, Continental Tire management wanted to reduce the abuse and damage associated with industrial vehicles within their facility. But after seeing the different capabilities that Powerfleet’s system had to offer, they realized the system’s potential to improve safety, productivity, and efficiency as well.

Consequently, Continental Tire chose the Powerfleet VMS from Powerfleet.

Safety Improvements

Industry-wide, industrial vehicle operators often use vehicles carelessly and managers are often not notified of unsafe conditions that may result, including facility, rack and inventory damage. Powerfleet solves that problem by establishing accountability for each and every vehicle. An operator must log in using Powerfleet to drive a vehicle. This ensures that only trained drivers can operate vehicles, and that each operator becomes responsible for the actions that follow.

Continental Tire has forecasted a 33% improvement in vehicle-related damage costs in just the warehouse alone.

“An increase in safety and awareness is definitely our number one priority,” said Mr. Baugher. “Near misses are just as bad as actual accidents. It is our goal to do everything in our power to create the safest working environment possible.” Since operators are now accountable for their vehicles with Powerfleet, there is heightened awareness and drivers are more careful of their surroundings. Continental Tire has forecasted a 33% improvement in vehicle-related damage in just the warehouse alone.

OSHA Safety Checklists

Continental Tire previously used paper checklists to complete their vehicle safety inspections. They had a common industry challenge where operators were not actively evaluating the vehicles and were blindly completing the form. Additionally, it took extensive administrative effort from the Production and Safety Departments to collect and manage the checklist paperwork.

Now, the on-vehicle Powerfleet device prompts each operator to complete a safety checklist prior to each shift or vehicle use; failure to do so can disable that vehicle. This not only increases operator accountability, but also alerts management if operators are not inspecting their vehicles. Since the checklist results are captured and stored electronically, Mr. Baugher and the safety team can now review checklist answers and operator compliance through an easy, automated report from their desktop.

In addition to increasing operator accountability, checklists have also increased vehicle maintenance efficiency. By looking at the answers the operators have given, maintenance can now quickly identify any issue with the vehicle and perform the needed work, before it becomes a major repair.

Fleet reduction goals were met within 4 months; within one year, the system will have paid for itself.

Fleet Reduction & Productivity

Without a vehicle management system, there is no way to consistently and accurately gather data on industrial vehicle use. With Powerfleet, the Continental Tire team captures comprehensive, detailed vehicle utilization data over time and makes fleet “right-sizing” decisions. They have also increased productivity by evaluating and benchmarking the activity of vehicles and personnel. “The data we are gathering is invaluable,” stated Mr. Baugher. “It’s like having an industrial engineer riding on every fork truck 24 hours a day, 7 days a week.”

By evaluating their vehicle use and productivity data, Continental Tire was able to eliminate a truck from their warehouse. In addition, they were able to reduce the headcount associated with the vehicle by eliminating three vacant staffing opportunities. This change alone resulted in over $100,000 in total savings. Mr. Baugher said, “the only reason we were able to make that change is because we could see the productivity data from Powerfleet. It’s challenging to remove vehicles from departments without data to prove that it won’t impact their day-to-day operations.”

Continental Tire has also increased industrial vehicle productivity by using the Powerfleet text messaging module. Managers in the warehouse send real-time text messages to operators dynamically as work requirements change – for example, if a fork truck is needed unexpectedly at a certain dock door. The operator can instantly answer back to confirm that the task is being completed. This change has virtually eliminated the need for 2-way radios in the warehousing facility.

Maintenance Benefits

Continental Tire deployed the Powerfleet Maintenance module to schedule preventive maintenance based on actual vehicle use, instead of on a calendar basis. Continental Tire’s maintenance is outsourced; when a vehicle is coming due for service, the module lets the service provider know, and the vehicle is scheduled accordingly. “It’s crucial to have a strong notification system in place to make sure we maintain our vehicle warranties,” noted Mr. Baugher.

To avoid work disruption, Powerfleet’s automated preventive maintenance notifications allow the service provider to pro actively plan the best day and time with a department to free up each vehicle. On the day of service, the service provider can use Powerfleet’s Vision software to instantly see the real-time location of the vehicle on a map of the facility. This means more time is spent servicing vehicles with less time spent searching
for them.

The Bottom Line

Mr. Baugher stated, “Our goal is to have a plantwide fleet management program based on utilization and hours, which would be impossible to achieve without data. Powerfleet offers the perfect solution because it tracks exactly the data we need and is one of the key building blocks to obtain our overall goal for the facility.”

Mr. Baugher continued, “We want to be the #1 tire manufacturing facility in the world and the plant of choice for the introduction of new products. Powerfleet helps drive process costs down and increases productivity, which ultimately lowers our cost per tire and positively impacts the bottom line.”

Powerfleet transforms the way organizations manage mobile business assets — like forklifts, cargo trailers, and connected cars. Our technologies control, track, analyze, and optimize hundreds of thousands of these assets all over the world. We help organizations be safer, improve efficiency, and cut costs.

Let us help transform your business.

Powerfleet® Key to Forward Air Growth Strategy for Fleet Tracking and Management

“Since adding Powerfleet®, our business grew, our fleet grew, however, our need for trailers did not grow proportionately, due to the increased utilization that tracking helped provide.”

Tim Parker
Vice President of Service Operations
Forward Air

Increased Utilization

Forward Air Corporation is a leading provider of time- definite surface transportation and related logistics services to the North American air freight and expedited LTL market. In 2007, Forward Air began deploying the Powerfleet trailer tracking devices across its LTL trailer fleet, supporting deliveries through its central hub in Columbus, Ohio and 11 regional hubs to 85 cities across North America. Since implementation of the system began, Forward Air has grown its core business and added three new business groups.

Offering New Services

“Forward Air added new services such as intermodal drayage, pool distribution, expedited truck load operations, and a door-to-door offering- Forward Air Complete,” explains Tim Parker, Forward Air’s Vice President of Service Operations. “These new services required equipment to be placed at customer locations and to occasionally be pulled by non-FAF power units. The visibility and control of our equipment was significantly reduced. Adding Powerfleet Track-and-Trace improved visibility at every location.”

Improved Operations

After initially using Powerfleet to react to questions about how their trailers were being used, the company’s application of the system evolved with more active use, removing the need for manual yard checks. As a result, identification of misused assets became more efficient, and the manpower dedicated to daily monitoring of each site’s inventory was reduced.

Operations managers at each of Forward Air’s 85 local stations use Powerfleet to perform yard checks at their locations, as well as at customer yards that belong to their pool. The Powerfleet FleetView platform website dormancy reporting capabilities are then used to help identify excess trailers that can be eliminated from their pool.

In 2010, Forward Air began replacing their existing Powerfleet tracking devices with Powerfleet’s new Track-and-Trace product. Benefits of the low-cost device include the ability to ping for trailer location on demand, which is critical to locating stolen assets or other moving targets. With an up-to-date trailer position, drivers on trailer search missions can be routed directly for pick up, saving valuable hours of service and fuel costs dedicated to hunting for misplaced units. Maintenance budgets have also benefited from the addition of the new devices due to ease of installation and battery replacement, plus the assistance it provides maintenance managers in scheduling service.

After initially using Powerfleet to react to questions about how their trailers were being used, the company’s application of the system evolved with more active use, removing the need for manual yard checks. As a result, identification of misused assets became more efficient, and the manpower dedicated to daily monitoring of each site’s inventory was reduced.

Operations managers at each of Forward Air’s 85 local stations use Powerfleet to perform yard checks at their locations, as well as at customer yards that belong to their pool. The Powerfleet FleetView platform website dormancy reporting capabilities are then used to help identify excess trailers that can be eliminated from their pool.

In 2010, Forward Air began replacing their existing Powerfleet tracking devices with Powerfleet’s new Track-and-Trace product. Benefits of the low-cost device include the ability to ping for trailer location on demand, which is critical to locating stolen assets or other moving targets. With an up-to-date trailer position, drivers on trailer search missions can be routed directly for pick up, saving valuable hours of service and fuel costs dedicated to hunting for misplaced units. Maintenance budgets have also benefited from the addition of the new devices due to ease of installation and battery replacement, plus the assistance it provides maintenance managers in scheduling service.

Improved Customer Service

The benefits of Track-and-Trace have extended to Forward Air’s customers as well. Forward Air customers can access the VIP website to monitor the location and security of their loads.

“The quick set up and intuitive format of the VIP website has allowed us to extend the value of the product directly to our customers,” added Parker. “Our customers can log in to the website and view their specific information to help them better manage their equipment and utilization levels. We also rarely have to burden our customers with manual yard checks. Instead, the customers are empowered to quickly ascertain their equipment and utilization levels.”

Powerfleet has helped Forward Air improve their trailer fleet utilization by 15%, while also improving bottom line performance by an estimated $500,000 per year.

Powerfleet transforms the way organizations manage mobile business assets — like forklifts, cargo trailers, and connected cars. Our technologies control, track, analyze, and optimize hundreds of thousands of these assets all over the world. We help organizations be safer, improve efficiency, and cut costs.

Let us help transform your business.

Powerfleet® Provides
Critical Security Benefit

“Without Powerfleet for Logistics solutions, the odds of recovering stolen goods are low. Word is likely to be out on the street that Knight is not a desired target given our tracking capabilities.”

Richard Martin
Corporate Director of Security,
Knight Transportation, Inc.

Theft Recovery No. 1

In Long Beach, CA, a Knight Transportation driver reported that his truck and trailer were missing. The security department immediately enabled Emergency Track on its Powerfleet for Logistics system to begin the trailer location process. It was discovered that the trailer traveled throughout the previous night ending its journey in Rialto, CA at 8:51 a.m. The authorities were notified of the stolen trailer and were told exactly where it was parked, based on the last location delivered by the Powerfleet system. Surveillancewas immediately established across from a large warehouse facility.

Mission Success– The missing trailer came out of the warehouse hooked to a different tractor. The rig was followed by police and the driver was arrested. The authorities recovered all 111 televisions valued at over $100,000, as well as the tractor. Interestingly, a container was also retrieved containing fabric worth over $250,000 that wasn’t yet reported stolen. Several more arrests were made at the scene.

Theft Recovery No. 2

A Knight Transportation tractor and trailer were reported missing during a particularly busy night in the middle of the peak holiday season. Using the VeriWise system’s reporting features, authorities were able to pinpoint the last known location of the trailer in Compton, CA. Upon arrival at the site, the tractor and trailer, minus the cargo, were recovered. Knight security personnel then back-tracked through the location history of the trailer provided by the system’s best-in-class user interface. It was discovered that the trailer had been parked for several hours the night before in Long Beach, CA at the site of a warehouse and storage facility.

Victorious Recovery – A search warrant was obtained for the warehouse where the authorities found the stolen load of electronics equipment valued at over $335,000. Two additional stolen loads were recovered as well. Over 200 televisions were recovered that were shipped from China and reported stolen. In addition, a load of cosmetics was also recovered and returned to its owners.

Estimated Recovered Value: Over $1 Million. Powerfleet not only improves the efficiency of managing Knight Transportation’s trailer fleet by increasing overall trailer utilization, it also provides a critical security benefit in greatly increasing the chances of recovering stolen cargo.

Powerfleet transforms the way organizations manage mobile business assets — like forklifts, cargo trailers, and connected cars. Our technologies control, track, analyze, and optimize hundreds of thousands of these assets all over the world. We help organizations be safer, improve efficiency, and cut costs.

Let us help transform your business.