A retail services company, specializing in rent-to-own furniture and appliance deliveries, depends heavily on its fleet, comprised of vehicles like Transit 150 Vans, Transit 350 Box Trucks, and Isuzu gas and diesel NPRs. The intensive use of these vehicles during business hours posed a challenge in maintaining them regularly. This led to frequent major mechanical issues, increased downtime, and higher rental costs.
Strategy: Mobile Maintenance
To overcome this challenge, the company partnered with Wheels to develop a mobile service program where the chosen service provider would schedule overnight preventive maintenance service (PMS) for each store within their coverage area. Every four months, technicians would visit the stores post-business hours to conduct the necessary PMS on-site. This strategy meant that vehicles no longer needed to be taken out of service during peak business hours, minimizing disruptions to daily operations. The maintenance process was made entirely hands-off for store employees, ensuring consistent and timely maintenance. Additionally, the partnership streamlined approval processes for necessary repairs, enhancing vehicle operational efficiency and reliability.
Results: 15% Savings in Maintenance-Related Expenses
Following the implementation of this mobile maintenance program, the company observed a 27% increase in the utilization of national account vendors for maintenance, which led to significant cost savings. Early data showed an estimated 15% reduction in maintenance and repair costs per store due to the program. This reduction also encompassed lower rental expenses, which previously amounted to nearly $6 million annually. The company’s ultimate objective is to achieve a status of zero vehicles overdue for maintenance. While still in the initial stages, the mobile maintenance solution has significantly decreased the number of overdue preventative maintenance services.
Strategy: Enhancing Driver Safety and Engagement
In response to the accident, the company collaborated with Wheels to enhance safety measures by integrating a dash camera solution targeting distracted driving. They initiated a trial with 20 dash cameras in September 2022, installing both front-facing and driver-facing cameras. Initially, in-cab messages were not activated to establish baseline data for two weeks. Following this, in-cab messages were activated for three weeks, leading to significant improvements in driving behaviors. To further incentivize safe driving, the company linked a visually enhanced risk assessment score, which evaluates driving safety, to the quarterly bonus metrics for drivers, managers, and directors. This approach aimed to improve driver performance and encourage higher management levels to prioritize team safety.
Results: Significant Improvement in Driver Behavior
The trial demonstrated substantial improvements: distractions decreased by 76%, tailgating by 25%, and high-severity distractions were eliminated. The most underperforming driver improved their safety score by 76%, with 8 out of 10 drivers enhancing their scores overall. Encouraged by these results, the company expanded the use of these dash cameras, now covering 90% of their fleet. They are also considering implementing similar camera solutions for their fleet in Australia, continuing their commitment to enhancing fleet safety.