Keystone Logistics is responsible for ensuring that McDonald's restaurants have 100% product availability 24 hours a day, 7 days a week. To achieve this orders are taken from hundreds of restaurants every day, delivering up to 1,000,000 cases each week to sites across the length and breadth of the U.K. including the Isle of Man and Channel Islands using their XXX strong fleet of rigid and articulated vehicles.
Computer based orders from restaurants are received and collated by Keystone Logistics and scheduled for delivery to restaurants within 48 hours. Restaurants receive an average of 3 deliveries per week.
Keystone Logistics manage the supply chain to ensure that there is always sufficient stock to fulfil demand when orders are received. In accordance with the strict requirements laid down by McDonald's, each incoming delivery from suppliers is inspected by the Keystone Logistics Quality Department for content, quality, stock rotation, shelf life and best before date.
All products are stored and distributed at one of three temperature regimes, -18C, +3C and ambient. Keystone Logistics has the responsibility on behalf of McDonald's of ensuring the integrity of the supply chain from supplier to restaurant. The integrated order and management system prints colour coded descriptive picking labels which aid restaurants in stock rotation. The order is then collated on to one of the company’s purpose built trailers designed for the simultaneous delivery of frozen, chilled and ambient product stored at appropriate temperatures. This ensures that the restaurants complete order is supplied on one delivery, whilst maintaining the product in perfect condition.
Business Challenge
As a major supplier of logistics services Keystone Distribution is fully aware of its responsibility to grow its business in a sustainable manner. The company seeks to fulfil its obligations to its stakeholders and the wider community by conducting its business with respect and care for the environment. Environmental strategies have been reinforced by the development of a culture of continuous improvement in environmental performance at the company where the progress of their operating sites is regularly monitored as they seek to achieve agreed environmental objectives.
As part of its commitment to the environment, Keystone Distribution now works with its customer to convert used cooking oil from McDonald’s restaurants into biodiesel to power most of its fleet of delivery trucks. In order to do this, Keystone Distribution’s vehicles are used to collect and consolidate the used cooking oil from restaurants throughout the country. The oil is filtered and pre-processed prior to delivery to the biodiesel manufacturer. The manufacturer then converts the used cooking oil into biodiesel which fuels the McDonald’s delivery fleet.
Wanting to reduce its carbon emissions still further, the company was keen to implement a robust fleet management solution in order to improve the fuel efficiency and optimise the utilisation of its fleet.
Using this fleet management solution to reduce road risk would also allow Keystone Distribution to further improve the safety of its drivers and others in the community.
How MiX Telematics helped
Having evaluated the market, Keystone Distribution determined the MiX Telematics Fleet Manager solution best met its needs in a practical and affordable way.
"We were looking to measure, monitor and manage our drivers and vehicles, all of which the MiX Telematics system helps us do in a very straightforward manner," says Keystone Distribution’s Assistant Transport Manager, Keith Coomber. "To begin with, we trialled the system on two vehicles with four of our drivers. Two of these had been driving for many years and two were relatively new to the industry. We used their data to set achievable benchmarks for our other drivers and backed the scheme with a programme of driver training.
"We very quickly realised that our older drivers in particular would benefit from re-education in order to help them get the best from today's engines, where a great proportion of the torque is at the lower end of the rev-band.
"Throughout the process, MiX Telematics were on hand to provide advice and assistance and the initial trial was so successful that we soon took the decision to roll-out the MiX Telematics' Fleet Manager solution across all three of our sites.”
The solution deployed at Keystone Distribution combines leading-edge fleet management technology with clear and simple reporting. Located at the heart of the system is an FM Communicator, MiX Telematics' on-board data computer which is set to gather a range of information relating to Keystone Distribution’s driver and vehicle performance.
By capturing and comparing the driving styles of staff, the system has been used in conjunction with a targeted driver training programme to bring about dramatic reductions in fuel consumption. Typically, the information Fleet Manager provides can be used to derive fuel savings of approximately ten percent.
Having visibility of every driver's performance also enables Keystone Distribution’s managers to address issues such as over-revving and harsh acceleration and braking, all of which can lead to higher accident rates, increased wear and tear and maintenance costs.
For Keystone Distribution, information is delivered direct to the desktop via FM Web, MiX Telematics' secure internet-based business intelligence tool. Available 24/7, FM Web can be customised to automatically generate individually-tailored reports at a time of the operator's choosing.
"Today, we regularly report on the performance of all our drivers via monthly 'league tables' posted the company's notice boards. We also use the system as part of our drivers bonus scheme and as an element within our '100 Ways to Say Thank You' driver reward and recognition initiative. Having the overall buy-in of our drivers, plus the competitive element of the league tables, has resulted in the system having a great motivational effect for us."
Results Obtained
By working with MiX Telematics to improve the performance of their fleet operations, Keystone Distribution has been able to secure a wide range of tangible benefits:
- Fuel efficiency increased by ten percent
- Wear and tear down by fifteen percent across fleet
- Accident rate improved by seventy percent
- Vehicle numbers reduced by twelve percent
- Motivated, involved workforce
“I’ve been delighted by the improvements in our operation that MiX have helped us deliver, “continues Keith Coomber. “The fact that we’ve been able to hold onto these, and get even more out of the system over time is even better. The system is key to our becoming more efficient in our work and to reducing our environmental impact too.”
Fleet Manager plays an active part in enabling drivers to achieve bonus. Here the incentive scheme MiX Telematics developed with the transport management team sees drivers rewarded whenever they keep below an acceptable number of driver errors over a period. Initially, the company’s drivers were recording an average of 200 errors per 100 kilometres driven. Over time however, and with the support of information provided by their Fleet Manager solution, managers were able to coach their drivers to reduce error rates by a factor of ten. Two years into the programme, the average recorded errors has reduced to just 20 per 100 kilometres.
Steve Coomber is convinced that the on-going support and guidance provided by their MiX Telematics fleet consultant has been has been a major factor in the success of the project, “These gains would not have been achieved without the support of MiX Telematics. The fact that our consultant has been on-hand during the whole process to offer guidance has been great. It’s been a real benefit to be able to hear how others have worked with their drivers and then to work out together how best to use the system within our business.”
About MiX Telematics fleet management solutions
Transport, distribution and logistics operators across the world are benefiting from MiX Telematics' fleet management solutions and industry-specific expertise.
Through a combination of driver, vehicle and job monitoring, reporting and analysis, MiX Telematics' bespoke solutions give fleet operators the tools to combat rising fuel costs, comply with new legislation and meet increasingly demanding customer expectations.
The enhanced job management functionality that comes in-built within our solutions can be used to boost your service performance. Used to manage a range of tasks including daily vehicle checks and capture of electronic proof of delivery; our flexible system can support your end-to-end delivery cycle from service request through to invoicing. When integrated with your existing systems, our fleet management solutions make the possibility of joined up working between your drivers and your traffic office a reality, enabling data sharing, reduced costs and improved speed of service within your business.
Every MiX Telematics solution comes with our full backing and support. We will help set up your system, integrate it into your operation and provide advice on how to introduce the initiative to your drivers, interpret the results and how to use this insight to good effect. Our aim is to help you maximise your return on investment, and we'll do everything within our power to ensure you begin realising the benefits in the shortest possible time frame.
