Penske Truck Leasing has replaced its manual vehicle inspection process with voice-directed technology that is improving fleet inspection and repair accuracy, while delivering more uptime to customers.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Using technology first applied in its warehouse, Penske Truck Leasing is streamlining its preventive maintenance inspection process by going paperless—a feat the company says is delivering big improvements in productivity, quality, and equipment uptime.
The transportation and logistics services provider is applying voice-directed technology to the preventive maintenance inspection process across its fleet of nearly 300,000 trucks, eliminating the manual, largely paper-based process its technicians traditionally used. Today, Penske technicians have traded clipboards and laptops for headsets and software that converts spoken information to text that is communicated directly into the company's data system. Going digital has allowed Penske to improve inspection efficiency—cutting a two-hour inspection down to an hour and a half in some cases—and has dramatically reduced the number of customer shop visits for service. Gregg Mangione, Penske Truck Leasing's senior vice president of maintenance, says the company is seeing about 60,000 fewer shop visits annually since implementing the system in 2017.
"[That's a] tremendous benefit for our customers," Mangione explains, noting that the less time a vehicle spends in the service bay, the more time it spends in service for the customer.
The system is yielding big benefits internally as well. Mangione says it streamlines technicians' jobs, saving time, improving the quality and accuracy of their work, and allowing them to tailor the maintenance inspection process to each of the many different types of vehicles in the company's fleet.
It also helps create a better work environment, according to leaders at Honeywell Safety & Productivity Solutions, which partnered with Penske to develop the voice-directed system.
"With this solution, workers make fewer errors, have higher job satisfaction rates, and are more productive," says Taylor Smith, president of Honeywell's Workflow Solutions business. "Penske's transportation expertise and Honeywell's software and hardware are delivering gains in compliance, quality, and productivity."
DEVELOPING THE SOLUTION
Penske managers worked with Honeywell and technology partner Vitech to customize the voice-directed maintenance and inspection system. The partnership stretches back to 2012, when Penske Logistics, a Penske Truck Leasing subsidiary, implemented voice-directed technology from Honeywell and Vitech for warehouse picking operations. Mangione says Penske was immediately interested in using similar technology to guide technicians through the vehicle inspection process but soon learned it would require a fair amount of research and development because the technology companies hadn't yet applied the solution in that way.
"We spent a few years going from concept to [implementation], working in teams to develop it," says Mangione. "There are similarities in how we use it for warehousing, but a lot of customization has been built in the background."
Penske's system combines a robust, high-speed indoor and outdoor Wi-Fi network with rugged mobile tablet devices, supplemented with Honeywell's voice-directed preventive maintenance and inspection (M&I) solution, which uses voice-directed technology from Vitech. Wearing a headset, technicians are guided through the vehicle preventive maintenance inspections via voice prompts—basically, the voice M&I solution walks them through a series of checklists, incorporating voice commands and technicians' verbal responses. Technicians interact with a display on the rugged tablets to review images or descriptions. Their spoken responses are then converted to text and communicated back to Penske's data system with real-time updates.
Mangione says Penske's technicians were a crucial part of the research and development phase, providing insight and feedback along the way.
"We were careful to involve technicians in the development process," he says, pointing to concerns Penske had about technicians' reaction to having to wear a headset on the job, for one thing. "But we found that they like that more than they like carrying a clipboard. They say they enjoy being hands-free as they work."
REAPING THE BENEFITS
Improved uptime for customers is the main benefit of the system, and Mangione emphasizes that several factors contribute to Penske's ability to keep vehicles in the field. First, the automated voice-directed system streamlines and standardizes the preventive maintenance inspection process, he says, leaving no room for technicians to "do their own thing," as was common with the previous manual system. This not only speeds up the inspection process but also reduces the potential for errors, Mangione adds. Going digital has also helped Penske streamline the compliance and regulations portion of its work.
"A preventive maintenance paper form is a legal document. Some of these serve as highway inspections and some serve as state inspections and regulations," Mangione explains. "If there's any kind of issue with the vehicle, those records are critically important. We've digitized the process and streamlined all of that."
The system also allows Penske to customize its inspections to the specific vehicle, an important benefit for a company that has a variety of makes and models of trucks in its fleet. Instead of performing the same inspection points on all vehicles, this allows the company to tailor inspections to certain types of trucks and certain manufacturers' engines, making inspections more efficient and targeted, and allowing Penske to be more proactive when making repairs and maintenance updates.
"And that all drives uptime for customers," Mangione explains. "Which is, quite honestly, what we're doing this for."
LEADING THE WAY
Leaders at Honeywell and Vitech say Penske Truck Leasing was way out in front in applying voice-directed technology to the preventive maintenance inspection process. Honeywell developed its Voice Maintenance & Inspection Solution based on its work with Penske and is marketing the technology more broadly for fleet maintenance applications today. Mangione says he expects the solution to go even further, moving beyond commercial trucking to related fields such as railroad and airline maintenance. For its part, Penske says it performed its one-millionth voice-directed preventive maintenance inspection last May and as of late 2018, had nearly doubled that figure.
"We really believe in this, [and] we want Honeywell to be successful with it," Mangione says. "This will probably continue to evolve as a capability. What we're doing, we believe, will be the future."
Jeremy Van Puffelen grew up in a family-owned contract warehousing business and is now president of that firm, Prism Logistics. As a third-party logistics service provider (3PL), Prism operates a network of more than 2 million square feet of warehouse space in Northern California, serving clients in the consumer packaged goods (CPG), food and beverage, retail, and manufacturing sectors.
During his 21 years working at the family firm, Van Puffelen has taken on many of the jobs that are part of running a warehousing business, including custodial functions, operations, facilities management, business development, customer service, executive leadership, and team building. Since 2021, he has also served on the board of directors of the International Warehouse Logistics Association (IWLA), a trade organization for contract warehousing and logistics service providers.
Q: How would you describe the current state of the contract warehouse industry?
A: I think the current state of the industry is strong. For those that have been focused on building good client relationships over the years, I think it’s a really exciting time. Coming out of all the challenges of the past few years, I think there’s a lot of opportunity for growth and deeper partnerships. It’s fun to see the automation and AI (artificial intelligence) integration starting to evolve [in a way that’s] similar to what we saw with WMS (warehouse management systems) in the early 2000s.
Q: You are now president of your family firm. Is it an advantage having grown up in the business as opposed to working elsewhere?
A: I definitely believe it was an advantage growing up in the business. Whether it’s working with family or someone else in the industry, there’s always an advantage when you have mentors[to guide] you. I’ve been blessed to have several mentors, some in the industry, others just in life, and I’m thankful that they were willing to mentor me and that I was willing to listen to them.
Q: What are the biggest challenges currently facing 3PLs, and how are you addressing them?
A: Labor and legislation are both tough right now. The two seem to have a lot to do with each other, and it can make it tough to find and retain people. So I think we’ll see more and more automation of processes industrywide.
Q: Third-party service providers often must handle a wide variety of products for a lot of different clients. Does this variety make it difficult to invest in automation and other new technologies?
A: It can make things more difficult when looking at certain automation, but it’s in the “difficult” that a lot of opportunities lie. It would be tough to find a single solution that fits every client’s needs, but there are always opportunities to improve in certain areas. It just takes a bit of vision and commitment, and a willingness to invest in your own long-term success.
Q: As a 3PL, what do you look for when selecting the clients you work with?
A: Quality relationships that will last a long time. When both parties are happy and working together in the same direction, everyone wins.
Q: You’ve been a board member of the International Warehouse Logistics Association since 2021. Why is your involvement with this organization important to you?
A: I think it’s important to understand what’s happening in the industry. IWLA is a great resource for staying up to date and getting a solid education when it comes to the latest logistics trends. I also think it’s important to give back and pass along what we’ve learned to those just getting started in the business. As important as it is to have a mentor, it’s just as important to mentor and help others.
“While there have been some signs of tightening in consumer spending, September’s numbers show consumers are willing to spend where they see value,” NRF Chief Economist Jack Kleinhenz said in a release. “September sales come amid the recent trend of payroll gains and other positive economic signs. Clearly, consumers continue to carry the economy, and conditions for the retail sector remain favorable as we move into the holiday season.”
The Census Bureau said overall retail sales in September were up 0.4% seasonally adjusted month over month and up 1.7% unadjusted year over year. That compared with increases of 0.1% month over month and 2.2% year over year in August.
Likewise, September’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were up 0.7% seasonally adjusted month over month and up 2.4% unadjusted year over year. NRF is now forecasting that 2024 holiday sales will increase between 2.5% and 3.5% over the same time last year.
Despite those upward trends, consumer resilience isn’t a free pass for retailers to underinvest in their stores by overlooking labor, customer experience tech, or digital transformation, several analysts warned.
"The 2024 holiday season offers more ‘normalcy’ for retailers with inflation cooling. Still, there is no doubt that consumers continue to seek value. Promotions in general will play a larger role in the 2024 holiday season. Retailers are dealing with shrinking shopper loyalties, a larger number of competitors across more channels – and, of course, a more dynamic landscape where prices are shifting more frequently to win over consumers who are looking for great deals,” Matt Pavich, senior director of strategy & innovation at pricing optimization solutions provider Revionics, said in an email.
Nikki Baird, VP of strategy & product at retail technology company Aptos, likewise said that retailers need to keep their focus on improving their value proposition and customer experience. “Retailers aren’t just competing with other retailers when it comes to consumers’ discretionary spending. If consumers feel like the shopping experience isn’t worth their time and effort, they are going to spend their money elsewhere. A trip to Italy, a dinner out, catching the latest Blake Lively and Ryan Reynolds films — there is no shortage of ways that consumers can spend their discretionary dollars,” she said.
Editor's note:This article was revised on October 18 to correct the attribution for a quote to Matt Pavich instead of Nikki Baird.
The market for environmentally friendly logistics services is expected to grow by nearly 8% between now and 2033, reaching a value of $2.8 billion, according to research from Custom Market Insights (CMI), released earlier this year.
The “green logistics services market” encompasses environmentally sustainable logistics practices aimed at reducing carbon emissions, minimizing waste, and improving energy efficiency throughout the supply chain, according to CMI. The market involves the use of eco-friendly transportation methods—such as electric and hybrid vehicles—as well as renewable energy-powered warehouses, and advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI) for optimizing logistics operations.
“Key components include transportation, warehousing, freight management, and supply chain solutions designed to meet regulatory standards and consumer demand for sustainability,” according to the report. “The market is driven by corporate social responsibility, technological advancements, and the increasing emphasis on achieving carbon neutrality in logistics operations.”
Major industry players include DHL Supply Chain, UPS, FedEx Corp., CEVA Logistics, XPO Logistics, Inc., and others focused on developing more sustainable logistics operations, according to the report.
The research measures the current market value of green logistics services at $1.4 billion, which is projected to rise at a compound annual growth rate (CAGR) of 7.8% through 2033.
The report highlights six underlying factors driving growth:
Regulatory Compliance: Governments worldwide are enforcing stricter environmental regulations, compelling companies to adopt green logistics practices to reduce carbon emissions and meet legal requirements.
Technological Advancements: Innovations in technology, such as IoT, AI, and blockchain, enhance the efficiency and sustainability of logistics operations. These technologies enable better tracking, optimization, and reduced energy consumption.
Consumer Demand for Sustainability: Increasing consumer awareness and preference for eco-friendly products drive companies to implement green logistics to align with market expectations and enhance their brand image.
Corporate Social Responsibility (CSR): Companies are prioritizing sustainability in their CSR strategies, leading to investments in green logistics solutions to reduce environmental impact and fulfill stakeholder expectations.
Expansion into Emerging Markets: There is significant potential for growth in emerging markets where the adoption of green logistics practices is still developing. Companies can capitalize on this by introducing sustainable solutions and technologies.
Development of Renewable Energy Solutions: Investing in renewable energy sources, such as solar-powered warehouses and electric vehicle fleets, presents an opportunity for companies to reduce operational costs and enhance sustainability, driving further market growth.
A real-time business is one that uses trusted, real-time data to enable people and systems to make real-time decisions, Peter Weill, the chairman of MIT’s Center for Information Systems Research (CISR), said at the “IFS Unleashed” show in Orlando.
By adopting that strategy, they gain three major capabilities, he said in a session titled “Becoming a Real-Time Business: Unlocking the Transformative Power of Digital, Data, and AI.” They are:
business model agility without needing a change management program to implement it
seamless digital customer journeys via self-service, automated, or assisted multi-product, multichannel experiences
thoughtful employee experiences enabled by technology empowered teams
And according to Weill, MIT’s studies show that adopting that real-time data stance is not restricted just to digital or tech-native businesses. Rather, it can produce successful results for companies in any sector that are able to apply the approach better than their immediate competitors.
“ExxonMobil is uniquely placed to understand the biggest opportunities in improving energy supply chains, from more accurate sales and operations planning, increased agility in field operations, effective management of enormous transportation networks and adapting quickly to complex regulatory environments,” John Sicard, Kinaxis CEO, said in a release.
Specifically, Kinaxis and ExxonMobil said they will focus on a supply and demand planning solution for the complicated fuel commodities market which has no industry-wide standard and which relies heavily on spreadsheets and other manual methods. The solution will enable integrated refinery-to-customer planning with timely data for the most accurate supply/demand planning, balancing and signaling.
The benefits of that approach could include automated data visibility, improved inventory management and terminal replenishment, and enhanced supply scenario planning that are expected to enable arbitrage opportunities and decrease supply costs.
And in the chemicals and lubricants space, the companies are developing an advanced planning solution that provides manufacturing and logistics constraints management coupled with scenario modelling and evaluation.
“Last year, we brought together all ExxonMobil supply chain activities and expertise into one centralized organization, creating one of the largest supply chain operations in the world, and through this identified critical solution gaps to enable our businesses to capture additional value,” said Staale Gjervik, supply chain president, ExxonMobil Global Services Company. “Collaborating with Kinaxis, a leading supply chain technology provider, is instrumental in providing solutions for a large and complex business like ours.”