Case Study: Young Shall Grow telematics4u

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1 Case Study: Young Shall Grow Though we were in the transport business since the last 40 odd years, still traditional problems that any large transport company faces like those of difficulty in tracking their fleet, escalation of maintainenance costs, daily breakdown of numerous buses and rising complaints from our most valued consumers plagued us and hindered our promise of providing world class transport solutions. We needed someone who could get rid of our problems. In Telematics4u we found an able partner who through their services like Basic Vehicle Tracking Systems, Data Management, Activity Reporting, Alerts and Exception Reporting made sure our customers always left us with a smile, something we always desired. - Mr. Vincent Obiora Obianodo, Managing Director YOUNG SHALL GROW Page no. 1 Disclaimer: All rights reserved,. c

2 Background Note The biggest transport company of Nigeria, Young Shall Grow commenced business in 1972 as a mini-bus transport operator with a fleet of two buses. The company because of its exceptional service earned favorable customer response and within the first seven years increased its fleet to 40 which further went up to 150 buses in the next six. Today with a fleet of more than 600 buses, it is the biggest luxury bus company in Nigeria. The company with its head office in Lagos, also has offices in Ibadan in the west, Abuja, Kano, Sokoto, Maiduguri, Jos and Yola in the north and Onitsha, Neni, Enugu, Owerri, Aba, Umuahia, Port Harcourt, Uyo and Calabar in the Eastern part of Nigeria. Apart from covering the whole of Nigeria, the fleet also traverses into West-African countries of Ghana, Cote d viore (Ivory Coast), Benin Republic, Mali, and Burkina Faso. The company is a solely owned indigenous Nigerian company at the apex of which are the board of directors, comprising of the Chairman (Chief Dr. Vincent Amaechi Obianodo) and the Managing Director (Mr. Vincent Obiora Obianodo). Mr. Vincent Obiora Obianodo, the Managing Director of the company has taken upon himself the task of taking the organization to a new level on all fronts. His special initiatives like the setting up of the Information Technology department have enabled the company to improve on its deliverables, thereby reducing the gap between consumer expectations and services provided by them. The company because of its extraordinary commitment to providing first class services to its passengers with utmost safety standards was awarded Safest Transport Company of the year award last year. Though the company had tasted phenomenal success in its endeavors, they still had some pertinent issues, issues which needed immediate attention on a serious footing. Page no. 2 Disclaimer: All rights reserved,. c

3 Problems It s understandable that one of the major problems of any large transport company is management of its fleet. For a company as big as YSG, with a fleet size of more than 600 odd buses, the management becomes no less than a gargantuan task at hand. YSG also had many such troubles with its large fleet and a feeling of need for information systems was always there. The prima-facie troubles that the management felt were. 1.Security: Only recently one of YSG vehicles was stolen by armed miscreants. The culprits took over the bus, robbed the passengers and then left the bus at an unknown place. Thankfully the bus had the tracking system in place and could be located. Such kind of issues is not a onetime affair. In this case fortunately the robbers were only looking for money but the situation could be grave some other time, when the culprits may be looking for kidnapping, killing or anything anti-social. In a country like Nigeria such kind of issues are not rare. Hence security becomes a pertinent issue to be taken care of by the YSG management. 2.Overspeed: Another major problem of all underdeveloped nations is the irresponsible nature of the drivers of public transport. Drivers often exceed the prescribed speed limits and the passengers are prone to hazardous consequences due to this adventurous streak. The management at YSG was facing the same problem. Drivers were often over speeding and this alongside making the bus accident prone, also escalated maintenance costs because of rash driving. This was also one of the primary reasons why a resource was needed which could keep a tab on the speed limits. 3.Management of the fleet was tough: With 600 buses to manage, the work of any administrator, not aided by technology is no less than impossible. The company was looking forward to a one stop device to manage all operations. There was a latent need for something which could at one stop provide, tracking, overspeed alerts, driver evaluation, FMU and also could deliver MIS, on the basis of which future decisions could be taken. 4.Fleet Maintenance: How many times does a bus go for servicing in a month? What spare part in the fleet is the one which is replaced the maximum times in the fleet? Which vehicles have the most number of job cards? Which mechanic in the work shop has worked on how many vehicles? These are some of the most basic but most important questions when it comes to the maintenance of a fleet of buses. YSG was looking for an IT enabled service platform which could answer all of these at one go. Page no. 3 Disclaimer: All rights reserved,. c

4 Telematics4U Getting to define the problem With all these issues having started to hit the company hard, the management started to look out for solutions that could solve problems and provide them support to exactly suit their needs. The management scanned through numerous service providers but something or the other in all scanned companies looked incomplete. YSG then came across us with the help of Local Telematics Service Provider (LTSP) from Lagos and it seemed a good alliance. Telematics4u did research on the pain points of YSG and after hefty discussions between the managements of both companies, Telematics4u were entrusted with the job of setting up an Information Technology (IT) Department that could enable the company to improve on its services thereby closing the gap between customer s expectations and company s perception of these customers expectations, not at all an easy job considering the size of the fleet. It was to be done by introducing solutions known as the fleet and asset management which comprised of vehicle tracking device, electronic workshop, electronic inventory control systems, driver appraisal systems, mechanic appraisal systems, fuel monitoring and tyre management. LLORIN LAGOS ABUJA Vehicle monitoring OKENE OVER SPEED A.C -OFF LIVE LOCATION A.C -ON Page no. 4 Disclaimer: All rights reserved,. c

5 Hardware and Software Installation All the vehicles were fitted with GPS device to monitor their movements and the login of web application was handed over to YSG. Along with basic features, Fleet Maintenance system module was also provided to YSG to manage their inventory and take care of regular and preventive maintenance. YSG gave all its inventory details to, and the whole process of entering the data into the application took 3 weeks. After successful implementation of GPS device, YSG started monitoring vehicle movements in real-time and inventory management right away. Telematics4u s Fleet and Asset Management Solution for YSG Vehicle Monitoring System All the vehicles in the fleet are now tracked 24*7 through GPS and GPRS connectivity. Security of passengers being one of the foremost responsibility of YSG, tracking 24*7 definitely helps in keeping tab on where a bus is, what time will it take to reach a specific station and if there is an emergency what needs to be done to take care of it. The person who is controlling the server knows everything at his fingertips and a tensed relative of a passenger can immediately be satisfied through the knowledge that his person is safe. Better Driver Overspeed Behaviour Online MONITORING Information Tracking MIS reports Alerts P&L Vehicle MAINTENANCE YSG A.C ON/ OFF Control on Drivers Cost saving Fuel Quality ON SITE SUPPORT Saving Service Reports turnaround Analytical Quicker Business Value to YSG Telematics4u takes care of erything. From supply, installation to maintenance of the systems all is done by it, enabling YSG to only think about passenger satisfaction, leaving the headache of GPS/GPRS systems to Telematics4u. Core Benefits to YSG Page no. 5 Disclaimer: All rights reserved,. c

6 Complete monitoring is done by Telematics and all reports as per YSG s needs are provided. Complete data collection is done on a server and courtesy that data analysis reports is provided as per YSG s requirement. These customized reports then help YSG plan its strategies according to the strength of its fleet. For example, an Activity report details the company how much a particular bus journeyed in a month alongside the total stoppage time thus helping YSG in taking necessary action if any to avoid extra stoppage time. Fleet Maintenance System With the implementation of FMS, YSG is managing full inventory including purchasing and stocking that are fully integrated with ledger accounts and gaining visibility of maintenance cost on each vehicle. YSG is now making necessary business decisions on spares purchase, inventory carrying costs, selection of vendor, selling of vehicle etc. Effective reporting about inventory gives YSG the information they need to efficiently manage inefficiencies or errors. From simple fleet listing reports to complicated periodical cost analysis reports, everything they need is included. Few reports that YSG can generate are: Maintenance Cost Analysis of two Months X Axis: Vehicle registration number Y Axis: Cost in dollars Day-to-Day business performance analysis Revenue realization P&L Vehicle Vendor analysis Spare usage Vehicle maintenance cost Spares Count Report And many more... Spare wise cost analysis of one month X Axis: Spare part Y Axis: Cost in dollars Page no. 6 Disclaimer: All rights reserved,. c

7 Optimum utilization of AC Giving quality service to passengers is one of the foremost responsibilities of YSG. Few complaints that YSG used to get from passengers was that AC doesn t work quite often. It happens many times when YSG cross check if the AC was working or not. They found out few suspicious activities. So to monitor whether the AC is ON or OFF, suggested YSG to use solution that will tell when driver has switched on the AC and for how much distance it was OFF. With the help of s solution now the person who is monitoring all the activities knows whether the AC in the bus is ON or OFF. This solution has reduced the problem passengers used to face in the bus. Now all the passengers are happy and their complaint has reduced to huge extent. This feature has increased the customer loyalty which in turn increases the company ROI. Data Management System The data collected from the hardware placed on the vehicle is compiled to make reports to send to YSG. The following reports are then sent: Speed Reports: This indicates the pattern of vehicle s speed for the stipulated time period. Stop Reports: This report displays the locations at which the vehicle stopped and also the duration of stoppage at that place. Page no. 7 Disclaimer: All rights reserved,. c

8 Route Deviation Reports: One of the most important ones in countries like Nigeria, route deviation reports details down the location of deviation from the actual prescribed route and also the total distance deviated by an YSG vehicle. Activity Reports: The activity report basically provides the complete activity of a vehicle of the fleet for any given period. It provides YSG with information like total distance traveled alongside total stoppage time of that vehicle. Exception Reports: This report is helpful in bringing to court those vehicles which exceeded a given condition for a time period. The vehicle might have exceeded on any count namely Speed, Stop and Idle time exceptions. Total Distance Reports: As the name suggests, this one displays the total distance travelled by selected vehicles in specific time duration. Hub Reports: Hub reports provide Arrival and Departure alongside detention time of YSG vehicles from Depots. Customer locations are also provided in here. Trip Summary Reports: This report comprises of total number of trips completed in a given period. Other Customized Reports: Apart from these above mentioned reports, a lot of other specific reports needed by YSG are being fed to them through the system. Page no. 8 Disclaimer: All rights reserved,. c

9 Alerts The Telematics4u system that is placed aboard YSG vehicles messages alerts for violations as and when they occur. For the benefit of the consumers, option is also available for forwarding these over . Speed Violations: The moment a vehicle crosses a prescribed speed limit, the users get notified. In fact users can also set the desired speed limit. Emergency/Panic Alert: In case the driver sees an emergency coming he can press the emergency red button provided to him. Once he presses that, the control room comes to know that the bus is in a problem and then accordingly can take charge. Stop Violation: This one alerts users when the driver violates any set guidelines. The system is made such that it also provides the details i.e. time and nature of violation of prescribed speed limits, routes, location etc. Hub Arrival and Departure: It provides YSG with arrival and departures of the vehicles for locations defined by the client. Harsh Braking Alerts: This option provides the company all alerts as and when a driver applies numerous brakes or harsh brakes because of which maintenance costs escalate. Customer Testimonials The Telematics4U Fleet and Asset Management Solution has played an immense role in bringing down our fleet management costs. By providing us on our fingertips activity reports, which provide us more details on what maintenance a particular bus needs, the system keeps us abreast with things and thus we don t generally lose time on breakdowns. In short a lot of breakdowns, which were a regular affair earlier, have been avoided since we have started using Telematics4u s solution. Their Pay as you go model is unique as we didn t require any server and our investment was almost negligible. Operations Head, YSG Page no. 9 Disclaimer: All rights reserved,. c

10 Implementation Benefits 1.More secured passengers: With the implementation of Telematics4u tracking solutions, passengers feel more secured in an YSG bus. Somewhere down the line in a passengers mind, the feeling of travelling in a safe and known environment helps build trust towards YSG which is very important for a transport company. 2.Monitored Driver Behaviour: One of the biggest problems of the company, speed and deviation violation mainly because of irrational driver behavior is now monitored from the central control room. This deters drivers from exceeding the company approved speed limit and deviate from the prescribed routes. The drivers also know that their appraisals are based on fixed parameters being tracked by an unbeatable system and hence stay away from indulging in uncanny activities. 3.Easy Maintenance of fleet: With more than 600 buses to manage, Telematics4u provided the YSG management a brilliant system to tackle all challenges pertaining to their fleet. Reports made sure that no fact is missed and the management had at its fingertips exactly the amount of work undertaken by each bus in the fleet and the electronic inventory control system helped in closing the gap between vehicle spare consumption and vehicle revenue generation through the Bus service reports. Thus we can say that reports generated by Telematics4u solutions came as a panacea for YSG who faced regular problems managing their 600 plus buses. Conclusion As on today the entire fleet of YSG is installed with sophisticated vehicle tracking devices. This has improved precise monitoring of all buses across routes. The staff of the company i.e. drivers, mechanics, workshop employees etc are also very happy as their performances are now being appraised based on electronic monitoring on parameters set for them to follow. If they do well on the parameters, they get appraised, if they don t they are the ones they should blame. The stolen bus was just one example of what can happen these days if a transport company lags behind in technological advancements. One loses customer bases as well as a lot of goodwill in the market. The management of YSG played wise by entrusting a company like Telematics4u to provide them solutions that could keep them abreast with what all was happening with their fleet. Today when Mr. Vincent looks back he not only observes happy customer faces but also satisfied employees, a dream situation for any businessmen. Page no. 10 Disclaimer: All rights reserved,. c

11 The Future Looking ahead YSG is looking forward to further enhance customer satisfaction on all counts. After safety and security, the company in association with Telematics4u is looking to provide its passengers, advanced features like real time information of bus timings at the necessary bus stops and bus shelters. Also company is working to develop hardware, to be mounted on the bus for features like Next Stop Voice Announcements and Display Information. This will help customers in their travel process and bring more goodwill for the transport company. Telematics4u Leading the way is one of the largest providers of technology enabled solutions & services to the Road transportation sector in the world with presence and customers across 50+ countries. has a range of Business Solutions and services for Transport operations which are ready to deploy. operates through a network of Local telematics Services providers. With a huge experience across diverse domains and innovative approach towards specific solutions has created a new waves in the field of telematics. No matter what your company s size and requirements, has the right solution for you. Also, s innovative Pay-as-you-use model can add up greater ROI and reduce deployment cycles. Telematics4u is involved in various domains. Few of them are: Taxi Cold Chain Logistics Long Haul Logistics Retail Logistics School Bus Oil and Gas Milk Distribution Movers and Packers Mining People Transportation Telematics4u services Pvt Ltd. 1st main, New BEL Road, Sanjay Nagar, Bangalore Ph /776/778 Fax: ID: info@.com Website: Page no. 11 Disclaimer: All rights reserved,. c