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Propel, a company focused on driving operational efficiency, has long published a cross-industry monthly newsletter highlighting company news and events. This month, Propel launches its first ever newsletter focused solely on increasing operational efficiency within the transportation industry. Each month this newsletter will feature research, industry reports and case studies, from which a wealth of information can be gleaned by our valued customers.

Regards,
Anthony and Nancy

Beverly Hillbilly, Jed Clampet, discovered oil while he "was shooting at some food" when "up through the ground come a bubbling crude." In this newsletter, we talk about how you can find the oil that's buried in your own backyard (no shotgun or drill rig required)!

The average price of diesel hit a new record, with last week's U.S. on-highway retail average hitting $3.55 a gallon, according to the U.S. Energy Information Administration. That average jumped 15.6 cents per gallon from just a week earlier, on top of a nearly 12-cent jump the week before. The average price of a gallon of diesel fuel stands a dollar higher than it did a year ago. The highest prices last week were in New England, at $3.71 a gallon. The lowest were in the Rocky Mountain region at $3.47. Lower prices are not likely in the near future. Oil prices rose to more than $99 a barrel in New York trading Monday, thanks to supply worries triggered by Turkey's offensive in Iraq, and fears of a forthcoming OPEC output cut. This follows last week's milestone of crude oil closing over $100 per barrel for the first time ever.

Many factors contribute to a fleet's fuel economy: the truck's specs, how the driver operates it, whether you're operating in mountainous areas or across flat plains, the weight of the freight, excessive engine idling, etc.

One of the most prevalent strategies for off-setting pain at the pump is a fuel surcharge, which enables fleets to at least pass some of the higher fuel costs on to customers. Although customers today are more understanding about the need for fuel surcharges than they've been in the past, this strategy still relies on individuals outside of your company to make decisions that directly affect your company.

Alternatively, you could investigate internal factors impacting fuel economy. By leveraging specific detailed operating data, produced by modern telematic solutions, you can identify opportunities for fuel economy that otherwise would remain hidden.

As an example, one LTL carrier was able to leverage their telematics data to evaluate alternative driver training programs, and identify the one that created the biggest bottom-line impact. The data identified an isolated group of drivers that were obtaining double the mpg of their peers. Further analysis revealed that this isolated group of drivers all had one thing in common - they all graduated from the same driver training program.

This type of analysis and the benefits that can be achieved goes far beyond traditional ROI analysis because it explores unobvious, obscure, and previously imperceptible correlations in your data . It cannot be gleaned from trade journals or industry conferences. More importantly, this is not information that your competitors have - providing you with the competitive edge.
Would you pay $25K* to discover specific operational improvements worth $1M or more?

What if the results were guaranteed?

The Propel Demonstration Project

The primary objective of Propel's demonstration project is to identify specific opportunities to improve operational performance in your organization...

...proving the power of Propel's proprietary toolset, and three-step analytical approach.

How It Works
Propel will analyze granular data associated with a specific area of operations where there may be issues, concerns or a perceived opportunity. The data set itself must be (1) large and complex enough to facilitate a search for meaningful and significant data anomalies but (2) small and manageable enough for a demonstration, or "starter," project.

Step 1: Examine Actual Performance
Propel will use its proprietary toolset, SCOUT, to identify exceptional conditions in the data set, which may represent isolated events, or "consistent inconsistencies" over time.

Step 2: Validate Opportunity
Once potentially significant performance related exceptional conditions are identified, Propel will review each with you to ascertain its implication and cause. We will then jointly determine the potential business "call-to action" for each. Representative calls-to action include addressable business process, training, technology/information and management issues.

Step 3: Project Improvement Scenarios
Once Propel has identified one or more potential business calls-to-action, we will use our proprietary tool, FADS, to project a scenario for implementing each call-to-action. Each scenario will include the cost to launch an associated initiative; its expected benefits; and, the risk-adjusted return on investment. Propel will document the findings in a presentation which serves as the formal deliverable for the project. We will then present the findings to you and, as appropriate, identify next steps for your organization and/or Propel, beyond the scope of the Demonstration Project.

To discuss a potential Demonstration Project with your organization, please contact Propel at (412) 393-7670 or info@propelit.net.
On March 26 & 27, at the 6th annual Wireless & Mobile Technology for Trucking & Delivery Fleets Conference in Orlando, companies will learn how to successfully select, implement, integrate, evaluate & profit from their wireless investment. Our own Nancy Egan will be speaking on "Wireless Benefits - Not for the Faint of Heart." This is an excellent conference. If you're going, drop us a line. We'll be exhibiting there and we'd love to say hello.

Propel

phone: (412) 414-0332