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Tesco renews logistics partnership with Isotrak

Tesco has selected Isotrak's new Active Transport Management system to boost the cost effectiveness and environmental performance of its delivery fleet – one of the UK's largest freight distribution networks.

This decision renews a partnership first established in 1999, in which Isotrak has demonstrated its unmatched ability to integrate vehicle tracking, fleet and resource management in a service blending power, simplicity, flexibility and reliability.

What is Active Transport Management?

Active Transport Management is a unique hosted service, based on real-time vehicle tracking, operated to stringent service levels within world-class data centres.

With Active Transport Management, users require only a standard PC web browser to interact with the system at all levels – a departure from traditional fleet management systems implemented as discrete hardware/software installations on a location by location basis.

Isotrak's managed solution is easy to use, very cost effective to support, and offers a high degree of resilience to help assure business continuity.

How will Tesco benefit from Active Transport Management?

Isotrak's transport management technology is already used in all Tesco Distribution Centres to plan driver shifts, allocate work to drivers, monitor execution of the plan and produce management reports from collected data.

The migration to Active Transport Management adds a whole new layer of benefits for Tesco, including:

Ø Extending the transport management perspective to an overview of all 26 Tesco UK distribution centres as a single national transport fleet.

Ø Improving driver security through the provision of a key-fob panic alarm that operates in or out of the vehicle, plus the ability, through vehicle tracking, to guide a swift security response.

Ø Reducing driver workload using a new, fixed in-cab data terminal with intuitive driver-centric operation, automatic telematics data capture and an innovative voice communications facility. (It also removes the need to press a dock button on departure.)

Ø Tracking tractors and trailers individually to improve asset utilisation, and enable full Delivery on Time (DoT) reporting per trip – even with contracted 3PL tractors.

Ø Improving safety and legality, through minute-by-minute monitoring of vehicle road status and automatic appraisal of driver compliance with all relevant working time legislation.

Ø Improving driver debriefs and productivity thanks to provision of more comprehensive trip data, comparing planned with actual performance.

Ø Simplified and enhanced reporting, including unified DoT and turnaround statistics, proactively supplied to all key Tesco stakeholders by email.

Ø Secure, intuitive “anytime, anyplace” access to system for all managers thanks to the web browser interface.

Ø Improved frequency, quality and transparency of tracking based on map displays and graphical representations.

Why does Tesco need Active Transport Management?

Effective transport management is crucial for Tesco at a time when large retailers are under pressure to maximise profits and improve efficiency, while also addressing environmental concerns over the scale of their carbon emissions.

In 2005/06, using Isotrak systems, Tesco Distribution Network increased the number of products delivered per litre of fuel used by 8 percent, beating its own target of a 2.5 percent increase. By improving the way it fills delivery vehicles it has saved over 54,000 deliveries each year.

For 2007 Tesco has already announced its decision to start calculating vehicle efficiency Key Performance Indicators (KPIs) according to the quantity of CO2 produced per case delivered. Over the next three years Tesco has committed to reduce the amount of CO2 produced per case of goods delivered by 30 percent, requiring even greater efficiencies to be extracted from its fleet of 1,800 tractors and 3,500 trailers operating from its 26 distribution centres and 2,000+ stores.

Isotrak's Active Transport Management system will play a key role in helping Tesco to achieve this target, for example by increasing the number of tractors that, after dropping off an inbound supplier delivery at a delivery centre, can also be scheduled to take a trailer full of product cages to a store. Better planning and resource utilisation will also reduce the number of deliveries to Tesco Express stores.

“It was a natural choice to extend our partnership with Isotrak after the successes of our work together over the past seven years,” comments Alex Laffey, Tesco's Transport Director. “Isotrak's solution provides many benefits, to managing our fleet efficiencies, particularly to our Corporate Social Responsibility targets in terms of reduced carbon footprint, reducing trucks from the road, and to our management efficiency in terms of transparent and incisive reporting. It will provide a platform to collaborate with other suppliers to deliver a truly integrated transport solution.

“There are plenty of logistics products on the market, but only Isotrak provides a truly complete and customer-focused solution, encompassing everything we required, from operational and functional consultancy to the provision of a resilient, reliable application service backed by an excellent Service Level Agreement.”

“We're delighted to have the chance of extending our work with Tesco at such a challenging – but exciting – time for the industry,” says Craig Sears-Black, Isotrak's Marketing Director. “We're confident that the power, simplicity and sheer effectiveness of Active Transport Management will help Tesco meet the steep performance targets it has imposed on its delivery fleet.”

To find out more about Isotrak contact Craig Sears-Black at Isotrak on Tel: +44 (0) 1908 540 700 or email: enquiries@isotrak.com.

Isotrak developed the concept of 'Active Transport Management' to help customers improve transport efficiency, improve service performance and reduce costs. We provide our customers with tailored software products and professional service solutions to help deliver value and help transform transport management. We deliver our products as a 'managed service' to ensure that customers can focus on the job of managing transport, rather than managing the technology. Established in 1996 as a division of NFC, Isotrak became a separate company in July 1999 and today manages thousands of vehicles for customers including Tesco, Marks & Spencer, Sainsbury's and DHL-Exel.

For more information, log on at www.isotrak.com.

Tesco is opening environment-friendly stores which operate at almost 30% less energy than a conventional store. Tesco launched its green Clubcard in August 2006. The scheme rewards customers with points for not using new carrier bags. Since launch it has saved 204 million bags with customers re-using their carrier bags or opting to carry their shopping in something else altogether. We will begin to measure and then halve our global footprint foot by 2020 We are helping our customers by making green choices easier and more affordable. We shall work with others to develop new low carbon technology throughout the supply chain.

For more information, please contact the Tesco Press Office on 01992 644 645

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