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."
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."