iTRAK News - November 2008

Customer Spotlight – Harbin Lumber Company

"We would be lost without iTRAK," claims Gregg Moore, shipping manager for Harbin Lumber Company in Lavonia, Georgia. Every department in the company has access to iTRAK Fleet Manager, each deriving a different benefit. "The list of benefits is long," says IT director Keith Ord. "We looked at many different tracking systems, and when we saw iTRAK, I knew we had found what we were looking for."

Since 1917, Harbin Lumber has delivered critical supplies to the building industry from its headquarters in northeast Georgia. Every day, more than two dozen trucks from 8 locations spread out across the region to deliver lumber, pre-made trusses, doors, windows, walls, and other building supplies.

With customers in three states, the company's drivers cover lots of ground, and could be on the road as much as 400 miles per day. Tracking exactly how many hours each driver has been on duty lets dispatchers allocate jobs evenly and dramatically reduce overtime. Management boasts that they have needed to pay overtime only once in the last two months!

Here are some of the other efficiency improvements cited by Harbin Lumber Company:

• Preparing fuel tax reports for IFTA involved reading drivers' hand-written notes and then calculating state line crossings. This tedious process consumed the better part of two days every month. With the iTRAK Fleet Manager State Report, accounting staff was able to shorten the time to less than an hour per month. Now, with the introduction of the new iTRAK Report Manager, the reports are automatically generated at the end of every month!

• The biggest impact has been on customer service, according to shipping manager Gregg Moore. Construction managers, who are Harbin Lumber’s principal customers, must coordinate multiple subcontractors and raw materials to execute their projects efficiently. Before iTRAK was installed, customer service staff were unable to give construction managers accurate estimates of when any particular load might be arriving at a job site. Now, any customer service agent answering the phone can tell the customer where his load is located, and provide an accurate ETA.

• In the past, warehouse staff would never know exactly when trucks would arrive back from deliveries, so scheduling subsequent loads was difficult. With iTRAK, warehouse managers can see when a truck is headed back, and determine which materials should be prepared, and which truck will be assigned—all before the truck arrives.

• Some of the drivers were vocal when the idea of tracking was introduced. However, now that individual performance can be accurately measured, drivers are competing with each other to be 'top performers.' Performance ratings are determined by several factors including on-time deliveries, observance of traffic laws, and adherence to company rules--all of which can be monitored through iTRAK Fleet Manager!

• A huge advantage of iTRAK, according to Ord, is the free use of the Application Programming Interface (API). Using the simple documentation provided by iTRAK, Ord collects the data from the iTRAK server and imports it into his own application. From there users can display any or all vehicles on a satellite view of earth, along with live Doppler weather data. The combined data is invaluable in knowing how adverse weather might affect a delivery or the driver’s schedule.

"Harbin Lumber Company has invested wisely in systems to help its daily productivity," says Barron Harbin, the company's third-generation president. "Every day we think about what we can change to make us a stronger and more customer-focused organization. The introduction of iTRAK has helped us understand and improve our processes, and lets us quickly see the results of any changes we make."

Lease iTRAK Hardware to Conserve Cash and Accelerate ROI!

Many customers are now choosing to lease their iTRAK equipment instead of purchasing it outright. Leasing can eliminate up-front cost and let you start cashing in on the benefits of fleet management right away. Depending on which data plan you choose, leasing over 36 months can cost you as little as $1.30 per vehicle per day—including hardware, service, and data fees. And at the end of the lease, you can opt to purchase the hardware for just a dollar!

A typical lease is structured to include the GPS tracking hardware, although you can also include the installation costs if you prefer. iTRAK monthly fees and data service are paid separately.

The process is very simple, and can normally be completed in 3-4 days. Here is our lease process, step-by-step.

1. Ask your sales representative to send you an iTRAK Order Form showing the costs of hardware, iTRAK monthly service, and the wireless data fee; review the completed form to make sure everything is correct.
2. Write 'L E A S E' in the Method of Payment section of iTRAK Order Form, sign and date the form, and fax it to us at (209) 780-1998.
3. We will respond with a simple Lease Application that should be completed and returned according to the instructions on the application form. We have several different lease partners that specialize in different types of companies (different industries, private vs. public sector, etc.), and will choose the company that is the best match for you.
4. Once the application is approved, the leasing company will inform you of the monthly fee, and will send you a lease agreement. The monthly fee will depend on the number of tracking units, the price we quoted you, the term of the lease you choose, and your company's credit rating. Most leases will require a small payment upfront (typically first and last months' payments) and an administrative fee of $100-200 for processing the application.
5. As soon as we hear from the leasing company that you are approved, we will process your order. Equipment will normally be shipped within 7 days after approval.
6. Every month during the lease term, you will receive a bill from the lease company for the hardware, a bill from us for the iTRAK monthly service, and a bill from your carrier for the wireless service. The total monthly payments for most customers will fall in the range of $35-40 per month.
7. At the end of the lease, you will be given the option to purchase the equipment you have been leasing, for a total payment of one dollar. Once you own the equipment, your total monthly fee will drop to $22-28 per month.

Most customers will save at least $1-2 per day after iTRAK has been installed: decreasing engine idle time, saving fuel through more efficient dispatch, eliminating unnecessary use of take-home vehicles, or insurance discounts. If iTRAK Fleet Manager can save you $50 per month per vehicle, and the lease costs you $35 per month (with virtually no upfront cost), then what are you waiting for? To see how much you can save, click here to request a copy of the ROI Calculator.

iTRAK can put your company on the most profitable path, and leasing can get you there faster. To discuss leasing options in more detail, contact your iTRAK sales representative or email itrak.sales@itrak.com.

Technical Tip – Tracking on Handsets vs. Installed "Black Boxes"

Over the past five years, the number of cellular handsets with built-in GPS receivers has increased more than ten-fold. Therefore, when companies make the decision to deploy fleet tracking, the question often arises, "Should I track with handsets or permanently installed boxes?" The best option depends on your company’s specific situation and goals. Here are some guidelines to help you choose between handsets and 'black boxes.'

1. Are you tracking the driver or the vehicle? In most industries, GPS tracking is used to learn the present or past location of a vehicle. This suggests that we track the vehicle itself. In some cases, however, managers need to track people who are away from their vehicles on a regular basis (or who may not be assigned to a specific vehicle). Examples include an inspector who parks her vehicle and then walks from one stop to the next; or a traveling technician who flies from city to city and drives a different rental car in each place. In these circumstances, it would be preferable to deploy GPS-enabled handsets to track the mobile workers themselves. Since all positions ultimately end up in the same database (and are displayed on the same map), you can mix and match—or even track both the vehicle and the person separately!
2. Battery life. When sending position data from a handset, battery life can be a major issue. Although battery technology has improved dramatically over the past few years, it is recommended that the handset be connected to a mobile charger to obtain best performance. (In the case of iTRAK, the positions are sent based on starts, stops, and distance, so the drain on the battery is less than with time-based solutions.)
3. Driver interaction. An important advantage of tracking with an imbedded box—compared to a cellular handset—is that the driver does not interact at all with the tracking device. Once the iTRAK device is installed in a secure location, it is out of sight, and the tracking can not be inadvertently turned off or disabled by the driver.

4. GPS satellite count. The value of your fleet management system depends on the ability of the tracking device to consistently deliver accurate position data. When tracking with a 'black box,' the GPS module is placed on the roof or other surface where it has a clear view of the sky and sees 7-10 satellites virtually 100% of the time. A cellular phone may be on the driver's belt, in a briefcase, or on the seat of the vehicle. In any of these cases, its view of the sky may be partially blocked, resulting in potentially low GPS satellite count. If the device does not 'see' at least 4 satellites, it may not be able to calculate its location. Some GPS-equipped phones perform better than others, so it is best to try one before committing to track the entire workforce.
5. Using optional input sensors. If you have chosen to monitor any vehicle sensor such as PTO (power take-off), doors open/closed, or engine on/off, then you will need to connect an additional cable between the iTRAK box and the sensor. It is not feasible to connect these inputs to a cellular handset, so a permanently installed box would be required.
6. Hardware cost. If your workers already have GPS-enabled cellular phones, the handset option wins in the cost category—hands down. A good handset with embedded GPS receiver can be purchased for as little as $50-100 (with annual contract). The 'black box' tracking device can cost up to $499, although it can be leased for less than $15 per month.

It is worth noting that you can track both handsets and 'black boxes' on the same iTRAK Fleet Manager account, allowing you to choose the most appropriate option on a unit-by-unit basis.

If you need further assistance in determining which type of tracking device to use, contact your sales representative or email itrak.sales@itrak.com.

Who's Who at iTRAK...

Admin Support – This dedicated group based at our headquarters handles a large number of different tasks, including new order processing and acceptance, questions relating to existing orders, new user set-up, fleet and unit changes, billing, and all other administrative issues. Call the admin staff at 1-866-694-8725 or email them at admin.support@itrak.com.

Technical Support – Rich Geving and his team will make sure you derive the maximum benefit from your iTRAK system. They can help with installation questions, answer technical questions, and help performance issues. Live hours are 6:00 AM - 5:00 PM Mountain Time, with on-call technicians available after hours. Call 1-866-224-8725 or email technical.support@itrak.com.

Sales Team – Based in regional offices throughout the U.S., our team of Regional Sales Managers stands ready to set up product demonstrations, provide current pricing, help calculate return on investment to justify your iTRAK purchase, and organize post-sales training. You can reach the sales team by calling 1-866-694-8725, or emailing itrak.sales@itrak.com

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