VelociCare Case Study: XPO

Customer: XPO Logistics
Industry: Transportation and Logistics
Scope of Work: VelociCare Post-Installation Support
Number of Sites: 8,600 Tractors across the United States

XPO Logistics, Inc. (NYSE:XPO) is a top ten global logistics provider of cutting-edge supply chain solutions to the most successful companies in the world. The company operates as a highly integrated network of people, technology and physical assets in 32 countries, with 1,444 locations and more than 91,000 employees. XPO uses its network to help more than 50,000 customers manage their goods more efficiently throughout their supply chains. The company has two reporting segments, transportation and logistics, and within these segments its business is well diversified by geographies, verticals and types of service. XPO’s corporate headquarters is in Greenwich, Conn., USA, and its European headquarters is in Lyon, France. xpo.com

THE CHALLENGE

In 2013, Conway Freight, now XPO Logistics (NYSE:XPO), one of the largest providers of less-than-truckload (LTL) transportation in North America, deployed DriveCam by Lytx and Vnomics Onboard Computer systems throughout its fleet of over 8,600 tractors as part of a comprehensive initiative to improve safety, driver performance and efficiency. Velociti, Inc., a leader in technology design, deployment and support services, was contracted to manage the project and perform the installation in only four months. In 2015, XPO discovered that nearly 20% of its fleet had unreported, non-functioning devices. They needed a process for monitoring and maintaining the systems to minimize failure rates and increase response times, especially with the looming ELD mandate which would carry heavy penalties for non-functioning ELD systems.


THE SOLUTION

XPO partnered with Velociti to perform repair services and provide ongoing system monitoring and maintenance support. XPO gave Velociti full access to its fleet and data, and coordinated access to vehicles with malfunctioning devices. Within 6 months, over 1,700 malfunctioning devices had been located and repaired by Velociti’s mobile workforce. XPO and Velociti continued to work together proactively to ensure continued success by establishing a monitoring program for all 8,600 tractors. Through VelociCare’s System Health Monitoring program, performance data is monitored for irregularities. The installed devices and spare inventory, which is warehoused at Velociti’s Headquarters, are tracked in Velogic, Velociti’s online project management portal, which provides real-time reporting to XPO. They are able to see when inventory levels are low and track all vehicle repairs within the system.

When issues arise, agents from XPO can also contact Velociti’s support team. Once logged, a customer service representative is able to offer tiered technical support over the phone using a comprehensive technical support guide. If it is determined that new parts or on-site support is needed, replacement hardware kits are shipped and a technician is dispatched to perform troubleshooting and repair services. This ensures all the necessary parts are available to minimize downtime and eliminate the need for return visits. Any unused inventory is returned to Velociti’s warehouse and re-entered as available stock. All inventory is tracked through the Velogic portal and restocked as needed to eliminate unnecessary delays.


THE BENEFITS

By proactively partnering with Velociti to monitor its fleet technology, the device failure rate has remained at sub-1% for the past 18 months. XPO has been able to avoid costly fines and maximize the technology benefits by minimizing downtime and repairs without the additional burden of tracking inventory or hiring additional technicians to support the added maintenance. XPO’s drivers are able to operate more efficiently with less service disruptions.

Additional benefits include the ability to identify problem vehicles. If a specific tractor shows repeat issues, it could indicate a greater problem beyond the technology itself, such as an aging vehicle, which may need to be retired. Most fleets today understand the value of good data when it comes to tracking their vehicles. That same principal applies to maintaining the fleet, the technology and the investments each company is making to improve them.

“Knowing Velociti is monitoring the devices, and that parts and resources are ready to go at a moment’s notice, gives us a peace of mind you can’t put a price on.” Said Stan Shen, Senior Equipment Administration Supervisor for XPO. “Working with them on the deployment side, the information on our fleet was already in their system along with all the device data, making it even easier for them to manage the maintenance side of the project.”

“XPO has been a great client to partner with,” said Deryk Powell, President of Velociti. “They understand that the success of their fleet technology solution doesn’t end with the deployment. By proactively working with us to maintain the solution, the benefits continue to grow versus diminishing over time. Their collaboration is paramount to that success.”