Fuchs Lubricants (UK) PLC part of the Fuchs Group, the world’s largest independent lubricants company is live on the latest version of Optrak vehicle routing and scheduling software.

Richard Halhead, Fuchs' Managing Director said:

"We carried out a detailed evaluation and Optrak had the greatest experience in solving the complicated problems that we face. In addition to reducing the time spent planning by over 85%, we have improved all of our KPIs. Fuchs has also achieved major efficiencies in vehicle preparation and compartment washing."

Specific benefits have been benchmarked:

• Tanker capacity utilization has increased by 6%.

• The number of "no actions" has gone up by 4%. This is where Optrak allocates an order to a specific tanker/compartment so that the grade can be pumped into the compartment with no pre-preparation.

• Drain only actions have risen by 7%.

• Drain and flush actions are down by over 4%.

• Costly actions such as where the compartment needs to be washed out, cleaned and dried are down by 13%.

Scheduling deliveries of lubricants for the industrial and automotive market

Fuchs delivers nationwide from a dedicated fleet with up to three pumps and 9 compartments per vehicle. Customers order quantities of various grades of lubricants and tankers can carry and pump off different grades at different rates.

Whilst allowing for great distribution flexibility, this multiplies the complexity of the planning process as, in order to avoid pump and compartment contamination, there is a set of complex rules that must be strictly followed regarding which lubricants may be loaded into which compartment of the tanker and in which order. Previously Fuchs carried out this process manually and any errors could have led to compartment contaminations during the loading process.

"The lubricants market poses special challenges for a vehicle routing system. Within 3 months of installation we have been able to significantly reduce the time between when an order is placed and delivered. We are now achieving our best delivery performance ever for the company and its customers."

Darren Bourne, Fuchs Distribution Manager

From order to delivery

Optrak provides a clear overview of tanker and compartment utilization and the scheduler fine tunes the routes and incorporates any last minute orders, looking to improve efficiency and compartment utilization.

The entire route and load planning process has now been automated using Optrak. It interfaces with SAP and orders are downloaded directly to Optrak. The scheduler uses Optrak to build the most efficient set of routes that meet customer service requirements. Optrak automatically uses the available drivers and vehicles in the most efficient way and maintains checks on the grades and pumping order thus eliminating any possibly of cross grade contamination.

Optrak gives the scheduler the ability to assess whether it is more cost effective and efficient to send a vehicle out today into one region such as London, or whether it is better to send the vehicle out the next day with a greater utilization, all within the customer’s SLA and time window.

Optrak has also helped Fuchs identify orders that can be delivered more efficiently by using a separate set of vehicles outside of the dedicated fleet.

During the implementation, Optrak consultants mapped out the planning process for Fuchs to follow.

“Using Optrak has simplified the way we do our planning. We are less reliant on one member of staff with specialist knowledge and we can cope better with absences or holidays as other members of the team can still create effective loading plans and routes. Optrak is so easy to use that with minimal training a less experienced traffic person can plan effectively using Optrak.”

Darren Bourne, Fuchs Distribution Manager

Optrak reports show the loaders what they need to do for each individual compartment to prepare it for the grades that are to be loaded. Optrak also confirms the preparation requirements in order that time consuming washing or draining are kept to a minimum.

The drivers pick up a fully loaded vehicle and can go out immediately. This minimizes the impact of the Working Time Directive as driving time is maximized and time waiting for loading is minimized.

An on-going relationship with the Optrak team

Optrak has continued to work with Fuchs to review and enhance the routing process. For example Optrak created an automated process so that Fuchs could make best use of their fleet of rigid vehicles for customers with limited access. Optrak ensures that these vehicles are automatically selected whenever access problems are identified.

Bourne is enthusiastic about the relationship with Optrak, “It was good to work with a knowledgeable company that understands the nature of our business. Their expertise was central to the success of the vehicle routing project. They were able to take a fresh look at how we do things and apply industry best practice. The people at Optrak were extremely helpful before going live, during the implementation and since. No request is too small to be looked at and it has been a genuine pleasure working with them.”

Reducing delivery costs with Optrak

The main objective for Fuchs was to improve customer service levels and reduce the delivery cost measured in pence per liter (PPL). This includes administration, leasing, driver and fuel costs. “We have reduced our costs including PPL by more than we originally envisaged. This is down to the quality of the routes that Optrak calculates and the greater efficiencies that we have introduced. We have also managed to build on our successful ‘On Time’ delivery performance targets and we are now at the highest level since the introduction of Optrak,” said Bourne.

Fuchs has managed to reduce its carbon footprint through a reduction in the fleet size and the mileage traveled.

“Optrak gives us more delivery flexibility and is a great system to use. It has actually revitalized our planning operation at Fuchs. The investment in a world class vehicle routing system demonstrates our commitment in ensuring that we deliver the best possible service to our customers whilst keeping costs down. I firmly believe no other routing package can deliver the same benefits as Optrak.”

Darren Bourne, Fuchs Distribution Manager

Optrak: one of the best investments we have made

Since implementing Optrak, there has been a reduction in the number of customer delivery queries. Fuchs is working smarter and is studying further changes to its operational planning using Optrak. The customer service department will be given access to Optrak so that they can review the transport information and answer inbound questions more easily.

“Fuchs is committed to continually developing and evolving our logistics capability. Without doubt the Optrak project has been one of the best investments we have made. We have seen a definite payback in short timescales.”

Richard Halhead, Managing Director