Major Food Distributor Drives Profits With The XATA System

Blue Line Distributing is a food distributor serving Little Caesar's, Kmart, Northwest Airlines, Mrs. Field's and A&W outlets throughout the United States, Canada and the Dominican Republic. Operating from 18 distribution centers, Blue Line delivers frozen and dry goods with a fleet of 155 power units and 265 drivers. When Blue Line decided it needed a long-term plan to reduce paperwork and improve operating efficiency, it turned to XATA for help.

To enact its plan of reducing paperwork and improving operating efficiency, Blue Line first needed driver support, so XATA introduced the XATA system by sending three trainers to each Blue Line distribution center. These trainers guided drivers through a demonstration trip and promptly met each driver before and after an initial test route. The trainers then immediately processed each driver's trip information to show the driver exactly what type of data the XATA system records.

Blue Line's drivers quickly accepted the XATA system, resulting in an increasingly efficient fleet. "Before XATA, our average fuel economy was 4.8 miles per gallon. Now it's just under 6.4," explained Bob Nader, Blue Line's XATA systems coordinator. "We've also eliminated several power units since installation -- saving us even more money in reduced driver time." And commenting on Blue Line's first DOT audit since installing the XATA system, Nader said: "Instead of spending their usual two or three days here, the DOT left after only six hours.”

To meet its remaining goals and promote safer, more efficient driving techniques, Blue Line implemented a driver incentive program. Based on information taken from the XATA fleet database, this program offers drivers the potential to earn an extra $112 every four weeks if they comply with program standards. Entirely funded with fuel cost savings, Blue Line's incentive program requires drivers to meet company-set standards in categories such as idle time, data entry edits and mistakes, pre-trip inspection time, fuel economy and corporate speed limit compliance. Ninety percent of Blue Line drivers now meet these requirements on a regular basis.

Blue Line has also expanded its use of the XATA system to support a homegrown payroll system and electronic fuel tax reporting. Nader added. "In just 14 months, the XATA system paid for itself," said Nader. "We were able to accomplish our original goals in the first year and we've pushed the system as far as we have because of the fantastic service and support. XATA is obviously working to our advantage."