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Speed monitoring leads to better fuel efficiency: Rhenus Logistics

Vivek Arya
Managing Director
Rhenus Logistics India (P) Limited


What are the technologies and ventures that Rhenus Logistics India Pvt Ltd is currently working upon?

Technology will be one of the key differentiators in the logistics space. The USP of Rhenus India is people, IT and HSSEQ. We believe in investing in all three on a continuous basis.  For our contract logistics business, we have a Warehouse Management System including barcoding and latest equipment’s in all our warehouses.

We have an E- Fleet Management system and a Track and Trace Module to closely track and monitor the movement of our fleet. All our vehicles are GPS mounted. This enables complete control on cost and utilization of self-owned fleet. We also practice and monitor defensive driving through GPS. We are in process of upgrading our software of for inbound collection and consolidation, used for supplier consolidation. This application will help capturing each milestone like schedule, collection, consolidation till final delivery to buyer organisation, and also give visibility of events.

The technology that we use in our Customs Brokerage business gives us direct EDI connectivity with our customers. We have a global system for accounting and operational processes for our international freight business. We also have a strong CRM system for sales and pipeline management.

We launched the Hi-Tech Logistics vertical in India last year and are working on the same aggressively. This vertical deals with logistics of Hi-End electronic equipment’s in the medical, banking and IT industry and installing hi tech medical devices like X Ray Machine and CT Scanners. We operate on the plug and play model for these equipment. For this specialized business, which is a large sized business in Europe, we have recruited engineers who have been trained in Europe for the last two years and are now ready for the Indian market. In the second phase of expansion, we will be looking at Hospital Logistics.

Could you share your plans of expanding Rhenus Logistics in different cities in India?

Rhenus is present in 53 locations across the length and breadth of India. We are more than happy to expand to other locations and move with our customers, in cities, where they want us to expand our footprint and delivery capabilities. We are also completely aligned with the government on their “Smart City Mission” and are keen on expanding and spreading our wings to these smart cities.

How many fleets does your company own?

Presently, we have more than 200 vehicles of our own and few more are being inducted in the current year. Apart from own fleet, Rhenus has good number of attached vehicles, working exclusively for Rhenus, thus improving fleet availability.

What is the number or percentage of vehicles, which are currently equipped with vehicle tracking system?

All our company own vehicles are fully equipped with GPS tracking systems, so this would be 100%. We are also using portable GPS devices on spot hired vehicles to ensure connectivity.

What has been the benefits of using tracking systems for your company? Do your customers benefit or ask for real time location update of their goods transported?

GPS tracking is a necessity today and has a multi-faceted role to play. Apart from monitoring the movement of goods, it also helps in better utilization of assets. It also helps in monitoring defensive driving and giving a complete visibility in the Supply Chain. Additional information like speed limits, number of driving hours, rapid acceleration/deceleration, detouring from route, unauthorised halting, traffic conditions etc are also captured through GPS. We are a Safety Conscious organization and our drivers are trained to follow norms as set in our policy. Customers definitely benefit from the real time location update of their goods. Customers get advance notification of likely delays and can make alternative plans accordingly.

Do you plan on going beyond vehicle tracking? Would you also be interested in using technologies such as driver behaviour, in-cab coaching, fuel management, etc.?

Going by research done all over the world, most accidents and incidents are caused due to driver fatigue and behavioural aspects. Rhenus India ensures a comfortable working environment for the drivers, breaks in between driving and annual holidays. We practice safety also taking into consideration the behavioural aspects of the drivers.

Yes we are very much interested in these features, as with such data we will be in a position to analyse data and act proactively for improvement in Road Safety. That is the ultimate objective. Tracking is the first step. This data will be used for further strengthening our operations, bringing consistency and certainty, bringing work discipline and eliminating risks to the maximum extent possible. We have a much bigger obligation towards society, towards customers and towards driver’s families and safe practices can only help us in fulfilling these obligations.

Do you think that technologies such as vehicle tracking & fleet management can assist in improving operational efficiency of supply chain?

Yes definitely. These technologies assist in the following:

  • Speed monitoring leads to better fuel efficiency
  • By ensuring drivers are rested enough the chances of accidents are minimized to a great extent
  • Monitoring of defensive driving practices and adherence of safe practices like speed acceleration, speed control and harsh / sudden breaking helps to improve overall efficiency
  • Driver counselling sessions are conducted to make them understand that they are being monitored, which brings a change in their working pattern to make safety as a way of life
  • This not only helps eliminating future risks and make operations safe but also improves the bottom-line
  • Could you tell us more about your global presence in logistics & supply chain segment

Rhenus Logistics is a part of the Rethmann Group, which operates in 50 countries and more than 1000 locations having a turnover of EUR 12.2 billion and employing 63, 000 employees worldwide. With 25,000 employees, the company is one of the leading providers of integrated logistics services having business operations at more than 480 business locations across the globe. Apart from Rhenus Logistics, the other two affiliated companies, Remondis and Saria of the Rethmann Group operate in the water management/closed loop recycling sector and the bio industry.

Rhenus in India is a Joint Venture with the Arya Family. The Indian operations are spread across 53 locations across the country and employ 1000 people offering world class services customized to suit every customers need. The Indian arm for Rhenus Logistics is involved in providing Integrated Logistics Services including International Freight, Domestic Freight, Customs Brokerage, Warehousing & Distribution and other Value Added Services.

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