Its fleet goals were straightforward and comprehensive. Maines Paper & Food Service sought ways to simultaneously serve customers more effectively, as well as reduce overall fleet costs through new acquisition and maintenance programs, and by improving fuel economy.
“We needed a way to lower per unit acquisition costs, as well as reduce fixed and variable maintenance and operating costs,” says Steve Potter, corporate vice president of operations. “In 2011, we unbundled our delivery fleet by transitioning from full service lease arrangements to a combination finance lease-contract maintenance arrangement, and results to date have been above our expectations.”
Headquartered in Conklin, N.Y., Maines Paper & Food 
Service is the seventh largest independent food service distributor in the U.S. The company’s fleet of more than 400 tractors and 500 trailers delivers frozen, perishable and dry products to national chain and local restaurants. Included are Freightliner and Volvo day cab and sleeper equipped tractors and Great Dane and Utility trailers with Thermo King and Carrier refrigeration units.
| Maines Paper & Food Service Trailer Specifications Model: Great Dane, 48-ft. refrigerated Refrigeration Unit: Thermo King Spectrum SB30 Landing Gear: Great Dane GD60 Axles & Suspension: Hendrickson HKANT40K-HD Oil Seals: Stemco Platinum Plus Brakes: Meritor ABS: Meritor WABCO Slack Adjusters: Haldex Tires: 11R22.5 Bridgestone Ecopia R197 Lighting & Electrical: Grote LED |
The path Maines is following to achieve its cost reduction objectives is based in large part on the proprietary data-driven lifecycle management processes deployed on its behalf by Fleet Advantage. The asset management, fleet business analytics and equipment financing company has put in place a range of changes for the fleet.
Lifecycle costing approach
“Through Fleet Advantage we have been able to tailor our equipment specifications to our fleet operation, and as a result have realized significant MPG savings,” Potter states. “We have also taken a different view on how long we keep our power units. Instead of running them for a set period of time, we are using a lifecycle costing approach in which power units are replaced prior to becoming high maintenance items.
“That approach is attractive to our maintenance providers and is reflected in their rates,” Potter adds. “We have long-term business relationships with Penske Truck Leasing and AIM Leasing Co., and as part of the unbundling process we negotiated favorable vehicle maintenance agreements with each of them.”
Fleet Advantage also is helping Maines achieve its sustainability goals by replacing the current fleet with high-efficiency models. Over two thirds of the fleet’s tractors are 2012 and 2013 model year vehicles powered by the latest fuel-efficient Clean Diesel Detroit and Volvo engines. A thorough review of engine data led to changes in maximum road speed and idle
| Maines Paper & Food Service Tractor Specifications
Model: Volvo VNM64T200 day cab |
shutdown timer settings, and by working with manufacturers, Fleet Advantage and Maines are spec’ing vehicles that are more closely based on duty cycle, payload and operating area.
Potter also explains that along with equipment specification and engineering expertise, Fleet Advantage serves as an off-site analytics department for Maines, using its data capture and interpretation capabilities to reduce overall cost of ownership. The fleet, he adds, is realizing administrative benefits by using online management tracking and reporting systems from Fleet Advantage to access consolidated information it can use to make more cost-effective decisions.
One of those management areas involves fleet financing. “Fleet Advantage provides flexible financing alternatives for us to consider,” Potter reports. “Combined, we’re controlling costs significantly with lower new vehicle finance rates, favorable maintenance costs because newer vehicles require fewer repairs, and specs that result in higher residual values than we realized previously.”
“As a result of several spec changes, we have reduced fuel consumption considerably,” Potter says. “We now have some multi-stop vehicles that are getting 7 MPG, which has exceeded our initial expectation. Rising fuel costs are every fleet’s concern today and over the life of this equipment, we expect these changes to have a significant impact on helping control our operating costs."
Maines also has a genuine concern for safety, and features safety equipment as standard on its fleet vehicles. For example, new tractors are equipped with traction control systems. In addition, some models are equipped with SafeTrac lane departure warning and collision avoidance technology.
More effective decisions
For Maines, it all adds up to delivering dependable customer service, providing its drivers with the best available equipment, and being environmentally responsible as a company that continues to grow. Its fleet size, in fact, has doubled in the past 10 years.
In the end as well, it’s also always about preparing for the future, something Maines Paper & Food Service has been doing successfully since 1919 when Floyd L. Maines Sr. founded Maines Candy Co. and sold nickel candy to local grocers. The biggest difference, though, is that the average order then was $20 and first-year sales were $30,000. Today, the company that bears its founder’s name generates annual revenue approaching $3 billion.
