In the age of Cloud-based software and the internet of things, lots of products that companies might acquire are being positioned by vendors not as product but a "service" where the customer pays for a turnkey offering - equipment included - via some form of transaction pricing model.
Supply Chain Digest Says... |
|
| Bronnoy Kalk will turn over fleet management, operation, maintenance, etc. for a fix feed based on freight volumes, in this case on a fixed fee per ton of minerals moved. |
 |
What do you say? |
| Click here to send us your comments |
 |
| Click here to see reader feedback |
|
|
An interesting new example of that this week from Volvo Trucks, which announced it has signed what it calls a "landmark" agreement" with mining company Bronnoy Kalk AS of Norway under which six fully autonomous heavy-duty trucks from Volvo will which move commercial loads of quarried limestone across the Bronnoy operation.
According to the ATA's Transport Topics magazine, Volvo FH model trucks will travel 3.5 miles from Bronnoy Kalk's open pit mine, including through tunnels along the route, to deliver the loads to the mine's dockside stone crusher.
The process starts when the operator of the wheel loader in the pit calls for a truck, loads the trailer with limestone, and then when full sends the truck away to rendezvous with the crusher.
Here's the twist: normally in truck sales for such operations, the mining or other company would take ownership of the trucks. But Volvo says under terms of the agreement, the mining company will not own the equipment.
Rather, the company opt for a "total transport service" and pay Volvo Trucks on a per-ton-delivered basis, according to the truck maker. Successful tests of the trucks have been carried out, and the transport service will be fully operational by the end of 2019.
This agreement follows recent successful automation projects involving mining, sugar cane harvesting and refuse collection, according to Volvo Trucks, a unit of Sweden-based Volvo Group.
Bronnoy Kalk in turn says it expects to see significant cost reductions from the arrangement.
"We are proud to be able to present an autonomous solution that will meet the challenges of our customers in terms of safety, reliability and profitability," said Volvo Trucks president Claes Nilsson in a statement.
In a sense, freight movement using common carriers or dedicated fleets is already a form of transportation as a service. But this arrangement, where a company that would normally acquire its own trucks and manage the operations itself, including drivers and maintenance, is something very different indeed.
Bronnoy Kalk will turn over fleet management, operation, maintenance, etc. for a fix feed based on freight volumes, in this case on a fixed fee per ton of minerals moved.
(See More Below)
|
CATEGORY SPONSOR: SOFTEON |
|
|
| |
|
|
Asked how this fits in with more typical truck sales, Volvo Trucks spokeswoman Christina Magnusson told Transport Topics that "This may be a complement to today's solutions and will not replace our current offer of trucks and services."
As
to the loss of driver jobs from the autonomous trucks, cited by commentators after the news was released, Volvo Trucks responded that: "Obviously, this can affect drivers in this type of application, but in the big picture, we foresee an increased need for skilled drivers. We strongly believe that technology drives prosperity and takes society forward. We foresee that there will be an increased level of automation where it makes sense, such as for repetitive tasks. This in turn will drive prosperity and increase the need for truck drivers in other applications."
A brave new world is coming, that's for sure.
Will transportation as a service become common, do you think? Let us know your thoughts at the Feedback section below.
Your Comments/Feedback
|
