ARTICLE - Q4 2024

"Smarter Ice Delivery: The Power of Remote Monitoring Sensors"
by Tony Dickson, Cool Running Software

One of the biggest innovations in the ice industry in the last 10–15 years has been the use of monitoring technology on ice merchandisers. Remote monitoring technology inside merchandisers is not a new idea. This concept has been implemented in many industries, such as propane tanks, payphones (when we had them), garbage dumpsters, and many more. While investing in remote monitoring technology is an extra cost in both setup and subscriptions, these industries have recognized the real-time savings by using sensors to reduce their distribution costs.

I have personally owned and operated an ice company for almost 30 years, so I have always understood the importance of delivery efficiency. During the summer, our focus was on making sure we kept up and never let our customers run out of ice. However, during the slower months, I would say we worked as hard as I could to "NOT WORK," meaning I used whatever method I could to keep my trucks home and not waste trips. I evaluated sales history or even called the stores to ask what they needed. Every trip a vehicle made where no delivery was made was lost money. I would gauge our off-season routing success by evaluating the number of non-delivery trips, and each year I tried to reduce that number.

In all my years working in ice distribution, I found using remote monitoring sensors was the best way to reduce trips and increase average invoice totals. After the first three years of using sensors at my old ice business (Olmsted Ice, Cleveland, Ohio), I did an analysis of our success. I found that we had reduced our trips to locations by 51% and increased the average invoice by 48%! Once we realized these savings, we invested in many more sensors for our company.

I have lectured about sensors at many conferences and spoken personally with ice companies about my experience and suggestions on using sensors. Almost every company I have spoken with immediately thinks of using a sensor at the "far-off" locations to avoid wasting a trip to a customer that is over an hour away. Or, they want to know how full the merchandisers are during the slow months. I have always agreed that a sensor will solve both these issues. However, there are several other areas where many ice companies do not see the value of sensors in the ice merchandisers.

Here are several ways using sensor technology helped my ice business:

1​. Reduce Delivery Frequency & Increase Average Invoice Amounts.  This is an obvious benefit that everyone understands.  However, many companies I have spoken to usually only understand the value during their slow season.  Reducing delivery frequency should be a 365 day a year goal for every location that is serviced.  An increase in average invoice totals becomes a dividend of reducing trips.

• During the slow season, there is a major focus on spreading out the deliveries and waiting until the merchandiser is very low. A location that is set on a static schedule for once every week (or two weeks) can now be spread out even longer with 100% accuracy on knowing when ice is needed. 
• During the busy season, the current focus is hitting that busy customer multiple times a week to make sure they do not run out of ice.   For example, a customer hit weekly in the off season could be on a Monday - Friday - Saturday - Sunday schedule. Using a sensor can reduce these trips to 2 – 3 times a week, depending on demand.  
  • Example #1: A customer needs a delivery on Saturday… there is no doubt they will need the delivery that day.   At 9:00 am, they are at 90% full! 
    • If they are hit late enough, the delivery on Sunday won’t be needed!
    • Push that delivery out to afternoon...  Hit them when they are finally below 40%
  • Example #2: A customer is filled up on a Monday…but the week is cold and wet! 
    • Sunday Morning, box is at 30%.  
      • Delivery is dispatched; 2 non-delivery trips avoided.
    • On Saturday at 2:00 pm, merchandiser is still at 60%. 
      • No delivery needed
    • On Friday, merchandiser is still at 95%.  
      • No delivery needed

2. Keeping Customers Honest When They Call: This was probably one of my favorite benefits of working with sensors.  There is not an ice company in the world that has not had a customer call that exaggerates how low they are.  In their defense, they want to make sure they do not run out of ice.  However, getting that frantic call from an important client will always through a wrench into the dispatch plan.   Having a sensor gives your office an honest assessment of how low the customer really is.

• Example #1:  Customer calls the office and tells them they are 100% empty on ice.  The dispatcher looks at the sensor and sees there is still 35% in the merchandiser. 
  • Your office knows they can keep truck on route and add the stop when they fit on the route.
• Example #2:  Customer has a split loaded merchandiser.  They call and say they are 100% out of ice.   Your office checks the sensor and notices they are only out of large bags, and only want your truck to immediately jump out of route to deliver big bags. 
  • Customer still has ice; truck stays on route and hit them when in the area.

3. Reduce the Number of Trucks On The Road:  I found I was able to reduce my number of trucks on the road simply by reducing the number of trips needed on a certain day.  Moreover, since my trucks were doing less stops (since all stops needed ice), I was able to ask those trucks on the road to do more stops in a day. 

• Example #1:  
  • During the off season prior to sensors, I might have sent 3 trucks out in the dead of winter to do 20 – 25 trips, only to find out that many of them refused or did not need ice. 
  • With sensors, I knew exactly which stops needed ice.   I was able to send one or two trucks out do to 10 – 15 stop routes, with almost all trips taking ice. 
• Example #2:
  • During the peak season prior to sensors, I would have had static routes to “Carpet Bomb” stops to make sure they did not run out of ice.  I might have had 90 – 120 stops scheduled thus needing 5 or 6 trucks to hit each stop.
  • With sensors, I could evaluate each stop and decide which stops could be “scratched” for the day.   90 – 120 Stops often reduced to 80 – 90 Stops…. And down to 4 – 5 trucks.

4. Increase an Ice Company’s Delivery Radius:  This benefit almost goes without saying.   At my ice company, sensors allowed us to almost double our delivery radius so we could expand our coverage area. 

• This opened us up to work with larger chain accounts.
• The sensors allowed our company to view a stop far away and make sure we were profitable when we delivered to that area.
• Some ice companies using sensors would use a location far away as a gauge on when that area needed to be serviced.

5. Reduced emergency trips for Merchandiser Repair: Using sensors gives the office immediate notice of merchandiser malfunctions.

• If a merchandiser door was left open or a lock was placed behind the hasp, a simple phone call to the customer can fix the issue.
• Maintenance can repair an issue before there is any product loss.  This reduces waste and the time a service tech or driver needs to clean up the melted bags.

6. Fewer Assets Needed on Locations with Sensors:  At Olmsted Ice, we were able to take locations where we had two to three merchandisers and reduce this down to one or two merchandisers.   

• Without sensors, a location that hosts three large merchandises, many trips to that location could result in about 50% capacity delivered. 
  • Example: If the location capacity was 900 Bags, a delivery could be approx. 450 - 500 bags or less on average.  
• With Sensors, the same location could receive the same amount of product.
  • Example: The same location has two large merchandisers with a capacity of 600 Bags.  The same delivery could be made, but with one less asset needed.  This asset can now be used at another location. 

7. Using Sensors as a Sales Tool:   When trying to close on a new account, sensors are a great differentiating sales tool!  Every company can claim to have superior service and offer a great price.  However, showing a new prospect that you will put this sensor on their location and “know they are low before they do” sets any ice company apart from a competitor that does not invest in the same technology.

As I stated at the beginning of this article, using monitoring technology is not a new concept.  However with the constant increasing costs of delivering our product, the need for routing smarter has become more and more important for the iceman.  My final comment on using sensors is that they are only as valuable as the company who commits to concept of using them.  I have seen many times companies who insert the sensors but still continue to route on a static method.   The ROI on investing in remote monitor will only be realized if a company uses them as a daily routing tool to help increase overall efficiency.  

Good luck to everyone in their 2025 season!