When Leo Rose, fleet manager for Hollandia Dairy, San Marcos, Calif., approached management with a business plan to purchase new Kenworth T370s and trade out existing trucks, it was an easy sell.
“It was a no-brainer,” adds Rose. “We ran the numbers, and the T370s made a lot of sense – the purchase price, reliability and productivity, maintenance costs and easy access to engine parts, expected fuel economy advantages and re-sale value. It all added up.”
One year after implementing 15 Kenworth T370s, the numbers have proved him right. Productivity is up to 100% utilization vs. the 80% the dairy was accustomed to with its other truck brand. And, the fuel economy is now 5%, along with other transportation metrics.
Since 1950, Hollandia Dairy has provided milk, juice and cultured products to retailers, schools and other institutions in Southern California.
Operating a fleet of medium duty trucks and Class 8s, the dairy is in the process of transitioning into Kenworth with a host of new specs designed to make the fleet more productive. The trucks are purchased through Inland Kenworth, El Cajon, Calif.
“On our T370s, we went with Allison automatics, aluminum fuel tanks, aluminum cross members and aluminum wheels,” says Rose. “Reducing weight means more milk to haul. We also have gone with air suspension in the rears and disc brakes, which has resulted in increased efficiencies. For drivers, we’ve added a host of new comfort options, and it’s been all thumbs up for those behind the wheel. Coupled with other components in our program with drivers, the Kenworths have helped us in driver retention.”
The Kenworth T370s are outfitted with 22-foot reefer bodies with lift gates. The trucks, which average about 35,000 miles per year, operate in both single and double shifts. The first shift departs Hollandia at 2 a.m. and drivers typically make 25 stops, with up to 14,000 pounds of product aboard. About 20% of the trucks then go out for a second shift once the first shift returns around noon.
The Class 8 trucks are used to move product to big box stores (typically three stops per shift), and haul 48-foot trailers to their northern branch, about 90 miles north of Hollandia’s headquarters, where they cross-dock and cross-load more than a dozen medium duty trucks for deliveries.
“This operation has allowed us to expand in other markets by using our trucks as distribution centers,” says Rose.
Hollandia added the Kenworth T680 to its mix, and plans to standardize on that model as its other trucks are traded out.
“We’ve seen a jump of 1 mile per gallon in fuel economy with the T680s,” says Rose. “We’ll run those about 140,000 miles a year, so those savings will really add up. Our drivers are also very happy – favorable feedback has been through the roof.”
With a trade cycle of seven years on its trucks, the benefits of running Kenworths extends all the way to when it’s time to buy new again.
“The NADA values on my Kenworth T370s compared to the trucks I’m phasing out of are huge,” Rose says. “There is a very significant difference in Kenworth’s corner. That speaks volumes from going from a Tier 2 brand to a top-of-the-line Kenworth.”