Fleet Management Solutions Case Study

Genco Energy Services Keeps Track of Fast-Moving Assets with Mobility Solutions (Cont'd)

About Genco Energy Services

Genco Energy Services Facts

Business Needs

Manage large inventory of equipment used in hundreds of jobs over expansive territory, provide customers with first-class service and help mobile employees be more productive

Networking Solution

Running on the AT&T wireless network, TeleNav Asset Tracker from AT&T for asset management, AT&T Business Messaging for sending urgent messages to employees and ProntoForms from AT&T for real-time field data collection

Business Value

Improved asset management; increased customer satisfaction; reduced fuel and insurance costs; increased employee safety and productivity

Industry Focus

Rental equipment for oil and gas producers

Size

150 employees and about 2,000 pieces of equipment

Genco Energy Services has been servicing the rental equipment needs of the oil business since 1996. The company leases more than 2,000 pieces of equipment like light towers, generators, mobile homes, water systems and air compressors – almost everything workers need on-site for oil and natural gas production. Approximately 150 employees service hundreds of jobs at any given time by moving the company’s inventory of equipment from site-to-site across the vast Eagle Ford Shale region in Texas.

Situation

Working in the fast-paced oil industry, Genco Energy Services could not track its large inventory of equipment that was being delivered and moved from one job site to another. When customers called, employees might drive over a hundred miles to pick up equipment, only to find the needed items were just a few miles away. Fifty percent of the employee base was new with less than a year’s experience, resulting in more errors and lost productivity. The company needed to automate its asset management processes to help employees, and to meet accelerating demand.

Solution

Genco Energy Services has improved its asset management processes with AT&T mobility solutions. By implementing TeleNav Asset Tracker™ from AT&T, the company knows exactly where its 2,000 pieces of equipment are located, when they were delivered, and if, when and where they were moved. The home office uses AT&T Business Messaging to instantly send urgent messages to mobile employees. And with smartphones and ProntoForms™ from AT&T, employees can now electronically transmit delivery confirmations over the AT&T wireless network.

Amazing Opportunity

In 2008, exploration of the Eagle Ford Shale commenced with drilling of the first well in LaSalle County, Texas. The Eagle Ford Shale formation holds significant importance since it contains both oil and natural gas deposits. As a result, drillers and explorers, large and small, are quickly establishing a presence in the 50-mile wide by 400-mile long shale plate that runs from the southern portion of Texas to the east.

Oil and gas producers are finding new ways to meet the demands of our global economy, and with help from AT&T, our business is there to support them. AT&T is a real business asset for us."

Murray Meggison, Owner, Genco Energy Services

“During my 30 years in the oil services business, I’ve never experienced a growth opportunity like this. It’s truly amazing,” said Owner Murray Meggison. “We now manage and deliver over 2,000 pieces of equipment for our growing list of customers.”

In 1996, Meggison started Genco Services, which later became Genco Energy Services. The company grew so quickly that it couldn’t keep up with demand. Even though competitors soon came on the scene, Genco Services established a strong foothold in the Texas oil fields. In addition to its home office in McAllen, Texas, the company now has six locations throughout the southern and eastern parts of the state.

“We’re in the heart of Eagle Ford Shale where there are an incredible number of jobs,” said Meggison. When a customer like Anadarko sets up a job site, as many as 20 different companies converge to build a “mini-city.” Genco Services used to deliver one or two trailers and a few light towers for a typical job. Now jobs are larger and longer, with some lasting 60 to 120 days; so the company provides many more mobile trailers, portable toilets and trash trailers, along with plenty of light towers for 24-hour work operations.

Rapid growth in the oil and gas industry has presented challenges for many services companies such as finding enough qualified people and capital for more equipment. Yet, with his many friends and supporters in the industry, Meggison has found both. “In the past six months, our number of employees has quadrupled, and last year, I brought in a group of investors to help us take advantage of this tremendous market opportunity.”

Logistics Test

With more equipment, employees and capital, Meggison started evaluating his business processes. “Every day is a logistics test for our team. One day a customer may need 10 light towers; the next day, they need 20. With so much territory to cover, we must know where each and every asset is located at any point in time. Depending on the asset, it could be worth hundreds of thousands of dollars – something that I don’t intend to lose.”

Office Manager Becky Bergh added, “We are in an unpredictable business. At a moment’s notice, I may need to get messages to our employees while on the road to pick-up or deliver equipment. I page many of our staff up to three times a day. With our old system, I would send urgent messages, and they wouldn’t get them until late at night.”

Employees recorded the delivered equipment using paper-based service tickets and obtained customer signatures to verify deliveries. “Especially with all our new employees, we needed to help them better capture all the information needed for billing,” said Bergh.

With the amount of growth his company was experiencing, Meggison knew there was “no way we could continue to be successful without some help. Our AT&T account manager offered a solution to help manage all the moving parts in our business.”

Managing Moving Assets

TeleNav Asset Tracker from AT&T now helps Genco Energy Services track and manage its valuable assets. A small GPS tracking device is attached to each piece of equipment, allowing the company to easily monitor customer deliveries on the TeleNav portal and locate needed equipment for pick-up and drop-off. “When we set up our equipment on a job site, the customer may ask for six light towers, then six more the next day and four more the next,” said Meggison. “Then they may ask if we can move six of them to another location. Some customers don’t even call us to move our equipment to new locations. They just do it.”

In the past it was easy for the company to lose track of its valuable assets. With TeleNav Asset Tracker from AT&T, Meggison can now track equipment movement; he now knows what equipment was delivered and moved where – and when. With the company’s improvements in asset management, Meggison’s insurance costs are anticipated to drop by as much as 10 percent. Having precise data and control over the company’s assets has also pleased the investors. “It demonstrates our commitment to improving the business and helps solidify their support,” said Meggison.

Meggison points to the reduction in transportation costs. “There are many times when transporting equipment all the way from one of our company locations is not fast enough for our customers. TeleNav Asset Tracker from AT&T has been a huge help in locating needed equipment closest to the customer’s job site.” With fewer miles driven, fuel costs are better controlled and customers are happier with quicker deliveries. “It helps us give our customers first-class service and keeps our people from spending too many hours on the road.”

TeleNav Asset Tracker offers safety benefits for the company’s employees. Many job sites are in “the middle of nowhere” with no streets or landmarks. “There may be nothing for miles and miles,” said Meggison. “As a safety precaution, we can track the locations of our employees using the GPS latitude and longitude information provided on the TeleNav web portal. If anything happened, we could quickly locate them to send help.”

Daily urgent messages are now sent to employees using Business Messaging from AT&T and the AT&T wireless network. Employees get immediate text messages that give them all the information needed to take action. “When early morning fog rolls in, I can broadcast a safety message to everyone and know that they will get it,” said Bergh.

Business Asset

The TeleNav Asset Tracker has helped improve the company’s billing process. “If the customer questions if or when a piece of equipment was delivered, we can pull up our tracking reports to provide the documentation,” said Bergh. “Or if someone new makes an error on his delivery report, we get the actual location and time information from the asset tracker and correct the bill.”

Meggison has continued to make improvements in his processes with ProntoForms from AT&T. Using their smartphones, some employees now complete tickets electronically to record equipment delivered and capture customer signatures. Using the camera, employees can take and transmit photos of damaged equipment or other situations in need of immediate documentation. “I expect this new application will significantly reduce errors and improve our cash flow,” said Meggison. “We have great people, and with AT&T mobile solutions, they are even more productive.”

Meggison emphasized the positive changes in the business and industry. “Oil and gas producers are finding new ways to meet the demands of our global economy, and with help from AT&T, our business is there to support them. AT&T is a real business asset for us.”

For more information, contact your AT&T Representative or visit us at www.att.com/business.

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