Episode Transcript
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Jamie Irvine (00:00):
You're listening
to the Heavy-Duty Parts Report.
I'm your host, jamie Irvin, andthis is the place where we have
conversations that empowerheavy-duty people.
Welcome to another episode ofthe Heavy-Duty Parts Report.
I'm your host, jamie Irvin.
Can you believe this is episode334?
For me it's hard to believethat we've done this many
(00:24):
interviews and with all of thatwork that has been done over the
last few years, the Heavy DutyParts Report team is in need of
a bit of a holiday.
So this week we are going tore-air one of our most popular
interviews from 2024.
So let's talk about what we aregoing to cover in this episode,
(00:45):
because, although the interviewis a rerun, some of the content
is new, so let's get into it.
So, first of all, in thisepisode we are going to talk
about changing technologychanging technology on trucks,
changing technology in partsmanufacturing and distribution,
and if you listen to the end,you're going to hear about how
(01:06):
technology is playing a roleboth in stopping cargo theft and
actually facilitating it, andhow therein lies a real problem.
We're going to talk about thatand if you listen right to the
end, you're going to hear aboutwhere the three biggest hotspots
are for cargo theft in theUnited States, so make sure you
listen right to the end.
(01:27):
So let's talk a little bitabout technology on commercial
trucks, because in the interviewin this episode, we are going
to talk about the changingtechnology when it comes to
batteries and the electricalneeds of trucks, and how this is
going to change the way and ischanging the way we should spec
batteries for our trucks basedon vocation.
(01:50):
As I said, this is one of ourmost popular interviews in 2024.
So if you haven't heard itbefore, I hope you enjoy it for
the first time.
If you did listen to it in thepast, I think you're still going
to enjoy listening to it again,because there's so much
information packed into a veryshort interview.
There's always something for usto learn and before we get into
all of that, I wanted to take aminute to talk about how
(02:13):
technology is changing the waywe manufacture parts, changing
the way that we are distributingparts as well.
So let's talk a little bitabout digital transformation.
It is very important that ourindustry thinks about adopting
technology in a very specificway.
(02:34):
So when you're a heavy-dutyparts manufacturer and you're a
distributor, you're there toserve the end user, the
owner-operator, the fleet, therepair shop, the mobile
technician.
And what I have seen from somecompanies is that when they
start down the road ofintegrating new technology that
(02:56):
has an impact or has thepotential at least for
positively impacting the buyingexperience for the end user
customer, they oftentimes aremaking decisions that are good
for them as the supplier but notnecessarily translating into an
improvement in the buyingexperience for the customer.
(03:16):
And here's the thing If itdoesn't improve the buying
experience for the end user,customer adoption is going to be
low.
Right, if it's still easier topick up the phone, make a phone
call, wait and talk to someoneon the parts counter, wait for
the parts to be delivered, or godown to the parts counter and
pick up the parts yourself, ifthat's still an easier process
(03:37):
and that's a process that getsthe right part to you the
fastest, you're not going to loginto someone's e-commerce and
be worried about whether or notyou're getting the right part,
be worried about whether or notthis part's going to show up
when it says it's going to be.
You're going to default back toyour old behavior and you're
going to use the traditionaldistribution model.
(03:58):
But if we use technology toactually improve the buying
experience for the end-usercustomer.
As demographic inversioncontinues to impact and shape
our business landscape, more andmore of these experienced
people who grew up working inthe traditional distribution
model are going to retire andthe people who replace them,
(04:20):
especially the end-usercustomers, are going to start
demanding a different buyingexperience.
They're not going to have asmany people to draw on, they're
going to be overworked andthey're going to be looking for
the easy button with atechnology that they trust and
that they can have confidence in.
If you're in charge of a heavyduty parts company and you're
(04:42):
thinking about transitioning, oryou're in the process of
transitioning, please askyourself is this what the
customer needs and wants, and isthis going to make their
experience better?
The answer is no, no matter howmuch convenience it brings to
you as the supplier, it's thewrong choice.
Now at the Heavy-DutyConsulting Corporation, we work
(05:04):
with dozens of companies and oneof our core offerings is to
help people make that digitaltransformation possible in their
business, and we help people tobuild something that actually
works for the end user customer.
So make sure you head over toheavydutyconsultingcom.
Check out our services.
You'll see where we listdigital transformation.
You can learn more about whatwe do there.
(05:26):
I hope you're enjoying ourconversation so far about
changes in technology and whatwe just discussed about digital
transformation.
We're going to take a quickbreak to hear from our awesome
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We're back from our break.
Before the break, we weretalking about how technology is
changing the way we are going togo to market when we
(07:13):
manufacture and distributeheavy-duty parts using that
digital sales channel and reallythe need for traditional
manufacturing and distributioncompanies to look at digital
transformation.
In our interview for thisepisode, we are talking to
Clarios, who is making sure thatthe end user has the
(07:33):
information they need to make agreat buying decision and to
adjust the batteries that theypurchase for their commercial
vehicles based on the vocationthat they are using that piece
of commercial equipment in thisinterview was at the Clarios
booth at Apex 23 and wasoriginally aired on January 15th
(07:53):
2024.
As I said before, it was one ofour most popular interviews of
2024, so I hope you enjoy it.
This is Federico MoralesZimmerman.
He's the Group Vice Presidentand General Manager of Original
Equipment, also involved heavilyin R&D at Clarios, and Clarios
is one of the largestmanufacturers of batteries for
(08:15):
nearly every type of vehicle.
They understand these systemsfor heavy duty, but they also
are involved in all of theelectrical systems and batteries
for automotive medium duty andheavy duty.
So, frédéric, with all of thatsaid, welcome to the Heavy Duty
Parts Report.
Thank you so much for having me.
It's a pleasure to be here,glad to have you here.
So let's talk about some of thesignificant changes that we've
(08:38):
seen over the last few years.
You know, as we were preppingfor this conversation, I was
mentioning that 25 years ago,when everything was mechanical,
it was a completely differentworld.
So give us an overview ofreally what's driving the need
for a change in batteries andelectrical systems in general
for commercial trucks.
Federico Morales-Zimmerma (08:56):
Thank
you.
Thank you very much.
I think, for commercial trucksspecifically, we see a couple of
fundamental changes in theindustry, not only from the
technology perspective, but alsofrom a sustainability and
circularity perspective, and Ithink this is where we, as
Clarios, play a key role in howdo we design the best value
low-voltage applications for thetruck.
(09:17):
The truck now is becoming moredigitalized, becoming more safer
, becoming more functionalityaround autonomies, and those are
key enablers that are changingthe architecture in the truck,
and to be able to design thebest low voltage solutions for
this you have to be able tounderstand the systems of the
(09:38):
architecture.
It's not any more simpleplacing a black box order for a
battery.
It's a process that includesdeep understanding, deep
collaboration with the trackmanufacturer to find the best
solution for them.
Diana Cudmore (09:53):
So that was great
.
Now, jamie, I know that youwere around in the old days, so
how about you tell me what wasbattery tech like, maybe coming
from like the 60s up to the 90s?
Jamie Irvine (10:07):
Okay, so let's
just be clear here.
I didn't start my career inheavy duty until 1998.
So I wasn't there selling heavyduty parts back in the 60s.
You know, if you grew up, let'ssay, like I did, as a kid in
the 80s, or if you're older thanthat, and even you, diana,
probably the early vehicles whenyou were a child that your
(10:29):
family had, they were verymechanical.
So think of that station wagonthat we all drove around in as
kids with our families and thinkabout how the windows there was
manual, roll up and roll down.
The clock actually wasn't evendigital, it was an actual clock
that had hands on it.
The radio, you know, was not acomplicated device, it was an
(10:52):
eight track, a tape player.
Then maybe in the nineties itwas a CD player.
But again, we're talking aboutvery, very basic inside of the
cab controls.
And when you think about thoseolder vehicles, they were basic,
they were mechanical.
The load on the battery wasreally only ever needed when you
(11:13):
were going to start the vehicle.
Maybe if you were going tolisten to the radio with the
vehicle off, that was about theonly time you would ever draw
battery power right.
So when you think about howeverything was manual in those
vehicles.
It was no different incommercial trucks.
In fact they had less comfortthan automotive back then.
(11:33):
So with old trucks there wasreally just four batteries.
They were called group 31s andthey were starting batteries.
They were just there to startthe vehicle.
And again, maybe if you had thetruck off and you were
operating your CB radio or youwere operating the radio to
listen to music or something,that would be about the only
(11:54):
time you would ever need to usebattery power in those older
vehicles.
But of course everything haschanged now.
Diana Cudmore (12:02):
Right exactly Now
.
I'm 29 right now, but, believeit or not, I am old enough to
remember why we call it rollingdown the windows.
But nowadays I think of mypersonal vehicle and everything
is electric right, and I'm surethat that's carried over to
heavy duty as well.
Jamie Irvine (12:22):
Oh, absolutely.
In fact I would say even moreso.
So, especially if you're in thelong haul business, you have a
sleeper cab and you've gotcreature comforts built into
that vehicle, right.
You've got a microwave, maybeyou've got a PlayStation four or
five.
You, you've want to control theclimate in the vehicle while
you're sleeping.
And then, in addition to that,there are so many more
(12:45):
electronic components in the cabof that truck, right?
So everything is electronic.
You've got big display screens,you've got electric windows,
you've got specific ECMs justdedicated to controlling the
seat of the vehicle for thedriver.
It is crazy how much thesevehicles have changed and have
(13:05):
been modernized and how muchelectronics are now used.
And you think of alsotelematics, and the list goes on
and on and on.
Even the way that the vehicleshifts gears, like in the old
days when everything wasmechanical, it was all done by
cable.
Now it's all done by electricsignals.
And so just the entirecommercial vehicles, all of
(13:30):
those trucks now, especially thelong haul ones, but even the
vocational trucks, have such ahigher demand for power, for
electricity.
And if that vehicle isn't on,if that truck's not running and
the alternator isn't generatingelectricity, then you're drawing
down your batteries like neverbefore.
Diana Cudmore (13:49):
Wow.
So I could understand how thissort of older system of
batteries just like isn't reallyworking.
So what are batterymanufacturers, like maybe like
Clarios, doing to kind of likeupdate this system so that we're
not always waking up to a deadbattery in the morning?
Jamie Irvine (14:10):
So here's the
problem the load on batteries is
growing almost like year overyear.
Right, it's getting more andmore and more, and in many ways
we're still thinking about itlike that bank of four batteries
that are just there as startingbatteries.
And that's where you can getinto trouble, because as the
trucks are advancing intechnology, the specs for the
(14:32):
batteries are changing, and whenyou go to change your batteries
sometimes the old schoolthinking about batteries goes
into play and people just end upinstalling like four group 31
batteries and they're notdesigned for the new need.
So it's even worse.
With sleeper cows, like Imentioned, vocational trucks
it's it's bad enough, but withsleeper cabs and long haul
(14:55):
you've got all of these thingslike running your ac and you can
have all of these differentcomponents that are electronic,
create like a parasitic draw onthe battery, which results in
batteries being uh, depletedfaster they're, they're having
to to be depleted and thencharged back up again depleted,
then chart, and they're notreally designed for that.
(15:16):
If you're installing those kindof starting batteries only and
so, then then they failprematurely and so a couple of
things can happen.
One you can get stuck out onthe road with some dead
batteries and that creates amechanical call and having to
have someone come out and getsome new batteries and install
them, and that's downtime right.
You can also have where certaincomponents in the truck just
(15:38):
aren't working at full capacityand that can cause all kinds of
other problems as well.
So it's not a good situation,and so you need to update the
way you look at batteries whenyou're working on these modern
trucks.
Diana Cudmore (15:49):
Yeah, that makes
perfect sense.
So let's hear from Federico.
He's explaining this concept ofrather than high voltage, low
voltage batteries and how theycan assist in this issue.
So let's hear from Federico.
Federico Morales-Zimmerman (16:05):
Low
voltage will, I think, become
even more important to thefuture, and it's because of
safety relevant features oftrucks.
When it comes to safety,there's nothing you can
compromise and you can.
In the low voltage architectureit's going to become more
evident and more embedded intothe systems to support safety
critical functions.
(16:26):
Also, from the overall systemperspective, if you look ahead
specifically in the truck world,going more into a
service-oriented provider wherewe can bring more solutions
meaning being able to predictthe health of the battery, for
instance, is a key word rightnow.
We are right now running acouple of fleet where we are
(16:50):
trying to utilize our knowledgearound chemistry, around
electronics, around software, tobe able to predict the health
of the battery and, with that,to reduce significant downtime
for track operators and fleetoperators.
Diana Cudmore (17:07):
So Federico
mentioned that they're working
on predicting the health ofbatteries.
And how is that even possible?
Because it seems like yourbatteries are totally fine until
one day you wake up, it's coldin your truck and they're not
fine, they're dead.
So how are they changing thesituation from knowing that a
(17:28):
battery is dead when it's toolate to actually being able to
predict that in the future?
Jamie Irvine (17:34):
So batteries
consist of metal plates
basically sitting in an acidmixture.
It's where you create thatchemical reaction that allows
the battery to hold the charge,and as they discharge and
recharge, those plates cancorrode.
I also mentioned that when youare working in environments
(17:58):
where there's a lot of vibrationroad vibration those plates
over time can break as well,which then that creates the
battery to slowly lose itsability to hold a charge.
Eventually, as these plates getfragile and they break, like I
said, they can't hold the chargeanymore.
So if you have, let's say, like10 plates in a battery and one
breaks, your battery starts toreduce by a percentage, right,
(18:22):
maybe 10 percent, and then andthen another one breaks, another
one, another, one, another oneeventually the battery just
can't hold a charge anymore, andand that's not the only reason
these plates breaking that's notthe only reason that that
happens, but that's one of thereasons.
As, as batteries, though, ifthey're not designed to
completely discharge andrecharge on a regular basis,
(18:42):
it's just kind of like driving avehicle in first gear on the
highway.
You could do it for a while,but it's not designed to do that
.
So eventually something's goingto break.
At any rate, over time,batteries lose their ability to
hold charge, and so whatcompanies are doing now is
they're saying look, based onthe usage of this battery, we
can then, with algorithms,predict when that battery is
(19:06):
likely to fail.
So you have to think about thesituation with starting
batteries right.
They're designed to put out alot of charge, to start the
battery for a very short periodof time.
The alternator charges themback up again and they stay at
basically full for long periodsof time.
If you then have that battery,that's a starting battery and
(19:28):
you're using it inappropriatelyby drawing down all of the
battery charge to zero and thenhaving to charge it back up
again and you're doing that overand over again because you're
running these hotel featuresthat's just going to cause the
battery to fail prematurely.
So it's really now.
The way we look at it now isyou have to match the right kind
of battery for the applicationto meet the demands of the truck
(19:52):
and the vocation of how thattruck is being used.
Diana Cudmore (19:55):
Right, that makes
perfect sense.
So let's see what Federico hasto say about this.
Federico Morales-Zimmerman (20:02):
It
comes again to the system
understanding correct and, Ithink, the functionality that
you need on those batterysolutions.
I think again it's not anymoreabout placing a black order for
a battery.
You have to really understandwhat's required on the
architecture side of the vehicle, not to provide the most costly
solution, I would say the mostvalue-added solution for the
(20:24):
customers.
Jamie Irvine (20:24):
Yeah, value-added.
So we're talking about thedifference between just looking
at the purchase price andactually matching what you're
buying to your specific need.
So how would you recommend?
If you're a fleet and you'relooking at a maintenance and
repair program, how should theygo about deciding which battery
they choose for differentvocations?
Federico Morales-Zimmerman (20:47):
I
think this is a question that we
get a lot from our customers.
It depends on the usage of yourtruck.
It depends on whichets are youoperating, which ranges are you
having in mind, and also theweather conditions play a
significant role into it.
So if you can be able tosimulate this in a way that you
(21:13):
can simulate the entirearchitecture of it, I think this
is where we can provide thebiggest value to the customers.
Jamie Irvine (21:18):
And when you take
the time to do that, then you
can very quickly see well, if Ibuy the incorrect battery and
inject it into my fleet, maybeit's cheaper to buy, but it's
going to cost an awful lot onthe back end, where you're going
to have all kinds of issues.
What kinds of issues do you seecome up when someone's not
(21:39):
matched the battery?
Now to the vocation.
Federico Morales-Zimmerman (21:43):
For
the truck operator.
It comes to the downtimesolution correct.
You want to avoid costlydowntime solutions.
But not specified, not usingthe right battery solution in
your truck, you will run intoissues.
You want to run into downtime.
You want to run intosignificant repair costs as well
(22:03):
Because you're going to have amismatch of battery systems in
your truck which is going to be,at the end of it, more costly.
Jamie Irvine (22:09):
Yeah, so maybe
break down for me the specific
types of things that happen thatlead to the downtime.
Are we just talking about abattery that loses its charge
more quickly?
Are we talking about systemsfailures within the truck?
What are we talking about whenwe say that it contributes to
downtime?
Federico Morales-Zimmerman (22:27):
The
truck nowadays is becoming more
and more complex.
The power loads in the truck,the battery, is not only to
start the engine.
When you are basically sittingon a parking lot, you have a
system you have to operate.
You have certain devices in thetruck that you're operating.
So this is, I think, where thebattery systems come into play
(22:48):
and by not utilizing the rightsetup, you know you will run
into significant downtime.
You will run into significanthealth issues of the battery
downtime, you will run intosignificant health issues of the
battery and by usingmulti-batteries solutions you
also start damaging otherbatteries.
You know that could be holdinga longer life.
Jamie Irvine (23:06):
Right, right.
So it's a completely differentworld If you're on the part side
of the business.
You need to really learn andwork with manufacturers and
suppliers like Clarios to beable to understand how to help
customers, diagnose problems,how to make the right
recommendations.
Well, I hope you enjoyed thisinterview about low voltage
battery technology.
I hope it gave you something tothink about the way that you
(23:27):
should be selling the product,the way that, if you're buying
it, you should be speccing it.
If you have any questions aboutthat, if you want to learn more
, make sure you head over toClarioscom.
Links are in the show notes.
As I mentioned, it's now timefor that's Not Heavy Duty.
In this edition of that's NotHeavy Duty, I wanted to talk a
little bit about cargo theft.
Now, in the town that I live in, there is a real serious
(23:49):
problem with theft.
We see all the time that pickuptrucks are being stolen out of
commercial trucking companies'yards.
We hear about the theft that'sgoing on in our community and
it's definitely something that,over time, feels like it's
getting worse.
Now we are showing you a littleclip from a report that was done
(24:13):
on cargo theft and how that isreally spiking and how American
trucks are really under attackfrom thieves.
I want you to watch this, thebeginning part of the clip.
We're going to include theentire link so you can watch the
entire nine-minute report, butjust watch this first minute or
so of the report because I thinkit really puts into context
(24:36):
what's going on when it comes tocargo theft and how technology
is playing a role both insolving the problem but also
contributes to the problem.
Listen in and watch for wherethe top three hot spots in cargo
theft is.
Okay, let's roll the video.
Speaker 4 (24:53):
These thieves are
breaking into the back of a
cargo truck.
Diana Cudmore (24:58):
You know the old
famous saying why do you rob
banks?
Because that's where the moneyis.
It's the same kind of situationwith freight and how freight
moves around the world.
Speaker 4 (25:06):
Cargo theft has more
than doubled in just a year.
Nearly $130 million worth ofgoods vanished in 2023.
And that's only what's beenreported.
Jamie Irvine (25:18):
I think we're at
an all-time high.
I haven't seen cargo theft atthis level that we can remember.
Speaker 4 (25:23):
California, texas and
Florida rank as the top
hotspots, but the risk isn'tlimited to the coasts.
More incidents are beingreported inland in logistics
hubs like Chicago and here inLouisville, kentucky.
Federico Morales-Zimmerman (25:37):
So
the warehouse here is positioned
within a fully secure yard.
Speaker 4 (25:41):
And the industry is
fighting back.
Diana Cudmore (25:43):
We have invested
millions and millions of dollars
to reduce any of that theft.
Speaker 4 (25:48):
Companies are
investing in tech like this.
Diana Cudmore (25:51):
A covert tracking
device that's going to be
applied to this node.
Speaker 4 (25:54):
Cargo thieves aren't
just simply breaking into trucks
or hijacking trucks.
Diana Cudmore (25:58):
The way we
connect.
Now the technology has allowedus to move at such lightning
speed.
It's kind of hard to slow thatdown, and therein lies the
problem.
Jamie Irvine (26:07):
Okay, so you just
listened or watched the video.
If you're listening on theaudio version, make sure you go
over to heavydutypartsreportcom.
Click on the show notes forthis episode.
You go over toheavydutypartsreportcom, click
on the show notes for thisepisode and click the link so
you can watch the actual videoversion.
Like I said, you can watch thewhole nine-minute video.
It's really interesting.
Did you catch where the threehotspots are?
(26:28):
We're talking California, texasand Florida Not surprising,
since those are big port areaswhere a lot of cargo is coming
in from international sources.
But did you also notice that,really, cargo theft is on the
rise all over the country, evenin places like Kentucky where
they were filming, and so thisis a big problem.
(26:49):
It's a problem in the States,it's a problem in Canada, and it
doesn't just hurt the peoplewho are in the trucking industry
and the people who experiencethe cargo theft.
This also contributes toinflation, contributes to rising
costs, because obviously lossprevention, whether it's at the
retail level or it's right outof the back of a truck,
contributes to rising prices.
(27:11):
So this is certainly an issuewe have to keep an eye on and
continue, all of us, to try todo our part to combat this.
I hope you enjoyed this episodeof the Heavy-Duty Parts Report.
If you haven't already, headover to heavydutypartsreportcom
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