Motorists signing up to Norwich Union’s new ‘Pay as you Drive’ insurance scheme can be sure the special ‘black box’ they’ll need will be delivered and fitted on time thanks to a new contract between the RAC and ByBox Ltd, the UK’s leading overnight parts distribution company.

The new system, which has already attracted widespread media coverage, allows motorists to pay for insurance based on their driving profile. To measure this driving profile accurately, each vehicle signing up to the new initiative has to be fitted with a Telematics device (black box).

RAC, which is owned by Norwich Union, will ensure that its nationwide network of engineers install the black boxes into the vehicles of ‘Pay as you Drive’ subscribers through accurate picking and an effective supply chain process for getting the boxes to the engineers is critical.

ByBox, which has been charged with this role, stock the black boxes and when it receives an order file from Norwich Union, picks and despatches units to the designated RAC engineer for fitting.

To ensure the supply chain works correctly every time requires the management of some pretty complex logistics. Prior to starting the new three-year contract ByBox integrated its system with that of the RAC and incorporated ‘Thinventory’, an innovative single platform developed by ByBox that manages the supply chain process from end to end.

In simple terms, Thinventory manages inventory planning, warehousing, picking and distribution to the RAC engineers. Wireless and paperless, the system maximises stock visibility whilst minimising stock holding, and also provides the ability to manage stock through its returns process if required.

Once picked, packed and despatched, the black boxes are delivered into one of ByBox’s 14,000-strong UK box network, located at over 1,000 separate sites throughout the country, by 8.00am the next day. RAC engineers designate a box close to their location and collect the units as required en-route to fitting them on the vehicle at the customer’s premises.

A particular benefit of the ByBox system is the ability to re-route the black boxes to another location if they are in the system but have not yet been used. This provides additional flexibility to respond to changes in a customer’s location and ensure the engineers maximise productivity.

Delighted at winning the new contract with the RAC, Stuart Miller, Chief Executive of ByBox says the company was pleased to be playing its part in the launch of such an innovative new service, which could herald a sea-change in the way vehicles are insured in this country.

“The terms of the contract presented some interesting challenges, not least because there is no room for error and once ordered the black box must be delivered anywhere in the UK within a strict timeframe,” he says.

“However, these are the kind of challenges on which ByBox has built its reputation for time critical services and the flexibility to handle almost any set of parts distribution requirements.

“We are delighted to be working with in partnership with the RAC on this ground breaking initiative” he adds.