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Vehicle Technology Return on Investment

Vehicle Technology Return on Investment



How to measure and maange your return on investment with a vehicle telematics and fleet management system.

How to measure and maange your return on investment with a vehicle telematics and fleet management system.



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    Vehicle Technology Return on Investment Vehicle Technology Return on Investment Presentation Transcript

    • Measuring your Return on Investment
    • 2
      How much does it cost to operate your fleet?
    • 3
      Total CPM = $2.27/mile
      Cost of Sales = 7.4%
      Maintenance = $0.28/mile
      Tires = $0.036/mile
      Self-Insurance = $1800/year
      Spare Vehicle Ratio = 15%
      Vehicles per Mechanic = 13
      Non-Productive Driver Time per Day = 2.2 hours
      Based on a survey of 272 private fleets by IFMC, Inc. Includes all time spent other than dispatch, loading, and unloading.
      Benchmark Private Fleet Costs - Determine your cost per mile to establish your own benchmarks.
    • 4
      Where have my drivers gone?How can I keep my drivers?According to ATRI’s 2006 study:
      Average age of an IBT (Teamster) driver – 57
      Average age of a TL driver – 46
      Drivers today do not have the industry background they did 10 years ago
      $3500 to recruit and train a new driver
      76% of respondents reported improved driver morale with onboard computers
      18% of respondents report increased productivity
      19% reported improved driver retention
    • 5
      So, what are we going to do?
      And in the process, we will:
      Improve Safety
      Improve Regulatory Compliance
      Reduce Fuel Consumption
      Reduce Maintenance Costs
      Increase Productive Time
      Increase Customer Satisfaction
      Provide Legal Protection
      Make the drivers’ job easier
      No more paper logs
      No more trip reports
      Protection against false customer service claims
      Protection against litigation
    • 6
      Compliant, paperless logging makes Hours of Service compliance easier.
      Automates DOT Logging
      Log on at the beginning of your shift
      Log off at the end of your shift
      Hourly totals are all calculated for you.
      No more calculation errors
    • 7
      You enter fuel gallons purchased
      Miles by jurisdiction, odometer readings, time of entry and departure are all automatic
      You don’t have to complete DTR’s, just enter fuel purchases into the keypad
      Claim state/provincial refunds for non-highway fuel consumed
      Fuel Tax and IRP Reporting
    • 8
      Drive safer and more efficiently
      Coaches and provides feedback.
      Know how all drivers compare to each other, and to company averages.
      Monitor speed, shifting patterns, panic braking, idle time
      Plan and track and the miles and hours worked.
      Efficiency = SafetyDriving habits that improve MPG improve safety.
    • 9
      Fuel Economy is Improved by Controlling Driving Habits:
      “ The driver is arguably the principal variable in fuel mileage. There is as much as a 35 percent difference between the most proficient and the least capable drivers”
      - The Fleet Manager’s Guide to Fuel Economy
      Technology and Maintenance Council of the American Trucking Association
      Controlling your Speed
      Progressive Shifting
      Rapid Accelerations/Decelerations
    • 10
    • 11
      Argonne National Laboratory study - September 21, 2004
      Average truck wastes 1830 gallons per year in fuel just idling
      6 hours per day on average
      Estimated 10M tons CO2, 50K tons of NOX, 2K tons particulates emitted annually by idling
      Engine Maintenance Costs
      6 hours of idling = 42 miles of engine wear
      6 hours idling contributes $4.41/day to engine overhaul costs
      What does idling cost?
    • 12
      Idling Costs
      1000 RPM, 10 HP Draw
      6 hours/day
      1830 hours/year
      2196 gallons/year
      $2.78/gallon (US DOE national average price, 2/01/2010)
      $6104.88 per year fuel consumed while idling, per vehicle/
      What happens if you bring idle down to 10% or 300 Hours annually?
    • 13
      Controlling Speed = Improving MPG + Improving Safety
      For every 1 MPH increase over 55 MPH, fuel consumption increases 2.2%.
      7.5 MPG at 55 MPH drops to 6.6 MPG at 65 MPH
      $3537.36 in excess fuel
      (70,000 miles, $2.78 per gallon)
      10 MPH average speed decrease equals 18% reduction in NOX emissions
      American Trucking Associations
      Bridgestone Firestone ongoing tests
      Transportation Research Center, Inc
      (Society of Automotive Engineers J1263 recommended practice)
    • 14
      Controlling Speed;Does slowing down your fleet impact customer service?
      What is the productivity cost of slowing your fleet down?
      10 MPH increase does not equal 10 MPH increase in average speed.
      55 MPH speed limit=50.1 MPH average speed
      65 MPH speed limit=57.1 MPH average speed
      American Trucking Associations study - 1998
    • 15
    • 16
      Speed vs. Vehicle Wear and Fuel Consumption
      Rapid acceleration consumes excess energy
      Rapid deceleration wastes energy
      Increase from 55 MPH to 65 MPH results in:
      Tire wear increases from 5% to 16% (depending on GVW)
      10% to 15% decrease in miles to engine overhaul
      15% increase in oil consumption
      15% in brake lining life
      Lower Fuel Costs = Lower Vehicle Maintenance Costs
    • 17
      Plan your work, best utilizing people and equipment.
      Measure every hour worked by every driver.
      Measure every mile driven by every vehicle.
      Helps automate delivery information.
      Helps you plan routes more efficiently.
      Document delivery/location Information
      Improving customer service = more revenue
    • 18
      Provides a silent witness on your side in an accident.
      Monitor Safety Programs.
      Present the company as a professional organization that works to be a good corporate citizen.
      Safety is Everyone’s Responsibility
    • 19
      Safe Driving?
      Happy Customers?
      A Marketing Edge?
      A Positive Image?
      Professional Drivers?
      Measurable Goals?
      A Satisfied Boss?
      What would happen to your operations if you could have a supervisor go on every route every time?
      What is it worth?Some items are not easily measureable yet still provide positive return on investment.
    • 20
      Objective vs. Subjective
      Big Brother
      Tattle Tale
    • 21
      How do we start?
      Slow – one area of improvement at a time
      Consistent – never let your message waiver
      Persistent – never let up
      Measure your progress in key metrics annually
      Ask for help
    • Joel Beal
      817.480.0926 (cell)
      817.945.6850 (office)