Vehicle Telematics 101: How the Right Solution Can Impact Your Bottom Line
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This presentation provides a comprehensive overview of how a vehicle telematics solution can increase efficiency, scheduling flexibility, customer service, and fleet transparency while saving fleet-based businesses money.
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Vehicle Telematics 101: How the Right Solution Can Impact Your Bottom Line
- 1. Vehicle Telematics 101: How the right solution can impact your bottom line
- 2. What is Vehicle Telematics? A system that combines wireless GPS tracking with remote vehicle diagnostics and routing/driver productivity to give fleet managers a complete, accurate and timely picture of their fleet’s activities 2 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 3. Telematics Technologies Driver Behavior Monitoring Engine Diagnostics Monitoring and Vehicle Maintenance Vehicle Location Route Optimization Unauthorized Use Tracking 3 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 4. How It Works Back Office Fleet Management In-Vehicle Equipment Options Integration Software 4 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 5. Challenges Where are my vehicles? Are my vehicles driving where they shouldn’t be? How do I know if my drivers are obeying company policies? Are my vehicles receiving the right amount of maintenance? Are my drivers completing as many jobs as possible per day? 5 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 6. Challenge #1 Challenge: – Where are my vehicles throughout the day? Solution: Automatic Vehicle Location (AVL) • AVL allows fleet managers to track the location of all vehicles in their fleet in real-time Benefits: – Send the closest vehicle to a job to reduce mileage and time – Improve driver safety (quicker emergency response) 6 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 7. Challenge #2 Challenge: – Are my vehicles being used when they shouldn’t be? Solution: Tracking Unauthorized Vehicle Usage • A telematics solution gives managers insight into unauthorized vehicle usage by monitoring the engine status and GPS location of all vehicles Benefits: – Ensure vehicles are only being used when they should be – Decrease vehicle costs such as fuel and maintenance – Increase driver accountability – Decrease company liability for vehicle use outside of vehicles outside of work hours 7 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 8. Challenge #3 Challenge: – How do I know if my drivers are obeying company policies? Solution: Driver Behavior Monitoring • Vehicle telematics technology lets you monitor driver behavior in order to track how much fuel is being wasted when field operators speed, idle, brake, or accelerate unnecessarily Benefits: – Generate accurate driver report cards – A fleet loses an average of $1,600 per vehicle, per year of wasted fuel. A fleet of 50 vehicles loses $80,000 in wasted fuel per year – Reducing driving speed can lower fuel consumption by up to 14% 8 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 9. Challenge #4 Challenge: – Are my vehicles receiving the right amount of maintenance? Solution: Engine Data Monitoring • Vehicle diagnostic information can be pulled directly from your fleet vehicles and integrated with your maintenance program to ensure that vehicles are being serviced when they need it to avoid downtime and costly repairs Benefits: – Ensures vehicles are being driven properly to extend vehicle life – Reducing downtime by 25% saves over $10,000/year 9 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 10. Challenge #5 Challenge: – Are my vehicles being utilized properly? Solution: Vehicle Utilization Data • A vehicle telematics solution can monitor engine hours to see how often and when your vehicles are being used Benefits: – Improves purchasing practices – Ensures the right type of vehicle is being sent to the job 10 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 11. Challenge #6 Challenge: – Are my drivers completing as many jobs as possible in a day? Solution: Route Optimization • A vehicle telematics solution allows dispatchers to optimize drivers’ routes to ensure they are taking the shortest route to their next job and that your fleet is operating at maximum efficiency Benefits: – Reduce mileage for each vehicle to save fuel – Complete more jobs per day – Increase vehicle efficiency – may not have as many vehicles to complete the same number of jobs 11 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 12. How to Select the Right Solution 1. Identify long-term and short-term goals • Prioritize purchases and implementation • Ensure solution is scalable for future growth Common mistake: • Choosing technology instead of a solution 12 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 13. How to Select the Right Solution 2. Look for a vendor with flexible options • Ensure that industry-specific information is included • For example, well-site coordinates for oil and gas companies or boom status for utility companies Common mistake: • Overspending 13 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 14. How to Select the Right Solution 3. Ensure the solution supports future growth • Choose a solution that can expand as the company grows to minimize expensive technology replacements Common mistake: • Forgetting about the future 14 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 15. How to Select the Right Solution 4. Outline specific requirements, such as: • Reporting • Real-time alerts • Ease of use and training • Integration with existing software • Reputation and customer service Common mistake: • Not engaging all end users in the decision 15 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 16. How to Select the Right Solution 5. Implement a Change Management Plan • Highlight how the technology will improve the company’s bottom line and the employee’s work day • Involve end users in the decision-making process • Have drivers participate in driver behavior training courses • Re-evaluate your company’s driver policy to include guidelines for speeding, idling and unauthorized vehicle usage Common mistake: • Not assigning a technology champion 16 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 17. How to Select the Right Solution 6. Track the progress • Use the system’s reports to track progress on short-term and long-term goals such as reducing speeding and idling • Be sure the reports are easy to read and offer both concise summaries and comprehensive overviews Common mistake: • Too much information 17 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 18. How to Select the Right Solution 7. Re-evaluate the requirements • After the system has been active for a reasonable period of time, re-evaluate the requirements you outlined at the beginning to see if they are being met Common mistake: • Not re-evaluating system goals 18 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 19. Conclusion Using vehicle telematics technology, managers can monitor idling, instances of excessive speed, and unauthorized use of their fleet vehicles Address wasteful driving behaviors and optimize routing to significantly reduce the amount of fuel consumed by your fleet Maximize vehicle usage to complete more trips per day and save your company money Identify your needs and evaluate available technologies and vendors to select a solution which addresses your specific business needs 19 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
- 20. Questions? To learn more about vehicle telematics, please visit us at www.assetworks.com 20 Fleet Management Software Proprietary and Confidential. Copyright © 2012 AssetWorks Inc. All rights reserved.
Editor's Notes
- First, let’s get an idea of what a vehicle telematics system is:A vehicle telematics solution helps fleets increase efficiency by providing real-time vehicle location information as well as useful vehicle diagnostics data. But what are vehicle diagnostics? Vehicle diagnostics is data provided by a vehicle’s OBDII port that gives maintenance staff information about the health of that vehicle. Information on the engine, brakes, transmission and more is all provided to help with preventative maintenance. A telematics solution also provides speed and idling monitoring which enables fleet managers evaluate driver behaviors and correct negative patterns to increase safety and save fuel.
- There are a wide range of technologies included in a vehicle telematics system, including:driver behavior monitoringengine diagnostics and vehicle maintenance trackingvehicle locationroute optimizationunauthorized use trackingWe will discuss more about the benefits these technologies bring to companies that implement vehicle telematics solutions a little later in the webinar. But first let’s take a look at how the technology works in the office and the vehicle
- How technology works to relay information from the office to the vehicle - satellite or cellular - real-time data - integration with back office systems - multiple in-vehicle technology options (mobile computer, AVL device, etc)
- Managing a fleet comes with a wide range of challenges. In the following section we will discuss how vehicle telematics technology can help you address these common challenges.
- AVL allows companies to see the location of all their vehicles, in real-time, all of the time. Benefits Expedited dispatching – closest vehicle routing, respond to calls sooner, improve customer service Improve driver safety, can respond more quickly to emergencies
- A shocking number of fleet vehicles end up being used outside of work hours either for “side-jobs” or personal use. This unauthorized use could be costing your company significantly in both fuel costs and vehicle wear and tear. Explain how unauthorized vehicle usage is monitored with geo-fences and engine status monitoring. Managers can be updated in real-time through email alerts.Benefits Vehicle life cycles are extended Not liable for accidents, etc. which may occur when vehicles are being used outside of work Increases driver’s accountability for their actions allows companies to comfortably allow drivers to take vehicles home at night instead of having to come back to the yard without worrying if the vehicle is being used too much. This can increase efficiency and save fuel as drivers do not have to return to the office at the beginning and end of each day which means more time to do jobs.
- Now let’s take a deeper look into the technologies that make up a vehicle telematics system and how they can impact your fleet:- Reducing fuel consumption and maintaining driver safety are two of the most important issues facing managers- hard to control effectively. fuel costs account for 30% of most fleet budgets A vehicle telematics solution lets you monitor driver behavior in order to track how much fuel is being wastedIdling wastes a lot of gas, and by not managing it, a fleet loses an average of $1600 per vehicle, per year. This means that if you have a fleet of 50 vehicles, you are likely losing $80,000 in wasted fuel each year. In fact, idling the engine wastes about one gallon of gas per hour, or to put it another way, just 60 minutes of idling time is equal to 80-120 minutes of driving time.When it comes to speeding, studies have shown that reducing driving speed can lower fuel consumption by up to 14%. Driving even a little bit over the speed limit for a prolonged period of time can drastically reduce fuel efficiency. Also, speeding puts your field operators in danger and increases your liability in the event of an accident. A speed and idling monitoring also allows fleet managers to create accurate driver report cards to minimize fuel usage and increase safety.
- A telematics solution also uses engine diagnostics data to ensure that your vehicles are being driven properly, which results in longer vehicle life spans and less maintenance costs. Benefits Reduce vehicle downtime Preventative maintenance Wear and tear is reduced (ex. Running too many miles between oil changes)
- A telematics solution also uses engine hours to determine how often and when your vehicles are being used. Benefits Improve purchasing practicesOnly purchase expensive equipment if you really need it Ensure the right type of vehicle is being sent to the job don’t send special equipment unnecessarily to jobs, save it for when it’s needed
- Another part of a telematics solution is route optimization technology. Using AVL information, route optimization allows dispatchers to effectively schedule all your vehicles throughout the day to make sure your fleet is operating at max efficiency.Benefits: - Vehicles are spending less time driving and more time completing actual work = greater efficiency, and better cost ratios - Fuel is saved as vehicles are not driving unnecessary miles to their next job - May not need as many vehicles to complete the same number of jobs as each vehicle is more efficient, which saves on vehicle purchasing costs
- Now that you’re aware what makes up a telematics solution and what benefits you can expect to experience, let’s discuss how your organization should go about selecting the right solution for your needs.It’s important to have a plan when you evaluate and implement a telematics solution:-Identify long-term and short-term goalsIdentify your priorities first for purchasing then implementation- is it vehicle location, speed and idling monitoring, something else?Throughout this section we will identify common mistakes that organizations make throughout the process and identify why it is important to avoid these pitfalls.Our first is choosing technology instead of a solution. - don’t be tied to a specific device, often they will not meet all the needs of you business - Identify a list of key functionalities that you need to have success then evaluate the different mobile platforms ability to meet these requirements
- - Ensure the solution meets your industry needs Beware of “off-the-shelf” solutions that may require you to change your business processes too much Identify your industry specific needs to vendors Make sure the company you choose updates their offering as technology changes to make sure you’re not purchasing a system that will soon be outdatedCommon mistake: Overspending make sure you aren’t paying for functionality that you don’t need create a list of necessary features and evaluate products on these features keep in mind that unnecessary features are just that, unnecessary
- Choose a solution that can expand as your company or needs change and grow this will minimize expensive technology replacements and future technology investmentsAlso, select a solution that works on various wireless networks as you may want/need to change wireless providers in the future and don’t want to have to invest in completely new technologyCommon mistake: forgetting about the future don’t choose a mobile device only on your current needs telematics technology will change you business and it’s important to plan for those changes purchase devices that will grow with you as your business changes and a company that will help you with that growth
- Approach all vendors about the specific technology you require including:Reporting number and type of reports created by the solution also establish how you can access reports Real-time Alertswant the system to provide immediate feedback to managers and drivers – especially about speeding/idling/hard braking/accelerationEase of Use and Training evaluate what type of training the vendor provides Integration with existing softwarehow difficult will it be to integrate the new technology with your existing systems in the office? Reputation ask to read case studies and speak to clients talk to as many clients as possible, not just those pre-screened by the vendor if possible, talk to former clients to see why they aren’t using the solution anymore Customer Service identify the vendor’s customer service policies do you have an identified project manager or are you interacting with a call center? determine the level of service you require – 24/7 vs. standard office hours, phone vs. email vs. in-personCommon Mistake Overlooking user feedback it’s extremely important to talk to previous device users to get their opinion on how the device works in the field this can help avoid surprises when the device gets into the field also, a company’s reputation and support is just as important as the product as you want them to be a partner in your solution talking to other customers will give you truthful, first-hand advice about their solution
- be prepared to meet resistance to the new solution highlight how the technology will improve the bottom line and employees’ work days if possible, involve end users in the decision making process provide comprehensive driver and dispatcher training re-evaluate your policies to make sure they align with the new systemCommon Mistake: Not assigning a champion make sure you assign someone to become the expert on the systemThis helps other employees get excited and ensures you get the most from your system making sure you know how to completely use the solution after training is key
- Track progress on short-term and long-term goals don’t expect results overnight but make sure the information you need is being provided through reports discuss how the vendor will provide reports to you and the frequencyCommon Mistake: Too Much Information once you have a system the amount of data you can access can be overwhelming make sure you identify a few key goals to focus on at the beginning to avoid information overload
- -always be evaluating how your solution is helping you meet your goalsImplement driver report cards to monitor driver behavior have your short-term goals been met? if so, start evaluating the steps needed to move towards your long-term goals how can you further optimize your processes to get the most out of your investment?Common Mistake: Lack of an overall goal - after a reasonable period of time it may seem that you are meeting all your goals - dig deeper to get more out of your system - optimize as many business processes as you can and keep pushing forward with your system
- A vehicle telematics solution can make an immediate impact on your organization, helping you to reduce fuel consumption while increase vehicle efficiency to complete more jobs per day. After a thorough evaluation of the available technologies and vendors, you should expect to receive a solution which addresses your specific business needs to improve your overall operations.