Frito lay-Geotab

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Advanced Fleet Management by Geotab brought to you by VM Fleet.
See how the Geotab systems are helping fleet optimisation.

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Frito lay-Geotab

  1. 1. ® magazineDRIVING VALUE dollars turning fleet data into BY LISA BONNEMA WITH THE RIGHT STRATEGY, M2M CAN HELP FLEET MANAGERS MANEUVER THE ROUGH DATA TERRAIN GUIDING THEM DOWN THE ROAD TO PROFITABILITY. W hen it comes to fleet- “When we first did the pilot, it was very management systems, there overwhelming because we didn’t know is certainly no shortage of what we were looking for,” he says. “We technology solutions—or data for that had so much data, we didn’t know what matter. Today’s systems can provide to do with it.” gobs of fleet information, ranging It wasn’t until O’Connell and his from realtime GPS (global positioning team started to segment the data that system) tracking and engine diagnostics they began to get a clear idea of what to whether or not your driver is wearing the system could do for the company’s his seatbelt. And while information is bottomline. “I don’t need a second-by- certainly power, some of today’s fleet second of everything,” he explains. “I managers are finding there can be too need snapshots of data, and I need to much of a good thing. know when things change. I also need to That was certainly the case for Mike prioritize what is important to us.” O’Connell, director of fleet at Frito- But when you are swimming in data, Lay. When the snack giant decided how do you even know what to reach to add telematics to its fleet of 17,000 for? The answer to that question will delivery trucks, the business possibili- vary by company, of course, but there are ties were endless—an opportunity that some current trends that are leading fleet both excited and bewildered O’Connell. managers down the road to profitability. Reprinted with permission from the July/Aug 2011 issue of Connected World magazine www.connectedworldmag.com
  2. 2. GO5 is a GPS vehicle- tracking device that can track g-forces, engine and battery health assessments, and more.NAVIGATING THE DATA certainly don’t have time to translate systems and can create “geofences”There is no question the transportation stacks of data reports. The key, Bonte to react to changes in location. “Theindustry understands the importance explains, is finding a good data-process- software will watch the vehicle inof technology. ABI Research estimates ing solution that does the work for you operation and if it sticks to the rules, itthis year, fleet-management systems and, more importantly, creates value out is silent,” explains Dale Calder, foundersubscriptions will surpass 2 million, with of the data that is being collected. “I of Axeda. “But if for some reason it fallsthat number quickly climbing to more would really look at companies that can behind or goes outside of the geofencethan 3 million by 2015. According to actually provide that business intel- … it can notify someone who can takeDominique Bonte, ABI’s group director ligence dimension and not just work action on it.”of telematics and navigation, the problem with a hardware vendor or a software Calder says the trend is to use theis many companies never moved beyond vendor that sells black boxes or software platform to correlate the telematics data“the dot on the map” GPS provided—a packages and then leaves you very much with other logistical information suchmisstep Bonte believes was largely caused to your own devices,” he says. as routing and the supply chain. “Byby a lack of vendor support. “It was very The good news is vendors are stepping tying all those things together, you startmuch pushing technology and then once up to the plate with a new generation having the software do things for you,”it was sold, it was up to the fleet manager of automated solutions that take the Calder remarks. “So the person who wasto try and do something with it,” he says. burden off of the fleet operator. Foxboro, watching 50 trucks can now handle 500 But like most of today’s executives, Mass.,-based Axeda, for example, offers trucks because he doesn’t have to watchfleet managers are trying to do more a platform that allows users to build them—the system watches for him. Hewith less manpower, which means they location-based services into telematics just has to handle the exceptions.” Reprinted with permission from the July/Aug 2011 issue of Connected World magazine www.connectedworldmag.com
  3. 3. Focusing on the exceptions hascertainly worked for Frito-Lay. Usingthe GO5 telematics system fromGeotab, the snack provider has createddata “scorecards” that are helpingO’Connell identify vehicles that arenot meeting idle and out-of-route milegoals—the two metrics the company ismeasuring to drive down fuel costs. To meet its out-of-route mile goals,for example, the company integratesengineering data from its routing systemwith the actual mileage measuredfrom its telematics system. “We takethose engineered routes against actual,and then we scorecard the variants,”O’Connell explains. If a vehicle fallsoutside of the target mileage range,O’Connell is automatically notified andcan respond appropriately. And Frito-Lay is reaping the benefits.According to O’Connell, the companyis just shy of meeting its 50% reductionin idling goal, and it hasn’t even finishedequipping its entire fleet with thetelematics system. “You don’t have to be100% implemented to still influence the Today’s fleet-management systems can keep track of whereorganization,” O’Connell says. “As we trucks are supposed to be, and compare that information tophase in regions, we are absolutely seeing where they actually are. This can cut down on workers taking aperformance flow through, and we are little “time off” while technically on the job.meeting our fuel plan.”INSURED SAVINGSDriver measurements such as idle timeand out-of-route miles are just two can now tell operators if drivers are use telematics will have a clear advan-examples of one of the most recent speeding, heavily braking, aggressively tage over companies that do not use theshifts in fleet management, according turning, and perhaps falling asleep at the technology. “You can actually monitorto Colin Sutherland, who is the vice wheel. In addition to increasing effi- your fleet closely and take correctivepresident of sales at Geotab. “Prior to ciency and reducing wear and tear on the action way before the government is2010, I can say most fleets were just vehicle, monitoring driver behavior can going to find out,” she says. “So you caninterested in managing their running help operators weed out the bad drivers meet the new government standards andcost per mile, which would be fuel, and potentially prevent accidents before improve your positioning in terms oftire, maintenance, cost of the asset,” he they even happen. quality of your fleet.”explains. “But, of course, as the economy With the Dept. of Transportation’s In fact, some companies are takingchanges and sometimes you are driving new Compliance, Safety, Accountability these solutions a step further and usingsignificantly fewer miles because your (CSA 2010) initiative—which will hold telematics systems to drive down insur-business is gone … the idea of analyz- drivers and their employers accountable ance costs. According to Sutherland,ing your fleet based on running cost per for unsafe driving—enhancing safety pest-control service provider Orkin hasmile had to change.” is certainly at the forefront of several been successfully doing that for more As a result, some fleet operators are motor carriers’ minds. Sylvia Karmanoff than eight years now, and other compa-now using their telematics systems is highly experienced in the area of nies have just recently started to seeto measure the one thing they can fleet management. She is managing the benefits available from the strategy.control—driving behaviors. Telematics director of technology consulting firm “Fleets can reduce between $1,000-systems equipped with accelerometers KEMSI and believes companies that $2,000 per vehicle per year in claim Reprinted with permission from the July/Aug 2011 issue of Connected World magazine www.connectedworldmag.com
  4. 4. costs,” Sutherland says. “Self-insurance how I want him to respond—(either) for the company by allowing workersclaim reduction costs for some fleets yes/no, type a full response, or use one to do more work in less time, it savedequal the fuel savings that they can get of my canned responses. The key value the cable provider costs by reducing thefrom telematics.” proposition in the whole thing is stream- number of contract laborers it needed to Many insurance companies are also lining communication between the field hire overall.starting to offer discounts to fleet opera- and the backoffice.”tors that implement telematics systems ON THE HORIZONwith safety-measurement capabilities, The idea of doing more with less will continue to be a key trend for fleet management, according to Ewing. As fleet operators start to add more hardware and data plans to their fleets, Ewing says there A fleet-management system can accurately track a vehicle’s whereabouts, but will have to be some consolidation. that’s just the beginning. Today managers are monitoring idling, hard braking, “You are starting to introduce a lot of routes, and engine health. different form factors and data plans into the vehicle—smartphones, laptops, and Garmin displays,” he says. “I continue to see that consolidating into fewer form factors; otherwise it’s goinga move Sutherland believes will make to get really crowded in the truck.”insurance reduction the largest trend in According to Ewing, a large cable Jeff Newman is the senior vicefleet management. “Frankly, it will be provider was able to use its telematics president of business development fordefining the telematics industry for the systems to increase the number of work telematics hardware supplier Enfora,next three years,” he says. orders it completed in a day. “Once they and he says the concept of mobile installed our system with a Garmin on hotspots may offer fleet operators a wayINSIDE THE CABAnother more recent trend in fleetmanagement is connecting drivers tothe backend office to increase efficiencyand, in turn, drive sales. Todd Ewing,senior product manager at SageQuest, says this strategy hasbeen especially beneficialfor metro fleet operators “You can actually monitorsuch as plumbers,cable technicians, your fleet closely and takeand utilities. corrective action way before By using SageQuest’s system, the government is going towhich includes find out.”under-the-dash equip-ment from hardware — Sylvia Karmanoff, KEMSIsupplier Enfora and an in-cabdisplay from Garmin, Ewingsays companies are essentially auto-mating their business. “It’s giving them a remote way todeliver stops without having to havepaper sheets, without phone calls andupdates and statuses,” Ewing explains. it, they were able to go from 110 to 115 to consolidate data plans and integrate“As a dispatcher, I can send a simple work orders per tech per month, up to all of the fleet’s critical data, includingmessage down, have it appear on the an average of 160 orders,” he says. Not cargo inventory. Fleet managers wouldGarmin as a pop-up icon, and decide only did the system increase efficiency Reprinted with permission from the July/Aug 2011 issue of Connected World magazine www.connectedworldmag.com
  5. 5. “You are starting to introduce a lot of different form factors and data plans into thelikely be on boardwith a solution vehicle ...”that made it easier — Todd Ewing, Sage Questto consolidate all datathrough one system. “That hasn’t been donebefore because typically thosehave been one-to-one relation-ships in wireless,” Newman says. “Nowwith this mobile-hotspot concept, youcan actually scale and manage differ-ent wireless technologies inside of oneconcentrator, and you can aggregate software solution. Cloud-based systemsthose back to a backend system that can are your best bet, he says, or combinedmanage all of that information.” solutions that involve several vendors to Of course, it’s anybody’s guess as to provide a comprehensive system.what tomorrow’s fleet-management “Every fleet and every segmentsystems will look like, which is exactly is different,” Bonte notes. “What’swhy Bonte of ABI Research says it is important is that the fleet manager canimportant for companies to think ahead be assured that when he works with aand choose solutions that are based provider, that provider will be able toon an open strategy so they aren’t tied support his needs not just today, but into one specific piece of hardware or the foreseeable future.”HOW WELL DO YOU KNOW YOUR DRIVER?Today’s telematics systems are not only to identify an employee that was padding multiple fuel purchases in which the locationhelping fleet operators get a clearer picture hours and falsifying time-sheets. In addition, of the truck was not verified, and theof what their vehicles are doing, but also by using the reporting suite’s new fuel card customer had the proof it needed to handlewhat the people inside their vehicles are application, the customer detected the same the situation appropriately.doing. Using a combination of GPS technol- employee was committing fuel card fraud. The fuel card reporting solution, developedogy and accelerometers, fleet operators are By combining GPS tracking data with by Wright Express, is also capable of calculat-starting to separate the safe drivers from the fuel card purchase data, the customer was ing MPG data and anomalies, as well as theerratic drivers and, in turn, are improving able to generate reports on all fuel card easy identification of non-fuel purchases andthe quality and safety of their fleets. In transactions, and more importantly, see an IFTA (Intl. Fuel Tax Assn.) state mileage/fact, thanks to some creative data use, fleet flagged activity where a specified vehicle fuel purchase report. According to GPSoperators can even separate loyal employees was not present for the associated purchase Insight, advanced data tools like fuel cardfrom those who commit the worst chicanery. transaction. After reviewing a color-coded reports are taking fleet management to the GPS Insight, a supplier of GPS fleet- report—green for verified purchases and red next level by putting the control back intotracking solutions, said one of its customers for potential fraud—the customer was able the hands of fuel operators—and taking therecently used its telematics reporting suite to see that the employee was actually making wheel away from unfit drivers. Reprinted with permission from the July/Aug 2011 issue of Connected World magazine www.connectedworldmag.com

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