Soluciones de Telemetria

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    AUTOMOTIVE FLEET I FEBRUARY 201320

    By setting clear goals;

    utilizing forward thinking;

    and performing detailed,

    initial analysis, telematics

    can easily help increase

    driver productivity,

    promote safer driving,

    and maximize fleet

    dollars.

    BY LAUREN FLETCHER

    Its been said beore, yet the message bearsrepeating: elematics is no longer just GPS

    tracking and vehicle routing. However,

    with so many options at a fleet managers

    fingertips, how do fleet managers select the

    right program, the best provider, and ensure

    a company achieves a return on its invest-

    ment? According to the telematics indus-

    try experts, it all boils down to one simple

    directive: ocus on the companys goals.

    Each fleet has differing needs, requiring

    unique approaches to achieve desired results.

    Focusing on the end goal o what a compa-

    ny requires rom its investment in telematics

    will lead fleet managers through the path o

    least resistance when instituting a new pro-

    gram or modiying an existing one.

    Identifying the Many Known (&

    Unknown) Benefits of Telematics

    Te benefits o telematics are common

    knowledge, including increased uel savings,

    more efficient vehicle tracking and routing,

    and the ability to set geoencing parameters.However, due to the growing needs o

    fleets around the country, telematics pro-

    grams are evolving to encompass driver sae-

    ty, increased employee productivity and e-

    ficiency, route compliance, and improved

    customer service, among others.

    Driver saety is one recurring theme not-

    ed by several telematics providers.

    Te age-old challenge with the mo-

    bile workorce is that you simply cant get

    enough visibility into their day to provide

    meaningul eedback to drivers, noted Kar-

    en White, senior vice president o Custom-

    er Solutions or GreenRoad. How saely a

    driver arrived at a destination isnt mea-

    sured just by whether the driver crashed or

    arrived saely; we measure it maneuver by

    maneuver, every mile, based on orces ex-

    erted in the cab.

    According to White, with the aid o tech-

    nology, you can overcome the mobile work-

    orce dilemma and gain insight into how

    a driver is doing his or her job with-out being in the passenger seat.

    Having a device in a vehi-

    cle, acting as a coach, instant-

    ly helps drivers become more

    cautious on the roads, agreed

    odd Follmer, CEO o inthinc

    echnology Solutions, Inc.

    Saety is also o para-mount importance to an

    organization, and its two-

    tiered: employee saety and

    the duty to ensure the saeoperation o a vehicle on

    public roads, according to Angela Vanek,

    project lead or Strategic Accounts at Sage-

    Quest, a branded offering o Fleetmatics.

    One actor not typically connected with

    telematics is improved customer service.

    Again, while not a new eature, fleets are

    utilizing this aspect o their telematics pro-

    grams in a new way.

    Our program clearly shows the clos-

    est driver to dispatch to a needed location.

    Tis can help validate service, helping ver-

    iy that service was done. It can also help

    improve the response time to customers,

    according to odd Lewis, president o GPS

    North America.

    When looking to implement telematics into a

    fleet, fleet managers should be sure to:

    Set clear, consistent goals for the project.

    Perform detailed initial analysis and do the

    necessary background work.

    Involve all key stakeholders.

    Communicate program benefits with drivers.

    AT A GLANCE

    PHOTO:ISTOCKPHOTO.C

    OM/MATTJEACOCK

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    MONTH YR I AUTOMOTIVE FLEET 21

    Tis is especially key or emergency- or

    disaster-response situations, where imme-

    diate assistance can make a huge difference.

    elematics can also assist with compli-

    ance issues, including corporate policies,

    hours-o-service requirements, and seatbelt laws, among others.

    Finally, in the age o more available re-

    ports than minutes in a day, telematics can

    help take big data and make it useul.

    Fleets ofen have different sets o in-

    ormation. By integrating GPS data with

    uel card usage and miles driven, you can

    get intelligent reports and insight into your

    business that can really drive savings, ac-

    cording to Mark Wallin, VP o product man-

    agement or elogis. Fleet managers need

    to be able to take all o this data and makeit actionable.

    ime is definitely a concern or already

    busy fleet managers. Managers typically

    think they are too busy to embark on yet an-

    other new project, swimming in data they

    dont have the bandwidth to use, White

    noted. Tats why GreenRoads mantra is

    Data into action. We ocus on not just pro-

    viding data, but on exception-based man-

    agement that makes it truly actionable, with

    minimal effort.

    Follmer o inthinc also believes thatimproved driver efficiency is an up-and-

    coming benefit of vehicle telematics.

    Managers are able to monitor perormance,

    study trends, and identiy areas o weakness

    in their fleets, he noted.

    Showing Management an ROI

    Fleet managers should understand that

    there is no need to overspend on a solu-

    tion. Make sure you choose an easy-to-

    use, easy-to-understand solution, notedCorinna utor, vice president o Integrat-

    ed Marketing or Spireon. elematics can

    save time and money, not only on the road,

    but in the back office as well. Ensure the so-

    lution you select helps you use less admin-

    istrative and management resources, in ad-

    dition to being more efficient on the road.

    Vanek o SageQuest noted the benefit o

    increased efficiency as well. In this economic

    climate, efficiency is key. Te ability to easily

    understand how your fleet is operating and

    where your opportunities or operationalimprovement lie are paramount, she said.

    Ryan Driscoll, marketing manager orGPS Insight, cautioned against just select-

    ing the lowest-cost provider, using gold and

    silver as an analogy.

    As our ounder, Rob Donat, always says,

    i you can buy a bar o silver or $25, thats a

    great deal and will provide a antastic ROI.

    However, i you can alternatively buy a more

    expensive bar o gold or $40, your ROI is

    vastly more than i you purchased the bar

    o silver, Driscoll said.

    He noted that, while gold costs more up

    ront, it will yield significantly more ROI i a

    small premium is paid. We hear about this

    all the time, he said. Companies went with

    the lower-cost solution. However, its about

    the opportunity cost o not going with a so-

    lution that will really fit your cost o business

    challenges in a way that a higher-end (and

    slightly more expensive) solution does. And,

    we typically see those customers cancel andgo with the higher-end solution once they

    determine this or themselves.

    Ryan Foisy, program manager or WEX

    elematics, recommended using a scoring

    model to be sure fleet managers are mak-

    ing the right choice.

    Keep in mind, although you will likely

    achieve some level o savings with most so-

    lutions, in most instances, you get what you

    pay or, he said. In short, dont make it all

    about price as this is an investment no mat-

    ter how you slice it. So, be sure its the best

    fit or your company and specific business

    case. I the right solution is used properly,

    you will see tremendous results long term.

    As the old phrase goes, you dont know

    what you dont know. Tis is particular-

    ly apt or telematics, according to Vanek.

    My avorite part o each customer de-

    ployment I perorm is the moment where

    I look at fleet perormance data or thefirst time with my customer, Vanek said.

    Each customer I work with has an idea ohow they think their fleet is operating, yet

    are stunned when they are able to actually

    look at the real data that shows them how

    their fleet is really operating.

    Driscoll noted that a GPS tracking so-

    lution can pay or itsel in as little as one or

    two months, i used ully.

    When selecting a telematics solution,

    Chris Ransom, director o sales engineer-

    ing or Networkfleet, recommended fleet

    managers consider the experience and rep-

    utation o the vendor, i the application sup-ports all vehicle types, what type o sup-

    FLEET FEEDBACK & TOP

    REASONS TO USE TELEMATICS

    When asked for the top reasons to utilize telemat-ics, the industry experts and fleet managersshared more than could fit in print. Take a look

    online by scanning the QR code with your mobile

    phone, or go directly to www.worktruckonline.com/

    magazine to see what they shared.

    0

    3

    6

    9

    12

    15

    site 1 site 2 site 3

    8.23

    13.41

    11.96

    13.79

    12.97

    12.90

    May June

    Reduction in Average Miles Per Gallon

    M

    PG

    Increasing mpg is one

    of the best known

    benefits of a telemat-ics program. One busi-

    ness fleet showed

    how, on average, mpg

    increased across

    three sites utilizing

    telematics.

    SOURCE: FLEETMATICS

    FEBRUARY 2013 I AUTOMOTIVE FLEET 21

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    port is offered, and how easy the system is

    to install and use. Fleet managers should

    also consider flexibility in pricing, such as

    monthly service plans with no up-ront

    costs, Ransom said.

    Te insights into greater efficiencies canhelp transorm fleet operations and provide

    the ability to validate an ROI, which can re-

    sult in real cost savings across the board in

    uel, utilization, maintenance, insurance

    costs, and more, according to Ransom.

    First, drivers become more aware, drive

    saely, reduce speeding, and become over-

    all more efficient. Tis not only reduces uel

    costs, but can provide cost savings in labor or

    increased efficiency, Ransom noted. Reve-

    nue can also be increased through the abili-

    ty to increase the number o stops each day,and a fleet may be able to reduce the num-

    ber o vehicles by monitoring fleet utiliza-

    tion and vehicle usage, which can provide

    a savings o 5 to 10 percent.

    Marlene Waltz, director o solution sales

    at Sprint, noted that significant increases

    in operational efficiencies can be ound,

    not only in the fleet space, but savings and

    efficiencies that reverberate throughoutthe company as other departments bene-

    fit rom the insights and process improve-

    ments as well.

    Tere is plenty o data available to sup-

    port the implementation o a telematics sys-

    tem. oday, the awareness o telematics is

    there. Its all about pulling the trigger, said

    Lewis o GPS North America.

    Look at other company fleets success-

    ul use o telematics programs. We urge

    our customers to point to the success o

    our current customers, said Follmer o in-

    thinc. Barrick Gold Corp. reduced its inci-

    dent rate by 68 percent within the first yearo implementation. Cintas experienced an

    85-percent reduction in speeding alerts and

    89-percent improvement in seat-belt use a-

    ter installing our technology.

    White o GreenRoad also urged fleet man-

    agers to look at the results o others. Te

    proo is in the pudding, she said. Tere is

    no substitute or the success stories o other

    fleets. We can connect prospective telemat-

    ics adopters with other GreenRoad custom-

    ers so they can discuss ROI measurements

    and results with their peers.Wallin o elogis agreed and added this

    advice: Work closely with your solution

    providers. Tey have the experience in theindustry and with customers who have had

    success, he said.

    Fleet managers should also be sure they

    have ocused on key goals, figuring out

    what they expect rom the project. Focus

    on one or two key goals or the business,

    Wallin said. I its driver saety, reduced op-

    erating costs, etc., there are so many bene-

    fits available. Focus on a ew and really fig-

    ure out what you need to achieve rom the

    project. What are the goals, and how you

    can get the biggest bang or your buck?

    Colin Sutherland, VP o sales or Geotab

    also believes i it cant be measured, it cant be

    managed. elematics is an essential manage-

    ment tool based on recording precise inor-

    mation on how people and assets are used 24

    hours a day, he said. Fleets should look at

    two high-level objectives reducing expens-

    es and improving the companys revenue. o

    reduce expenses, fleets need to first target how

    and where uel is consumed rom the uel

    card purchase to the miles that are driven.When determining goals, Waltz o Sprint

    recommended when working on the ROI,

    its important to recognize different busi-

    nesses have differing goals that are most

    important to their bottom line, different is-

    sues they are trying to solve. Its important

    to identiy that one thing that is most im-

    portant to that business and build the ROI

    analysis around that, then work to address

    the other concerns and o the stakeholders

    and how the solution may help improve

    those areas as well.For example, a delivery fleet may want to

    ocus on uel efficiencies rom optimizing

    routes and reducing idle time, while a ser-vice and repair fleet may care more about

    the ability to dispatch service personnel in

    a way that improves response time.

    elematics can also make a fleet managers

    job easier in two important ways: enabling

    drivers to sel-improve through real-time

    eedback in the vehicle, and by providing

    managers with detailed visibility into their

    resources (both human and physical) when

    those resources are off the lot.

    Its a step change in the mobile resource

    management experience, White said. Tere

    are huge wins to be had here, with some

    potentially surprising external results to

    boot. Weve heard rom customers whose

    employee retention soared as their manag-

    er engaged more with drivers who experi-

    enced a reduction in saety incidents and

    ewer crashes. When you engage your team

    rather than watching them rom behind

    the glass and build a pervasive saety cul-

    ture, good things happen.

    When evaluating or promoting a newtelematics program, it is important to be able

    to measure the ROI, according to utor o

    Spireon. You also need to ensure you part-

    ner with the right company. Look or a finan-

    cially solid company driven by innovation

    that provides scalable technology to grow

    with your business, and its needs, she said.

    Lewis, an ex-service business owner him-

    sel, also noted the importance o a scalable

    program. Scalability means that, or under

    $300, a company can implement the pro-

    gram and get a unit that gives them com-plete tracking, but provides the ability to

    AUTOMOTIVE FLEET I FEBRUARY 201322

    TELEMATICS

    In addition to reduced

    fuel consumption and

    increased vehicle mpg,

    fleets can also ben-

    efit from telematics

    through reduced ve-hicle emissions. The

    data shows the results

    shared by one 250-unit

    fleet over a five-month

    period.

    0

    50

    100

    150

    200

    May

    June

    July

    August

    September

    Cumulative Emissions Reductions

    Carbon Dioxide

    PoundsR

    educed

    SOURCE: NETWORKFLEET

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    AUTOMOTIVE FLEET I FEBRUARY 201324

    TELEMATICS

    game plan can actually shif the pendulum

    in the other direction, he said. I recom-

    mend engaging drivers early, setting up a re-

    ward system, stressing what is in it or them,

    and politely communicating driver policy.

    When looking at policy, Sutherland rec-

    ommended not trying to invent a new pol-

    icy. Fleet managers need to look at what is

    already published and communicated to em-

    ployees in the driver handbook, including

    cell-phone use and uel card policies, and

    build on that, he said.

    Beore implementing a telematics solu-

    tion, fleet managers need to take the time

    to lay the groundwork, gathering inorma-

    tion on current vehicle utilization and op-

    erating costs.

    Tis will be needed to compare costs be-

    ore and afer implementation, and to calcu-

    late ROI, according to Ransom. I possible,

    the utilization inormation should include

    vehicle usage, idle time, uel consumption,mpg, total trips per day, and routing pro-

    cesses, in order to determine i every vehi-

    cle is being utilized efficiently.

    However, perhaps one o the most compel-

    ling actors to promote to management is the

    human actor. One atality is too many or

    any organization, according to Follmer. Sys-

    tems like ours help prevent risky behavior and

    allow drivers to get home saely, every day.

    Common Misperceptions

    Even though telematics has come a longway rom being thought o as simply vehi-

    Start small by piloting a few vehicles

    and prove savings.

    Te rule o thumb is that or most fleets,

    the uel savings alone get you a relatively

    quick ROI i you believe that, then the

    rest is gravy, Foisy continued. In truth, its

    just the beginning o a meaningul, lasting

    change in your business.

    Fleet managers need to select a telemat-

    ics program that can provide a variety o

    reports and inormation, noted Ransom o

    Networkfleet. For example, Networkfleet

    provides the type o high-level reports, such

    as fleet utilization, that senior management

    needs to understand the impact o the pro-

    gram, he said.

    Push back rom management is always

    a possibility, especially in terms o the cost

    o purchasing a new program, according to

    Driscoll o GPS Insight. We suggest ocus-

    ing on the core business challenges you want

    to solve, and how telematics can help solvethem. Ten, look at how your company will

    save more than the actual product or tech-

    nology costs. We recommend a pilot to help

    prove this, Driscoll said. Employee push

    back tends to be the Big Brother issue, eel-

    ing as though they are not trusted. Manage-

    ment needs to explain the program is in place

    to save the company money and have the abil-

    ity to back the driver up i the need arises.

    Foisy o WEX elematics agreed that the

    most common challenge is driver push back

    or objection. But, the good news is that awell thought-out and well-implemented

    add-on eatures later that they might not

    have wanted today, such as a mobile data

    terminal or simple GPS unit or dispatch

    and navigation.

    Te bottom line, according to utor:

    Get a system that is easy-to-use and easy-to-implement.

    Promoting Telematics to

    Management

    Te support o senior management is

    crucial to the successul deployment o any

    program, including telematics. Teir in-

    volvement should be sought early on, and

    continue throughout the process.

    Involve C-Level management early to ex-

    plain the savings. Dont be overwhelmed by

    the investment, as savings will truly dwarthe investment, according to Foisy o WEX

    elematics. Lean on your sales consultant

    to show how the savings will happen.

    Waltz o Sprint recommended identiy-

    ing key stakeholders who may benefit rom

    the data and improvements telematics can

    create. Identiy what inormation gaps and

    deficits you have today that, i filled, could

    increase the efficiency and productivity met-

    rics, she said. Estimate the improvements

    and value o filling those gaps, such as what

    savings could be achieved, what addition-

    al revenue can be realized, and how many

    more widgets could get shipped out, etc.

    As Sutherland o Geotab noted, you cant

    manage without measuring whats going on,

    and this can be a key push or telematics.

    elematics is like having a supervisor in

    each vehicle recording all activity every min-

    ute o every day, he said. oday, telematics

    sofware is simple to use and identifies op-

    portunities or savings and growth as well.

    o help promote telematics to manage-ment, you must continue to prove the ROI.

    Foisy shared three ways the ROI or telemat-

    ics is typically proven:

    ROI in concept.Tis is a high-level look

    relying on study ino rom such sourc-

    es as C.J. Driscoll & Associates, Aber-

    deen Group, or evenAutomotive Fleet

    magazine. I you can realize 10-20 per-

    cent in uel savings, ROI should easily be

    achieved or most fleets.

    Rather than study data or a supplement

    to it,

    use an ROI calculator applying thefleets best estimates o data elements.

    One fleet shared a

    breakdown of daily

    savings, including

    fuel, payroll, and

    increased revenue,

    compared to its

    daily investment

    in a telematics

    program. The daily

    savings (fuel, payroll,

    and revenue minus

    the investment) is

    $28.66.

    Daily

    Investment

    Daily Savings

    Fuel

    Payroll

    Revenue

    Investment

    $0

    $5

    $10

    $15

    $20

    $25

    $1.36

    $3.85$4.44

    $21.73

    Daily Individual Vehicle ROI

    SOURCE: SPIREON

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    cle routing and tracking, its still tough to

    get rid o the Big Brother or spy technol-

    ogy mentality.

    A common misperception is that telemat-

    ics is only being used to monitor employ-

    ees, said Ransom o Networkfleet. How-ever, telematics actually helps ensure the

    saety o each driver. By making sure a ve-

    hicle is being used efficiently, is well main-

    tained, and is running properly, it can help

    ensure the saety o the driver.

    Ransom continued, Further, even though

    there is sometimes initial resistance rom

    field personnel, telematics is almost always

    universally accepted a short time later. Peo-

    ple quickly see improvements in efficiency,

    which makes their company stronger. Ev-

    eryone has a stake in that.GreenRoad has also ound that, based on

    its experience, 95-percent o the time driv-

    ers embrace the technology. Tere are al-

    ways a ew drivers that resist, but the vast

    majority o drivers are true proessionals in-

    terested in new technologies that can help

    them sel-improve, White said.

    Vanek o SageQuest continued on the

    theme o driver acceptance and the Big

    Brother mentality, noting the biggestmisperception that exists around utilizing

    telematics is the assumption that it is hard

    to bring this powerul tool into an organi-

    zation and have it embraced and promot-

    ed to enact efficiency change.

    Tis couldnt be arther rom the truth,

    she said. Also, fleet managers need to over-

    come the Big Brother perception associ-

    ated with rolling out a telematics solution.

    SageQuest does not promote the use o the

    application as a monitoring tool; it is pro-

    moted or what it is an efficiency tool.

    We work with fleet managers to ensure thesolution is viewed as a tool, not a weapon.

    Fleet managers must avoid using the tool

    in a negative manner, and work to ensure

    employees are aware that the program is

    not intended to be an enemy.

    Te positive intent on the operatorshould always be assumed, Vanek contin-

    ued. Te data collected is, and should be,

    used as a method to streamline operations

    and improve revenue retention.

    White o GreenRoad commented, No

    one wants a spy in their cab, and telemat-ics ofen has that reputation.

    Many telematics applications offer driv-ers ull visibility into the data their managers

    see, and, in some cases, they get to see it first.

    Fleet managers may also be under the im-

    pression that telematics solutions are com-

    pletely plug-and-play, and that, by simply

    installing a system in vehicles, all o their

    troubles will disappear. We have ound

    that companies with the highest ROI are

    those that have hired dedicated champions

    to look over the program, monitor the re-

    sults, study the trends, and take appropriate

    action, noted Follmer o inthinc.

    Wallin o elogis also agreed that ded-

    icated resources are a necessity or a suc-

    cessul program. Have dedicated resourc-

    es. Program implementation should really

    have someone assigned to the project with

    a clear understanding o business objec-

    tives. It doesnt work i you install the pro-

    gram and hope that magic happens. You

    need to have a plan and goals; and its ded-

    icated resources that help.

    Additional misperceptions noted by utoro Spireon and Foisy o WEX elematics are

    high start-up costs and expensive programs.

    Common misstatements include its

    too expensive, or they are all the same,

    thereore the lowest price wins. Te deci-

    sion should be weighted ar more toward

    fit and effectiveness than price, Foisy said.

    Low-cost providers are risky and it tends

    to ollow the old adage that you get what

    you pay or. Tere are many providersout there, so be methodical when mak-

    ing your choice.A recurring theme surrounding chal-

    lenges related to instituting a telematicsprogram was the lack o orward thinking

    and planning ahead.

    Fleets are most successul when they take

    the time to develop an internal deployment

    plan or telematics. In this plan, they iden-

    tiy what to ocus on first and what they ex-

    pect to master in the first ew weeks, months,

    and years to realize the greatest ROI, said

    Ransom o Networkfleet.

    Finally, there is always the danger o data

    overload. Leveraging the right data is a

    common challenge o fleet managers, said

    Follmer o inthinc. It is easy to draw quick

    conclusions rom data without studying the

    trends and understanding the whole story.

    Remember, your organization has vehi-

    cles driving all over, most likely with your

    company logo on it. Any operation o that

    vehicle is a reflection o the organization,

    Vanek said. AF

    AUTOMOTIVE FLEET I FEBRUARY 201326

    TELEMATICS

    FEATURED TELEMATICS

    PROGRAMS & PROVIDERS

    For a detailed list of the programs offeredby the providers covered in this article,scan the QR code with your mobile phone, or

    view the article online at www.worktruckon-

    line.com/magazine.

    Telematics programs typically have a steady monthly investment; however, month-over-

    month savings continue to increase when the program is utilized to its fullest.

    MaA ril JulJune Se tember Au ust

    Cumulative Savings

    Cumulative Investment

    ROI - Labor andFuel Savings vs. Total Cost

    $500,000

    $400,000

    $300,000

    $200,000

    $100,000

    $0 SOURCE:NETWORKFLEET