8/10/2019 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
8/10/2019 Soluciones de Telemetria
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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
8/10/2019 Soluciones de Telemetria
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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