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at a glance
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.
20
ty, increased employee productivity and efficiency, route compliance, and improved
customer service, among others.
Driver safety is one recurring theme noted by several telematics providers.
The age-old challenge with the mobile workforce is that you simply cant get
enough visibility into their day to provide
meaningful feedback to drivers, noted Karen White, senior vice president of Customer Solutions for GreenRoad. How safely a
driver arrived at a destination isnt measured just by whether the driver crashed or
arrived safely; we measure it maneuver by
maneuver, every mile, based on forces exerted in the cab.
According to White, with the aid of technology, you can overcome the mobile workforce dilemma and gain insight into how
a driver is doing his or her job without being in the passenger seat.
Having a device in a vehicle, acting as a coach, instantly helps drivers become more
cautious on the roads, agreed
Todd Follmer, CEO of inthinc
Technology Solutions, Inc.
Safety is also of paramount importance to an
organization, and its twotiered: employee safety and
the duty to ensure the safe
operation of a vehicle on
15
May June
200
12
11.96
13.79
12.97
12.90
8.23
13.41
Pounds Reduced
MPG
site1
site 2
site 3
150
100
50
source: fleetmatics
february
month
2013
Yr I automotive fleet
21
$25
$20
$15
$10
$5
$0
200
$
22
September
August
July
June
May
12.97
12.90
11.96
13.79
Pounds Reduced
Investment
Cumulative
Investment
efficiencies
that reverberate throughout
fits available. Focus on a few and really figresources (both human and physical) when
the company as other departments beneure out what
those resources are off the lot.
$15 you need to achieve from the
fit from the insights and process improveproject. What are the goals, and how you
Its a step change in the mobile resource
ments as well.
can get the biggest bang for your buck?
management experience, White said. There
Colin$10
Sutherland, VP of sales for Geotab
There is plenty of data available to supare huge wins to be had here, with some
port the implementation of a telematics sysalso believes if it cant be measured, it cant be
potentially surprising external results to
tem. Today, the awareness of telematics is
managed. Telematics is an essential manageboot. Weve heard from customers whose
there. Its all about pulling the trigger, said
ment tool based on recording precise infor- $4.44
$5
$3.85 employee retention soared as their managLewis of GPS North America.
mation on how people and assets are used 24
er engaged more with drivers who experi$1.36
Look at other company fleets successhours a day, he said.
Fleets should look at
enced a reduction in safety incidents and
of telematics
urge
two high-level objectives reducing expensfewer crashes. When you engage your team
June
July programs.
AugustWe
September
May ful use
$0
our customers to point to the success of
es and improving
the companys revenue. To
rather than watching them from behind
Daily
Daily Savings
our current customers, said Follmer of inreduce expenses, fleets
need
to
first
target
how
the glass and build a pervasive safety culInvestment
thinc. Barrick Gold Corp. reduced its inciand where fuel is consumed from the fuel
ture, good things happen.
dent rate by 68 percent within the first year
card purchase to the miles that are driven.
When evaluating or promoting a new
of implementation. Cintas experienced an
When determining goals, Waltz of Sprint
telematics program, it is important to be able
85-percent reduction in speeding alerts and
recommended when working on the ROI,
to measure the ROI, according to Tutor of
89-percent improvement in seat-belt use afits important to recognize different busiSpireon. You also need to ensure you partter installing our technology.
nesses have differing goals that are most
ner with the right company. Look for a finanWhite of GreenRoad also urged fleet manimportant to their bottom line, different iscially solid company driven by innovation
agers to look at the results of others. The
sues they are trying to solve. Its important
that provides scalable technology to grow
to identify that one thing that is most improof is in the pudding, she said. There is
with your business, and its needs, she said.
portant to that business and build the ROI
no substitute for the success stories of other
Lewis, an ex-service business owner himfleets. We can connect prospective telematanalysis around that, then work to address
self, also noted the importance of a scalable
ics adopters with other GreenRoad customthe other concerns and of the stakeholders
program. Scalability means that, for under
ers so they can discuss ROI measurements
and how the solution may help improve
$300, a company can implement the proand results with their peers.
those areas as well.
gram and get a unit that gives them comWallin of Telogis agreed and added this
For example, a delivery fleet may want to
plete tracking, but provides the ability to
telematics
add-on features
ROI - Labor
andlater that they might not
havevs.
wanted
today,Cost
such as a mobile data
l Savings
Total
$25
$20
Promoting Telematics to
Management
$10
May
Fuel
Payroll
Revenue
Investment
$15
$5
$0
$1.36
Daily
Investment
$3.85
$21.73
$4.44
Daily Savings
Common Misperceptions
Even though telematics has come a long
way from being thought of as simply vehi-
$500,000
$400,000
$20
Cumulative Savings
Cumulative Investment
$300,000
$200,000
$100,000
$0
$25
April
May
June
July
$15
$10
source: networkfleet
telematics
August September
Telematics programs typically have a steady monthly investment; however, month-overmonth savings continue to increase when the program is utilized to its fullest.
Many telematics applications offer drivers full visibility into the data their managers
see, and, in some cases, they get to see it first.
Fleet managers may also be under the impression that telematics solutions are completely plug-and-play, and that, by simply
installing a system in vehicles, all of their
troubles will disappear. We have found
that companies with the highest ROI are
those that have hired dedicated champions
to look over the program, monitor the results, study the trends, and take appropriate
action, noted Follmer of inthinc.
Wallin of Telogis also agreed that dedicated resources are a necessity for a successful program. Have dedicated resources. Program implementation should really
have someone assigned to the project with
a clear understanding of business objectives. It doesnt work if you install the program and hope that magic happens. You
need to have a plan and goals; and its dedicated resources that help.
Additional misperceptions noted by Tutor
of Spireon and Foisy of WEX Telematics are
high start-up costs and expensive programs.
Common misstatements include its
too expensive, or they are all the same,
therefore the lowest price wins. The decision should be weighted far more toward
fit and effectiveness than price, Foisy said.
Low-cost providers are risky and it tends
to follow the old adage that you get what
you pay for. There are many providers
out there, so be methodical when making your choice.
A recurring theme surrounding chal-
Featured Telematics
Programs & Providers
$5
$0