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Telematics SPECIAL REPORT

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TRUSTED FIGURES IN FLEET

FLEETMANAGEMENT

Toyota Fleet Management is a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536. TFS1344 (11/16)

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When it comes to managing a fleet, safety and efficiency are top of mind. Toyota Fleet Management’s telematics product, ForceField, is a mobile technology that tracks vehicle and driver behaviour, giving you valuable insights to help identify ‘at risk’ drivers. We can show you how to leverage these insights and address potential risks so you can maximise operational efficiencies.

We’ll work with your business to deliver a tailored solution to address your specific needs. What’s more, you’ll have the convenience of dealing with the same provider for all your fleet needs.

It’s an integrated solution that delivers on our promise of being your Trusted Fleet Advisor.

To see what ForceField can do for you, talk to the trusted figures in fleet. Call 1300 888 870 or visit toyotafleetmanagement.com.au

ForceField TelematicsHelping you drive a smarter, safer fleet

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Telematics Special Report

Telematics is the term coined from a combination of the words telecommunications and informatics. Vehicle telematics encompasses global positioning systems and information on how fast a car is traveling, how fast it stops, its fuel consumption and where it, or associated equipment, is located.

A telematics system can be as simple as an over-the-counter dashboard Navman or TomTom giving a driver directions to a location and updates on best routes to avert current traffic congestion.

In fleets though it usually comprises a custom-built unit that plugs into the vehicle’s engine management system and feeds data from the vehicle back to a server for analysis by an office based worker or fleet manager.

Fleets have increasingly adopted the use of telematics for several reasons. They use it to improve the management of assets and maintenance scheduling. It’s used to train drivers and post incident analysis. And for many organisations, telematics helps with customer service complaints and improves safety for isolated workers.

The heavy vehicle industry has the highest rate of adoption according to research conducted by Sydney-based market information group ACA Research. Their 2015 survey showed that among large truck fleets of more than 25 vehicles the take-up rate was 76 percent. The adoption rate was 49 percent for trucks fleets of between six and 25 vehicles, and was just 18 percent for fleets with less than six trucks.

“The level of take-up of telematics has historically been lower in passenger and light commercial fleets when compared with those operating heavy commercial vehicles. However we are seeing an increase in the level of enquiry and acceptance from managers of passenger and light commercial vehicles” confirms Matthew Gambell, Fleet Strategy Manager at Toyota Fleet Management.

Though even with the obvious benefits and return on investment for transport fleets, the overall penetration of telematics is very low.

One segment of early adopters is local government. They use the system to track assets and reduce theft. And most have telematics installed in at

What is Telematics and who is using itleast some of their passenger vehicle fleet.

That’s a small proportion, but fleet managers and telematics providers all agree its growing. The advances in the technology, an increased understanding of the benefits and declining costs for installing and maintaining systems mean that adoption of telematics among fleets is accelerating.

ACA’s research also showed: 97 percent of telematics users have it for vehicle tracking; 61 percent use it for fatigue management; 56 percent use it for driver performance management; and 48 percent use it for vehicle performance management.

Telematics have been around in Australian fleets since the late 1990s. In those very early days it relied on radio base communications to submit the data. With the advent of mobile phones and the cost of mobile data decreasing, it’s gone from very basic information to very rich data; for example location data is now accurate down to one metre.

Some of the most basic systems today cost an estimated $500 to install per vehicle and another $20 each month to maintain and access to reporting. The costs escalate into the thousands for installing more complex systems.

Many organisations question the ROI. But the ones that have had it for many years, and use it properly, believe the payback period is very short.

And, can all fleets benefit from a telematics system?

“Yes, without a doubt,” says Gambell. “There are many benefits in terms of safety, productivity and knowing where your assets are; telematics has the potential to change your business processes to deliver tangible benefits”.



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Knowing what you want from telematics is the key to choosing a system that will work for you. Just like hiring someone for a job, you will want to list the criteria and capabilities to be satisfied.

“The important thing is to understand what you want from the system, both now and in the foreseeable future,” said Robert Wilson, director of Victoria-based fleet management consultancy 4C Management Solutions. “What are your biggest issues: utilisation, driver behaviour, safety, route optimisation or something else?”

The list of potential applications includes emergency warning systems, work diaries, fringe benefit tax reporting, and integration with

other media platforms such as Salesforce, widely used by sales teams around the world.

“Start with the end in mind,” said Wilson. That end should also include specifications to meet needs from other parts of the organisation, such as operations. Obviously, the chief information officer or IT department will also want input from a technical perspective.

Some of the other considerations for choosing a telematics provider and drawing up a contract for service include whether to outsource or manage in-house. This will depend on your requirements, your resources and your current fleet management systems.

Often the answer lies somewhere in-between. If you do acquire telematics as a service you will want to ensure you can upload data into your in-house systems for record and reporting requirements.

Picking a provider should like any other supplier selection process. There is always a balance between testing the market adequately and being flooded with bidders that don’t quite hit the mark.

Often, for large scale acquisitions a two stage process including an Expression of Interest (EOI) and a Request for Tender (RFT) can be used. The EOI is less detailed but filters the market in line with your requirements. A short list from the EOI process is formulated to take to the RFT stage.

Due diligence is an important step not to be skipped. Like any significant commitment you need to understand the best fit for your organisation. Not just price, but things like; training, on-going support, compatibility with current systems, ability to meet specified requirements and so on.

You also want to make sure the supplier can live up to promises made. Telematics is not a new industry and good suppliers will have a track record. Get vendors to provide a demonstration of how their system meets your requirements and have the stakeholders involved. Talk to references. If possible run a pilot to test the system in your context.

As you get near the end of the process make sure the contract includes everything you need now and in the foreseeable future. Telematics will continue to evolve so if possible structure the contract in a way that encourages innovation and development of your system over time.

How do you select a system and a supplier?

... First, know what you want



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Fleet management organisations and consultants are widely used by fleets to collect data, report and help manage fleets. They either have their own telematics system, such as Toyota Fleet Management, or have a liaison with a telematics provider and can help you determine what features are most suitable for your fleet, be it small or big.

Typically, they are in a position to advise you how to look at the right things to get better fleet utilisation. They know that many organisations are looking for the same thing and have become experts in understanding what telematics reporting will deliver most benefits to your size and type of business.

They can help you devise what data is collected and provide the option of issuing you with daily,

weekly or monthly reports that you can then use for a variety of fleet management considerations, such as informing driver training programs or proactively scheduling maintenance on your vehicles.

Accountability will remain with you if you use a fleet management organisation, however, you won’t require in-house resources and training to use and mine a telematics system.

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The role of a fleet management organisation in telematics

service may be the best way to go. For one thing, it helps overcome any issues with staff turnover, where your only in-house trained operator may leave their job.

While telematics users widely list the benefits of having the systems, they often say they underestimated the staff resources required to get optimal use from them.

“This is probably the part where most people fail,” said Greg Hattander, fleet co-ordinator at Lake Macquarie Council. “They look at the cost and say yep were going to put the GPS in and start collecting the data but people only use the tool reactively. You can use it to plan trips and start to use things more proactively provided you have people who can use it.”

Clearly, that’s where an expert fleet management organisation can help, by analysing the data and making recommendations on how you can better use your fleet.

Certainly, for a small fleet, where concerns about health and safety and compliance issues are equally as important as for bigger fleets, outsourcing the whole telematics

an expert fleet management organisation

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Vehicle manufacturers have moved into the telematics space increasingly in recent years, providing a one-stop shop for fleet managers. And looking ahead, this trend is likely to continue.

Telematics systems first started appearing in non-commercial vehicles as built-in features as much as a decade ago, with Holden, Ford, Mercedes Benz, Mazda and BMW among the plethora of manufacturers including them in their luxury lines at first. These systems generally offer features including vehicle location and seat-belt alerts.

But in recent years, as the technology has advanced and as it becomes a requirement in commercial vehicles, more manufacturers are launching telematics systems specifically

designed for the fleet management industry, or use in commerce.

“It’s telematics technology which emerges as the single most important technology development we’re likely to see in our vehicles,” Isuzu Australia said in November.

“Telematics will be soon viewed as part of the truck — just like the engine or transmission — rather than seen as an accessory,” said Simon Humphries, chief engineer, product strategy at Isuzu Australia.

Isuzu, the Japanese brand of light, medium and heavy trucks that is popular in Australia, has a range of product and packages developed in Australia to suit Australian requirements. The systems generally

comprise a black box installed behind the truck’s dash panel.

The black box works with a server and wireless devices to provide a range of operational and driver safety management efficiencies, such as live positioning, trip playback, geo-fencing and fleet and engine data information tools.

Buyers also have the option to include driver-security features such as a panic button, collision alert and door-open monitor. Recent updates to the Isuzu packages include a driver ID

feature, designed to enable operators to see which driver is in what vehicle — handy for managers of pooled vehicles using multiple drivers.

In November, Toyota Fleet Management and Hino each launched telematics products.

Toyota Fleet Management has launched a telematics system called ForceField which provides real-time tracking of vehicle and driver behaviour.

“ForceField helps manage the risks associated with running a vehicle fleet by providing the insights that lead to safer driving, fewer accidents and increased cost savings by making it clear how best to manage your fleet assets,” said Ed Stanistreet, Toyota Fleet Management general manager.

Other benefits include the ability to identify surplus vehicles that can be reallocated or even disposed of, and maximising efficiency by using the data to

optimise routes, monitor speed and minimise idle time. Other features of ForceField include electronic logbooks, geofencing boundaries, emergency response alerts, seatbelt and fatigue alerts, and driver identification via swipe tags.

Toyota also has a driver app called DriverDirect, which can be loaded onto any mobile device has an electronic logbook that tracks journeys, capturing data through the GPS. The trip data can be filtered, for example, by business use and private use in spreadsheets. Trip expenses can also be managed by the app, with facility for capturing receipts.

Hino, another truck maker, in November launched its own telematics system called Hino Traq, providing real-time vehicle tracking and operational information to driver and fleet managers

through an online portal.

“It is crucial to provide support to businesses in the future and our aim is to provide our customers with range of business-building benefits that will save them money and worry,” said Daniel Petrovski, product strategy manager at Hino Australia.

From the start of 2017 Volkswagen Truck and Bus will offer a cloud-based telematics system called RIO.

This move by manufacturers and fleet management organisations into telematics is particularly helpful for small fleets, of one to six vehicles, where a manager wears many hats including that of fleet

manager and doesn’t have the time to investigate the full array of options and vendors in the marketplace.

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involvement



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ToyotaCorollaAscent SportHatchbackULP

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Contact Electrical sparkles with telematicsCASE STUDY

GO

Adam Moore, purchasing manager of Contact Electrical, a Tasmania-based electrical services company, talks with Fleet Auto News about the company’s use of vehicle telematics.

Contact Group was founded in Launceston in 1986 and now also has offices in Hobart and Burnie. The group have a design and construction division for industry and dwellings, as well as a residential services group. Contact Group provides high-voltage installations, street lighting, emergency call out services, and as such is dependent on a reliable fleet of vehicles.

FAN: How many vehicles in your fleet? How many other assets?

AM: We have 124 vehicles in the fleet and 16 trailers.

FAN: How many vehicles/assets is telematics installed in?

AM: We have 111 installed into vehicles only.

FAN: Can you list some of the top features of your telematics system and ascribe their benefits?

AM: The key features for us include being able to monitor fuel economy, speeding, servicing, and knowing where vehicles are to allocate the closest vehicle to another job. The ability to run a report for a previous day to confirm a staff member’s timesheet if there is any doubt is another top feature.

FAN: How long have you been using telematics and how has it changed the way you manage the fleet/assets?

AM: We have been using vehicle telematics for nearly two years now. The only real change has been the ability to have the vehicles serviced when they are due and not have to wait for the driver to notify us.

FAN: Do you have all the features you need? More than you need?

AM: I think we have plenty of features. We are able to see the real-time movement of the fleet, we have the ability to run a report of a vehicles’ movements from a previous day, and we get notifications when vehicles are due for service. The options available are more than enough for our company.

FAN: Is it entirely managed in-house and what staff resources

does it require, or do you have an arrangement with a consultant?

AM: We manage it in-house. I liaise with the provider if there are any problems, or if I need help to create a report etcetera. We have 25 office staff who can access the system to look at the location of vehicles or run reports.

FAN: Do you have any advice for an organisation considering adopting telematics for their fleet?

AM: I would recommend they look into it, not only for the vehicle monitoring, but it can save you time and money on sending the nearest staff member to an urgent job, monitoring fuel economy on older vehicles or curb speeding amongst your fleet.



telematics - fleet auto news · telematics product, forcefield, ... users have it for vehicle...

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