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INTRODUCTIONThe U.S. Mobile Resource Management Systems Market Study estimated that less than 5% of U.S. fl eet vehicles were equipped with Automatic Vehicle Location (AVL) units in 2003. Fast-forward to the 2016 study, and that percentage has grown to approximately 30% equipped with GPS/wireless devices. Other studies show that percentage could be even higher.

Telematics is certainly a major growth area for fl eet management. But so are enduring fl eet management topics like vehicle acquisition, fuel management, and safety. Here’s your guide to stay on top of these four important aspects to fl eet and the latest trends.

The 2016-2017The 2016-2017Fleet Manager’s AlmanacFleet Manager’s Almanac What you need to know about fl eet trends in a changing landscape



timecards add up. You can report on odometer data and then integrate it with a fl eet maintenance management system. Putting the two together allows you to more accurately schedule preventive maintenance. With improved integration, telematics can help provide the backbone to many of these insights.

With transparency between systems, manual reports and data entry are a thing of the past — and the information at your fi ngertips is that much more powerful.

PRO TIP: With all the possibilities, it’s more

important than ever to choose a telematics partner

that integrates with a multitude of software providers.

Even more ideal, find one that already has integration

options with software providers you use in other parts

of your operations.

TELEMATICSTelematics may still be relatively new to the fl eet scene, but the technology is changing rapidly. In turn, telematics is

rapidly changing fl eet management.

• Improved IntegrationThese days, telematics systems don’t work in isolation. More and more, fl eet solutions are integrating with other software services.

What you need to know: Sharing data across software systems

helps organizations run more effi ciently and allows you to make better decisions through more detailed insights on operations.

How does integration work? Put simply, data from one source meets data from another source and together they yield more powerful data.

For instance, pair vehicle location data with mapping functionalities and you get better customer service. To respond to emergencies, many utility companies combine vehicle location data with an outage management system. Combining the two can get the nearest responder to the right place faster, ultimately improving outage response times. No logging into multiple systems.

Integration infl uences fuel. Put fuel card information with vehicle location and identify fuel card fraud quickly. Was a fuel card used but the associated vehicle wasn’t at the fueling site? That’s a red fl ag — your driver may be fueling a personal vehicle. You can also track how many miles a vehicle is driven between fuel ups. Does it seem like too much fuel has been purchased for the miles logged? You might have a problem. Fortunately, with integrated data in hand, you can identify the source and take action.

Think outside the box to drive more integrations.Integrating telematics data with payroll systems, for example, can help identify discrepancies and ensure

GPS Insight and Integration When telematics data is paired with other fl eet software, the insights are that much more powerful. That makes it important to fi nd a telematics provider that integrates with the programs your fl eet already relies upon. GPS Insight integrates with numerous types of software, including:• GIS Mapping• Maintenance software• Fuel cards• Outage management software• Dispatching software• Portable Navigation Devices• Fleet management software• Asset management software• Logistics load tracking software• Mobile workforce management software• ERP software• Business management software• And nearly every API integration you can imagine



the intent to provide drivers insight into their daily work. Telematics apps are also becoming available on the popular wearables. Plus, wearables that track sleep can be used to ensure drivers are well rested before starting a shift, for example. By tracking how long a person has slept and how many disruptions they had throughout the night’s rest, drivers can understand how many quality hours of sleep they actually got. In turn, they can make better choices about whether it’s safe to head out on the road.

PRO TIP: Choose a telematics provider that is

dedicated to research and development when it comes

to easy mobile access.

• Dynamic Data Drill DownComparing telematics solution is not a conversation about the actual hardware installed on your vehicle. It’s about how the data is provided through dashboards and reports.

What you need to know: It’s no surprise telematics providers have made big improvements in how users access the data that devices collect. These days, users can customize dashboards so it takes less time to drill down to the information needed. Dashboards are also more visual than ever, with powerful mapping and graphs that allow a straightforward look at the data. Event notifi cations and emailed reports also make grabbing valuable data faster than ever.

Fast access is critical for drivers. That’s why the latest driver apps minimize the number of clicks or touches it takes to get to where you need so that drivers spend less time navigating through data. For these same reasons, voice recognition options are also on the rise.

PRO TIP: Some telematics providers can promise a

plethora of data, but how is it delivered? If the dashboard

isn’t easy to browse and customize, then it’s easy to get

lost in the numbers and have the information go unused.

Make sure the software is user-friendly.

• Data on the GoMany drivers need access to performance data on the go. Fleet managers today can be just as mobile as their drivers and assets too.

What you need to know: It’s no wonder telematics data is now available on a wide variety of mobile devices. Few people, fl eet managers included, leave home without a smartphone, so the availability of mobile apps for telematics has become a no-brainer. With the debut of the fi rst tablet in 2010, these devices were soon to follow.

Mobile features can include:• Vehicle location and current status, including true location

with Google Street View• Bread crumb trails to see where drivers have been• Driver messaging• Directions to/from vehicles• Directions to next job• Locating the closest vehicles to your location, other

vehicles, landmarks, or a specifi ed address

Exception alerts are also valuable tools for both drivers and fl eet managers. Sent by text or email right to a smart phone or tablet, your team can get alerts for things like speeding, idle time, hours of service, theft, long stops and more. These alerts help supervisors manage driver behavior and help drivers self-correct. They can often be customized to be sent only to certain vehicles or assets, at certain times, on certain days, or in a specifi c geographic region.

Next up? Wearables could be another new way for fl eet managers to monitor and control their fl eet on the go. In 2014, Sony launched the Scania Watch in Sweden, with




record RODS must comply with the new ELD rule, with just a few exceptions:• Drivers who use paper RODS for less than 8 days in a

30-day period• Driveaway-towaway drivers (transporting a vehicle for

sale, lease, or repair), given the vehicle driven is part of the shipment.

• Drivers of vehicles manufactured before model year 2000.

The timeline: Here’s a quick breakdown of the deadlines.• By the end of 2017, drivers required to record HOS must

stop using paper logs and instead use compliant ELDs — essentially GPS tracking systems with certain HOS-related features — installed in their trucks.

• By 2019, for fl eets that already have trucks equipped with similar devices called Automatic Onboard Recording Devices (AOBRDs) must install compliant ELDs.

• Within the next four years, ELDs must be installed on all vehicles required to record HOS.

The good news? ELDs can integrate with, if not come from, an existing telematics solution. That means you can get the required information plus driver behavior and fuel reporting and maintenance, etc. all in one place.

PRO TIP: If you’re investing in devices before the

December 17, 2017 deadline, it’s important to work with

a provider that ensures compliance — otherwise you’ll

have to make a costly switch.

• Predictive MaintenanceWhat if you could customize while also automate preventive maintenance schedules to each vehicle, not the calendar? Performing maintenance on time, every time, keeps vehicles on the road and running effi ciently. This saves you both time and money. Telematics collects engine data, eliminating the need for manual checks or driver logs.

What you need to know: Your vehicles might be on a regular oil change schedule, but if it’s based on time alone or the odometer, oil changes may happen too often — or not often enough. Telematics provides data on engine hours, so you know how long vehicles have actually run, including idle time. Basing schedules on metrics ensures your preventive maintenance is on point and not left to driver input. And when that happens, you’ll have fewer breakdowns, improved uptime, and a better idea of when to replace vehicles.

Not every fl eet that relies on telematics uses it for maintenance, but more and more are as they realize the impact. A 2015 Bobit Business Media telematics survey showed nearly 37% of respondents reporting improved vehicle maintenance through their telematics system.

PRO TIP: A telematics provider with strong maintenance

reporting or alert capabilities is able to tap into the

diagnostic trouble codes. With real-time alerts, you can get

vehicles into the shop and your drivers to safety before a

breakdown occurs — while also saving time and money in

the long run.

• The ELD EffectThe new ELD Rule has created a lot of buzz in the fl eet world. In the next four years, Electronic Logging Devices (ELDs) will be required to record Hours of Service (HOS).

What’s the impact of the ELD Rule? The rule could potentially affect 3 million vehicles. That’s not just truckers and bus drivers — anyone driving a commercial vehicle, who needs to complete a Record of Duty Status (RODS) at least 8 days in a 30-day period, will have to install an ELD. The rule extends beyond U.S. drivers too — drivers domiciled in Canada and Mexico must also comply unless they qualify for an exemption.

In essence, any carrier or driver who is currently required to



Among those positive impacts, improved productivity ranked highest, with 59% of those surveyed citing it as a major benefi t of telematics. Decreased fuel consumption and improved routing followed closely behind.

The benefi ts can be found easily within the ROI. In the same study, while it varied by provider, 40% of respondents said they reached an ROI within the fi rst six months of implementing telematics.

• Telematics Systems Are TrendingThe biggest trend in telematics? Their rise in popularity.

Why is telematics so popular? The Bobit Business Media telematics survey mentioned earlier polled more than 1,000 commercial and government fl eets of all sizes. Of those using telematics, an overwhelming majority at 92% said telematics had a positive impact on their fl eet.

codes, idle time, engine hours and odometer readings. When that data is aggregated across makes and models, you can see which units perform best or changes that may need to happen in the spec’ing process to better fi t the vehicle to the job application. This helps identify patterns to determine future maintenance issues, but it also may infl uence which models you invest in down the line.

2. VEHICLE ACQUISITIONVehicle acquisition will always be a careful decision in considering leasing or ownership. But which vehicles that fl eets invest in — and how they determine those choices — can be a moving target.

• The Rolling Model YearStandard model years aren’t so standard anymore.

What you need to know: As OEM production schedules shift and model-year launch time frames are scattered, it presents new challenges for new-vehicle ordering. This can result in early build outs and mid-year model changes. This also ties into vehicle delivery and managing when to order so that you know you will get your vehicle on time.

Engine data from telematics infl uences purchasing. These devices can capture diagnostics, diagnostic trouble



PRO TIP: Many businesses turn to telematics to

measure MPG trends. Pair this data with a fuel card

system and the data can be even more powerful.

• Fuel and Idle Management via TelematicsTelematics are popular choices for fuel management, as they yield several fuel-saving benefi ts through routing, reports, fuel card integration, vehicle maintenance, driver behavior and alerts.

What you need to know:• With automated reports fl eet managers can identify

drivers who waste fuel through unsafe driving behaviors like rapid acceleration, harsh braking and cornering, and speeding.

• Better routing means fewer miles traveled and less gas burned.

• Optimizing maintenance schedules means vehicles are well maintained. Good vehicle health means better MPG, and better MPG translates directly to fuel savings.

• Fuel card integration helps fl eets identify areas where excess fuel is consumed. It also ensures all purchases are business related and reduces personal use and other fraudulent activity.

Telematics can help with idling too. Drivers can receive texts or emails alerting them to idle time and reminding them to shut off their vehicle. The threshold can be set for whatever makes sense for each business — say 10 minutes or 20 minutes. If a driver doesn’t shut off the vehicle, a separate alert can be sent to management, notifying them the driver hasn’t complied.

Keeping a close eye on idling is also key to fuel reduction. One estimate suggests a single hour of idle time is equal to about 25 miles of driving. That means what seems like a harmless morning warm up could equal a cross-town trip.

How can you get a picture of your entire fl eet’s idle time? Automated reports can provide details like idling frequency, length, etc. across the entire fl eet. In essence, telematics are your eyes and ears for idling.

3. FUEL MANAGEMENTFleets are always chasing better fuel management. As a major budget line item, it’s no wonder the search for better fuel effi ciency is eternal — and it should come as no surprise that several new fuel management trends have emerged.

• Right-Sizing the FleetRight-sizing doesn’t just mean whittling the fl eet down to the right number of vehicles for the

best utilization rate. It also means fi nding the most fuel-effi cient vehicles for the job.

What you need to know: Right-sizing your vehicle can happen in two ways:1. Investing in newer, more fuel-effi cient models (that

don’t sacrifi ce performance or space).2. Questioning the business requirements. Do drivers

really need a larger vehicle? Is the job classifi cation level correct? If not, downsizing from, say, a mid-size SUV to a compact SUV can make a big difference in fuel spend.

Making these changes can add up to major savings when multiplied across the fl eet.

• Holding Drivers Accountable When drivers are ultimately in charge of the wheel and the pump, MPG and price per gallon fall on their shoulders.

What you need to know: Drivers can be a real catalyst for change when it comes to fuel metrics. Some companies add MPG and price per gallon to drivers’ key performance indicators (KPIs). When drivers exhibit safe driving practices that yield better MPG and also make smarter choices about where to fuel up, they’re rewarded. And if they don’t, the company knows who to coach on which behaviors.



4.4% compound annual growth rate over the next decade, suggesting alt-fuels will continue to earn their market share.

Hybrids, plug-in hybrids, and battery electric vehicles (HEVs, PHEVs, and BEVs) are all projected to do the same. Navigant Research estimates the overall light-duty electric vehicle (EV) market will grow globally from 2.6 million vehicle sales in 2015 to over 6 million by 2024.

Government incentives are also driving the adoption of alt-fuels. In early 2016, the U.S. Department of Transportation launched the Smart City Challenge, which challenged mid-size cities to modernize their transportation system and integrate innovative technologies like self-driving cars, connected vehicles, and smart sensors into their transportation network. The winner, the City of Columbus, Ohio, earned up to $50 million to deploy 200 EVs with charging infrastructure within three years. Alternative-fuel incentives for private commercial fl eets are also available.

Likewise, in 2016 the Obama administration announced a set of actions to accelerate the deployment of EV charging infrastructure and increasing the number of EVs on the road, all with the goal of combatting climate change, increasing access to clean energy technologies, and reducing America’s dependence on oil. Nearly 50 organizations spanning the federal government and the

What’s the investment? Telematics may require an up-front investment, but the potential ROI in fuel savings alone can quickly offset the costs. In fact, in just a few months a fi ve-truck fl eet can see an ROI between 400 and 2,000 percent in fuel savings alone — that’s a savings of between $500 and $2,120 per month.

Tons of technology is available, but don’t forget about good old-fashioned training. Studies have shown most drivers underestimate idle time. Reminding drivers of the benefi ts of idling reduction is a good start. Frequent reminders to shut down their engines — perhaps via an anti-idling campaign — can help train drivers toward this fuel-saving behavior.

PRO TIP: In colder climates, fleets have also turned

to electric engine heaters to warm the engine block

and minimize idle time while the vehicle warms up.

Others leverage generators or auxiliary power as an

idling alternative to power specialty equipment. Others

even program vehicles to automatically shut down the

engine after a specified amount of time using engine

calibration technology.

• Alt-Fuel Vehicles Some fl eets accomplish fuel savings by looking to alternative fuels, like compressed natural gas (CNG), liquefi ed natural gas (LNG), propane autogas, electricity, or various hybrid solutions.

What you need to know: Alt-fuel vehicles can be a smart investment, but only if they can meet the job requirements and lower your total cost of ownership. With the dip in crude oil prices lately, gasoline has been a more competitive option. However, it’s well known that the price of crude oil has a history of regaining its footing, and is likely to rise once again.

Fuel stations increase. A report from Navigant Research estimates that the number of natural gas refueling stations globally will reach nearly 39,300 locations by 2026. That’s a



run compared to diesel, so this should also be figured

into the cost. Think total cost of ownership (TCO), not

price per gallon. Also consider the range needs of your

drivers and how those needs fit into existing alt-fuel

infrastructure. This is where technology like telematics

can help significantly. With a clear look at every

vehicle’s daily route, you can best fit the right alt-fueled

vehicle to the route to ensure you can maximize your

ROI — and that drivers don’t get stranded.

private sector signed the Guiding Principles to Promote Electric Vehicles and Charging Infrastructure to help ensure EV drivers have access to charging stations at home, at work, and on the road.

With government support and an increasing charging infrastructure, the adoption of EVs has potential to grow.

PRO TIP: Fuel price isn’t the only cost consideration.

Some alt-fuels require less maintenance in the long

SAFETYThe well-being of a fl eet’s drivers and other motorists are one reason for safety to be priority. The savings fl eets can yield is another factor too. It has been shown that safe driving practices can yield better fuel economy. For instance, according to the EPA, rapid acceleration and hard braking can reduce fuel economy by up to 5% in town and 33% on the highway.

Of course, there are savings when it comes to accident costs as well. According to the “Cost of Motor Vehicles Crashes to Employers— 2015” report, on-the-job crashes cost employers more than $25 billion in 2013, and another $22 billion for off-the-job crashes, totaling more than $47 billion. That means as drivers become safer on roadways and see fewer accidents, the savings can add up quickly. You can take a look at the sidebar on the next page for a further breakdown on where these costs come from.

• Put Safety in InkWritten safety policies have become a best practice and are the foundation of a safety program.

What you need to know: Policies should clearly lay out rules for drivers to follow and the consequences for violating them. These might range from coaching to loss of driving privileges to termination. Drive home the message that safety is a core company value — and that its importance is embraced at every level of the organization,



with an executive, paid time off work, fi nancial incentives, or other rewards.

PRO TIP: The most successful fleets seek driver input

and talk through why safety is important. When a driver

understands you have their best interests in mind and

you truly care about everyone getting home safely,

they’ll be more likely to get on board.

• Driver Training Driver training isn’t a new trend, but it remains important to fl eet safety programs. No one thinks they’re a bad driver, so education on how to improve driving skills is critical.

from executives, managers, and supervisors to every driver in the company. Creating a culture of safety is key to the broader acceptance of the policy.

A point system is one popular trend for safety policies. Drivers earn points for good driving practices. This makes safe driving (or lack thereof) easy to measure, simple for drivers to understand, and incentivizes good driving behavior.

Rewards are a good way to earn driver compliance with the safety policy. As points for safe driving add up, drivers could get public recognition in a company newsletter, lunch

The Costs of Unsafe DrivingThe correlation between unsafe driving and accidents is a no brainer — so it’s no wonder so many fl eets are focusing on safety as a key fl eet initiative. But what do accidents really cost employers?

According to the “Cost of Motor Vehicles Crashes to Employers— 2015” report, between on-the-job crashes off-the-job crashes, the total is greater than $47 billion. Those costs fall into two categories: health fringe benefi t costs — benefi ts paid because of illness and injury of employees and their dependents — and non-fringe costs — motor vehicle property damage and liability insurance, crash-related legal expenses and the costs of unreimbursed vehicle damage and replacement.

Of the $47 billion total:• $26.8 billion went to fringe benefi t costs

• $20.6 billion to non-fringe costs

What does that look like per crash? Employers dole out about:

• $24,000 per on-the-job highway crash • $45,000 per million vehicle-miles of travel • $68,000 per injury

Seatbelt UseSeatbelt use can dramatically affect these totals. The report states that employees who didn’t wear restraints cost employers $0.9 billion in 2013. Add another $4 billion when employees and their benefi t-eligible dependents didn’t wear seatbelts outside of work.

Distracted DrivingDistracted driving crashes resulted in employer costs even higher than lack of seatbelt use, totaling $8.2 billion in 2013. About half of these were on-the-job.

SpeedingRinging in highest? Costs for crashes due to speeding. Speed-related crashes cost employers $8.4 billion in 2013, and most were the result of off-the-job crashes.

Accident costs can add up quickly. Fortunately, a dedicated focus on safety can help employers both reduce costs and improve the well-being of their employees.



What you need to know: Training can — and should — take multiple formats. Those can include core classroom driver training, refresher courses, online modules and emails.

Reminders don’t hurt. Through telematics, some fl eets send notifi cations to remind drivers when they’re not following the policy, such as for speeding or hard braking. These reminders keep safety top of mind, and create positive behavior change over time.

PRO TIP: Tailor driver training to different levels

of drivers. Using telematics, consider the driver’s

behaviors and focus first on risky behaviors like

speeding or seatbelt compliance. If the driver hasn’t

exhibited these types of practices, then maybe training

should instead be a refresher course on the dangers of

distracted driving.

• Make It a GamePerhaps the latest trend in safety is gamifi cation.

What you need to know: The concept is simple — drivers get a set of goals to achieve in a certain amount of time, like zero idling or no speeding infractions in a month. With the help of telematics, results are tracked and drivers are ranked throughout the “contest” period. At the end, a winner is named and reward given.

PRO TIP: Instead of basing the contest on individual

performance, create teams. Pit one department or region

against another and watch as drivers encourage each

other to meet their safety goals.

STAY ON TOP OF THE TRENDSNeed a partner to keep you informed and help you accomplish your goals? The GPS Insight team stays on top of fl eet trends and is on the cutting edge of telematics technology. Call us at 480-663-9454 or go to www.gpsinsight.com.

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