Information overload 04 March 2014

Most professional fleet engineers now understand the value of good telematics. But have you got the right formula, or are you breaking a butterfly on a wheel? Ian Norwell goes data mining

A telematics system should perhaps be rated not for what it tells you, but for what it doesn't leave out. That might sound obtuse, but in the welter of data that a full-fat truck telematics package can deliver, the information surge might soon become overwhelming – yet the data streams you really want may be missing. This observation, born of experience, suggests that the best systems are probably at least to some extent bespoke. And that thinking about what you really need upfront is going to pay long-term dividends.

What's the issue? You may think that you are managing a plain vanilla logistics operation, but there are flavours in every fleet that need special scrutiny. After all, your contracts, vehicle mix, drivers and geography are unique. So it's about detail. In the same way that truck makers are now searching for those incremental improvements to fuel efficiency, you need to be winning pennies anywhere you can.

Different strokes
Truck manufacturers currently offer one of three strategies. Market leading DAF, stage right, does not offer its own telematics system, nor a preferred supplier, with Phil Moon, UK marketing manager suggesting that a 'user chooser' approach is the way to go. "We have found the telematics solution for our customers varies so much that they should select a supplier that meets their specific needs." Sounds very virtuous, but word is that DAF may be about to follow the market and appoint a provider. We'll see.

Next, centre stage, are the likes of MAN and Iveco which also do not offer an embedded telematics system, but do have preferred suppliers. In both their cases, it's Microlise. And finally, stage left, we find players such as Mercedes-Benz FleetBoard, Renault OptiFleet and Volvo Dynafleet, all of which are in-house developed systems catering primarily for their own vehicles.

Whatever the make-up of your fleet, when you analyse what might be best, those infuriating swings and roundabouts start to appear. A single-marque fleet may well benefit from an in-house system, if available, but there are few around these days. Mercedes-Benz's FleetBoard can certainly cope with multi-brand fleets, but the data from non Mercedes-Benz chassis is bound to be less sophisticated. But before you turn away, ask yourself, does that matter?

Whatever you do, the key to extracting value from any telematics package is spending time upfront, getting it set up properly. According to David Lester, head of fleet management at MAN Truck & Bus UK, failure to do so is where fleets unknowingly fall at an early fence. "The benefits will always be commensurate with the time and care put in to get the system right at the outset. It's that simple," he says.

MAN had early dalliances with small telematics suppliers, when the technology was just getting a foothold. However, since 2006, the manufacturer has standardised on Microlise. Indeed, every vehicle sold with an R&M contract gets the package as a standard fit. With 50% of its chassis sales taking R&M, that's 2,500 vehicles a year now being fitted. Lester estimates that MAN currently has 8,000 in operation.

But telematics is not just for large tractor fleets. Light truck distribution operators would be making a mistake if they ignored it, argues Lester. "Since driver performance is a key element, light rigids on busy multi-drop work will have even more to gain from telematics as the driving environment offers a lot more action."

Fair enough. Incidentally, MAN currently fits the Microlise equipment at PDI (pre-delivery inspection) stage in the UK. Compared to an on-line fit this might mean compromises, but MAN's Lester says the firm is working towards installation on the production line in Munich.

Meanwhile, in production engineering terms, Mercedes-Benz deemed it cheaper to install FleetBoard telematics hardware into every Actros chassis at launch, rather than make it an additional spec item. As the then head of Mercedes-Benz trucks Hubertus Troska put it: "It makes better sense to build a telematics system into the truck's architecture and let customers see the benefits."

How? Mercedes-Benz's strategy was to let fleets use telematics free of charge for four months and then hope they chose to continue, for a monthly fee. If not, sever access would be closed and the equipment rendered a silent passenger. This is still the case with Actros – and it works. Daimler reports a 62% take-up of FleetBoard, after the free trail. However, a simple pre-wiring loom is now fitted to all other major Mercedes-Benz commercial vehicle ranges so that a header unit can be quickly installed, if a fleet requests it.

And there are now more goodies. A system overhaul, dubbed FleetBoard Cockpit, now gives traffic planners the ability to track vehicles on-screen in real time, seeing position, speed and direction of travel. This is in addition to viewing performance data on vehicles and drivers, and checking for traffic congestion and selecting alternative routes. "The benefits of the new system are twofold," explains FleetBoard UK head of sales Steve Lovatt: "Its functions work better, faster, and provide more information, and the display is far more user-friendly, because everything can be viewed in one place."

Maximising value
So much for the systems. What should you look for, in terms of information? The top four data streams fleets use are: driver and vehicle performance; track and trace; camera inputs; and journey management. No surprises there. The performance of truck and driver are clearly core to any fleet system focused on cost reduction – not least because a faulty vehicle or a driver who needs extra training will haemorrhage any fleet's cash reserves.

This needn't be a problem. Fleet operators and truck manufacturers alike report that any early driver resistance to heightened levels of scrutiny has given way to an understanding that new levels of trust may come with this accountability. Before telematics, assessing a good driver was an inexact science: now it's down to hard data. Also, good drivers need no hiding place.

Take note though. After nearly drowning in data, Rob Stubbs, group fleet director at Veolia Environmental Services, says his team decided to monitor only over-revving, idling and speeding to manage a fleet of more than 3,500 vehicles over 18 tonnes. "When we weren't getting the results we wanted, we could have easily walked away. That would have been a big mistake," he recalls, adding that the revised system has since delivered significant operational and cost savings.

As for cameras, it's perhaps a sad observation on our litigious society, but these are now flying off the shelves – and not all of them are forward-facing. Drivers have been quick to realise that this equipment can defend them against spurious and more sinister accusations of bad driving that lead to expensive knock-for-knock claims or worse. Fleets can also benefit by not only keeping a literal eye on driver activity, but eventually also cutting insurance bills.

SmartWitness is the preferred camera supplier for MAN's Microlise system, and managing director Simon Marsh says sales growth for its in-cab cameras is "exponential". But he adds one warning for those who believe cameras are not for distribution duty cycles. "In a city environment, average speeds might be lower but the risks are substantially higher. And with prominent liveries, companies' vehicles can now be ruthlessly outed, using social media, within minutes of an incident – often by ill-informed individuals with no commercial vehicle understanding."

For any remaining telematics-deniers across the industry who continue to believe this technology, it's hard to ignore figures such as fuel bills down by 15%, accidents significantly reduced, insurance premiums slashed and customer service improved.

Time for a rethink?

Author
Ian Norwell

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