Jackson Parker

625 posts
How to Save $1.3 Million with Better Fleet Management – Part One

fleet-management-lower-costs-increased-efficiencyDoes your company have mobile employees such as sales reps or field service technicians who routinely need vehicle transportation to do their work? If so, managing your mobile employees and fleet vehicles effectively is an important part of maximizing revenue generation and customer satisfaction. Most executives understand the importance of keeping these employees productive, but they are often not aware of the significant productivity and cost-savings benefits that come from efficiently supporting employees’ transportation needs.

The Challenges of Managing Fleet Costs

Vehicle-centric companies, such as trucking and distribution companies, are experts in fleet management and usually have the in-house resources to do it quite well. However, for the rest of us in other industries, executives are primarily focused on managing the core of the business – whether it’s building high rises, manufacturing computers, or servicing HVAC equipment. Fleet managers simply don’t have the expertise or the inclination to invest much time or energy in improving fleet operations. Unless you are an expert in fleet management, vehicle expenses by their very nature are decentralized–usually occurring in small transactions spread across numerous locations and employees. On the surface, fleet management costs seem very difficult or control.

Contrarily, taking the time to focus on fleet management issues via basic operational policies and a little centralized control can significantly enhance worker productivity and result in major cost savings. Optimizing fleet management can ensure that mobile workers get the transportation their job requires while simultaneously yielding up to $1 million in cost savings for a typical mid- to large-size enterprise. Whether your company’s fleet is large or small, the same concepts apply.

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GPS Vehicle Tracking Popular in Businesses of all Sizes

mobile fleet vehicle driving on the roadGPS vehicle tracking devices are a popular tool for thousands of business owners. Fleets with only one vehicle all the way to original equipment manufacturers like Ford, GM or John Deere are including GPS tracking devices in their vehicles. GPS tracking software is most frequently used by businesses in the service, transportation and manufacturing industries. Companies with fleets of one to to fleets of 10,000, such as FedEx, rely upon their tracking systems to improve their profitability.

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GPS Fleet Tracking Improves Fleet Management in Chicago

GPS fleet tracking systems are successfully being utilized in the largest cities in America for good reasons. According to Helen Rane Carbone, Chief Programmer and Analyst for the Chicago’s Department of Transportation “Before we implemented GPS, our fleet managers and dispatchers had virtually no real-time information on the whereabouts or activity of our fleet vehicles. We relied on very basic communication using two-way radios and hand-written reports. This was never able to provide the type and depth of information we needed for real performance monitoring, improvement, and accountability, which is expected of all city departments.”

According to Carbone, “before implementing a vehicle tracking system, simply keeping track of mobile resources from a dispatcher’s perspective – vehicle and driver scheduling, routing, call response, location in the case of emergencies – was a very difficult daily task. Truly measuring fleet and mobile employees’ productivity was practically impossible.”

Cities like Chicago are also using GPS fleet management systems to enhance their efforts to go green. Fleet managers are using real-time vehicle location data to optimize routes and reduce excessive idling in an effort to reduce gas consumption, CO2 pollution and other hazardous greenhouse gas emissions. According to Ms. Carbone, telematics plays a big part in many of Chicago’s environmental initiatives in becoming a true green fleet. “Fleet GPS management systems help with everything from the number and type of vehicles we’re using for a particular task, how they’re being used, and the amount of CO2 emissions they’re producing. Everyone is looking to big cities like Chicago to lead the way in this, and remote fleet management has gone from being a valuable tool to an absolute necessity.”

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Real Time Vehicle Tracking Devices Improve Mobile Workforce Management

One of the best things about real time fleet tracking is that it enables fleet managers to work hand in hand with their drivers and other mobile employees, even when they are thousands of miles apart. Every day there so many unforeseen circumstances arise, resulting in the need for last minute changes. So having a real time two-way communications system between fleet manager and commercial vehicle drivers is critical to a running an efficient fleet. Taking into account things like traffic jams, accidents, unpredictable weather conditions, delivery instructions, last minute pick-ups, and employee issues is an important part for a successful person managing fleet vehicles and drivers. Commercial vehicle tracking facilitates instant and accurate responses to ensure that the best solution can be deployed with the least amount of time or costs.

An average day someone overseeing a mobile workforce can involve matching busy schedules with the nearest available resources or service personnel to a new or changed location. Without a fleet management system, a telephone can be used to stay abreast of the constant changes, and to communicate with mobile employees. But a vehicle tracking device is by far superior to using a telephone to communicate – even if you have a smartphone with SMS text messaging, email and GPS navigation. The bottom line is a telephone no matter how smart it is, just doesn’t compare to a vehicle tracking solution.

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Garmin Is The Best Fleet GPS Tracking Interface for Fleet Vehicles

Garmin’s (NYSE:GRMN) fleet management interface provides the best way for fleet managers to improve response times, optimize fleet resources, and ultimately achieve lower costs and higher profits for their companies. Garmin’s fleet management interface makes it easy for dispatchers to send multiple destinations and on-the-go instructions directly to drivers. Fleet drivers are able to use […]

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Fleets Managing Emission Regulations Rely on NAFA’s CARB Council

Tracking dozens of fleet vehicles at once is a tough job for any fleet manager. Upcoming vehicle emissions regulations in California are making the job even more challenging, especially because the logistics of ensuring that a non-California truck doesn’t end up on California roads incurring fines could be quite difficult. The California Air Resources Board (CARB) is currently debating a diverse set of regulations that will have a significant impact on fleets operating in California. CARB actually fined several California companies for failing to inspect their diesel trucks. Fleet management should be aware that currently eighteen other states are considering vehicle emission regulations similar to the CARB rules.

Fortunately fleet managers, fleet vehicle owners and truck drivers have an ally on their side – the NAFA Fleet Management Association (NAFA). NAFA is working hard to ensure its members’ needs are being considered in CARB’s decision making process. NAFA recently formed a new sub-committee of NAFA’s Fuels & Technology Advisory Council called the CARB Advisory Council. The primary purpose of the NAFA CARB Advisory Council is to give input to the CA Air Resources Board on regulatory decisions that impact fleet managers in California. The new council plans to meet with CARB leaders on a regular basis in order to promote NAFA’s position of supporting emissions reductions and fuel efficiency instead of mandates that are financially infeasible. In addition, the council will keep NAFA members current on any new or potential legislation that could have an affect on them.
For fleets having a tough time managing the strict emission requirements, they should consider investing in a green fleet GPS management system that can stop wasteful driving habits and reduce carbon dioxide emissions. Excessive Fuel Reports can calculate how much money this is costing and shows how much CO2 is being emitted due to poor driving habits. FieldLogix Green Reports give each vehicle a Green Score and ranks each driver by who is the most efficient. In addition to cutting fuel costs, a GPS tracking system can increase workforce productivity, improve customer service, and helps you to do your part to protect our planet while saving time and money. Each year fleet vehicles burn close to $9 billion of fuel annually due to unnecessary idling and speeding. Chances are each of your fleet vehicles burns up to 800 gallons of fuel per year due to unnecessary idling alone, which costs about $2400 per fleet vehicle annually.

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NYC’s Fleet Management Plan to Reduce Fleet Costs by $71 Million

A recent report from New York City Mayor Michael Bloomberg’s Office included recommendations that will save NYC taxpayers an estimated $71 million in fleet management cost over the next four years by streamlining government fleet management, centralizing fleet operations, cutting vehicle fuel use, and decreasing the number of fleet vehicles. It’s part of the Mayor’s overall plan to save taxpayers over $500 million over the next four years by significantly increasing government efficiency.

According to the NYC Mayor’s Office report “the city spends approximately $667 million annually on fleet operations — this includes $283 million on maintenance, $120 million for fuel, $14 million for fuel tank compliance, maintenance, and spill remediation, and approximately $250 million for vehicle and equipment procurement. Maintenance expenditures consist of salary, which includes overtime, differential and fringe benefits; overhead – including building maintenance and rent; and vendor expenditures, including parts and maintenance services. Salary alone represents 70% of the NYC’s expenditures for maintenance.”

Bloomberg’s administration wants to centralize the city’s fleet operations. The report showed high quantity of decentralization across the city’s fleet operations which is not very efficient. The city employs more than 1,500 fleet management people that repair vehicles at 126 shops, each with their own set of equipment, staff, and parts inventory. Based on these numbers alone, it is clear that there is room for improvement in the fleet operations department.

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Fleet GPS Tracking Systems Help Automate IFTA Fuel Tax Calculations

Fleet GPS tracking data combined with tax software can ensure private fleet operators in the US that you aren’t overpaying on your International Fuel Tax Agreement (IFTA) taxes. For most fleet managers, calculating IFTA taxes is a tedious but necessary administrative task. The good news is that this process can be automated if a fleet manager uses GPS tracking/telematics devices in its trucks, along with fuel cards and IFTA tax reporting software (or a tax service professional that uses this kind of software). Then the mileage driven in each state and fuel expenses for each vehicle can be automatically uploaded into the software and the proper IFTA paperwork can be printed out.

Using a GPS Tracking System combined with proper tax software can make this process much more manageable and less labor intensive. If you have a large fleet of over 50 vehicles, then there is a good chance you have an employee whose only job is to handle this paper-intensive task. If you are paying an administrator say $38,000 year to manage this process, investing in a Fleet GPS Tracking System is a no-brainer. While a fleet operator would probably never buy a telematics solution solely to eliminate an administrative position, it can contribute to the ROI offered by fleet telematics solutions.

Since truckers typically operate across state lines they often need to calculate their usage in various locations. GPS position reports are a good way to do this as not only would it report your GPS location but it would also report the exact time for each position report. Ideally, you could automate this process with reporting transmitted in real-time as you go.

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Heavier Fleets of Tractor-Trailer Trucks Allowed in Florida

Controversial regulations in Florida are now allowing trucks to be able to run 8,000 pounds heavier on non-interstate highways. Despite opposition from the Owner-Operator Independent Drivers Association, the new regulations say tractor-trailers may weigh up to 88,000 pounds on designated routes while fleet loads on interstate highways would continue to be restricted to 80,000 lbs. Several major trucking lobbyists claimed that the trucking industry needed this weight expansion in order to cut high fuel costs and create stability in a tough economy.

The new fleet legislation, signed into law by Governor Charlie Crist, began taking effect in July 2010. Many opponents to the new laws say claim that the legislation, attached to general transportation bills House Bill 1271 and Senate Bill 2362, were moved through the legislative process with no outreach to the local communities in which these heavier fleets would travel. Previous regulations stated that the trucks be must be 4 tons lighter in order to travel safely on Florida roads and highways.

Among the concerns cited by OOIDA are premature highway deterioration, increased maintenance costs, and truck driver safety concerns. Opponents claimed that allowing more weight is dangerous and damaging to local roads. Heavier trucks are harder to stop and accelerate which can cause more accidents. According to their estimates, heavier trucks could cost local and state governments more than $150 million per year to offset additional highway maintenance.

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Low Rolling Resistance Tires can Improve Fuel Efficiency by 4%

Fleet managers who want to save money on fuel, reduce greenhouse gas emissions and improve their environmental image should consider becoming a certified partner of the Environmental Protection Agency’s (EPA) SmartWay Program. Participation in the EPA’s program is completely voluntary and helps fleet operators and truck drivers to save fuel, save money and help the environment at the same time. Sounds like a win-win for fleets looking to cut costs and go green at the same time. The SmartWay program is a collaboration between the freight industry and the federal government to reduce air pollution and greenhouse gas emissions, improve fuel efficiency and strengthen the freight industry as a whole.

The EPA’s SmartWay program identifies products and services that that reduce transportation related costs and emissions such as carbon dioxide and nitrogen oxide. Certification in the SmartWay program requires fleet vehicle operators to use verified low rolling resistance tires, such as GoodYear’s Fuel Max technology tires or Dunlop’s FM series. According to GoodYear, both of these lines of tires can improve fuel efficiency by up to 4%.

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Is Being “Green” a Fad?

We view a lot of new products as fads because they become part of the national conversation today and disappear tomorrow.  Products and services like Facebook, Twitter, and the iPhone will certainly go the way of the Rubik’s cube within 10 years. One topic that has emerged over the past few years is being “green”.  […]

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GPS Fleet Tracking Helps Companies Thrive in Down Economies

gps-fleet-tracking-management-system-lowers-costs-increases-efficiencyFleet managers are constantly trying to figure out ways to increase productivity while cutting costs. The global economic recession combined with rising fuel costs has made fleet management more challenging than ever. With fuel topping $3 a gallon or more in some regions, fleet operators are searching for ways to make their drivers more efficient, while also abiding by strict legal requirements that restrict vehicle idling and hours of service. Considering the current economic times, even a small decrease in costs can mean the difference between a profit or a loss for many fleet operators.
The challenges facing fleet managers are becoming increasingly difficult. A fleet tracking system that lowers operating costs can help many companies to not only survive but thrive in today’s tough economic climate. A fleet tracking system can provide a return on investment in approximately four to nine months, depending on your industry. Modern fleet tracking and management systems are making it possible for managers to reduce fuel consumption and vehicle emissions, while simultaneously improving safety and legal compliance, and optimizing vehicle and driver operations. A GPS tracking system helps dispatchers to route the nearest vehicle to a specific location, navigate the best route, and minimize maintenance costs. Fleet managers can also reduce truck driver overtime and administrative costs by automating fuel costs and tax reporting with electronic truck driver reports.

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Location Based Services Set to Explode over the Next 5 Years

gps-google-iphoneAccording to a recent research report published by IE Market Research (IEMR), the global market for GPS navigation and location based services will increase to $13.4 billion in 2014, a compound annual growth rate of 51.3%. In the USA and Canada, the GPS navigation and location based search market will increase to over $4.3 billion. The USA and Canada will represent nearly one-third (32.4%) of the world market share for GPS navigation and location based services spending over the next 5 years. The USA will still be one of the largest single markets for location based services in the world with a compound annual growth rate of 37.5% forecasted over the next five years. The full IEMR report (single-copy) costs $2,995.

The adoption of GPS in mobile handsets is largely being driven by smart phones. Given the proliferation of smartphones these figures are not all that surprising, despite moderate industry growth in the past. GPS-enabled smartphones such as the Apple iPhone and Google Android are playing a huge part in the GPS technology revolution that IEMR is forecasting. Google now includes free GPS navigation for its smartphones and Apple’s iPhone app store is filled with dozens of free and low-cost navigation applications. in 2009, more than 40 percent of all smartphone owners used their mobile devices to get turn-by-turn directions, according to data from Compete, an industry leading web analytics firm. For iPhone users, the figure is even higher at over 80 percent. After all, smart phones are, well, smart. It’s convenient to not only use your phone to take make calls, but also to send SMS text messages, take pictures, send emails on the go, search the web, listen to music, and yes, even to get turn-by-turn directions.

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Exhibit by Lockheed Martin Shows Importance of GPS Technology

Lockheed Martin, a global security and information technology company, opened a Global Positioning System (GPS) exhibit this week in Vienna, Austria.  The GPS exhibit is part of the permanent Space Exhibit at Vienna’s United Nations Office.  The purpose of the exhibit is to emphasize the importance of satellite navigation technology. GPS technology serves millions of […]

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Omaha School District Uses GPS Devices For Child Safety

Facing severe budget cuts in today’s tough economy, cutting costs without sacrificing student safety is a formidable task for every school district across the nation. School district transportation managers are responsible for thousands of children each day once they step onto the school bus. Most state laws are very strict when it comes to school […]

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The Complete Guide to Telematics in Europe & USA

SBD is an independent technical research and consulting firm that has been analyzing the telematics service market worldwide for over a decade. The company recently released their 2010 annual report titled “The Complete Guide to Telematics in Europe and the USA” providing an in-depth account of vehicle manufacturers’ telematics solutions. The report costs $3200.

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FMCSA Comprehensive Safety Analysis 2010 – Truck Monitoring

The U.S. Federal Government is creating a new program to monitor the safety of all commercial truck drivers and trucking companies. The new program, created by the Federal Motor Carrier Safety Administration (FMCSA), is called Comprehensive Safety Analysis 2010 (CSA 2010). Portions of the new truck safety monitoring system will take effect later in the […]

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NAFA Helps Fleet Managers Stay Abreast of New Legislation

Managing fleets is certainly not an easy job. One of the most significant challenges corporate and public fleet managers face is dealing with the effects of legislation on their business.  Recently two new pieces of legislation were passed that will directly affect fleet managers over the next few years.

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