May/June 2005

Spreading the telematics message to smaller UK fleets was one of two key themes at the CV Telematics conference held alongside the CV Show at the NEC this year. The other theme was systems integration

UK operators 'are neglecting opportunities'

UK operators are failing to take advantage of telematics technology, despite its reputation as being the new tool for maintaining profitability. That was the blunt warning from Franck Leveque, senior analyst and programme manager for consultancy Frost and Sullivan's transportation division, and this spring's CV Telematics conference.

Leveque blamed a basic lack of awareness about telematics and the benefits it can bring, especially among operators of smaller fleets. "The challenge now is to access the untapped market of the small fleets. Those with fewer than ten vehicles represent over seventy per cent of the market potential in the commercial vehicle sector."

 

The only way to do this, said Leverque, was for sellers to have "cast-iron proof" of the returns in terms of fuel and maintenance costs, wages and expense claims. Integration with other systems such as road tolls and digital tachographs was also important to small fleets. "We must focus on key benefits, and not focus too much on the technology."

'Focus on benefits, not technology' - the need for open telematics systems

Mike Leeming, director of vehicle management systems at MAN and chairman of the SMMT committee on CV telematics, believed some fleets were guilty of "over-expectation" when it came to truck telematics. He also acknowledged that the industry has a poor reputation among users - thanks particularly to cowboy suppliers, hidden airtime costs and interface issues. "Is it surprising that take-up is just five to ten per cent in the heavy CV sector?" he demanded.

Leeming agreed the industry has to focus much more on the benefits than on the technology. "Just telling someone what their fuel consumption is, is not enough. You have to use the reports that telematics systems deliver to change driver behaviour."

Integration with other systems was another issue the industry had to get to grips with, said Leeming, and he accepted that the vehicle manufacturers had a role to play. However, he made no apology for his company's policy of installing a firewall to prevent third parties having unrestricted access to the CANbus.

"While the CANbus is robust, we must protect it from possible corruption. If there is an accident, the third-party telematics system provider won't get the blame, the truck manufacturer will."

Leeming thought the Working Time Directive and the introduction of the digital tachograph were opportunities for suppliers to demonstrate how telematics could help operators in their business. "The WTD means there are 15 fewer working hours per week, so operators will need to manage drivers' time better. Digital tachographs will help automate capture of driving time, break periods, other work and periods of availability."

The SMMT, said Leeming, was lobbying for a choice of hardware when it came to deploying systems for the proposed Lorry Road User Charging scheme (LRUC). "The political will is there, so it will happen. The assumption is that it will be a GPS-based system with GSM/GPRS communications. EU competition laws mean there cannot be a solo supplier for LRUC on-board equipment, so we are looking at a common platform and a common data set including distance travelled, vehicle type, road type, time of day."

The SMMT is calling for LRUC to ensure multiple hardware suppliers in both the aftermarket and at OEM. "If you don't have this common position, there will be multiple stand-alone systems, which raises serious safety issues."

'Integration the key to making telematics work' - call for universal standards

Scania's Alex Bjornehieg said integration added value to an operation. "Any telematics system must work with legacy systems and vehicles. No fleet is a one-vehicle make fleet. The challenge is to find flexible and modular solutions, and integration over the Internet is the best way to deliver that. The customer can then pick according to his or her needs.

With the right tools, said Bjornehief, a transport planner could save one to two hours a per day communicating with drivers, re-routing vehicles and so on. "There are fewer errors and there's less stress. Communication costs typically fall by 30 per cent, and there is an improvement of between two and 10 per cent in vehicle utilisation.

'Real-world savings - they're there if you go for them' - an operator's experience

Rick Sheehan, general manager for logistics for building materials company CEMEX, offered proof that a concentrated plan to manage driver and vehicle performance could bring real benefits. He had been running Volvo's Dynafleet system for 18 months, and said fuel economy had increased from an average of 7.8 to 8.5 mpg. "That's a 7 per cent fuel saving, which amounts to £330,000 over a year."

Sheehan said it was important to remember that downloading data was not enough in itself. "Dynafleet is a tool. You must use it to benefit. We focus on an improvement area and we can change our online reports to drill down to any particular area we are interested in."

CEMEX employed driver development officers who constantly monitored driver performance. "We got the results because we raised awareness among drivers about the importance of fuel economy and persuaded them to change uneconomical driving habits." Achievements included a 23 per cent reduction in engine idling time, which came down to between and 9 and 11 per cent, including power take-off operation.

CEMEX set drivers some KPIs, including fuel economy, and there was a recognition scheme for the top performers, and regional "driver of the year" competitions. "There are other cost spin-offs too. More conservative driving means less wear and tear on vehicle components; and the accident risk is reduced."

'No catch-all solution' - the consultant's view

There is a widespread belief in the UK that there is a market for integrated fleet management and all suppliers have to do is identify potential customers," said Simon Hall of Fleet Consult. "That's not the case. There is no catch-all solution in the UK, which is significantly different from other countries in Europe. For one thing, UK operators are notoriously late technical adopters. In the UK, unlike Europe (where roaming charges still apply), the mobile phone has become predominant wireless communications technology."

However, he said there were growing signs that companies were recognising the need to capture digitised data from their mobile employees. "At the high end of the supply chain, IT integration is the key. ERP systems demand it. There are niche opportunities too - for untethered trailing tracking, for example, or for cool-chain management, or to improve security for high-value loads.

'Road user charging - where it went wrong, and why it works now' - The Toll Collect experience

When it comes to road-tolling technology, even limited deployment can be beset by complexities. That was the salutary experience of Toll Collect, the consortium responsible for deploying and operating the German Maut motorway toll system. The Maut covers 12,000km of motorway, and includes 250 junctions and 250 motorway gantries.

Toll Collect has had well-documented implementation problems. "There was failure on both sides," admitted consortium spokesman Martin Rickman. "The government expectations on what the system could deliver in the given time scale were too high, and the industry was at fault for saying it would be possible to meet those expectations."

Rickman insists the delays had nothing to do with the microwave technology the system uses, which he described as "proven and non-risky." However, he did admit that to get the system to work, they eventually had to adopt a two-stage process. "Combining the GPS-GSM technology was the challenge. There was no time to do system checks to ensure reliable operation before the implementation date. This transitional period is essential for reliability."

The system was relaunched in January. By April 2005, there were 97,519 registered users operating 637,674 vehicles. Of those, 442,004 vehicles had activated On-Board Units (OBUs), the vehicle recognition devices Toll Collect supplies for automatic charging. This compared with just 300,000 in January. (Operators can also pay as-you-go.) Rickman said the violation rate was below 3 per cent.

Already, plans were in place for version II of the OBUs, which would be implemented in 2006. These would allow the German Government to add other roads to the toll network and change rates wirelessly. "EU member states are being encouraged long-term to adopt interoperable GSM-GPS-based toll systems for all road use - partly because there is evidence that traffic in Germany is already moving to non-toll roads, increasing congestion around cities." Lorries travelled 27 billion kilometres a year on German motorways, said Rickman, 35 per cent of which was by non-German registered vehicles.