Summer 2006

The proliferation of low-cost vehicle tracking systems, coupled in some cases with high-pressure sales tactics, has given the vehicle tracking industry an often undeserved reputation for poor customer service. Sharon Clancy digs beneath the hype to find out how to ensure you get value from your tracking investment

The last few years have seen the vehicle tracking sector shift from costly, often bespoke, PC-based systems to a fixed per-vehicle per-day business model with standard Web-based reporting. A large number of tracking system suppliers now offer a GPS/GSM tracking/communications modem free to customers who sign up for these fixed-price contracts.

It seems a win-win situation. The GPS position fix is free and GPRS communications make possible an always-on link between the vehicle and base. Charges are based on the amount of data sent, and position data packets are tiny; so the operator doesn't have to worry about unexpectedly large bills arriving on the desk, and resellers can offer fixed-price communications contracts without worrying about customers exceeding any limits.

Operators don't even need any PC-based software at the depot; they simply access the information via a secure Web site, with password-controlled access. The tracking solution provider uploads the data to the Web site, where it is available in the form of a range of reports.

 

This sounds like technology made simple, but some leading tracking suppliers say the very simplicity has allowed suppliers to come into the market with the prime objective of simply "selling boxes", not providing service. "The telematics industry has been badly damaged by companies whose only interest is in shifting boxes," claims Tom O'Connor managing director of Digicore. "The market has become a minefield for buyers."

O'Connor is not alone in his view. Btrack, Fleetview and Quartix are among other suppliers now pointing out the limitations of off-the-shelf systems and the importance of buying from a supplier with control of hardware, firmware and software.

"Pence-per-day contracts are not the solution for everyone," says Btrack's sales director Andy Walker. "Operators can find themselves being charged for bespoke reports or for adding functionality when their needs change. Buying from a supplier that controls all aspects makes bespoke projects much quicker and easier to manage and allows flexibility not possible with bought-in equipment."

As with many such technologies, there have been moves in the tracking world to outsource the manufacture of the in-vehicle "black boxes" that drive these systems overseas. However, although it may be more costly to build them in the UK, Walker says the additional costs are balanced out by the removal of the "middle man", and the opportunity this offers to provide a solution which, whilst not over-specified, is still flexible enough to change with operators' needs.

"Once you have had the system in place for a while, you might want to tweak the way the data is presented, or capture additional data. That might not be possible with off-the-shelf systems.

"We've had contract wins where an operator wanted a report to be added to those supplied as standard. The previous supplier couldn't do it, but the operator still remained tied to the contract for the next two years."

With Easitracker, Btrack customers can add up to three customised reports to the standard reporting suite during the life of the contract at no extra cost. Btrack reckons it can add this kind of functionality free of charge because if one customer is demanding it, the likelihood is that another might benefit.

Quartix's marketing director Andy Kirk agrees that companies need to exercise care when deciding which tracking system supplier to work with. Quartix also designs and manufactures its black boxes in the UK. "Although tracking technology is now mature, over the five-year fleet life of a typical truck, enhancements will be made. So we include remote over-the-air configuration as standard because we can make changes to the firmware without recalling all the vehicles. Operators have all their vehicles using the latest version of the product."

Fleetview adopts a similar attitude to adding functionality, and actually runs a customer forum to alert its technical people to what will add functionality to its systems.

Fleetview claims to be the only tracking system suppler not to tie its customers into long-term contracts for the black boxes. The company currently supplies 3,000 systems to its UK customers, who include The Co-Operative Group, City Link and Swift Couriers. Operators still pay a monthly charge, but the actual RDM 500E box is free, as is installation, and a half-day on-site training is included. Position data is renewed every 10 seconds.

"We don't believe it is in a user-company's best interests to sign a five-year lease for technology that may be outdated in three years' time," says sales director Chris Flynn. "People who bought into vehicle telematics in the early days are now being stung, as they were sold systems on long term leases, yet the systems are now out of date and are poorly supported by the provider."

Flynn goes on: "Today's telematics market place is dominated by resellers who are often unscrupulous and mislead the end user. A total focus on sales with no customer care meant that a lot of fleet operators built up a bad picture of vehicle tracking providers."

Flynn also says operators should be wary of contracts where there is a separate lease for the black boxes. "The equipment lease may be provided by a third-party leasing company that doesn't offer service and support to the customer. Yet the tracking box is worthless without a support mechanism." Fleetview likens its service to buying a Sky TV package: you select the level you want, and pay accordingly. If you want to change at a later date, it is no problem.

Quartix says the majority of its customers still want a contract with their tracking supply. "When your business efficiency depends on knowing where your fleet is, managers want the security of tying in their vehicle tracking supplier for a number of years. That's why some operators still prefer to buy the black boxes outright rather than lease them. "

Some suppliers are now pointing out that fixed costs per vehicle per week sound cheap, but can add up over the life of the contract. However, Kirk points out that 75p per day is still minimal compared with the typical savings achieved of around £2,000 per vehicle per year. "Those are measured savings from reduced overtime payments, increased capacity to handle more jobs per vehicle, journey-time savings and reduced mileage - which in return reduces vehicle wear and tear, and thus servicing costs."

Derek Beevor, managing director of Road Tech Computer Systems (a leading hosted Web-service provider), says that provided operators choose the correct supplier, they shouldn't worry about leasing the equipment. "It's like online shopping; you have to check out the supplier and beware the small print. Everyone knows that if you lease a car and want to close the lease early, there is a balloon payment. "

Web-based tracking

The terms "Internet-based" and "Web-based" live tracking are now routinely used in selling simple-to-use tracking systems, but not all Web-based systems are the same. Browser-based systems can be slow to update; server-based Internet systems are more reliable and will always provide the latest position update automatically. Sometimes the site or report is designed poorly, or the data may not be in an easily downloadable format.

Road Tech Computer Systems has just spent £85,000 installing an IBM P-series server for its Skylark operation. This is based round the tracking and data import and export standard agreed by Coca-Cola and Masterfoods.

"The problem with here-today tracking companies is that they often do not have their own server," says Beevor. "Servers cost the provider money. Small servers can quickly run out of IP addresses. The more people who log on, the more powerful the server has to be to cope. The Skylark server will have to handle 3,000 trucks and 9,000 trailers, and check the position of each one of them every 10 minutes. That's 12,000 routing calculations, working out information such as where the vehicle is now, where it is heading and what the journey time will be. You can't do that on a tiny server in a back bedroom."

"Some Internet-based based reporting systems still need to load a device driver, cookie or program on to the office PC," says Andy Kirk of Quartix. "With some you are essentially running a thin client application on that PC. The PC becomes the control point, and other depots or PCs within the same building can't access the tracking Web site independently.

"Some systems store all the maps on the PC and then simply download the coordinates for each position fix. That speeds up the process, but it does require the provider to make sure those maps are kept up to date, or for the user to check on the Web site that the maps are up-to-date."

Background number crunching is also key to fast Web data, says Tim Evans, sales and marketing director of TrackM8. "Our scaleable back-end engine is accessing sub-sets of data continually and crunching numbers. It is a demanding task to ask a database to compare 68,000 points of interest and deliver the answer in 10 seconds."

TrackM8 is transforming itself from a "white-label" manufacturer of third-party branded hardware and firmware into a full-service supplier. It manufactures the T2002 back box, used by, among others, Matrix, Tracker and BT. It carries out 500,000 position decodes each month and already has 15,000 vehicles on its UK server.

The company's Tim Evans says the key to speed in a Web-based service is to run a small application on an office-PC and hold the changeable data on the server. Such an approach does not necessarily exclude multi-depot access to the server, either, he maintains, although he agrees that updating the PC-held mapping data remotely is a key.

Web-based reporting doesn't necessarily mean basic reporting with no flexibility, points out Quartix's Kirk. "Lots of fleets want higher-level analysis of data, which they can get via the Quartix Web site. One benefit is that the levels of reporting can grow with the customer base. Our software engineers simply develop the required report and the make it available to all." Btrack offers similar flexibility. "Once we have a specific report for a customer, it is accessible for them all."

Kirk strongly believes that the captured data has to be available in the format the customer wants. "Other fleets want the data supplied in a raw format that they can integrate into their own system. Quartix data is held in a standard Microsoft SQL server database, so it can be exported directly to an open database system."

Most operators will notice slowness trying to download map-based information. Vehicle tracking reports are a case in point; unless the data is presented it correctly, users can find it takes ages to download the map and then zoom in or out on a particular vehicle or location.

Btrack is one of the first tracking companies in Europe to offer the latest Web-based MapTP technology: users get a view of multiple assets on one page, but with the ability to navigate around the map using a scroll wheel and mouse click. The map appears to move as you click on it, constantly updating in real time. The system automatically refreshes every 60 seconds to display new fixes, and definition is as good as any high end satnav system, says the company's Andy Walker.

Trailer tracking

We've reported earlier this year how the combination of maturing tracking technology and lower costs is finally beginning to make tracking of unpowered assets such as trailers affordable and a reality; and systems from suppliers such as Btrack and Axscend are proving the point.

Axscend says research has revealed that on average, the haulage industry is under-utilising trailers by 15 per cent. With profit margins remaining thin for many UK, investment in trailer tracking can help maximise the earning potential of the fleet, the company points out .

Taygroup would agree. It operates 300 vehicles from six locations in the UK. In March all 3,000 trailers were fitted with Axscend units, and group fleet engineer Mick Turner is already noticing the difference.

"It has given us greatly improved control over our trailers in an aggressive marketplace. Tracking our trailers has helped us to optimise the planning and management of our fleet maintenance, and we have gained visibility and control over our trailer fleet, allowing transport managers to make the right operational decisions. We can now view trailers online in an instant."

Picking the right supplier: avoiding the pitfalls

Tom O'Connor, managing director of Digicore, has some tips on how to avoid the pitfalls when choosing a tracking system

Check the supplier's financial track record

Check the financial balance sheet. Are you buying a third-party lease for the equipment? If the tracking company goes bust you could be left paying for obsolete on-board equipment.

Check the company's reputation in the market

Be wary if the supplier appears to be offering a miracle solution for next to nothing. Does the supplier understand your business or is it just a one-stop shop trying to sell as many boxes as possible with a one-solution-fits-all approach?

Consider future needs

It pays to think about what you might need as the business grows, not what you need today. For example, vehicle tracking might be your prime aim today, but you might you want to track other assets in future. Is the reporting system flexible enough to cope with changing business needs and how the company might want to use the data? Do you want the tracking system data to integrate with other applications?

Check suppliers' customer reference sites

The suppliers themselves offer a source of invaluable information on what other users in your sector are doing. Does their experience apply to your operation?

What is the level of after-sales support?

Can your supplier support the product in the long term? Ask what quantity of boxes the company expects to work at any given time, and the maximum time to repair a fault. Check if the black box can be repaired and updated remotely, or if the vehicle will have to be taken to a service centre.

Appoint a champion

Make sure someone within your company has embraced the benefits of tracking and will champion its deployment.

The green issue

On-board telemetry can help reduce the carbon emissions by reducing the amount of fuel burnt.

Is the system truly Web-based?

Do check whether the tracking company operates its own server or is renting server space from a third party, and whether the site is a browser interface or server-based application.