ELD’s IT and Operations How Do They Fit Together 1 Our Products Mileage & Routing Enterprise Software The Industry Standard for over 70 Years In-Vehicle Navigation Trucker Tested. Trucker Approved. ELD’s with Mobile Communications Results for Fleets. Trusted by Drivers. 2 Confidential and Proprietary. Copyright© Rand McNally 2013. Major Industry Trends & Issues A Brief Review 3 Confidential and Proprietary. Copyright© Rand McNally 2013. Electronic Logging Device (ELD) An ELD, is an electronic device which allows drivers to remain compliant with Hours of Service (HOS) requirements for drive time restrictions. A new proposed regulation will reportedly require all commercial motor vehicles to operate with an ELD installed. The proposed regulation was sent to the White House Office of management and Budget earlier this year and “anticipated to be published later this year”, different than the November 8th date previously announced. The regulation will reportedly call for ELD’s to be implemented within the next 2 years. 4 Confidential and Proprietary. Copyright© Rand McNally 2013. Compliance Safety Accountability (CSA) CSA is an automated system that quantifies motor carrier on-road safety performance based on Behavioral Analysis and Safety Improvement Categories (BASICs). Continued poor CSA performance can result in the shutdown of trucking operation. This is a new regulation that started in 2010. 5 Confidential and Proprietary. Copyright© Rand McNally 2013. Driver Shortage Stricter safety rules combined with an insufficient number of new drivers entering the workforce has created a driver shortage More than 90 percent of truck drivers leave in their first year, either to go to a competitor, start another career, or are fired* Costs of recruiting new drivers are increasing – some fleets are spending over $5000/driver in recruitment and advertising costs* Increasingly, fleets are often forced to hire less experienced drivers Shortage potentially 30,000 drivers by end of 2014* Drivers are now like “Free Agents” *ATA, Transport Fundamentals, Cost of Truckload Driver Turnover Confidential and Proprietary. Copyright© Rand McNally 2013. 6 ELD Technology How it can help operations? 7 ELD Technology Breakdown At a core level, ELD’s utilize 5 critical pieces of technology These include: On-board Computing – The device must be able to run software applications Display Device – An ELD system must provides a user interface for the driver so they can record duty status information, certify their daily logs, and show law enforcement GPS – Detects vehicle position by listening to global positioning satellites Vehicle Diagnostics- Detects engine activity and odometer via a connection to the trucks diagnostic system (J1708/1939) Wireless Communications – Transmits information to a backend system to store and retain data ELD Technology = Mobile Communications Technology 8 Confidential and Proprietary. Copyright© Rand McNally 2013. “Invest In a Platform – Not a Product” Due to the new ELD regulations, the critical question facing carriers is no longer: “Do I adopt the technology?” It is “You Cannot Afford To Wait” With the right ELD system, you will effectively have a full mobile communications platform Confidential and Proprietary. Copyright© Rand McNally 2013. 9 Automatic Vehicle Location & Geofencing Location visibility improves asset utilization and minimizes deadhead miles Know when assets arrive at their destination and how long they remain on site Confidential and Proprietary. Copyright© Rand McNally 2013. 10 Out of Route Driving Detection 10% of miles driven are out of route (OOR) Be aware of when off route driving occurs and take immediate action Confidential and Proprietary. Copyright© Rand McNally 2013. 11 Electronic Hours of Service Simultaneously improve CSA scores while also dispatching more efficiently. Eliminate costs of paper log books (~$3/mo) and gain 30 minutes per day of productivity from the driver Confidential and Proprietary. Copyright© Rand McNally 2013. 12 Truck Navigation Reduce the stress of driving in unfamiliar areas Navigation has become a create comfort for many drivers and has proven to be an effective retention tool Avoid costly fines from driving on roads where commercial trucks are not permitted Confidential and Proprietary. Copyright© Rand McNally 2013. 13 2-Way Email Communication Improve command and control by streamlining the flow of communications between driver, dispatchers and customers Maximize the ratio of drivers to dispatchers by automating basic tasks and looking at issues on an exception basis Confidential and Proprietary. Copyright© Rand McNally 2013. 14 Accident / Critical Event Detection & Alerting Proactively monitor emergency events as they happen to ensure Confidential and Proprietary. Copyright© Rand McNally 2013. Identify driving behaviors such as following too close behind other vehicles 15 Driver & Vehicle Performance Monitoring Understand where your fuel is being used. How much does idling, speeding, improper shifting cost in gallons? Provide a fair standard for measuring driver performance. Let drivers see their own performance in real time. Try the carrot first, then use the stick with respect to performance incentives. Confidential and Proprietary. Copyright© Rand McNally 2013. 16 Remote Diagnostics / Vehicle Fault Code Detection Detect mechanical issues remotely through fault code alerts. Schedule maintenance proactively. Confidential and Proprietary. Copyright© Rand McNally 2013. Roadside breakdowns typically cost more than $500 per incident. That does not factor in the opportunity cost of the asset or customer issues 17 Implementing ELD/Mobile Comm Technology Strategically The ROI of the system is in the hands of the managers who set company policy Fleets that aggressively deploy the technology typically pay back the initial investment within 6 months Getting the maximum ROI is usually not an overnight process – set realistic but escalating goals throughout the first year of deploying the system Simply knowing your metrics is a great place to start. Is there a problem? If so where is at and what is driving it? Target the low hanging fruit first – Idling, Speeding, Hours of Service, off route driving are easy to track and identify. As the organization becomes more experienced with the system, begin to mine the mountains of data that is available 18 Confidential and Proprietary. Copyright© Rand McNally 2013. Other Benefits of EOBR Technology Automate manual processes like Fuel Tax FMCSA now recognizes modems as Transponders enabling an ELD to work for Pre-Clearance Bypass. Turn administration into analysis - less time on the phone or manually tracking data Maximize the drivers time by reducing paperwork related to VIR and HOS Free up dispatcher time providing routes/directions Provide better customer service by having immediate access to information such as vehicle location and ETA. Confidential and Proprietary. Copyright© Rand McNally 2013. 19 Bill Bland [email protected] Cell 858-229-3493 Questions & Answers 20 Confidential and Proprietary. Copyright© Rand McNally 2013.
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