Robert Topaz - Verizon Telematics, Network Fleet Presentation

DATA REPORTING AND
ANALYTICS FOR FLEET
May 22, 2014
Bob Topaz
Verizon Networkfleet
Empire Clean Cities Stakeholder Meeting
PTEXXXXX XX/13
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written
Agenda
 Telematics overview
 Telematics benefits – safety, environment and ROI
 Telematics data to change behavior
 Case Study Eastern Water
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written
Why Telematics now?
 Overall fleet budgets are rising, and an additional dimension of Engine Data is
now available.
 Centralized decision-making and economies of scale are demanding better, more
fact-based analyses.
 The need for managing ‘big data’ and the confidence in data collected is critical.
 New trends in accidents related to distracted driving and the explosive Telematics
adoption-rate in the insurance industry.
 To help keep maintenance costs in-check through tighter maintenance
management and major repair avoidance.
 Continuous optimization to drive on-going value from systems investments –
access to Engine data points provides hundreds of new, untapped optimization
opportunities.
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Telematics Technology Adoption
 Telematics at 20% penetration
 Entering the Majority stage in
which over 75% of buyers will
make their purchase
100%
2014
20%
2010
2000
2007
0%
Early
Innovators Adopters
Early
Majority
Late
Majority
Laggards
Source: Connected Fleet Report 2014 - Analysis of the industry trends, vehicle fleet needs and development of the fleet telematics market
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by
Why Isn’t Adoption Faster?
Cost not worth the benefit
Return on investment proven over
and over again
Lack of organizational
commitment
Start small with a pilot, prove
results, gain commitment
Employee pushback
GPS has wider acceptance than
you might think
Resource constraints/worries
Let your vendor help you manage
your data/reporting
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Current Fleet Environment
 Situation
– Fleet managers have too much data to sift
through, identify key data
 Complication
– Information comes from many disparate sources,
accuracy of data is questionable
 Resolution
– Telematics solutions that provide trustworthy and
actionable data distributed to decision makers
and managers throughout the enterprise
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written
What Fleet Managers Worry About
Reduced Liability
Fewer Accidents
Lower Idling
Less Overtime
Less Speeding
Lower Fuel Costs
Reduced Maintenance Costs
More Work Completed
Higher Fleet MPG
Optimizing Fleet Size
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Where Fleet Analytics Can Be
Used
Driver Performance
1. Safety – Hard Braking/Accel
2. Productivity
3. Speeding
Vehicle Performance
1. Safety
2. Scheduled Maintenance
3. One off maintenance - recalls
Fleet Productivity
1. Automating Reporting
2. Carbon Footprint
3. Route Optimization
4. Fuel Cost Management
Enterprise Data
1. Risk/Finance
2. Legal
3. Insurance
4. ROI on Capex and Opex spend
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by
SAFETY
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by
Why Safety is Important to Enterprises
 The estimated cost of motor vehicle deaths, injuries and property damage
in 2013 was $267.5 billion. – National Safety Council.
 The National Safety Council estimates that 35,200 motor vehicle fatalities
occurred in 2013.
 Traffic crashes are the leading cause of on the job fatalities in America.
–
–
–
Avg. cost of non-fatal accident costs $75K
Avg. cost of fatal accident costs $500K
62% of vehicles occupied by a fatally injured worker are registered to a
business or government. (Source: National Safety Transportation Board, 2010)
Source:http://www.nsc.org/news resources/injury and death statistics/Pages/EstimatingtheCostsofUnintentionalInjuries.aspx
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Costs of a fleet accident
 Direct Costs
·
·
·
·
·
·
·
·
·
Workers' compensation benefits
Healthcare costs
Increases in medical insurance premiums
Auto insurance and liability claims and settlements
Physical and vocational rehabilitation costs
Life insurance and survivor benefits
Group health insurance dependent coverage
Property damage (equipment, products, etc.)
Damage to the vehicle
 Indirect Costs
·
·
·
·
·
·
·
·
·
·
Supervisor's time (rescheduling, making special arrangements)
Fleet manager's time to coordinate vehicle repair, replacement, etc.
Reassignment of personnel to cover for missing employees (less efficient)
Overtime pay (to cover work of missing employees)
Employee replacement
Re-entry and retraining of injured employees
Administrative costs (documentation of injuries, treatment, absences, crash investigation)
Inspection costs
Failure to meet customer requirements resulting in loss of business
Bad publicity, loss of business
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Bassett Firm Research on Texas Law Suits
All Verdicts & Settlements
Time Frame
Jurisdiction
Number of Cases Reported
Number of Verdicts in Favor of the Plaintiff
Number of Verdicts in Favor of the Defendant
Number of Cases that Settled
January 1, 2003, through December 31, 2009
Texas (all counties)
390
148
125
119
Wrongful Death Verdicts in Favor of the Plaintiff
Low Verdict
High Verdict
$85,000.00
$23,588,217.00
Average Verdict
Average Verdict Excluding High/Low Verdict
$6,755,416.00
$6,120,267.70
Wrongful Death Settlements
Low Settlement
High Settlement
Average Settlement
$100,000.00
$5,800,000.00
Average Verdict Excluding High/Low Settlement
$1,703,152.00
$1,783,593.00
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 12
Distracted Driving
What Is Distracted Driving?
 Distracted driving is any non-driving activity a person engages in
that has the potential to distract him or her from the primary task of
driving and increase the risk of crashing.
There are three main types of distraction:
 Visual — taking your eyes off the road
 Manual — taking your hands off the wheel
 Cognitive — taking your mind off what you’re doing
Source:http://www.distraction.gov/content/get-the-facts/index.html
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13
Multi-tasking While Driving
Drink
and
eat
Long
talk
with
rider
Talk on
cell with
handse
t
Set
GPS Text
message
86
81
59
41
37
Read
map Driving
after
drinking Comb
hair
36
25
20
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Fleet Safety Scorecard
15% over
Vehicle
Vehicle
Vehicle Label HA Violations
1 % cd
Ho
02n
0 1 n 44.5
0 1 oa 60.
0 3 Wa 66.3
0 0 oa 27.5
0 3 oa 53.
0 6 Wa
0 0 ant 40
0 5 ar 81.
0 5 War 70.
0 0 Wa 59.7
0 3 Coa 50.
0 2 War 74.
0 2 Wa
0 0 nt
0 2 nt 69.
031
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
15
Reduction in Speed
 Fact– Reducing average driving speed lowers fuel cost by 2MPG for a 5
MPH reduction per hour
 National Average – Average driver rides 60 miles per day/average mpg
22, uses 2.72 gallons of gas/day
 Fact – If we take the 22 mpg to 24 mpg drivers will use 2.5 gallons per
day
 Fact – Reducing .22 gallon of gas per day per driver (250 x $0.78) results
in:
$ 195 in Annual Savings per vehicle
Source:http://www-nrd.nhtsa.dot.gov/Pubs/811751.pdf
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FUEL COSTS
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 17
Decrease Fuel Consumption
Lowering fuel costs is all about changing behavior
 Reduce miles driven
– Eliminate unauthorized use
– Improve routing
 Reduce idle time
 Reduce speeding
 Leverage engine diagnostics
 Verify fuel expenses
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Gas Savings from Mileage Reduction
Annual Gas Savings Comparison
5% Mileage Reduction
10% Mileage Reduction
15% Mileage Reduction
$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000
Annual Gas Savings
Example based on 1500 vehicle fleet with an average 1500 miles per month/vehicle and $3.54/gallon
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Lowering Fuel Costs
Reducing Speeding
 Fuel efficiency rapidly decreases over 50 mph
– Every 5 mph over 50 mph is like an extra $0.25/gallon
 Aggressive driving can lower fuel mileage by
– 33% on the highway
– 5% on city streets
Typical fuel
mileage
Highway Streets
5%
33%
Source: U.S. Department of Energy: Driving More Efficiently; www.fueleconomy.gov/feg/driveHabits.shtml
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 20
Odd Hours Usage
September 1 - December 1
May 1 - August 31
-23%
3% 3% 1%
2%
2%
-53%
+22%
3%
Driver 1
11%
31%
9%
31%
Driver 2
Driver 3
9%
-17%
+9%
-1%
9%
Driver 4
Driver 5
Driver 6
9%
16%
Driver 7
Driver 8
33%
+80%
28%
-13%
% Percent
Odd Hours Violation Window Change
6 PM – 6 AM
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 21
Data Analytics & Trends
Example customer with 260 vehicles
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SUSTAINABILITY
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 23
Green Benefits for Enterprises
Annual Environmental Benefit by Emission Type
Emission Type
Fleet Reduction
(lbs.)
Per Vehicle
(lbs.)
Carbon Dioxide
143,000,000
29,000
Methane
Nitrous Oxides
3,600,000
5,000,000
700
1,000
151,600,000
30,700
Carbon Monoxide
4,000,000
800
Hydrocarbons
Total Annual Other Emissions Reductions
530,000
4,530,000
100
900
Total Annual Greenhouse Gas Reductions
Example customer with 1000 vehicle fleet with a reduction of driven miles, reduced idling, and scheduling maintenance over 12 months
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Annual Environmental Benefits
Total Annual Greenhouse Gas Reductions
Carbon Dioxide
Methane
Nitrous Oxides
Millions 135
145 155
Total Annual Other Emissions Reductions
Carbon Monoxide
Hydrocarbons
Thousands 3,500
4,000 4,500 5,000
Example customer with 1000 vehicle fleet with a reduction of driven miles, reduced idling, and scheduling maintenance over 12 months
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Smog
With the Fleet Smog Check Report you can view a snaps
vehicle's most recent emissions status along with a Pass/Fail de
based on selected compliance criteria. This report can also help
which vehicles have engine health issues and what those issu
diagnostic capabilities of the device capture a host of monitor st
for most light duty vehicles. The Fleet Smog Check Repo
diagnostic data to evaluate vehicle
Run
Four options for smog check
Pass/Fail criteria are available.
Choose a Report Type:
Smog Check
Schedule
Input Report Parameters:
ALL VEHICLES
Smog Failure Criteria:* MIL on
Group:
Vehicle Attribute: All Attributes
Submit
Report: Smog Check
Selected Vehicle(s): All Vehicles
Report Run Date/Time: 10/06/2010 10:26 AM PDT Number of Failing Vehicles: 1
Smog Check Failure Criteria: MIL on Number of Passing Vehicles: 9
Number of Vehicles Included in Report: 13 Number of Ineligible Vehicles: 3
Quickly determine which vehicles
are in or out of compliance
Page 1 / 1. Show 10 per page.
Year Make Fuel Active Fuel Oxygen Secondary Comprehensive ERG Evap. Heated AC Oxygen Smog Last
mi fi
Model Type MIL D.rcsCatalyst System aystem Sensor Air System —Le Component System System Catalyst System
VIN Vehicle Label License , Sensor Check Smog
Gasoline KE93MDU76H4O993HE SERVICE 245 7JE7F87 2005 FORD L,asoene off comp comp comp comp comp comp nsup comp nsup nsup comp PASS 10/6/2010
F250
2007
S0DKEN73ND84JFGS8 SERVICE 248 KDYE94J CHEVROLET Gasoline off comp comp comp nsup comp comp comp comp nsup nsup comp PASS 10/5/2010
SILVERADO
2010
Gasoline off incomp comp comp nsup comp comp comp comp nsup nsup comp PASS 10/6/2010
SILVERADO
2008
5F8KH8884F8F6R4F93 SERVICE 255 98JDT65 CHEVROLET Gasoline off comp comp comp nsup comp comp nsup comp nsup nsup comp PASS 10/6/2010
SILVERADO
SDUEL83J349R759SD6 SERVICE 252 83JD634
CHEVROLET
Gasoline D5868EDK87FG8R4D8 SERVICE 256 945ST32 2005 FORD t.asoene off INELIGIBLE 9/30/2010
F250
Gasoline H4T9R2G7T92RTE896 SERVICE 262 7S6YT43 2007 FORD t.asoene off INELIGIBLE 10/6/2010
Heater Pass
*UHHQKRXVH *DV (PLVV
The Greenhouse Gas Emissions Report allows you
determine and report on fleet emissions both in tabular and
formats. In addition to Carbon Dioxide, Carbon M
Hydrocarbons, and Nitrous Oxide emissions are also
Select a group and window of time
for reporting.
&KRRVH D 5HSRUW 7\SH:
5XQ 5H
Greenhouse Gas Emissions
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ALLVEHICLES
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02/14/2011
All Attributes
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Selected Vehicle(s): $OO 9HKLFOHV
95/19/2911 12:30 30 3'7 Approximate Distance Traveled: 157.0 PLOHV
Report Run Date/Time:
95/19/2911 12:00 $0 -115111/2011 12:99 $0
Report Time Period:
(PLVVLRQV
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Carbon Dioxide
175.4
Carbon Monoxide
9.6
Hydrocarbons
1.2
180
Nitrous Oxide
0.6
160
Total Emissions
186.8
140
175.4
Pounds
120
100
80
View detailed emissions data in both
tabular and chart format, and by vehicle.
9.6
1.2 0.6
0
Carbon Dioxide Carbon Monoxide
Hydrocarbons Nitrous Oxide
6KRZ 10 SHU SD
3DJH VC
9HKLFOH
/DEHO
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7UDYHOHG
SERVICE 245
10
11.5
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WATER AGENCY CASE STUDY
Eastern Municipal Water District
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EMWD Vehicle Fleet


Over 600 Vehicles
Over 350 On-The-Road Vehicles
o Light-Duty
>
>
>


Sedans
Vans
Pick-Up Trucks
o Medium-Duty
o Heavy Duty
Construction Equipment
328 Total GPS Equipped
Multi Year Return on Investment - Miles
Total Fleet Miles
3,000,000
2,750,000
2,500,000
2,250,000
 First year of mileage
reduction = 9%
 Since then, an
additional 2% drop,
and holding the line
on the initial 9%
Multi Year Return on Investment - Fuel
Total Fuel (Gallons)
500,000
450,000
First year of fuel reduction
= 14%
Since then, an additional
3% drop, and holding the
line on the initial 14%
400,000
350,000
300,000
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
First Year Return On Investment
$900,000
Fuel
$800,000
Labor
$700,000
$600,000
Combined Fuel & Labor
$500,000
$400,000
$300,000
Cost
$200,000
$100,000
$0
Apr
May Jun
Jul
Aug
Sep Oct
Nov
Dec Jan Feb
Mar
Fleet Optimization
Example customer with 260 vehicles
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Speed
Speed
Reduction in Vehicle Accidents
Reduction in Liability
THANK YOU
Bob Topaz
Verizon Networkfleet
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 36