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Orbtech's managing director, Allen Harington, has been building Fleet Management Systems since the early 1990s. He's seen the industry evolve over the last decade and tasted first-hand its highs and lows. He also recently took over the chairmanship of VESA (Vehicle Security Association). FleetWatch asked him for his thoughts on the issues driving the Fleet Management arena today.
 

Making the Orbtech 'Budditrack' Black Box

FW: Has the proliferation of electronics in the truck transport arena created a need for a new breed of 'wired'/techno-savvy transport manager? 
AH: Most definitely. Data mining is an absolutely essential component in any business environment. This is more prevalent in transport arena for no other reason than the dynamics of their operations. If the transport operator is not geared to dynamically extract and use this data, he could make costly unintelligent decisions. 

FW: Are these new managers helping to redefine the methodologies of transport management with the 'intelligence' they garner from fleet management systems? 
AH: These new managers would definitely be able to contribute to more effective fleet management principles and methodologies if this intelligence were applied effectively. 

FW: How is 'intelligent data' from these technologies filtering through the entire transport operation to improve efficiencies? 
AH: Transport operators are becoming much more aware of the benefits and competitive edge achievable by effectively applying these technologies to gather intelligence over-and-above the "where is my driver and what time will he 
reach his destination?" level of use. Should this intelligence be properly applied, it will have a direct positive impact on each division of the transport operation, streamlining driver and truck movement and scheduling; on- and off-road risk management; maintenance management; invoicing and cash flow management; saving on operating costs; enhancement of productivity and, of course, increases in bottom-line profits. 

FW: Are new fleet management technologies delivering real competitive edge and if so, how? 
AH: Yes, provided they are applied properly, i.e. used to gather and manage information that is applicable to the operator's methodologies and fleet management principles. Efficiency in transport is the greatest competitive edge a fleet operator needs. The single application of technology will not do the job. A combination of technology and management tools and structures 
will secure this. 

FW: To what degree do transporters outsource the management of data generated by their vehicle technologies and what are the pros and cons of doing this? 
AH: Even though there are instances of outsourcing, the majority of the operators manage the data in-house. The primary reason for this seems to be that the information generated is applied to managing the vehicle and driver movement. The ideal is for the operator to do this in-house with management support structures in order for him to make intelligent snap decisions. 
Immediacy is the keyword. Having your data outsourced loses this advantage. 

FW: While truck hijacking figures have decreased, theft of cargo and fuel is rife. Are new tracking technologies proving successful in thwarting this phenomenon? 
AH: Singularly, technologies will not solve the problem. Risk management is a process. Technologies are merely tools in this management process. In order for technologies to be the total solution, artificial intelligence is a prerequisite. Technologically, we are not there yet. There are a variety of technologies available that can be applied towards addressing various problems, but, the technologies and the data generated through this still need to be managed. For this you need human interface - and more specifically humans who are techno-savvy - therefore the need for a new-generation transport manager. 

FW: How are technologies in the truck (tracking units, tachographs, OBCs etc) helping to promote effective risk management? 
AH: These systems are designed as tools to assist the transport manager with his risk management. The product supplier needs to understand the transport operator's unique risk profile and guide the transport manager and staff on methods and applications of his product to address these specific needs. Only once this relationship has been established will the technologies become effective. The transport operator also needs to realise the need for internal training as well as understanding of his unique risks. 

FW: Does this impact positively on insurance premiums and claims? 
AH: Insurance premiums are firstly calculated based on historical industry risks and secondly on the insured's specific risk profile. Should the transport operator prove to the insurer that by applying these technologies effectively to address historical industry risks as well as his unique risks, he will derive the benefit through, for instance, premium reduction. More importantly, using these technologies within a well defined on- and off-road risk management structure will decrease the incident rate and claims to the insurer. Not only will this contribute to the profitability of the company, it will also enhance his rating with the insurer and financier who in turn will offer him more favourable rates. 
 

Allen Harington (second right) and his team of software developers discuss ways to tailor solutions to fit client needs.

FW: Are drivers being educated on how truck technology can benefit them directly and if so, how? 
AH: This is a new area of expertise that is being developed. There are currently organisations that specialise in re-training of drivers where one of their training components relates to this. Even though the technology product supplier has unique applications and, in association with the transport operator, needs to train the drivers on this, there are sufficient common 
denominators to offer general application training. 

FW: Systems integration has been the buzzword for a few years now. Is this happening effectively? 
AH: Even though there are instances of this happening, the progress in this regard is very slow. 

FW: What's the next BIG THING in fleet management systems? 
AH: Technologies will not change drastically over the next few years. Integration and training to use these technologies effectively in a business and risk management environment will contribute more than technological (hardware) development.