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| Past Issues |
June 2009 |
Throughout history, people around the world have, in times of trouble, sought advice from ‘those in the know’. Be it the local soothsayer, the investment guru or the neighbourhood doctor, society has always had its visionaries and in 2009, the most sought-after advisors are the ‘penny pinch’ experts, those who can offer advice on how to maintain the lifestyle one has grown accustomed to despite the fact that less money is coming in every month. In the commercial trucking industry, fleet management system developers represent the ‘fount of trucking wisdom’ which, once translated into fleet management technologies, help transport operations run more cost effectively by giving real-time information on the performance of both truck and driver. One such technology house is MiX Telematics, developer of the renowned VDO/FM range of products. With a client base that spans six continents, it is reassuring to know that the hub of its product development is South Africa which, of course, makes it the ideal counselor for local operators in these troubled times. The Senior Marketing Manager speaks “The decision to invest in new technology faces every business owner in today’s competitive market and the question is always: ‘Where will I find the money? I just can’t afford it!’ But with spiraling fuel, equipment and labour costs, the fleet telematics decision becomes clearer,” says MiX Telematics Africa’s marketing manager, Hernus Vermeulen “To truly manage and optimise all aspects of fleet equipment, personnel performance and compliance issues, the question becomes, ‘how can I afford not to invest in telematics?’ With a return on investment typically in months, the purchase of a modular MiX Telematics system based on specific fleet needs is a sound economic decision, based on real results.” Bearing in mind that purchasing a fleet management system is not a cheap exercise, Vermeulen advises that fleet operators specify all their objectives, identify the roles of all personnel interacting with the system, review all available data pertaining to the fleet, make management decisions based on the data and, use the data continually to benefit the business. “It’s important for fleet owners to understand what it is they want to accomplish with the system, what questions about their fleet they need answering and what their objectives are,” he adds. “Typical concerns revolve around the maximum utilisation of the vehicles, optimal route structuring and vehicle scheduling, driver time and attendance, customer profitability profiling, vehicle maintenance costs and accident prevention, service scheduling and fuel consumption.” Achieving buy-in Technology will never be a ‘silver bullet’, so the geeks say, so it takes trained personnel to get the best out of the system. Vermeulen concurs. “Fleet owners who implement a fleet management system need to select a system ‘champion’, someone who will be in charge of the system. A person must also be available to present it to the fleet staff and other departments, as well as dedicated staff to monitor and evaluate the system.” It is crucial that drivers are informed of the system as early in the process as possible (after recording benchmark data), to give them time to adjust to the new processes and systems,” says Vermeulen. Leveraging the data The fact that modern FM technology can integrate with a truck’s on-board computer brings unprecedented reporting functionality to fleet operators. However, this data needs to be proactively managed says Vermeulen. “The fleet management onboard system should be installed for a specified time to record current fleet data as a benchmark to measure return-on-investment (ROI). This should be done before any kind of driver training or route adjustment is implemented. Costs and revenue (e.g., fuel, maintenance, payroll, customer invoices etc.) should also be documented for this time period. The same reports should be run for the same vehicles and drivers after this benchmark period and at specified intervals to review the improvements.” Fleet managers should be conversant with the following reports: Measured fuel consumption for average fuel litres-per-kilometre and total fuel consumed; the Driving Errors and Driver Score Report for harsh braking and acceleration, idling and speeding; the Movement Report for time spent at each stop; and the Activity Timeline for asset utilisation over time. “All management personnel concerned should review the reports from the benchmark period and determine areas for improvement and procedures for change. These areas will include driver performance to initiate a driver performance/ incentive program. Drivers should be shown their initial driving errors and driver-score reports and training and direction should be provided on how to improve their scores,” Vermeulen explains.
Strategic Fleet Management Over the decades, the products released by Siemens VDO (now owned by MiX Telematics) have served to improve driver behaviour and driving technique. By simply using an FM system to monitor and coach drivers, fleet managers can realise immediate and substantial cost savings. “For every one minute an engine idles, the cylinders continue to move. For the average 12 cylinder truck idling 10 hours per week, this may total some 200 million needless piston movements per year,” says Vermeulen. “All these piston movements need lubrication, degrade the performance of the engine and produce degradation of the cylinders, oil rings and injectors. If an average truck idles 10 hours per week and consumes 4 litres per idling hour, that is 2 080 litres of diesel fuel wasted and a needless generation of 5 512 kg of CO2 per year.” With the implementation of a Driver Performance/training program, many fleets achieve ROI with a significant reduction in idling hours alone. Further cost savings can be realised through reduced brake and tyre wear, lower drivetrain wear and accurate vehicle maintenance scheduling. “A quality Fleet Management system allows you to do more at a lower cost. It’s a challenge you face every day. To successfully meet it, you need to know the facts about every aspect of your fleet’s operation. With the facts to hand, you can take the necessary actions to make sure your fleet is operating at maximum efficiency,” Vermeulen concludes. It all makes good sense. But, as Vermeulen says, it needs committed management to extract the most from your fleet management system.
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2009 FleetWatch magazine and FleetWatch On-Line.
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