Old foe is now a friend

TELEMATICS has had a mixed reputation – seen by managers as a vital risk management tool, yet scorned by some drivers as the enemy within.

But there is evidence of a clear trend among drivers who are beginning to understand that tracking systems can benefit them as much as their employer.

Companies are showing that the technology can help with a variety of issues from protecting staff from fines to backing them following collisions. It can also dramatically reduce paperwork.

Andrew Crawford, product marketing manager for Minorplanet, a stock market listed vehicle tracking company based in Leeds, said: “For managers, the benefits are clear, as the savings across the industry from more effective management of vehicles run into millions of pounds.

Attitudes

“The attitudes of the drivers themselves have changed in recent times. It was not too long ago when drivers were suspicious of management motives for installing telematics systems in their vehicles.

“Now, increasing numbers of drivers are realising how telematics systems enable them to demonstrate their driving skills to their managers, safeguard them against accusations of bad driving or illegal speeding, and give them vital help in an emergency.” So what has happened to transform the ‘spy in the cab’ into the driver’s ‘best friend’?

The answer lies in the astonishing advances made in technology, argues Mr Crawford.

Today’s telematics and vehicle tracking systems bristle with sophisticated and innovative technological features providing information and control over vehicle behaviour and asset protection that were unheard of just a few years ago.

This evolution from the original track-andtrace capability of early telematics systems is providing a valuable spin off for drivers.

The ability to schedule deliveries and appointments to ensure the driver arrives at the precise time the customer is expecting – or to re-route a driver in line with customers’ changing demands – is a key feature of an advanced telematics system.

Drivers benefit because they can provide a better service and avoid arguments with customers.

Many drivers are realising that an installed telematics system is also an insurance policy that can act in their favour. Rather than it being a spy in the cab, it can be a guardian angel.

For example, if a company receives a phone complaint that a vehicle has been driven aggressively, or too fast or parked illegally, it can be checked against the information recorded by the tracking system.

Venus and Co, which supplies wine, champagne, beer and spirits to the trade, uses Minorplanet’s VMI system to manage its fleet of 11 vehicles.

Panny Nicolaou, the firm’s distribution manager, said: “In most places you are allowed to park for 20 minutes for the delivery of goods. Using VMI we can now prove how long a driver was parked, by checking the system reports. Every time I have challenged a parking ticket this way, we have won.”

One of the biggest landmarks in the acceptance of tracking systems on vehicles is the changing view of union representatives.

In 2005, one of the country’s biggest unions gave its backing to in-car telematics systems and installed them in cars used by its own drivers.

Merged

Bosses at the Transport and General Workers’ Union (TGWU) – which has since merged with Amicus to form Unite – said that the mobile tracking systems, provided by Eagle-i, provided ‘real-time visibility and workforce protection’.

A spokesman for the TGWU said at the time of the deal: “These vehicles will be used by our membership recruiters who have long distances to travel across the country. It has been a constant worry that we didn’t feel able to ensure their safety every step of the way.”

Other unions have now been swayed, with Guildford Borough Council among a number of public sector fleets to take the tracking route.

Dave Tobutt, the council’s fleet and waste operations manager, has control of an annual budget of £2.5 million and a fleet of more than 150 vehicles.

Having been a customer of tracking firm Quartix for three years, he says: “The system is fast, reliable and flexible – each of our three fleet divisions has a separate access code for its relevant tracking logs and I retain an overview for monitoring purposes. We now have 104 tracking units fitted, with full staff approval and union backing.”

Savings

Even when a company makes financial savings from fitting tracking systems, it is clear that employees still stand to benefit.

A fleet can benefit in two areas. It can have reduced general running costs, which helps guarantee future employment for staff and reduced accidents, which protects drivers and their families.

GreenRoad Technologies has helped T-Mobile, one of the largest mobile groups in the world, to slash its accident rate.

Over a four-week pilot period, GreenRoad worked with T-Mobile to install its Safety Center system in the company’s vehicles. The system monitored driving behaviour, then identified the highest risk drivers. GreenRoad then worked with T-Mobile to introduce GreenRoad Safety Center to the fleet and a fleet safety policy was put into effect.

Within six weeks, T-Mobile UK had reduced risky driving behaviour by 50% and over several months, T-Mobile’s accident rate fell by 23% (see case study article).

Meanwhile, Matrix, a leading IT company, which is part of the Formula IT Group with a fleet of 1,500 cars and light duty vans, was plagued with an annual accident rate of 65%.

GreenRoad found that Matrix’s ‘red drivers’ averaged a 90% accident rate, ‘yellow drivers’ averaged a 50% accident rate and ‘green drivers’ averaged a 40% accident rate.

Following the driver profiling period, GreenRoad worked with Matrix to introduce GreenRoad Safety Center to the fleet and a fleet safety policy was put into effect.

Within six weeks, Matrix drivers reduced their accident rate by 49% and reduced unsafe driving by 45%. In addition, fuel consumption fell by 6% and, over a one-year period, at-fault collisions fell to zero.

Minorplanet’s Mr Crawford said: “Every fleet operator has duty of care obligations to meet in respect of health and safety and the welfare of employees whilst at work in their vehicles.

Benefit

“Drivers benefit in the knowledge that the vehicle tracking system is compelling their employers to safeguard the drivers’ interests – both in terms of making sure they do not work too many hours and ensuring the vehicle is safe thanks to regular maintenance and safety checks dictated by the driving patterns analysed by the tracking system.”

Some drivers may demand the right to drive as dangerously as they like while out of the office, arguing that tracking systems invade their privacy, but with the Corporate Manslaughter and Corporate Homicide Act coming into force and a wealth of other health and safety related regulations, most companies will be looking at how they can help their employees to be safer on the road.

Old foe becomes a friend

Eagle-i Telematics has helped energy company AREVA’s Transmission and Distribution division to reduce the environmental impact of its 110-strong UK van fleet, while also helping comply with recent changes in van tax legislation, which imposes tough tax penalties on drivers with ‘significant’ private use of their vehicles.

At the same time it has enhanced its risk management capability.

Achievements

Key achievements include a reduction of AREVA’s total fleet mileage through better job allocation and route planning and improved fuel consumption through improved driver behaviour and speed awareness.

The resulting reductions in carbon dioxide emissions were particularly attractive to AREVA for whom sustainable development and minimising environmental impact are key objectives. Russell Whalley, UK transport manager for AREVA Transmission and Distribution, said: “Complying with the new HM Revenue and Customs rules for company vans was a key factor in the decision to roll out the Eagle-i solution to our UK van fleet.

“The system also offers us other benefits, including the ability to improve our duty of care to our employees and the public by managing our fleet more effectively, and being able to simplify timesheet administration and reduce overtime costs by maintaining more accurate driver records”.

According to Andy Walters, managing director of Quartix, the productivity benefits of the technology are now well proven.

The firm claims its figures show enhanced fleet performance and improvements in productivity make it possible to increase business capacity by up to 20% a year.

Cost savings of up to £2,000 per vehicle, per year are being achieved because companies are learning from day-to-day activity to improve operational performance, he claims.

Mr Walters said: “The benefits of vehicle tracking are apparent in every business sector and for every vehicle type.”

Accepted

Telematics technology is now becoming so widely accepted that leasing companies are starting to offer it to help monitor vehicle mileage, provide pro-active service booking and offer additional benefits to fleet managers, such as stolen vehicle tracking.

Bristol-based ALD Automotive has pioneered telematics in the vehicle leasing sector and currently it offers a range of services under its ProFleet2 banner.

ProFleet2 is now fitted to more than 14,000 company cars and vans with an estimated 20,000 vehicles being equipped within the next year.

David Yates, marketing director of ALD Automotive, which operates more than 46,000 vehicles in the UK, said: “ProFleet2 is chiefly designed to enable the efficient and pro-active management of health and safety and duty of care obligations by recording data such as journey time and miles travelled.”

As well as ensuring vehicles are serviced on schedule through the triggering of a two month/2,000-mile vehicle service reminder that also eliminates the risk of in-life or end of contract recharges caused by poor service history, PF2 is also proving invaluable in helping drivers’ record accurate business mileage, says Mr Yates.

This ensures they are not overly exposed to risks and companies can keep a thorough audit trail of vehicles and drivers by business mileage being reported separately.

In conclusion, Quartix’s Mr Walters said: “It’s safe to say that telematics is here to stay. If you were a fleet manager, as the saying goes, well you would, wouldn’t you.”

A helping hand ahead for Britain’s fleet operators

For example, Eagle-i has launched Telematics Enabled Risk Management (TERM) which can closely monitor how a vehicle is performing on the road covering not just speed, acceleration and braking, but also cornering.

The system can also hold a significant amount of historic data and be used to create a predicted risk profile.

It also introduces a ‘black box’ function, which retains data from just before and after an accident data to help analyse the potential causes.

Extensively

Black box data recorders aren’t a new idea. They have been used extensively by the Metropolitan Police and, according to the Transport Research Laboratory, could be used much more extensively in the UK in future.

TRL claims that between 60% and 90% of vehicles in the USA are now equipped with the motor vehicle equivalent of an aircraft’s black box.

These ‘Event Data Recorders’ are typically integral to vehicle safety systems and store data about the vehicle’s behaviour, such as its speed and acceleration, in the period before and during an accident. These short but valuable bursts of data can be pivotal in understanding the causes of accidents and improving vehicle safety.

TRL is looking to a future where In-Vehicle Data Recorders will deliver significant advances, including charging drivers or companies according to the fine detail of vehicle usage and driver behaviour.

This development will be speeded up by moves towards nationwide congestion charging or road pricing. In addition, such ‘black box’ technology is already being utilised by insurance companies, such as Norwich Union with the marketplace arrival of pay-as-you-drive policies (RoadSafe: autumn/winter 2007).

Meanwhile, late last year ALD launched ProFleet2 ‘Fleet Manager’, which further helps businesses to reduce their vehicle operating costs, increase compliance with at-work driving health and safety legislation and enables companies to reduce their transport carbon footprint through effective journey and mileage management.

Until the launch of ‘Fleet Manager’ standard online reporting had been limited exclusively to drivers after they registered their ProFleet2 system. However, subject to online consent being given by drivers, the new ‘Fleet Manager’ module now allows fleet decision-makers to access a series of specific fleet management reports.

The standard ‘Fleet Manager’ reporting suite provides comprehensive journey data detailing length of journey, time of travel and miles clocked up.

Drivers can elect for their fleet manager to see all their travel, business-only journeys or opt out with no journey data being made available.

Undertaken

Whilst fleet managers can drill down on any journey undertaken, a standard suite of ‘Risk Exception’ reports provides them with a detailed analysis of ‘all risks’, high risk driving hours, high daily driving hours, driving without a break, high daily mileage and high trip mileages outside standards laid down by the company.

Additionally, fleet operators can access driver profiling data such as vehicle speed, acceleration and deceleration, idle times and gear ratios, etc.

The data available therefore enables businesses to compile a comprehensive risk management audit of their drivers thus complying with legislation including the Working Time (Amendment) Regulations 2003, the Health and Safety at Work Act 1974 and the Workplace (Health, Safety and Welfare) Regulations 1992.

David Yates, marketing director of ALD Automotive, said: “ProFleet2 is an ideal and proven solution as employers are increasingly needing to demonstrate not only that they have implemented a policy, but that they pro-actively monitor the performance of work-related road safety.

“It provides an auditable management of occupational road risk, which will undoubtedly reduce the risk of prosecution in the event of a road accident.

“By monitoring journey patterns, times and distances covered, fleet operators will be able to ensure drivers comply with best practice and reduces the risk of fatiguerelated accidents.

“Additionally, by analysing driver profiling and speed reports ‘high risk’ drivers can be more easily identified thereby enabling companies to implement measures, such as driver training, to reduce the risk of an accident occurring in the first place.”

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