Misconceptions about Telematics
Most operators in road transport know that embracing new technology and new ideas is essential to the long-term success of their business. Telematics has the potential to be one of the most promising technologies that the transport industry has seen for a long time. It will, without doubt play a significant role in coming years to improve safety and productivity in the road transport industry. Many people just don't realize just how important this technology is set to become. This is partially due to current misconceptions about 'Telematics' and what constitutes 'GPS Tracking', 'Mobile Resource Management' and 'Fleet Management'. Some of the key misconceptions are:
• We have been making improvements to our business for years and we already operate efficiently
The Australian and New Zealand freight industries are highly efficient by world standards and the achievements of the industry must be commended. However, the combined challenges of an increasing freight task, strengthening competition, driver shortages and the impact of exhaust emissions on climate change, make further productivity improvements an imperative for heavy road transport. Telematics is powerful 'enabling' technology that will help fleets take the next step in productivity improvements. Fleet owners know that they can't sit still and they must embrace new technology and fresh ideas for their businesses.
• We don't really need 'GPS tracking' because we trust our people and don't need to monitor what they are doing
There is a difference between 'GPS tracking', 'Mobile Resource Management' and 'Fleet Management' systems. Fleet Management, which uses GPS technology, is about much more than monitoring what your employees do. There is a bigger focus, which is to reduce fleet operating costs and make productivity improvements wherever these are possible. It is also about becoming more competitive, delivering good customer service and growing the business. 'Fleet Management' is a proven technology that's capable of delivering strong operational and financial benefits.
• There are lots of 'GPS tracking' systems and they all seem to do the same things - this makes it difficult to choose what we want
There definitely are a lot of 'GPS systems' on the market, but there are few genuine 'fleet management' systems. On face value, these systems do appear to do similar things because fleets understand GPS and mapping, and these familiar features are often promoted to get people's attention. The reality is however, quite different. A lot of system providers can set you up with a 'tracking' solution quite easily but as many fleets have already found out, 'seeing where your trucks are on a computer screen' in itself, doesn't provide a lot of value. The other problem is that most users of these systems don't realize the full impact that the available information can have on their company until after they start using the system on a regular basis. This is precisely why your choice of a telematics provider is so important.
• Finding good drivers is getting harder and if we get telematics they could quit
With the shortage of drivers out there this is a valid concern, however there is no evidence to suggest that driver resignations increase when telematics systems are installed. Like introducing any new technology, staff can be apprehensive. However, when drivers realise that it will not threaten their livelihood they are likely to be more relaxed and perhaps even acknowledge that there are benefits in it for them.
• These systems are too complicated to use
Any new system or device, even a new mobile phone can initially appear complicated to use. However, provided that users take an appropriate amount of time to become familiar with features of the system, most are actually fairly simple to use. TOMR's implementation process involves working with you to set-up the system correctly and providing guidance and training on how to interpret and apply the data you receive to improve the operation of your fleet. Back-up technical support is also provided on an ongoing basis to cover any service issues that arise.
• We can keep track of our fleet well enough with mobile phones and PDA's
Mobile phones and PDA's are certainly useful as communication tools and they have changed the way many of us live. But, they cannot provide a range of information like real-time vehicle location, engine performance data, detailed trip information, trip replays, distances travelled, fuel consumption or driver speed violations. Telematics presents fleet owners with opportunities to manage their fleets better because they can now get access to a range of information that has not previously been easily available. Telematics will revolutionize fleet management similar to what the mobile phone did for day-to-day communications. Remember when people asked "why do I need a mobile phone?"
• It is too expensive and we can't afford it
While this is an understandable concern, the problem is that people that say this are focusing on what the product 'costs' rather than the value of the 'benefits' the solution can deliver. A good fleet management system will identify cost savings and productivity opportunities in your business that are already costing you hundreds, if not thousands of dollars each month - things like excess fuel consumption, speed, aggressive driving, excess overtime, excess engine idling, inefficient routing, unplanned mileage etc. Most fleets actually end up paying far more for these inefficiencies than the monthly investment required for an advanced fleet management system like TopGearT.
• Its new technology and we are waiting for it to be proven
GPS technology itself, (the ability to locate and track objects at any time, in real-time, using satellites and wireless communications) has been effectively used for decades. Trucks have also been running with on-board engine control systems for decades and we also have seen the popularity of navigation devices escalating. These proven technologies are what's used in telematics systems. The fleet applications themselves (software) are advancing quite quickly but if fleets keep waiting for the so called, 'perfect' solution they will forfeit considerable financial benefits along the way. Many fleet owners that can see the significant advantages of telematics are already benefiting from what this technology can offer.
• We are too busy to use a system like this
This is a real problem for many transport companies. Everybody is already over-loaded running the day-to-day business operations and finding someone with the time to set-up and use a new system like TopGearT, may be a daunting prospect. The irony is, for a company in this predicament telematics makes perfect sense because it actually reduces the fleet management workload. A telematics system provides a clear picture of what is going on with your fleet and delivers accurate real-time information, literally at your finger-tips. The busier you are, the more important it is to have good information to base your decisions on - this is to make sure the business priorities are right, money is not being wasted and your customers are being served effectively.
• We only have a small fleet and this technology is not really applicable
It is true that in small companies the owner is typically very much 'hands-on' and therefore gets directly involved in running the fleet day-to-day. However, in general similar cost saving and productivity improvement opportunities exist for fleets of all sizes. A key advantage of a web-based system like TopGearT is that it's a cost effective option for any transport business. With no specialized software required it makes the process of deploying the solution straight-forward. Whether its 5 trucks or 5000, the system will pay for itself quickly out of savings in vehicle operating cost and improved efficiencies.
For more information on Understanding the Benefits of Telematics contact Greg Turner at gturner@tomr.com.au