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Continuing our back-to-basics series on telematics, Sharon Clancy looks at
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the factors to be considered when you set out to buy a system for your fleet.
Before talking to any telematics systems suppliers, it's important to identify your priorities. There are a lot of suppliers out there, and a checklist will help you sort out the best solution for your business.
You need to spot any costs in the business that you can take action to reduce. Basics could include vehicle and driver performance; vehicle service data; consignment track and trace; and voice and text communications. You might want to add basic fleet management tools such as on-time arrivals and departures from customers.
Suppliers There are two main telematics sources: the vehicle manufacturers; and third-party suppliers. All the truck manufacturers offer telematics systems — Mercedes, MAN, Scania and Volvo have all been doing so for some years — although some marques are keener than others.Van manufacturers are not generally as proactive on telematics, although some offer satellite navigation, notably Citroen, which has made Trafficmaster standard in Dispatch and Relay vans. If your fleet includes trailers, specialist suppliers such as Axscend and trailer rental company GE Capital are worth checking out. GE can rent you trailers incorporating its own Veriwise telematics package which provides reports on trailer usage as well as location.
Schmitz Cargobull and temperaturecontrolled specialist'lhermo King also provide telematics packages.
On the web
if you've been put off telematics by the hassle of having to buy and install software, as well as training staff and finding the time to produce the reports, here's some good news. Many telematics packages are internet-based, so all you need is a telephone connection, a PC. and the ability to log on to the internet.
The data from your vehicles is uploaded to your telematics company's website; you then use your internet connection to download data in the form of reports.The reports might cover fuel consumption, idling or arrival and departure from customers' sites.The data is password-protected, so there's little risk of anyone else gaining access to it,
Paying for it
The most popular way to pay for internetbased services is on a fixed per-vehicle, per-day basislhis gives you a free black box that's fitted to the vehicle, containing the GPS tracking chip and the GSM communications modem. Charges are based on the amount of data sent but data packets are tiny so telematics companies can offer fixed-price contracts that include both vehicle position updates and data communications without anyone worrying about running up large bills.
Typical charges are 70-80p per vehicle per day.This can add up over the course of a contract, but the potential savings in terms of fuel savings and better efficiency should compensate for it.There may he limits on the number of vehicle position fixes per day you are allowed and there's quite a variation in the frequency of automatic position updates offered by the suppliers, from every minute, to every 15 minutes. All offer the ability to "poll" the vehicle and determine its location whenever you want, but it may be a cost option, so find out before you buy.
Check also if there are any data limits and if so, whether you can aggregate the data allowances across the vehicle fleet. "Penceper-day contracts are not the solution for everyone," says Btrack sales director Andy Walker. "Operators can find themselves being charged for bespoke reports or to add functionality, should their needs change. Buying from a supplier that controls all aspects makes bespoke projects much quicker and easier to manage, and brings a versatility that's not possible with bought-in equipment."
Not all black boxes allow you to add extra reporting functions, and some of those that do require the vehicles to be brought in to do it. Ideally, buy from a supplier who is capable of reconfiguring the box remotely 'over-the-air' for you; these suppliers should also offer remote fault diagnosis.
Contracts Depending on the supplier, you might have to pay one fee for the box which includes communications, or separate ones for the black box and the communications. Andy Kirk, MD of Quartix, says operators should be wary of suppliers who do not include the communications cost in a telematics contract: "If you already have a mobile communications contract which can be utilised, that's fine. What you want to avoid is leasing the telernatics black box on one contract and having a separate contract for the SIM card. If your black box supplier goes out of business or the box stops working, you are still committed to pay the communications bill."
Installation is sometimes included, but there might be a nominal charge. Kirk warns: "Don't be swayed by free installation costs into signing a deal that may prove more expensive over the length of the contract."
If you are leasing vehicles, it can be tempting to lease a telematics package for the same period, such as three or live years.The advice from third-party suppliers is to avoid commitment to a long-term contract, because your fleet requirements might change, and telematics are developing all the time. Tom O'Connor, MD of Digicore,comments:"The last thing a business needs is to be saddled with outdated technology."
Buyer beware
The simplicity of intemet-based services has led some operators to sign long-term contracts for equipment that no longer meets their requirements. The culprits, it seems, are companies whose prime objective is to sell black boxes rather than provide a service. "The reputation of the telematics industry has been badly damaged by companies whose only interest is in shifting boxes," says O'Connor.
Sources Before you sign up, it's worth asking any supplier where its black boxes are produced. UK telematics suppliers often use manufacturers in this country, despite the additional cost, because they are concerned with maintaining customer loyalty. If the supplier doesn't know the source of his products, then it's reasonable to question how good the aftersales service will be.
"Our advice is to make sure the telematics system you choose includes a black box that can have extra functionality added later, and that it is possible to diagnose any faults," says Kirk. "We make our black boxes ourselves, so we can make changes over the air without recalling the vehicles to base. As a result, all the vehicles in any given fleet are using the latest version of our product." Another important tip is to ask how many fleets the company has as customers, and how many vehicles are involved.They should be happy to tell you— and prove it.
Web-based tracking
Not all internet-based telematics packages are the same, as some are browser-based."The problem with 'here-today' tracking companies is that they do not necessarily have their own server," says Derek Beevor, MD of Road Tech Computers. "Servers cost the provider money. Small servers can quickly run out of internet addresses: the more people who log on, the more powerful the server has to be to cope."
And Kirk points out:"Some intemet-based reporting systems still require the user to load a driver,cookie or program on to the office PC.This is not ideal, because the operator has to remember to keep the program up-to-date." TrackM8 sales and marketing director Tim Evans agrees that updating PC-held data is a key, but reckons it speeds up downloading of data, especially for vehicle positioning:"Our back-end engine is accessing sub-sets of data continually and crunching numbers. It can ask a database to compare 68,000 points of intemet and deliver the answer in 10 seconds," he says. •