Fleet management information systems parse big data in search of efficiencies

The 600-vehicle fleet that ensures Washington, D.C.’s water and sewer systems are running smoothly is more efficient than ever.

Three years after the District of Columbia Water and Sewer Authority implemented a new fleet management information system — with sophisticated means to track everything from vehicle location and availability to how often drivers wear seat belts — the agency is drawing attention from fleet managers in a variety of industries.

Timothy Fitzgerald, fleet director, said the use of a software system that can accumulate real, usable data about the way the fleet operates has changed the way he does business.

“If you can’t measure something, how do you manage it?” Fitzgerald said. “In ways where it’s smart to automate, I think you should do it.”

Increasingly, the management software that first caught on with public agencies like Fitzgerald’s has become the norm in the private sector as well. Fleets of all kinds, from over-the-road trucks to service trucks, are being looped in through systems that track how vehicles are performing and when and how they are used.

That data can be combed through to search for problems, look for efficiencies in scheduling and maintenance and make better decisions when it comes time for major purchases. And the availability of live data can have some unexpected perks – it’s helped some companies track down lost or stolen vehicles.

Management systems meet telematics

Brad Kelley, senior vice-president and chief information officer for the Maryland-based fleet consulting firm Mercury Associates Inc., said the concept isn’t entirely new. Fleet managers have been tracking their equipment and costs with fleet management information systems for years, and in some cases, decades.

But over the last several years, more and more firms have begun to implement telematics on their vehicles, adding more layers of information to what was already being collected. Telematics can include GPS systems and provide a wealth of information about the mechanics of a vehicle. Like a “black box” that records data from a flight, telematics can track each trip on a vehicle.

Several companies now offer telematics software. Todd Ewing, director of product marketing

for one of those firms, Fleetmatics Group PLC, said his company’s focus is on vehicle tracking — and making it as user-friendly as possible.

Users install a small “black box” device, which is about the size of a deck of playing cards, under the dashboard of the vehicle. It is wired to the ignition and the battery and includes a GPS receiver.

“If they want to know if a door is open, we can wire sensors as well to that device, and also connect things like a Garmin navigation in the truck,” Ewing said.

More recently, some companies have expanded telematics even further, implementing hybrid GPS units that work with wireless tags to be connected to tools and even employee’s badges, Kelley said.  The goal: cutting down on lost tools and materials and to improve the safety of employees.

“We also anticipate in the next few years that wearable health bracelets will be integrated into telematics solutions to monitor the fitness of an employee to operate a piece of equipment,” Kelley said.

Systems held solve specific problems

Companies looking to integrate their management systems or try something new are often looking to solve specific problems, Ewing said. Sometimes it’s fuel bills that seem to be getting higher and higher. Others have customer service issues or time cards that never seem to match the work getting done.

Companies like Fleetmatics will often provide a live demo to show how the integration of their products can help put real numbers on all of those problems.

Once customers have seen a demonstration, Ewing said, “it’s rare we have to compel someone on the ROI.”

Fleetmatics’ largest customer is Comcast, a company that wanted to track engine idling time. After implementing the system, Comcast set new benchmarks and was able to save several million dollars each month, Ewing said.

The company even used the new data to create an incentive system: drivers who met benchmarks were entered into a contest for a Harley Davidson motorcycle.

“It’s the power that the customer feels in that moment that is so energizing for them,” Ewing said. “‘I don’t know where that (vehicle) is — oh wait, yes I do.’”

He said the same types of benefits are realized in the service truck industry, where fleet managers can better track on-site time and then bill customers more accurately. It can be more accurate than an operator’s report of his or her hours.

“People can see quickly that it was not a 12-hour day,” he said. 

Another option: integrating fuel card data to match up mileage reports with actual fuel usage. Ewing said that can go a long way toward satisfying customers and being sure about how quickly your technicians are getting to calls.

“In a lot of cases, supervisors are stuck between the technician and the customer who swears up and down that the guy wasn’t there,” he said.

In Washington, D.C., Fitzgerald said integrating the new fleet management information system has provided the data necessary to overhaul a variety of processes, from how it orders parts to creating an online ride-share and vehicle reservation system.

“What you find is there’s so much room for process improvement,” he said. “What we do now is go through a process re-review … we can take a look at how long it is taking us for getting the work order in, how long for the technician to start his assessment.”

Finding the right fit

While the trend toward more integrated fleet management systems shows no signs of stopping, some products aren’t right for all fleets.

David Koelsch, an Oklahoma-based certified automotive fleet manager and consultant, said people managing very small fleets should do a thorough analysis of their needs before making a big investment.

“A fleet management company is always going to promise that (they) can save you such and such percent on your maintenance and fuel, but it’s real hard to track that,” he said.

For clients with somewhere in the neighborhood of 20 to 25 vehicles, Koelsch suggests that they start with a fleet card that can track expenses. Using that data to get a better grip of what’s going on, fleet managers can make a more informed decision about upgrading to a more sophisticated system.

For larger fleets, Koelsch said it’s important to find a balance between prying too closely into the day-to-day operations of each driver or technician and gathering useful information.

“At some companies, depending on what they do, they may have problems getting drivers,” he said. “There may be competition for workers and if they want to try to wring every penny out of their fleet that kind of goes against the retaining of the employees.”

Still, Kelley said management systems can be increasingly useful tools, especially because more people operating within a fleet can use them. With more systems becoming cloud-based, operators and managers can access data both in the office and in the field, on a growing number of devices.

“The lowest-cost, highest-availability fleet is one that is well maintained and replaced in a timely manner,” he said. “Purpose-built fleet management information systems are ideally suited to perform this task.”

Erin Golden is a journalist based in Minnesota.