Return on Investment Series: COI

Telematics & GPS Cost of Ignoring

Simply stated, the cost of ignoring is money left on the table. Cost of ignoring (COI) can be thought of as the amount of lost savings that result when a company fails to undertake a strategic business investment that would otherwise improve operational efficiency. For fleet managers it can be thought of as the incremental operating costs resulting from the improper use of telematics or lack thereof.

 

ROI v. COI

COI has the same strategic goals as ROI, however there are a few fundamental differences as seen in the table below. The primary difference is that COI is focused on minimizing operating costs, whereas ROI is focused on maximizing incremental revenue.

 

ROI v COI

 

 

Finding Savings

 

Each fleet is unique, and therefore each fleet can have drastically different cost structures. In our research, we found that two variables specifically impacted a fleets operating costs: vehicle class and vehicle mileage.

Here is an example: A long-haul Heavy-Duty (HD) fleet will have a very different cost per mile (CPM) breakdown than a low-mileage Light-Duty (LD) fleet. In general, the HD fleet will likely have larger proportional fuel expenses per mile, but the fleet will have larger collision and claims CPM.

Savings opportunities available to a specific fleet will change based on the fleets operating characteristics. This can make the opportunities difficult to identify and quantify.

In the next series, we will discuss using our Fleet Savings Summary Report to quantify the ROI & COI.

 

View previous Return on Investment Series post here.

Request more information here.

 

Four Benefits to the ELD Mandate

The ELD Mandate Can Improve Your Business

 

FMCSAs ELD Mandate provides an outstanding opportunity to simplify and streamline your handwritten recording process. Fleetistics electronic log systems automate the process. This reduces the time required to compile and maintain driver records. Automation means savings for your company. Let us take a look at the benefits of the Fleetistics ELD/eLog/Hours of Service system:

 

ELD Mandate Benefit 1Benefit #1 Elimination of handwritten log books. Fleetistics electronic log system replaces the handwritten log book with an easy-to-use mobile app run on an Android tablet or iOS iPad. Gone are the days of trying to decipher illegible log entries.

 

 


ELD Mandate Benefit 2Benefit #2 Simplified roadside compliance reporting. When roadside log inspection is required, drivers simply click a button to instantly display a fully compliant report. As changes occur to reporting requirements, our system incorporates those changes.

 

 

 

 

 


ELD Mandate Benefit 3Benefit #3 Real-time status for dispatchers. Dispatchers and other office-based personnel can obtain a drivers current status instantly.

 

 


ELD Mandate Benefit 4Benefit #4 Digital verification of logs. Never again will it be necessary to chase down a driver to obtain a signature to verify a log entry. Digital verification is provided through the tablet app.

 

 

 


The FMSCA ELD Mandate provides the perfect opportunity to automate the process of maintaining driver log information. Our system also automates compliance with the ELD rules. As changes occur to recordkeeping requirements, our system incorporates the changes to provide users with automatic compliance.

For a live demonstration of the Fleetistics ELD/eLog/Hours of Service system, contact your account manager today.

 

Return on Investment Series: Article 1

Telematics & GPS Return on Investment

return-on-investment

Return on investment (ROI) is a performance measure used to evaluate the efficiency of an investment, or to compare different investments. ROI measures the amount of return on an investment relative to the investment. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage.

The telematics industry has come a long way since the days of downloading data when a vehicle returns to home base and providing dots on a map. Today, telematics can provide fleet managers instant reports on location, vehicle driving behavior, maintenance alerts and so much more, thus providing a significant ROI.

 

 

5 Pillars of Fleet Management for Return on Investment

 

Safety – Speeding, harsh driving behavior, reverse, seatbelt, accident reduction
Productivity – Stop duration, dispatch, route efficiency, sales/service calls, timely service
Optimization – Proactive maintenance, odometer readings, vehicle health, fuel consumption
Compliance – Company policies, State/Federal laws, HOS
Expandability – Integrate with 3rd party software, power of the IOX, marketplace

Click here to request more information.

Curbing Employee Theft

Employee theft comes in many shapes and sizes.

 

 

Employee sleeping in the cab

Defined as any stealing, use or misuse of an employer’s assets without permission, employee theft hurts everyone. Employee theft, mostly time theft, is a real problem in our culture.  Here are some examples of employee theft that come to mind.

  1. Selling company data to competitors
  2. Misuse of company assets
  3. Theft of time (being on cell phone) by not doing the work one is being paid to do
  •  

There is a trickle down effect caused by employee theft.

 

Eventually, it hits the consumer’s wallet in the form of higher prices. For that reason, stopping employee theft is good for us all.  It keeps the business profitable, customers happy with prices that aren’t inflated, and honest employees more content and secure in their jobs.

Maybe we don’t spend enough time talking with clients about using their GPS data to prevent or expose employee theft, but it can be a great tool.  A few years back, a client called me because they suspected foul play.  This client recycles used cooking oil into other products.  They noticed a marked reduction in the yield they were getting from the oil cleaning process.  In an effort to understand what had changed, they looked back at their GPS tracking history.  They spotted some unauthorized stops in their GPS tracking data, and called me to see what to do next.

oil tank

After creating a zone around the unauthorized stop location, we reprocessed several months of data against the new zone.  Reports showed both history in the zone and a pattern. That was the information that told the story.  Not too long after, the Baltimore Sun reported “Three charged in Hartford in $1 million scheme to steal used cooking oil.”  You can get the whole story here.

It is so rewarding that Fleetistics and the products we represent make a measurable difference.  Above all it reminds us when we are confronted with a real-world example like this.  In this case, we had a part to play in stopping employee theft, and the trickle-down effects that theft would have had on others.

GPS Accuracy

Location Accuracy

The advertised location accuracy of most GPS trackers less than 3 meters. Accuracy can vary outside this standard deviation based on environmental factors such tree cover, tall buildings, GPS antenna used, device engineering and GPS device install location.

 

GPS-Accuracy-Comparison

Speed Accuracy

Speed accuracy is something we do not put a lot of thought into but speed accuracy can vary quite a bit. The GPS tracker and the GPS on your phone is more accurate than the speedometer on your vehicle. The older the vehicle, the less accurate the speedometer is. Speed is significantly impacted by changing the factory tire size. Wear changes the tread depth and size of a tire over time. An old tire is not as large as a new tire so the axle spins faster giving a false speed.

To determine speed accuracy from the GPS tracking map, scroll your mouse over the map route leading up to the speeding incident if you are using Geotab. Other GPS trackers will not be as accurate and do not have as much data. If the vehicle speed gradually increases, it is valid data. If the speed jumps from 40 to 85 with nothing in between, it would be difficult to hold a driver accountable for this because data is missing between these two points.

 

Posted Road Speed (PRS) Accuracy

Posted road speed varies from super accurate based on Fleetistics testing, to occasionally not so accurate. It is far more accurate than it was 5 years ago. I have driven past speed limit signs and watched the data change in Waze within feet. Generally, the more populated the area, the more accurate the data because there is a greater chance someone will submit a correction or from mapping cameras that frequent these areas more often. PRS is only as accurate as the data provided by the government, data that is submitted by citizens or AI, and the data set selected by the GPS tracking company. Cameras with artificial intelligence are helping reduce the time between a speed change, or new sign going in, and the time until it enters the data set. Citizens can submit corrections to the mapping companies which will be included fairly quickly. I submitted a road through the heart of Tucson, AZ to OpenStreetMaps and it was updated quickly which eliminated a lot of speeding exceptions. A submission to Google was live within two days. Highway speeds and primary surface roads are generally very accurate but it can vary by state.

In short, you have to validate exceptions.

 

Employees

Often times employees will claim the GPS is incorrect. Performing the two tests below will give you the confidence that the GPS is more accurate than the employees description. If you have to, do the test in the vehicle with the employee. If the GPS tracker is off, and it happens occasionally because of external factors, the deviation is typically so great it is obvious. Since 2001 Fleetistics has not seen a situation when the deviation is consistently X and you cannot tell something is wrong. The deviation is generally 30x and the vehicle plots in the ocean or 250 miles away for 1 or 2 data points, the speed goes to 321 MPH to cover this distance and then the plot comes back to the expected route. This is typical of a reflected GPS signal most often seen going under an overpass. Most of the time the GPS device filters this data because it cannot be valid. If the track follows the road, the data is accurate. Accuracy is one of Geotab’s strongest features.

 

Accuracy Testing

Below are two tests you can conduct to get a feel for the accuracy for a particular vehicle. The question is what is the business case where the accuracy is in question?

 

  1. Speed Test: Set the speed buzzer on your Geotab GPS device at 70 MPH and take a drive. Open WAZE and view the speed Waze indicates you are traveling and compare it to your speedometer. Waze will be more accurate reading because it is not impacted by tire size and other environmental factors. This will determine your speedometers margin of error. Increase your speed at a normal rate until you reach the speed set on your Geotab device. When the buzzer goes off compare it to Waze and your speedometer. You will now know the margin of error for the Geotab device in relation to your speedometer.
  2. Location Test: Park your vehicle in a particular parking space. Open Geotab, change to satellite view and see if your vehicle is plotted correctly. This will show the accuracy. Below is the picture from my truck today. It is showing the correct parking space and even the GPS being on the left side of the parking space. I would estimate this is within 2 feet of the actual GPS location inside my truck.

GO9 Technical Specifications

Speed Graph
Contact Us
close slider

Contact Us

Call now for a quick demo. 855.300.0527