How Fleets Can Use Technology to Manage Driver Behaviour And

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How fleets can use technology to manage driver behaviour and vehicle efficiency Energy Saving Trust How fleets can use technology to manage driver behaviour and vehicle efficiency Introduction

Running a fleet efficiently and safely is a constant challenge, particularly when it comes to managing and monitoring how vehicles are used on the road. Wear and tear can be a significant cost, along with fuel, insurance and accident repairs. To respond to these challenges, an increasing number of fleet operators are considering the role that technology such as telematics can play in their business and how best to implement it.

Telematics systems transmit information, such as Effective implementation of technology requires location and distance travelled by a vehicle, and thorough research, planning, monitoring and the range from low cost, off-the-shelf systems giving capability to accurately analyse the data generated. basic navigational assistance, to highly accurate, real-time tracking systems. Technology systems This guide provides managers with an overview of such as cameras and self-reporting software can the technology and its applications, along with also be very useful for fleet managers for tips for effective implementation and overcoming compliance and safety reasons. barriers. It focuses on the potential benefits from an environmental and financial perspective and These systems can provide data or information identifies the core issues to consider when that, once processed, can deliver the insight and reviewing a fleet’s requirements. information a fleet operator needs to make strategic and daily management decisions with confidence, Energy Saving Trust offers expert assessment of potentially transforming their fleet operation and fleet vehicles and sustainable business transport delivering significant cost and carbon savings. processes to help organisations make financial and environmental savings. With funding provided by Decision makers should remember that different the Department for Transport (DfT) our services are systems will work best for different users, provided at no cost to you. Please contact us for depending on the operating environment. In some more information at [email protected]. cases, other tools such as fuel cards will provide enough information to allow fuel purchases to be tracked and individual vehicle and driver fuel economy to be managed.

2 Energy Saving Trust How fleets can use technology to manage driver behaviour and vehicle efficiency 1. Why use technology for fleet management?

The biggest challenge facing any fleet considering in-vehicle technology is answering a very simple question – why?

The answer will vary depending on whether the Ensure that you know what information you want question comes from the finance department, from a system before procurement and that the HR, the fleet manager, drivers or even a union preferred option is able to provide this as a useful representative. In this guide we have focused output. Telematics systems can provide data in a on four major reasons for introducing technology number of formats and levels of detail, such as into fleets, the features and benefits which can performance and compliance reports and charts be derived, and the technology that may be or just a “dashboard” overview of specific measures appropriate. Major reasons for introducing of interest to the fleet manager. Good telematics technology into fleets include: providers should include features in their software which produce a quick access dashboard of • To manage mileage compliance pre-planned metrics. • To optimise business operations

• To manage vehicle condition, Too many reports and data fuel costs and maintenance can just add to workload • To assist with driver safety and training or worse, distract attention from the essentials.

Source: Appy Fleet 2018

3 Energy Saving Trust How fleets can use technology to manage driver behaviour and vehicle efficiency 2. What different types of technology systems are available?

Different types of technology will be better suited to certain applications.

The table on the following page compares the • Camera: increasingly popular for safety and motivations behind adopting different telematics security reasons with scope for considerable systems, along with some indicative technologies benefits in terms of insurance claims and to that could be appropriate. The technologies outlined monitor driver safety and behaviour. below will be discussed in more detail later on in Section 3. • Basic satellite vehicle tracking: provides real-time tracking through a GPS/GSM receiver • Mileage management solution (mobile app, and transmitter, allowing businesses to know dongle or self-reporting software): where their vehicles are for optimisation (such captures travel data, including private and as route planning) and other operational reasons. business mileage, available on a number of platforms. Each platform has its merits in • Satellite vehicle tracking with remote terms of cost, accuracy, degree of real-time monitoring: operates like a black box logging reporting and automation. events during the vehicle’s trip for the day which can be viewed in real time or later analysed.

• Cargo tracking: determines location and, in the case of refrigerated vehicles, allows for remote monitoring of temperature.

4 Types and applications of technology systems

Mileage management and compliance Reporting of business and private mileage Driving hours monitoring

Mileage management: mobile app, ü ü dongle, self-reporting software Camera

Basic satellite vehicle tracking ü ü

Satellite vehicle tracking with ü ü remote monitoring Cargo tracking

Optimise business operations

Geofencing Track navigation Route planning Vehicle and locating and monitor and live traffic utilisation nearest vehicle temperature services

Mileage management: mobile app, dongle, self-reporting software ü ü Camera Basic satellite vehicle tracking ü ü ü Satellite vehicle tracking with remote monitoring ü ü ü Cargo tracking ü

Fuel use, vehicle Driver safety and training management and maintenance Driver profiles for training Driver safety: health Remote vehicle e.g. harsh braking, speeding, and safety reports, diagnostics incl. incident recording, panic buttons, engine temperature excessive, fuel consumption location monitoring monitoring

Mileage management: mobile app, dongle, self-reporting software ü ü Camera ü ü Basic satellite vehicle tracking

Satellite vehicle tracking with remote monitoring ü ü ü Cargo tracking ü

5 Energy Saving Trust How fleets can use technology to manage driver behaviour and vehicle efficiency 3. How to use technology for better fleet management

Vehicle mileage capture can be achieved in a Mileage management number of different ways ranging from manual and compliance mileage entry into a software system and mobile applications to more sophisticated in-car systems. Using technology for mileage management focuses Vehicle-based systems often have a switch to on the ability of telematics systems to provide data enable the driver to select business or private on the trips a vehicle has undertaken, at what times, mileage in order to address privacy concerns. for what purpose, and with varying degrees of automation and sophistication. Once The latest technology automates manual and this data is processed and presented, it can provide time-consuming processes such as timesheets a powerful tool for business management and as much as possible, to make them more accurate compliance. Mileage management technology is and to reduce paperwork. Such a system will vital for managers of fleets of all sizes wanting to automatically log vehicle use and location along improve their oversight of vehicle use. with the start and end of the working day. This information can then be imported into payroll Fleet managers will often see significant cost systems with automatic reports sent to the manager reductions when they start to manage mileage breaking down total mileage into business and due to reduced incidence of error, fraud and waste. private allowing accurate records and payments. This is due to increased visibility of business and private mileage claims which is often required for For van drivers, an incidental amount of private budgeting, reimbursement and taxation purposes use of company-owned vans, such as for for company cars and for monitoring vehicle commuting and occasional private trips, is servicing intervals. allowable without incurring benefit-in-kind tax charges. However, HM Revenue & Customs is For example, a provider of such systems - The Miles permitted to ask companies to provide evidence to Consultancy – claims that their compliance, audit prove this level of private mileage isn’t excessive and driver chasing process typically reduces the cost and telematics evidence can be used for this task of mileage claims by an average of 15.4% equating through vehicle mileage capture. to an average saving of 18.06 pence per litre. In terms of compliance, these technologies are often useful for ensuring that mileage claims or Mileage Allowance Payments (MAPs) are accurate. Having the ability to prove this is a requirement for HM Revenue & Customs audits and a failure to do so can lead to large fines.

6 Energy Saving Trust How fleets can use technology to manage driver behaviour and vehicle efficiency

Telematics can also provide other valuable Optimisation of tools for optimisation of business operations. business operations If employees claim for working additional hours, telematics can verify the time spent at specific Well-chosen telematics and technology systems locations. By using telematics to record drivers’ can bring about significant operating efficiencies for hours, unnecessary overtime claims can be reduced. commercial vehicle operators resulting in financial With commercial vehicles often carrying expensive benefits. Systems can help improve vehicle equipment, telematics software can monitor key productivity and management as well as in-field elements of security, such as rear doors being vehicle and task management, including automated opened. Alternatively, vehicles themselves can be scheduling and dispatch. ‘geo-fenced’ with an automated alert generated if they are moved outside a specified location or For fleets with a customer-facing role, such as into one, such as a congestion charging zone. couriers, breakdown services and engineers, vehicle tracking and monitoring can monitor where For business operation optimisation, a strong vehicles are in real time and how they are being cost-benefit argument is essential to ensure that used. Information on traffic and the best route to money invested in telematics systems will be take can be relayed to drivers and office-based recouped in the short-term. Fewer than 10% of managers. Automated route scheduling, dispatch van fleets use telematics systems to control their and optimisation systems can automatically assign operations but this rises to 41% and 53% for van jobs to vehicles during the day, based on who is fleets of 25+ and 50+ light commercial vehicles closest to a customer. This information can more (Sewells Van Fleet Market 2017). The fleets that accurately identify arrival times, which in turn can do implement well-considered technology and be relayed to the customer thereby improving telematics solutions can see significant savings service and satisfaction. through reduced mileage or fuel use, higher utilisation of vehicles and lower accident rates. Drivers can also register their current status, such These benefits will also be true, although to a as being available for their next job. If the workload lesser extent for many smaller fleets. is more likely to be established at the start of the day and not change, then the driver’s schedule can be automatically uploaded to a routing system, According to research from which can then monitor progress according to the schedule. Through better scheduling, higher Sewells UK Van Fleet Market, productivity and increased vehicle utilisation, 41% of van fleets greater than operating costs can be trimmed and staff 25 and 53% of van fleets productivity increased. By covering fewer miles and improving driving style, fuel use and CO2 greater than 50 are using emissions can also be cut. telematics. This compares to less than 10% for smaller fleets highlighting that many are missing out on the potential benefits available.

7 Energy Saving Trust How fleets can use technology to manage driver behaviour and vehicle efficiency

Vehicle condition, Driver safety and training maintenance and From a safety and security perspective, by fuel management monitoring and managing drivers more effectively a company can proactively tackle the source of Telematics can also bring about benefits for asset potential accidents and ensure that drivers are not management including vehicle diagnostics being put under pressure to take risks on the road and the close monitoring of different aspects in order to meet targets. In-vehicle ‘black boxes’ of vehicle performance, including engine can track speeding, harsh braking and acceleration, malfunctions, faults or warnings, thus avoiding sudden steering changes, over-revving, and hours vehicle downtime. Vehicle downtime can be a of vehicle use. This information can be used to critical factor in van fleets, with unplanned positively influence driver behaviour and foster a maintenance requiring substantial juggling of positive culture of continuous driver improvement, resources. Automatic mileage updates can be reducing accident rates and fuel use. received by managers or suppliers, such as leasing companies, to enable proactive servicing and Safety issues can be identified so drivers and timely replacement of vehicles. managers are trained and educated appropriately. This information can also be used to challenge Another major application of technology systems liability in the event of an accident with some is to report on the fuel economy of specific vehicles. systems able to recall in detail the moments leading By having more accurate, vehicle-specific data, a up to an accident, including speed, steering and company can quickly identify where action needs braking. Some insurance companies may also be to be taken, such as driver training. Telematics willing to consider a reduction in premiums for provides a level of insight which isn’t possible with those vehicles where these factors are monitored other fuel management systems, such as fuel cards, with GPS vehicle tracking devices. For blue light which rely upon the driver accurately recording services details of whether vehicle lights or sirens mileage when filling up. were being used can also be useful.

In one study of company car drivers, a telematics In addition to providing the information needed system identified a 50% difference in fuel economy to improve safety and reduce accidents, being achieved in identical cars over similar telematics can also help to combat vehicle crime. journeys. Much of the excess fuel use was down to Acting as a security system, unplanned vehicle driving style, including excessive speed and harsh movements can raise an alarm and pinpoint a acceleration. By improving fuel economy and vehicle’s location, enabling police to be directed reducing time spent idling, a business can reduce to its location if necessary. its emissions and costs.

8 Energy Saving Trust How fleets can use technology to manage driver behaviour and vehicle efficiency

Case study: West Yorkshire Police

Background

West Yorkshire Police serves part of England’s largest county, covering both urban and rural areas. Committed to improving the sustainability of their operation, WYP has installed telematics systems into its operational vehicles as one measure to reduce fuel bills and emissions and ensure that vehicle utilisation is being maximised.

How have telematics Results been used? Approximately 600 vehicles have been fitted with The telematics system logs indicators such as telematics and new vehicles are fitted with the mileage, vehicle speed, over-revving, harsh braking/ system as they enter service on fleet. The acceleration, and engine idling with this data used installation of telematics has led to the to identify opportunities for improvement including: following results:

• Identifying vehicles in the fleet which are • Identification of vehicle utilisation levels and being underutilised optimum fleet size, leading to de-fleeting of 120 vehicles. • Developing methods to analyse vehicle fuel efficiency and driver performance • Mileage reduction between 2012/13 and 2016/17 of 2,603,894 miles as a result • Demonstrating the benefits to other forces of telematics and a smaller fleet. within the UK • Diesel fuel cost savings of over £382,000

• Helping senior management implement other and lower resulting CO2 emissions. actions to improve operational efficiency • A reduction in blameworthy collisions by 31% Steve Thompson, Head of Transport, outlines the between 2011/12 and 2014/15, resulting in role of telematics in their fleet in the following way: £34,134 of cost savings in accident repairs “Our telematics system helps us inform our driver training programmes, targeting those West Yorkshire Police’s commitment to operating drivers who need the most support with the a cost efficient and sustainable fleet not only right type and level of training. We also monitor benefits the organisation but also the environment mpg figures, and have visibility of fuel refills and the public they serve in West Yorkshire. This including where vehicles have refuelled.’’ commitment has also led to them winning the Best Public Sector Fleet Award at the EST Fleet Hero Awards three years running from 2014 to 2016.

9 Energy Saving Trust How fleets can use technology to manage driver behaviour and vehicle efficiency 4. Next steps: How to implement a telematics system and use data effectively

By now you should have an appreciation of what Telematics offer a number of is possible with a telematics system and some significant benefits to fleet of the technology systems that are available, as managers, end users, and well as the benefits of implementation. Bear in mind that the ideal telematics solutions combine and insurers, and the number of balance cost, technology features, usability companies around the world and practicality to help fleet managers achieve adopting the technology the maximum benefit and operate an efficient fleet. With this in mind, you should start to think in continues to increase. more detail about the steps that are involved in implementation as outlined on the following page.

10 Energy Saving Trust How fleets can use technology to manage driver behaviour and vehicle efficiency

1. Plan 2. Engage and train

Identify the goals or aims of implementing a Sharing information on the impacts and benefits technology system to inform what key metrics of the proposed technology and consulting with are important, outputs needed to measure employees on how it will be implemented helps progress, and skills and capacity needed to to gain buy-in. The introduction of telematics implement change. Thinking about this can systems in particular can be challenging as also help to identify where there might be it involves an element of vehicle or employee easily achievable “quick wins”. tracking which some employees might object to.

Managing the sometimes large amounts of A de-personalised reporting solution focusing on data that come from telematics systems is an vehicle mileage can address this while still important consideration to ensure maximum informing vehicle servicing and replacement value is obtained. Once you have a general decisions. Ensure to outline any performance understanding it’s a good idea to talk to a management or rewards from a system. Above reputable telematics provider as they will all, be sure to genuinely take feedback on board. be able to assist and answer any questions.

3. Collect and analyse 4. Implement

At this point the process of collecting data Interpreting and implementing the outputs can begin. Analysing the data to produce should be relatively straightforward if adequate reports and outputs matching specifications planning and engagement has already taken set out in Step 1 can be challenging. However place and will allow you to track improvements reports are generally automated to an extent so and efficiencies that are being achieved. once they are set up will be less time consuming.

11 This guide has outlined the range of technology • Manage vehicle condition, fuel costs systems that are available with a focus on and maintenance telematics, as well as the benefits a well-considered system can offer to a company such as the ability to: • Assist with driver safety and training.

• Manage mileage compliance While 41% of van fleets greater than 25 vehicles and 53% of van fleets greater than 50 are • Optimise business operations using telematics this compares to less than 10% for smaller fleets highlighting that many are missing out on the potential benefits available.

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