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What fleet managers should look for in a vehicle tracking system

By Ken Osler, chief operating officer, VSc Solutions, reseller of Descartes Roadshow routing and scheduling systems

Johannesburg, 23 Mar 2009

Today, vehicle tracking system applications are increasingly focused on optimising efficiencies, reducing costs and improving service delivery to customers. As a result, there are some key factors to consider when selecting a vehicle tracking system.

The job of a fleet manager today is more than just the monitoring and control of an operating fleet, The fleet manager needs to ensure that the assets are effectively utilised (though planning and utilisation management) and run at the least possible cost-per-km (through control of fuel consumption, maintenance spend and km's travelled). Fleet managers have to co-ordinate the delivery routes of diverse vehicles and create a common schedule that will help the company cut down on transport costs.

Both the planning and real-time control of operating fleets can be effectively managed through the use of appropriate fleet management software.

Key criteria

Optimise fleet productivity

The main element of a fleet management system is the tracking of the vehicles activities, and automated exception reporting against a predetermined plan and operating limits. This is usually performed by installing a GPS device into the vehicle, which sends data to a server at the communication centre operated by the service provider. The transmitted signals carry vehicle details such as speed of the vehicle, the vehicles adherence to route or plan, mileage and other relevant information. The fleet manager can then access the data on the server by logging into an account via the Internet. Thus without any telephonic contact, the manager is able to monitor the information and make informed decisions.

Historical fleet management systems did not operate on exception based management. They provided data on where a vehicle was, and perhaps how fast it was going, but did not consider if it should be there at that time, nor if it was performing the designated task according to plan. Today's fleet managers should be looking for systems which provide exception based alerts when vehicles are operating outside of route, outside of area or not completing planned activities on time. This technology enables fewer people to achieve far more with their tracking and reporting tools. Field studies have shown that tracking systems have enabled large fleet owners to achieve a 20-30% reduction in fleet size in areas such as emergency response, waste collection, consumer goods transportation, gases and construction.

Regular maintenance schedules

With all large fleets there is a requirement for continual maintenance. Ensuring that this is done on time is a major challenge. New advancements in fleet management software allow tracking systems to send vital onboard data back to a centralised location for analysis. A good fleet management system will ensure that vehicles are maintained on time by setting a schedule for each vehicle and then sending a reminder when the maintenance is due. The software may also contain elements to help mechanics carry out the maintenance and to help in controlling inventory of spare parts. The ability to keep track of vehicle mileage whilst the fleet is in use is a valuable feature for managers who want to maintain mileage based service requirements.

Improve vehicle life

Tracking systems fitted with engine management tools can help prevent engine abuse by monitoring driver behaviour and sending alerts for events such as over-revving, harsh braking, rapid acceleration and excessive idling. This allows fleet managers to stay in control and make substantial cost savings across a range of aspects. These include, among others, the ever increasing cost of fuel, wear and tear on brakes and tyres and a reduction in the number of engine failures. With the proper tools at their disposal, fleet managers are therefore able to reduce running costs per kilometre through better management of both vehicles and drivers.

Basic services of a tracking system

The main services provided by a tracking system will include monitoring of, inter alia:

Security support - 24/7 tracking and recovery, panic button, panic button, accident alert, tow alert and battery tamper protection.

Trip information - vehicle start-up and shut down, distance covered, GPS speed and driver productivity.

Engine management - driver identification at start-up, driver performance monitoring, harsh braking and acceleration, excessive revving and excessive idling.

Advanced fleet management tools

The advent of mobile data management - and the inexpensive costs involved in implementing it - has changed the face of the fleet management industry. Advanced fleet management software can now be typically deployed at less than 2 percent of a fleet operator's overall distribution costs.

Some of the more valuable advanced fleet management tools include route scheduling and planning, service area allocation and management, comparison of the planned vs actual activities and routes, utilisation management, electronic proof of delivery, temperature control monitoring and in-cab voice communications

Select the right product

A vehicle tracking system integrated with the appropriate fleet management software can eliminate a lot of the pressures of running a fleet effectively. By considering some of the key criteria outlined above it should be possible to find the right product for your needs.

Perform a need analysis to determine what kind of vehicle tracking system, if any, is required. In some cases a real-time tracking system would be a necessity while, in others it might simply be a drain on cost. If there is a requirement to communicate with drivers en route, for example, a system with voice capabilities would be essential.

Do your research: once you have decided to buy such a system, you should try and understand the technology and how it works by researching which features are most attractive to your business. Product and service knowledge are key to making the final purchase.

GPS and Internet based systems are very effective and are also very easy to use. Only choose a provider that has access to the very latest technology.

Ensure after sales support by checking if the company's help desk and call centre are efficient enough to provide proper guidance and support. Verify this by contacting some existing customers.

Look for hidden fees by clarifying that the amount being paid includes the cost of the monthly service fees, upgrades, repairs, routine maintenance and that there are no other extra charges.

Choose a reputable company that has the capability to offer advanced solutions as your business grows, and that is registered with the police and the appropriate industry bodies such as VESA (Vehicle Security Association of South Africa).

Insist on a pilot, as this will determine the capability of the companies considered, as well as establish the expected return on investment.

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