Integrated Fleet Management

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1 Integrated Fleet Management Supporting best-in-class fleet operations with mobile technology Honeywell Scanning & Mobility Mark Davis, EMEA Industry Marketing Manager Fleet Operations Overview As consumers of products and services from multiple global sources, we have come to expect delivery excellence as a matter of course. Vehicle fleets, of any size, are a fundamental element of this global supply chain, and the operational processes required to support final delivery are not often visible. It is in this highly competitive, high volume low margin environment that fleet operations managers seek to optimise their transport resources and processes to ensure service levels are met and assets optimised. This in turn will increase profitability and lay the foundation to attract new customer contracts. To support this approach, transport and logistics businesses have invested in technology over many years, particularly in transport scheduling and fleet tracking systems, to provide visibility to the business and in most cases a reduction in fuel costs. In recent years, driver performance solutions and mobile computing have been added for proof of delivery and proof of condition confirmation. This has lead to two distinct profiles of fleet operations; those that have deployed point solutions to address some or all of the areas mentioned, and those that have not embraced technology, using such phrases as my drivers know where to go. This latter group needs to be informed about how they are constraining their own businesses, for example, by having no visibility of their depots competing with themselves for back haul capacity. The former group, whilst to be applauded for investing in technology, have often deployed islands of information that do not leverage the value of the data they have been collecting. For example, how does a transport enterprise accurately price for collection and delivery without end-to-end data? Are they able to provide evidence to their customers or potential customers that a bigger fleet or more drivers are required, or how many collections are needed for profitability? In some cases, whilst the desire exists to provide this added value, some fleet operators are hampered and disillusioned that they must wait for a five-year, in-vehicle telematics contract to terminate, to allow greater flexibility. This is an example of how some fleet operations are not able to leverage their collected data to support business development, in terms of impressing their prospective customers, and giving them the confidence that a contract is based on sound business judgement. Technology driving & supporting change To migrate to best-in-class integrated fleet management, transportation and logistics enterprises must adopt a holistic approach which includes clear process metrics in the following areas: Plan Optimise Measure Track When an entrepreneur sets up a transport business, he or she should have complete process visibility. Why should this be any different in a larger transport business, operating large fleets? To the customer and the enterprise, delivery is everything not the service provided, but how it is delivered, including how exceptions are managed. Best-in-class fleet operators not only strive for this, but also to be a pleasure to employ. Emerging integrated fleet management systems are the platform for the end-to-end visibility needed for delivery excellence, enabling customers to break away from disparate systems and the islands of information that they create. These disparate systems have evolved from Route planning Dynamic time windows and milk runs Vehicle location tracking Now the evolution of integrated fleet management is helping drivers to follow a plan; providing variances, acceptability and business rules. Basically, if you cannot measure it, you cannot follow the plan. A successful integrated fleet management solution must be a business tool for the customer, the business and the driver, not just 1

2 man and vehicle management by the transport office. A key element is communication with drivers and the collection of data at the source, by reliable mobile computers. Transport companies can use integrated fleet management to collate data and, for example, advise their customers on fleet size and the number of drivers required to service a contract. An example is a UK transport company winning contracts with major retailers by analysing multiple data points, including allowable vehicle heights at petrol stations. The standard map sets used in traditional satellite navigation do not take into account the height and weight of a vehicle, while commercial grade systems provide navigation that takes these factors into account. Mobility solutions to drive competitive advantage Best-in-class integrated fleet management includes mobile computing technology as a pre-requisite, not as an option. This powerful combination enables fleet operators to not just view where a delivery is, but also where it should be. The power of mobile computing devices has lead to the convergence of multiple technologies in a portable platform. This means that fleet operators are no longer restricted to fixed in-cab boxes, often referred to as black boxes, to communicate with drivers and collect vehicle data. This evolution provides greater flexibility by enabling computing power to be moved between vehicles. This does not preclude the integration of mobile computers with existing or new in-vehicle tracking solutions, where fleet owners have an infrastructure that delivers their current data needs. However, new mobile technologies, such as accelerometers and sensors, are now able to gather driver performance data including harsh braking or acceleration, so the migration from fixed in-vehicle units to robust mobile devices has already begun. Please refer to the Measuring and enhancing driver performance section later in this paper for more details. As rugged mobile computing technology is inherently scalable, with an average life span of five years, new devices provide the platform for more functionality as fleet operations grow and customer demands for data accuracy and greater service levels increase. The market demand for point of transaction proof of delivery has already driven the adoption of devices that can be removed from the cab and be taken to customers for onscreen signature. Durable, brighter, and clearer screens are a necessity to ensure optimal customer experience and continued use in harsh conditions. An important mobility feature is real-time communication and integrated GPS, to confirm whether journey times can be made up due to traffic or road incidents. In these cases, traffic buffers can be built into the plan. In this way, integrated fleet management will analyse whether a vehicle has the capacity and time to fulfil, how it may be impacted by new orders, the closest depot and whether it can achieve the plan whilst keeping customer commitments. Integrated GPS technology avoids the historic two-piece tethered solutions, allows turn-by-turn navigation, breadcrumbing for trend analysis (planned vs. actual routes), accurate locations and geo-fence alerts to be sent to customers to provide more accurate estimated times of arrival (ETA). If a driver is unable to gain access for a collection or delivery, a photograph can be taken, or indeed a colour image captured with latest Honeywell technology, and a reason code entered. Proof of location and proof of attendance can also be confirmed by appending geocodes to the photograph or image. Imaging provides a simple, lower network bandwith alternative to sending photographs this is discussed later in the Fast and accurate scanning and imaging section. An alternative course of action in the event of a recipient not being present or a lack of access, is for the driver to remain for say five minutes, while the customer or recipient is contacted. For data protection purposes, the driver should only be presented with basic customer data and only hidden telephone numbers provided. With fully integrated fleet management, this remain option can be selected with full knowledge of the impact this delay will have on subsequent delivery drops. Another option is to potentially deliver or collect earlier than planned. Naturally, this could have a domino 2

3 effect on other customers, so it is a business decision to optimise drops earlier in the cycle. This would not be possible without the power of a mobile computer in constant communication with fleet operations. All of this valuable operational data, collected at the source by the mobile device and fed to the integrated fleet management system, can be used for account renewal proposals. This is a proactive measure to illustrate proof of service to customers, how exceptions were dealt with, or if necessary, as evidence against claims or suggested service level agreement (SLA) failures. Reliable wireless communications Constant communication with drivers underpins a successful transport operation. Immediate task allocation and timely SLA failure alerts allow positive reaction and customer communication when unforeseen events occur Instant communication is not just with the vehicle, as in the case of black-box solutions that are inextricably linked to the vehicle, but to the driver, who may be with the customer or outside of the vehicle. This allows direct communication with the driver by voice or data, whilst he is with the customer, demonstrating advanced service levels to impress the customer with how efficiently exceptions are handled. Subsequent data analysis will allow fleet operators to compare time in and out of the vehicle to determine where productivity improvements may be made. Equally, this analysis significantly reduces driver de-brief time on return to the depot. With voice and data communications handled by mobile devices, two SIM cards are not required in the vehicle, as has been traditionally the case, resulting in a reduction in operational costs which can be significant in large fleets. Real-time updates of vehicle position, scanned transactions and proof of delivery confirmation ensure that reliable track and trace data can be provided for customer self service. This can be a major cost saving by avoiding call centre engagement by the customer, which at best disrupts daily operations and at worst can cause cascading errors in the delivery process through inaccurate communication. Another benefit of instant mobile communication is that empty truck pickups can be allocated to backhaul tasks on the fly, ensuring that capacity is optimised and revenue generated throughout the daily vehicle cycle. Fast and accurate scanning and imaging Imaging technology is the ideal solution for fleet operations thanks to its ability to read virtually all linear and two-dimensional (2D) bar codes, capture images and digital signatures, and read optical character recognition (OCR) fonts, enabling users to capture and manage much larger volumes of data than in the past. Imaging technology allows the reading of bar codes in any orientation or direction, at one button depression, delivering a significant operational impact when loading vehicles with consignments at dock doors. First-time accurate scanning, saving critical seconds and minutes, ensures being on the road earlier and therefore delivering more. 2D codes are becoming the adopted standard as they can contain all consignment shipment details. This removes manual keying and provides the basis for vehicle load scanning to automatically create EDI data for manifests. In addition, multiple bar codes can be captured in one scan, preventing duplicate reads, therefore speeding up the complete process. Accurate scanning reduces goods lost in transit. Additionally, spurious failed delivery claims can be countered with accurate process information, driving down penalty costs. The same imaging technology used for 2D code scanning can also be used to capture proof of delivery signatures from documentation. In this case, fleet operators should ensure their technology provider can capture bar code data and images in one scan. This is particularly useful where sign-on screen is not legal tender and a paper document must be signed and electronically captured for proof of collection/delivery and payment. It is essential for smooth and efficient customer processing that the technology allows one scan to capture customer signature with automatic de-skewing, colour correcting, cropping and rotating of the image. Intelligent imaging logic can straighten the image and enhance the quality, regardless of the users orientation of the scanning device. Advanced imaging technology can also be the basis for 3

4 volumetrics or package dimensioning. Many shippers price by weight, as it is one of the only measureable criteria by which to charge. However, shipment is largely defined by volume. In many cases, volume will be estimated by a customer and on collection is found to be inaccurate. Some operators may charge for the inaccuracy, others may absorb the cost. In either case, fast and accurate dimensioning will reduce the instances of inaccurate volume recording and provide more efficient shipment data, and therefore charging. Fast and accurate volume scanning will also increase shipment price accuracy. Image capture and sensor technologies have the ability to record dimensions and overlay them on colour images, and export the data to an integrated fleet management system. Best-in-class mobile computing providers will have this technology deployment in their solution roadmaps. Intelligent power management Mobile device battery charging and battery changing is a costly and time consuming activity for fleet operators. Reliable in-vehicle charging and sustained battery life avoids the need to build re-charging time into operational processes, speeds up the delivery process and increases customer satisfaction. Whether using standard or extended battery options, a minimum of 8 hours battery life should be standard with combined intelligent power management to deliver all day battery life of up to potentially 16.5 hours (extended) or up to 9.5 hours (standard). Drivers must stay productive during their full shift without having to worry about carrying extra batteries or chargers. Ergonomics are not an after-thought in the design of rugged mobile computers Ergonomy and durability studies have led to the development of reliable mobile devices whilst providing user comfort. Ergonomic and aesthetic design is critical to keeping drivers productive in the harshest environments and providing a highly competitive total cost of ownership. Ergonomic studies have led to device design that is completely balanced and low weight, allowing single-handed operation. Integrated finger saddles should be incorporated for user comfort. Optimised wrist posture must be inherent in the design, for example a 30% scan angle, to reduce fatigue and enhanced screen viewing angles to increase the speed of data capture. Single handed use increases delivery speeds, and keyboard design should allow fast data entry of delivery addresses where needed. Measuring & enhancing driver performance Integrated fleet management solutions include mobile technology as standard. As stated previously, mobile technology provides the platform for end-to-end data collection for complete operational visibility. What if this data could be extended to include driver performance metrics, by analysing mobile device user behaviour? Think of it as the mobile device canbus. Just as vehicles are now being delivered to fleet customers with software canbus functionality, so are best-in-class mobile devices. Vehicle data, such as fuel consumption, harsh acceleration or braking and engine diagnostics have long been provided to fleet operators to optimise performance and productivity. Equally, mobile technology should provide similar feedback regarding device characteristics. Honeywell s device counters and motion sensors for example, provide detailed event logs that can be linked with Remote MasterMind device management to accurately report on wireless connectivity trending, button depressions, screen pressure, battery charging and bar code scans for example. This valuable data can be used in service reviews and to establish how devices are being treated by users. These service reviews can be used for driver performance, education and congratulations the top performers can be named as coaches for other drivers to increase productivity and efficiency gains. This can lead to more driver accountability and supporting them with, for example, vehicle survey questions and reminders, such as tyre and oil checks. Additionally, mobile device motion sensors can automatically rotate the screen for optimal user interaction and customer on-screen signature capture. Devices can also be woken up when in idle mode, conserving battery life, as soon as the unit is moved. 4

5 Ambient light sensors allow the automatic adjustment of screen brightness and keypad backlights to both conserve battery life and provide a better user experience, without changing settings. Proximity sensors can turn off the display when the device is put face down, for example, again conserving battery life. Additionally, software providers can utilise proximity to enhance their solutions for context-sensitive applications. For example, proximity sensors may switch functions on or off when in a vehicle, for safety reasons, based on proximity to the in-vehicle systems. Remote management of mobile devices from a central location Fleet operators have mobile devices and bar code scanners that are widely dispersed, whether on the road or in depots. In this case, a remote device management solution can help to significantly reduce the total cost of ownership of the mobile and scanning estate. When such large equipment estates are deployed, it is difficult to keep software up to date, ensure proper configurations, and monitor vital performance indicators. A remote device management solution can solve this problem by performing key functions, such as asset tracking, software distribution, configuration management, remote diagnostics, and performance measurement, all from a single, remote location. As noted in the Measuring & enhancing driver performance section, more sophisticated remote device management solutions can even provide additional data on device usage, including bar codes scanned, drops and key presses, allowing fleet managers to easily identify areas of improvement. Return on investment First-time, on-time service level compliance Reduction in fuel consumption Resource and fleet optimisation Pre-planned or dynamic allocation of jobs Shortened invoice to cash cycle Accurate, on-time billing Reduced returns through damaged goods image capture Environmental sustainability Improved customer service Summary A key element in delivering integrated fleet management excellence and value added service differentiation is the integration of new processes, hardware, software, IT services, project management, education, and user acceptance, together with reliable on-going service and maintenance. Honeywell Scanning & Mobility is an industry-leading provider of data capture solutions. Together with its partners, Honeywell Scanning & Mobility provides fit for purpose solutions to a prestigious global customer base. Honeywell is a Fortune 100 company that invents and manufactures technologies to address tough challenges linked to global macro trends such as productivity, safety, security, and energy. With approximately 122,000 employees worldwide, including more than 19,000 engineers and scientists, we have an unrelenting focus on quality, delivery, value, and technology in everything we make and do. The technology detailed in this paper will support fleet operators in achieving the following; For more information visit: Honeywell Scanning & Mobility Nijverheidsweg 9-13 Eindhoven, 5627 BT Netherlands Honeywell International Inc.