Highlights of Survey of Fleet Operator Interest in MRM Systems and Services

Transcription

1 Highlights of Survey of Fleet Operator Interest in MRM Systems and Services Telematics for Fleet Management USA 2013 November 21, 2013 Presented by C.J. Driscoll & Associates

2 U.S. Fleet Survey Overview Telephone survey of over 500 U.S. fleet operators conducted June August 2013 Multi-client study sponsored by AT&T, DriveCam, Fleetmatics, GE Capital Fleet Services, GPS Insight, Michelin, Navman Wireless, Networkfleet/Verizon, NexTraq, Spireon, Teletrac, Telogis, TomTom Business Solutions, and Zonar Systems. Assesses fleet operator interest, use, and satisfaction with GPS fleet management systems, driver behavior management systems, and handset/portable solutions for managing mobile workers Participants from nearly all major categories including service, local and long-haul common carriers, private trucking, utilities, construction, people transportation, public safety, and government fleets. Participating fleets ranged in size from 5 vehicles to over 10,000 vehicles All respondents confirmed that they have sole or partial responsibility for decisions regarding their fleet s use of GPS fleet management or driver behavior management systems. Average interview length was 39 minutes C.J. Driscoll & Associates 2

3 Respondent Titles 0% 5% 10% 15% 20% 25% Owner/Co-Owner/Chairman 3% CEO/President/GM Fleet Manager 22% 23% Operations VP/Director/Manager 18% Transportation Director/Manager 5% Office Manager Safety/Risk Manager 3% 3% Dispatch Manager CFO/Treasurer/Controller Purchasing/Purchasing Manager 2% 2% 2% Other 17% One-fourth of the survey participants have the title of Owner, Co-Owner, Chairman, CEO, President, or General Manager. In addition, nearly one-fourth (23%) are Fleet Managers, while 18% are VP, Director or Manager of Operations C.J. Driscoll & Associates 3

4 Sizes of Participating Fleets 35% 32% 30% 25% 26% 20% 18% 15% 10% 5% 14% 10% 0% Base: All Respondents, N=508 As shown in the chart, 42% of the surveyed fleets operate 50 or more vehicles, while 58% operate fewer than 50 vehicles. The median (midpoint) is 35 vehicles C.J. Driscoll & Associates 4

5 Categories of Participating Fleets 0% 5% 10% 15% 20% 25% 30% Service 27% Private Delivery Truckload Carrier 14% 15% Construction-Related 12% Utility Government People Transportation 7% 7% 8% Public Safety Local Common Carrier 4% 5% Sales/Other 1% Base: All Respondents, N= C.J. Driscoll & Associates 5

6 Highlights of Fleet Survey Findings 2013 C.J. Driscoll & Associates 6

7 Primary Routing Methods of Participating Fleets Other 11% Fixed Route 12% Dynamic Response 39% Pre-Scheduled 38% Base: All Respondents, N= C.J. Driscoll & Associates 7

8 Wireless Communications Used by Fleet Drivers Multiple Responses Basic Cell Phones Smartphones Tablet or Laptop Computers Handheld Ruggedized Computers Vehicle-Installed MDTs - Cellular Vehicle-Installed MDTs - Satellite Other No Wireless 0% 10% 20% 30% 40% 50% 60% 70% 80% 67% 45% 18% 3% 12% 9% 19% 4% Base: All Respondents, N= C.J. Driscoll & Associates 8

9 Participating Fleets Using a GPS Fleet Management System No 64% Yes 36% Note: The survey sample was deliberately stratified to include a sufficient number of fleets of different sizes and segments to be able to compare responses of fleets with different characteristics. Base: All Respondents, N=508 The survey results show that penetration of GPS fleet management systems among large fleets is significantly greater than small fleets. Nearly 10% of the participating fleets operate 500 or more vehicles. C.J. Driscoll & Associates estimates that a purely random sample of U.S. fleet operators operating 5 or more vehicles would show that 25-30% of U.S. fleet vehicles are equipped with a GPS fleet management system C.J. Driscoll & Associates 9

10 Have Only Used Current GPS Fleet Management Solution Provider No 32% Yes 68% Base: Participating Fleets that Reported Using a GPS Fleet Management System; N= C.J. Driscoll & Associates 10

11 Reasons for Switching GPS Fleet Management Solution Providers It did not meet the requirements. It was never up and running. Once it was installed, you could not use the windshield wipers. (HVAC service provider, 12 vehicles) Outdated and their customer service was lacking. (Electrical contractor, 48 vehicles) To get more features. (Food delivery, 120 vehicles) They were cumbersome, expensive, and not easy to work with. They had long-term contracts that we weren't interested in. (Road sign installation, 100 vehicles) We were trying to find cheaper with better service. The company we are currently using gave us a better offer. (Truckload carrier, 20 vehicles) To be able to integrate with transportation software. (Lumber delivery, 55 vehicles) 2013 C.J. Driscoll & Associates 11

12 Integration of GPS Fleet Management System with Back-Office Software Systems Yes 32% No 68% Base: Participating Fleets that Reported Using a GPS Fleet Management System; N=182 Nearly one-third (32%) of the participants using a GPS fleet management system reported that the system is integrated with routing, dispatch, accounting, or other backoffice software systems C.J. Driscoll & Associates 12

13 Benefits of GPS Fleet Management System Mentioned Most Frequently Multiple Responses Vehicle Location Safety/Driver Performance/Speeding Reduce Idle Time/Fuel Consumption Optimize Routing Maintenance/Repairs Improve Efficiency Monitor Start/Arrival Time Cost Control Hours of Service 0% 10% 20% 30% 40% 50% 60% 54% 37% 24% 18% 9% 8% 8% 7% 3% Base: Participating Fleets that Reported Using a GPS Fleet Management System; N=182 Monitoring the location of fleet vehicles is still regarded as the most important benefit of GPS fleet management systems, but monitoring driver performance to reduce risk and reducing idle time and fuel consumption are also viewed as very important benefits C.J. Driscoll & Associates 13

14 Satisfaction with GPS Fleet Management Systems 45% 40% 35% 30% 25% 40% 39% 20% 15% 15% 10% 5% 3% 3% 0% Very Satisfied Somewhat Satisfied Neither Satisfied nor Dissatisfied Not Very Satisfied Not At All Satisfied Base: Participating Fleets that Reported Using a GPS Fleet Management System; N=182 Average (mean) satisfaction rating of 4.1 on the 5-point scale is very high. Only 6% expressed dissatisfaction with their system C.J. Driscoll & Associates 14

15 Have Recouped Investment in GPS Fleet Management System No 33% Yes 67% Base: Participating Fleets that Reported Using a GPS Fleet Management System; N= C.J. Driscoll & Associates 15

16 Reasons for Not Recouping Investment in GPS Fleet Management System We re not using it to its full potential. (Public utility, 740 vehicles) We have a good staff and it just didn't help us at all. Not the drivers or the fuel economy. Nothing for us. (Truckload carrier, 40 vehicles) We don't like it. We just don't use it. It is easier to pick up the phone and call the driver. (Medical services, 19 vehicles) Some stated that it is difficult to quantify the return on investment. We need information for efficiency. It is not a dollar-for-dollar return on investment. (Transportation services, 57 vehicles) It's a dead cost to start off with. The abilities to check are great, and monitoring, and when there is someone missing possibly because of a wreck. It's a great system for tracking our drivers. (County school district, 170 vehicles) You can t quantify information against cost. (Municipal sanitation department; 5,000 vehicles) 2013 C.J. Driscoll & Associates 16

17 Financial Benefits Derived from Use of GPS Fleet Management Systems Comments from users of GPS fleet management systems included the following: $100,000 a month. (Municipal fleet in CA; 2,200 vehicles) We have saved $64,000 in fuel costs a year by being able to control excess idling. (Regional Water Authority in CT; 300 vehicles) Saved us 5-8% in fuel consumption right at the start -- as soon as the employees knew we were tracking they stopped idling. Utilization we didn't have to maintain vehicles that we didn't need any more through the new system. (Municipal government fleet; 2,100 vehicles) $167,600 per year in fuel and mileage savings and $127,400 in driver time savings. (Private fleet, food delivery, 120 vehicles) The efficiency. You gain more production -- $300 per day per vehicle. (County government fleet in MI, road maintenance, 80 vehicles) Reduced fuel costs of $25,000 a month. (Furniture delivery, 350 trucks) 2013 C.J. Driscoll & Associates 17

18 Insurance Discount Due to Use of a GPS Fleet Management System Insured fleets that are using a GPS fleet management system were asked whether or not their company has received an insurance discount as a result of using the system. Yes 31% No 69% Base: N= C.J. Driscoll & Associates 18

19 Participating Fleets Using a Driver Behavior Management System or In-Vehicle Cameras Yes 6% No 94% Base: All Respondents; N=508 Fleets using these systems include school bus, government, public safety, paratransit, construction, and private delivery fleets C.J. Driscoll & Associates 19

20 Use a GPS-Equipped Handset/Portable Solution to Manage Mobile Workers Fleets using these solutions include: Utilities Service fleets Government Construction Private delivery Common carrier fleets No 94% Yes 6% Principal applications include: Tracking (location) Routing Timekeeping Logistics Field Force Automation Base: All Respondents; N= C.J. Driscoll & Associates 20

21 Interest in a System for Monitoring and Controlling Driver Cell Phone Use Monitor and Control Cell Phone Usage: Enables fleet operator to setup, monitor, and enforce policies related to driver use of cell phones, smartphones, or other mobile devices while operating the vehicle, and track violations through an online portal? e.g. texting, handset usage 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 11% Very Interested Base: All Respondents; N=508 14% Somewhat Interested 20% Neither Intersted nor Disinterested 16% Not Very Interested 2013 C.J. Driscoll & Associates 21 39% Not at All Interested This service received an average (mean) rating of 2.4 on a 5-point scale, which was 8 th highest among 15 features/services tested.

22 Interest in Fuel Card Integration Driver Use of Fuel Cards Interest in Fuel Card Integration Among Fleets that Issue Fuel Cards to Drivers 40% 35% 36% No 35% Yes 65% 30% 25% 20% 15% 18% 15% 14% 15% 10% 5% Base: All Respondents; N=508 0% Very Interested Somewhat Interested Neither Intersted nor Disinterested Not Very Interested Not at All Interested Base: Fleets that Issue Fuel Cards to Drivers; N=331 Among participating fleets that issue fuel cards to fleet drivers and also use a GPS fleet management system, 43% are very interested or somewhat interested in a service that correlates fuel card usage with a vehicle s GPS location and time to identify fuel card fraud C.J. Driscoll & Associates 22

23 Reasons for Not Having Deployed any Type of MRM System Not worth it, poor value. (Operator of oil and gas pipelines and terminals; 5,600 vehicles) It doesn't work for us. We have tried it and it is not worth it. We get complaints that it is an intrusion of privacy. We do not have the extra personnel to monitor it. (State Dept. of Conservation; 1,158 vehicles) Cost, and we just don't need them. It's the type of work we do. We're point A to point B. There's not a lot of driving. The main work is labor once we're there. (Industrial cleaning company, 25 vehicles) We just do specific routes of 10, 15, or 20 miles one way. (U.S. mail delivery contractors, 50 vehicles) We do not need it. We run an old fashioned company. We are very conservative. (Utility fleet, 50 vehicles) 2013 C.J. Driscoll & Associates 23

24 MRM Solutions Participants Expect to Acquire in the Next Months Multiple Responses 0% 10% 20% 30% 40% 50% 60% 70% 80% GPS Fleet Management System 17% Handset/Portable Monitoring Solution 10% Driver Behavior Management System 8% None of These 69% Base: All Respondents, N=508 The survey confirms that interest in acquiring MRM solutions remains strong among fleets in a wide range of categories C.J. Driscoll & Associates 24

25 Primary Sources of Information About Fleet Management Systems and Services - Among Those Who Expect to Buy in Months - 0% 10% 20% 30% 40% 50% Internet 39% Trade Publications 38% Trade Shows 19% Colleagues/Referrals 13% Suppliers 6% Base: Those Who Expect to Deploy a Solution for Monitoring Vehicles, Drivers, or Mobile Workers in Next Months; N= C.J. Driscoll & Associates 25