Optimize Fleet Efficiency and Lower Fuel and Operating Costs with Fleet Tracking

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1 Business Intelligence, Anytime, Anywhere. Optimize Fleet Efficiency and Lower Fuel and Operating Costs with Fleet Tracking BSM Wireless White Paper

2 Optimize Fleet Efficiency and Lower Fuel & Operating Costs With Fleet Tracking. In an era where maximizing fleet efficiency is critical - fuel cost and consumption are the primary operating expenses for commercial fleets. Although business owners and fleet managers can do little about the price of fuel, maximizing fleet efficiency by investing in a real-time Fleet Tracking solution significantly reduces operating costs. Considering the inherent savings when operating at maximum fleet efficiency, advances in technology and the reasonable cost of a GPS tracking and fleet management solution coupled with the high price of fuel means a faster time-to-value and greater ROI for business owners. According to the U.S. Department of Transportation s (DOT) 2009 Motor Carrier Efficiency Study several of the top inefficiencies in fleet utilization are directly addressed by the installation of GPS tracking and fleet management technology. A partial list of the top inefficiencies includes: Equipment/asset utilization, including lack of optimized routing, unauthorized equipment use/misuse, and inefficient asset use. Fuel economy and fuel waste from excessive speed, idling, poor transmission, engine management, maintenance practices, and poor routing and scheduling. Loss and theft including pilferage, hijacking, cargo fraud, damage claims, vehicle and equipment theft. Safety, including events, actions, or practices that result in vehicle accidents and risk to driver safety. Maintenance inefficiencies resulting in breakdowns, post-inspection out-of-service, and tire failure. 2

3 How GPS Tracking and Fleet Management Solutions Save Money. 1. Equipment/Asset Utilization Whether operating a fleet of small vehicles and light trucks or Class 8 trucks traveling locally or over the road a key factor in reducing costs and increasing fleet efficiency is maximizing asset availability and use. Idle assets are expenses. Active assets produce revenue. Real-time GPS Tracking and Fleet Management solutions provide live and historical data for fleet managers and business owners to analyze time in operation, route efficiencies, idle time, and maintenance issues. Accessing this data gives fleet managers information they need to increase fleet efficiency and accurately allocate assets to specific regions and/or drivers to: Minimize down time Analyze and assign specific routing information to reduce delay from congestion and construction Limit idling time by just-in-time arrival of equipment to minimize load/unload times at the dock. 2. Fuel Economy and Fuel Waste According to the US DOT the average lifetime fuel cost of a passenger vehicle is equal to the purchase price. However, in Class 8 long haul trucking, which average 175,000 miles a year, fuel costs can be as high as five times the price of the truck over its operational lifetime making fuel costs the highest operating expense. The big three wasters, according to the study, are from excessive speed, idle time and poor maintenance. In addition, the Environmental Protection Agency (EPA) suggests that driving habits, including excessive acceleration and braking are a significant factor. Improving fuel economy by 20% can save a fleet owner up to $25,000, virtually guaranteeing a quick time-to-value on a GPS Tracking and Fleet Management solution. Monitoring speed, when implemented with a strict policy and clearly communicated to driver personnel, speed monitoring has a dramatic impact on reducing the average speed of your vehicles. It goes without question that vehicles operate at higher efficiencies when driving at posted speed limits. For passenger vehicles and light trucks maximum fuel economy is reached between 35 and 55 miles per hour. At speeds in excess of 65 mph fuel economy begins to rapidly decline (source: U.S. Department of Energy, U.S. environmental Protection Agency, 3

4 Monitoring Driver Habits. According to the Department of Energy rapid acceleration and excessive braking, often the result of aggressive driving, can reduce fuel economy by as much as 33%! ( Reduce Idle Time. Fuel efficiency when idling is exactly 0 miles per gallon. Reducing idle time can reduce costs by as much as 20% over the life of the vehicle. Poor Maintenance. Under inflated tires, dirty oil filters, loose or damaged body parts all contribute to decreasing fuel economy. A GPS Tracking and Fleet Management solution s capability to provide real-time and historical data analysis are ideal for addressing these issues. When drivers know they are monitored and even encouraged to drive safely and efficiently they are more likely to comply. By obtaining real time engine, fuel consumption and other critical vehicle data, managers and owners can more accurately set up maintenance schedules and identify major problems before they occur. 3. Loss and Theft As mentioned earlier idle equipment are liabilities active equipment are assets. Nothing can increase the cost per ton than lost or stolen vehicles. GPS tracking and fleet management solutions can dramatically improve the odds of recovering stolen vehicles. In addition, vehicles can be located immediately reducing the risk of vehicle or cargo theft from abandonment. A good GPS Tracking and Fleet Management solution can integrate with a vehicle s on board computer. It can also have the capability to lock its doors and even send real-time notifications and alarms if it travels outside a specified location. 4. Safety Driver fatigue, excessive speeding and reckless driving are key factors in commercial vehicle accidents. GPS tracking and fleet management solutions can monitor an entire fleet or a single vehicle. Making driver behavior comparisons owners and managers can reward safe driving behaviors and retrain unsafe drivers. Safe driving habits, including obeying the speed limits and reducing excessive acceleration and/or braking will dramatically increase fuel economy in any type of vehicle. GPS tracking and fleet management technology provides accurate and instantaneous data in the event of an accident. Speed, braking and exact GPS coordinates virtually eliminate any questions surrounding the incident. 4

5 5. Maintenance Inefficiencies It s no secret that a poorly maintained vehicle reduces fuel efficiency. But, regular and consistent maintenance can actually increase the life of the vehicle by 30%. Gaining an additional year or two of service out of a properly maintained vehicle reduces overall operating costs because of a greater return after depreciation of the asset. It is always cheaper to maintain a fully paid for and consistently maintained asset than it is to operate a poorly maintained vehicle or purchasing replacement vehicles more frequently. A preventative maintenance tool incorporated as part of a GPS solution offering alert owners and managers to potential problems before they occur. They allow for efficient maintenance scheduling reducing down time. Other Benefits A sophisticated GPS tracking and fleet management solution can integrate data from the vehicle by connecting to the vehicle s on engine control module (ECM). These integrations are critical components for providing accurate real time logistical data, engine data, GPS location information and other vehicle operating parameters. They are essential to increasing fleet efficiency. By integrating with the ECM, idle times can be restricted reducing fuel waste, speed can be limited increasing fuel economy and improving driver safety, driver operator times can be restricted to comply with federal regulations on driver operating limits. Fuel consumption and usage can be compared to fuel purchase receipts to determine if fuel is stolen from the vehicle thereby reducing driver/operator theft and reducing fuel costs. Optimizing routes with real time GPS data integrated with dynamic mapping is not only possible but easy with integrated web based tracking and location data information that is fully customizable for your specific industry or fleet size. Electronic on board recorders for fleet vehicles supports compliance with Hours of Service requirements and provides data in the event of an accident. Monitor and/or prevent after hours or personal vehicle use. Summary Fuel prices continue to climb and fleet operators run on razor thin margins. Decreasing fuel costs and increasing fleet efficiency with a fully integrated GPS Tracking and Fleet Management solution is a cost effective and ultimately profitable solution for your business. To learn more about how GPS tracking and fleet management solution can increase fleet efficiency visit us today at or call us at ext. 2 to speak with one of our dedicated specialists. 5

6 HARDWARE SOFTWARE CONSULTING R & D SUPPORT R&D SUPPORT BSM Technologies (TSX-V:GPS), through its subsidiary BSM Wireless Inc., is a leading provider of remote monitoring, fleet tracking, fleet maintenance, and business intelligent solutions providing real time, web based tracking of mobile and fixed assets. BSM provides solutions for commercial and government organizations who manage and operate diverse assets and small-to-large fleets, and who seek to enhance customer service, improve the safety of their drivers and vehicles, and lower business costs.