Fleet Operations - Telematics FAQs
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- Lucinda Barker
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1 What is telematics? Fleet Operations - Telematics FAQs The word telematics is a combination of informatics and telecommunication. For vehicles, it is a system involving a communication device that transmits GPS and diagnostic vehicle information from vehicles to a central database for analysis. What monitoring equipment are you using? We are piloting with Verizon Networkfleet. Vehicles will be equipped with Networkfleet s 5500N3VD GPS Diagnostics and the information will be transmitted and stored, based on retention requirements, within Networkfleet s online Fleet management software. How is the information transmitted? The information is transmitted via cell phone signals. If the vehicle is out of range of these signals, the device will store information until a cell signal is reach and then transmit complete data at that time. How will the information be communicated to agencies and drivers? Agency Transportation Officers (ATOs) plus an additional point person from each agency will have limited access to the telematics software. Additionally, agency specific reports and overall pilot reports will be sent via to ATOs. High level reports will also be available via the des.wa.gov in the Fleet Operations Section. Who will have access to the telematics software and data? -Fleet Operations Customer Accounts Representatives: Our Customer Account Reps will have access for the purpose of looking up vehicle information and answering customer questions. -Fleet Operations Management Analyst 5: This position will develop the reporting, perform costbenefit analysis and determine opportunities for cost savings. This person will get full access to Networkfleet in order to fulfill these duties. -Fleet Operations Manager: The Fleet Operations Manager will have full access to the Networkfleet site in order to oversee implementation. -Two people from each client agency: To include the Agency Transportation Officer and one additional person identified by the client agency. -The DES Our Assistant Director, Assistant Deputy Director and Program Specialist for Business Resources Division of Enterprise Services. The purpose of their access will be high level overviews of the program and will entail view access only. Will DES Fleet Operations use the gathered information for disciplinary action? DES Fleet Operations will not use telematics data to impose disciplinary actions. Information will be made available to your agency transportation officer. To learn about disciplinary actions, refer to your agencies transportation policy. DES Fleet Operations - Telematics Pilot FAQ August 12, 2015
2 What is the value of using telematics? Specific to Fleet Operations, we will begin to see this picture throughout the 6 month pilot. A variety of Fleet testimonials have reported: Potential fuel savings up to 30%. Idle time reduction up to 30%. Reduced miles driven up to 10%. Increased driver awareness and safety. Reduction in accident management expense. What information will be measured? Improvements to employee safety Accident Management cost savings Miles traveled vs. each vehicles previous year s benchmark data Fuel consumption reduction in gallons vs previous year benchmark Results WA Goal 5 Measurable MPG comparison vs. previous year Underutilization backup documentation MMT of carbon conversion for RW reporting Social Cost of Carbon (SCC) reduction Reduction in Idle time Cellular vs Satellite connectivity requirements look to geo-fence areas with poor or no cell reception FTE touch time saved through telematics end of month mileage reporting Customer complaints and associated vehicle location backup What are the objectives of the telematics pilot? Promote safety of drivers and Washingtonians. Determine good candidates for electric vehicle replacement. Maintain proper maintenance schedules of fleet vehicles. Reduce unnecessary idle time. Save FTE time via avoidance of end of month mileage entry. Reduce our Social Cost of Carbon (SCC) Reduce Statewide fuel expense in support of Results Washington Goal 5: Efficient, Effective and Accountable Government. o Reduce the petroleum fuel consumption in fleets by 8% by July 2016 from 2013 levels. o 2.4.a Increase the average petroleum mpg of the agency s fleet by 8% by July 2016 from 2013 levels. o from 2013 levels. Support and promote the Washington Traffic Safety Commission s Target Zero initiative targeting zero traffic deaths and zero serious injuries by 2030.
3 How many vehicles are included in the pilot and how long will it last? 350 total vehicles Six (6) month trial period - Official pilot dates to be determined Sample size provides a 95% confidence level in the results, based on a 3,500 vehicle fleet Six months will give us an accurate dataset by incorporating the historically busy spring months DES Fleet Operations will coordinate the placement of the pilot Networkfleet systems in vehicles encompassing broad range of vehicle applications, over a statewide geographical area. This approach will provide a good sample set of data points for vehicles with varying duty cycles. Installation of in-vehicle boxes DES and Networkfleet will coordinate the statewide installation Customer Agency Current # of vehicles on monthly leases Proposed Pilot Vehicle Count SOCIAL AND HEALTH SERVICES LABOR AND INDUSTRIES ECOLOGY DEPT OF FISH AND WILDLIFE DES Daily Rental Fleet AGRICULTURE LIQUOR CONTROL BOARD CORRECTIONS DEPARTMENT OF ENTERPRISE SERVICES ATTORNEY GENERAL LICENSING 76 9 Top 10 DES Managed fleets + DES Daily rental vehicles + CMS/Surplus/B&G ( These customers account for 80% of DES s total fleet) vehicles per agency set proportional to agency fleet size Mix of hybrids, light duty SUVs, medium and light duty trucks, delivery vehicles (CMS, Surplus, DSHS) Install in vehicles located statewide to gather information on all geographical travel areas Vehicles with 12 months of usage data establish benchmark data Vehicles less than 4 years old avoiding possible replacement candidates How were the 350 pilot vehicles selected? We chose the top ten Fleet Operations customers as determined by volume of vehicles assigned. The number of vehicles per agency was determined relative to the number of vehicles on assignment. There were two requirements for a vehicle to be eligible for the pilot: 1. Vehicles had to be four years old or less. (To avoid potential replacement candidates) 2. Vehicles must have been on assignment for at least 12 months prior to the pilot to ensure complete baseline data in order to perform a cost-benefit analysis. Once we narrowed down our pool of vehicles we randomly selected pilot vehicles and then made a few adjustments to ensure a good mix of vehicle makes, models and uses as well as geographical variance. The proposed vehicle list was then sent to agency transportation officers for change requests and approval.
4 What is the cost of telematics implementation? Pilot Costs: Pilot Costs - (Install of 350 units and Service Fee for 6 months) Number of Vehicles 350 Length of pilot in months 6 Monthly Service Fee/per vehicle (WSCA Pricing for Verizon Contract) $0.00 Cost Per Box - Plus pigtail - No Charge during the pilot $0.00 Install Per Unit $0.00 Install Cost $0.00 Monthly Service Fee for # of months listed above $0.00 Total Pilot Cost $0.00 Verizon Networkfleet Cost Structure (3,500 vehicles) Full Implementation Cost (Procure via WSCA) Cost Per Box $85.00 Light Duty Harness plus OBII Adaptor Kit (Per/Veh) $35.00 Per Month Service Fee (per month) $19.95 Asset Works Integration (TBD) $5.00 Install Cost per box (Verizon Tech) $65.00 Approximate DES Vehicle Count 3,500 Install Cost (Start-up) $647, Monthly Operating Cost $87, Annual Operating Cost $1,047, st Year Start Up Cost + Annual Maint. $1,695, How will we recuperate the cost? The six month pilot will give us data to perform a cost benefit analysis to project what we can expect in long term savings as a result of telematics implementation. Please see the Potential ROI scenarios included in this FAQ.
5 Results Assumptions Potential ROI scenarios for telematics implementation. Low end projections Reasonable projections High end projections Interactive worksheet Dollars saved: Fuel spend reduction 7.0% 13.0% 19.5% 7.0% Accident management reduction 5.0% 15.0% 25.0% 10.0% Third party claims payouts** 15.0% 25.0% 35.0% 50.0% Miles travelled reduction 3.0% 5.0% 10.0% 5.0% Time saved (minutes per occurance): Mileage entry Mileage corrections Vehicle Purchasing time Vehicle purchase approval time Carbon emission reduction (metric tons per month) Monthly projected savings $ 92, $ 154, $ 283, $ 123, Monthly net ROI (after $87,325 system expense and estimated average $4,625 $ $ 62, $ 191, $ 37, of new vehicle install expenses) Months to recuperate initial install cost 1, Annual net savings per vehicle $ 1.96 $ $ $ Net $ saved after 5 years $ (613,133.20) $ 3,088, $ 10,870, $ 1,606, Net $ saved after 10 years $ (578,766.39) $ 6,824, $ 22,388, $ 3,861, Net emissions reduction after 5 years (metric tons of carbon) 5,100 9,480 14,220 5,105 Net emissions reduction after 10 years (metric tons of carbon) 10,200 18,960 28,440 10,209 **These calculations are based on estimates while I wait to receive the data. These expected savings are not comprehensive. This analysis scratches the surface of potential benefits we may see. It does not directly speak to the benefit of increased safety, one of our priority objectives. DES Fleet Operations - Telematics Pilot FAQ August 12, 2015
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