C.J. Driscoll & Associates
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1 ..... C.J. Driscoll & Associates Fleet Operator Adoption of BlackBerry Smartphones February, 2010
2 Overview C.J. Driscoll & Associates, a leading consulting and market research firm focused on GPS and wireless products and services, has conducted a series of interviews of fleet operators whose drivers use BlackBerry smartphones for voice and data communications while on the road. The purpose of the interviews was to assess the reasons these companies selected BlackBerry for their drivers, the ways in which they use their device, and the benefits derived. The majority of the surveyed fleet operators are active in transporting goods, though several service providers were also included in the research. Overall, the research findings indicate that many of the surveyed fleet operators selected BlackBerry smartphones because they feel that the full keyboard and large display make them the best handsets for transmitting s and other data messages. Others noted that the device is able to run applications that require more processing power than is available in standard cell phones, and are able to run multiple applications simultaneously. Many use them for applications that include GPS tracking and transmitting job assignments to drivers, and several run applications for navigation or hours of service monitoring. Another factor mentioned by several respondents is the BlackBerry Enterprise Server, which allows fleet operators to activate, configure, and upgrade mobile devices, send corporate s, download applications, and manage access and security levels. Several of the surveyed fleet operators reported that they favored a handset solution over a vehicle-installed GPS fleet management system due to the lower cost or because they use owner-operators and did not want to require them to install equipment in their trucks that could cause damage or alter the vehicle s appearance. Some respondents enclose their BlackBerry smartphones in rubberized sleeves to provide protection in the trucking environment. Most surveyed fleet operators reported a high level of satisfaction with the BlackBerry solution. Transport Fleets C& K Trucking C& K Trucking, based in Chicago Ridge IL, is one of the largest intermodal trucking companies in the U.S., specializing in the drayage of containers and trailers between ports, railroads, and shippers. The company s operations involve 500 trucks, of which 400 are owner/operator vehicles. In October 2009, C&K began standardized use of BlackBerry smartphones throughout their fleet. All 100 company drivers have been provided with them, approximately 150 of the owner/operators have their own, with the remaining 250 expected to acquire this C.J. Driscoll & Associates 2
3 device in the near future. Several members of C&K s administrative staff have also been provided with BlackBerry handhelds. Jason McFarlane, Director of IT and Communications for C&K, reported that the company runs both TMW s D²Link and Turnpike Global Technologies RouteTracker applications on the BlackBerry 8830 World Edition smartphone over the Sprint cellular network. C&K dispatchers use TMW s D²Link application to keep track of driver locations. They also use it to transmit load assignments to drivers, including the load description, pick-up point, destination, estimated arrival time, contact information, and any special requirements. Drivers use the application to communicate data to the back office, including arrival and departure confirmation, shipment updates (pieces, weight, count, volume, pallets), reason for late arrival, and asset changes, such as trailer switching. Drivers can also request directions to a destination and additional customer profile information. Turnpike Global Technologies RouteTracker application enables C&K to monitor engine and driver performance and a separate Turnpike application keeps track of driver hours of service. The RouteTracker device, connected to the truck s Electronic Data Port, enables C&K back office personnel to monitor speed, hard braking, idle time, odometer readings, engine fault codes, power take off (PTO), and fuel efficiency. A Bluetooth connection is used to pass the RouteTracker data to the BlackBerry, which transmits the data to C&K fleet managers. Jason McFarlane reported that driver safety and enhanced visibility for both dispatcher and their customers have been key benefits of the Turnpike application. Before switching to BlackBerry smartphones, C&K used Nextel iden phones, but found that they lacked the processing power to run both the D²Link and RouteTracker applications simultaneously. Jason McFarlane also mentioned the affordability of BlackBerry as a factor in their selection, especially compared to the cost of vehicle-installed systems. Jason reported that he likes the large Blackberry screen. He also noted that the full QWERTY keyboard on the BlackBerry is a positive feature, but since this was not a feature of the Nextel phones, drivers have needed to get accustomed to using it. Perkins Logistics & Specialized Transportation Perkins Logistics & Specialized Transportation, based in Noblesville, Indiana, provides long haul and regional van and flatbed truckload distribution throughout the 48 contiguous states and Canada. The company operates a fleet of 250 trucks. Daniel McKinnon, VP Information Services for Perkins, reported that the company began transitioning from a vehicle-installed GPS fleet management system to BlackBerry smartphones about two years ago. Before selecting the C.J. Driscoll & Associates 3
4 BlackBerry solution, the company trialed a simple iden phone, but found that it did not have the needed features or processing power. They also tested a touch screen phone, which proved too cumbersome for data input and general use. At this time, all Perkins management personnel and nearly 30% of the drivers use BlackBerry smartphones. Other drivers continue to use the vehicle-installed system. McKinnon stated that Perkins finds BlackBerry to be more cost-effective and easier for drivers to use than the installed system. Consequently, the company expects to phase down the use of the installed system as service contracts expire, though the transition rate will depend on Department of Transportation rulings regarding the use of electronic devices for monitoring driver Hours of Service, the reliability of cellular coverage along specific routes, and other factors. Perkins runs TMW Systems D²Link application on BlackBerry for GPS location, dispatching, load assignment, and status updates. Dispatchers update the GPS location every five minutes during the course of the day, generating bread crumb trail reports, which enables them to keep customers informed of the status of their deliveries. Drivers use the messaging utility within D²Link, and also the macros in the application, which help to minimize the amount of data being transmitted. Perkins has a BlackBerry Enterprise Server, which the company uses for corporate s and to sync s, contacts and calendars with their Microsoft Exchange. Daniel McKinnon reported that the BlackBerry Enterprise Server is also used to set policy for easier management of settings for groups, such as drivers and office employees. If a BlackBerry smartphone is lost, Perkins can remotely erase sensitive data, deactivate the phone, reset the password, and lock the device. The company can also transfer old or broken phone settings to new phones. McKinnon indicated that Perkins especially likes the BlackBerry track ball and keyboard. The company inserts each BlackBerry in a rubberized sleeve for protection. Each vehicle is equipped with a BlackBerry battery charger, since transmitting GPS location every five minutes can be a drain on the battery. Tropical Shipping Tropical Shipping is a leading ocean freight transport firm for the Bahamas and the Caribbean. The company also has an inland transportation fleet that operates primarily in Southern Florida. A small portion of Tropical s fleet travels to other states to transport goods back to Tropical s facilities for ocean shipment to the Bahamas and Caribbean. C.J. Driscoll & Associates 4
5 Tropical Shipping has 37 ships and oversees 92 owner/operator trucks and 7 company-owned trucks. With the exception of the drivers who travel out of state, the Tropical fleet is a day fleet, typically operating 7 AM to 11 PM. The company has a total of 117 drivers, all of whom have been provided with BlackBerry smartphones. Tropical Shipping pays for the BlackBerry devices and service for all drivers, including the owner/operators, in order to maintain complete visibility over the movements of the trucks and drivers. Managers and supervisors at Tropical Shipping also use BlackBerry, primarily for corporate . Tropical s BlackBerry devices operate over the AT&T network. Dennis Thies, Dispatch Supervisor for Tropical Shipping, reported that the company provided BlackBerry smartphones to its drivers in September and October, For nearly four years, the company had been looking for a costeffective solution to gain visibility over their shipments, track vehicles, and comply with Hours of Services rules. Tropical looked at vehicle-installed solutions, many of which proved to be cost prohibitive. Also, the company did not want to bear the responsibility for damaging or changing the appearance of the owner/operator trucks by installing vehicle-based systems. During the assessment period, Tropical decided to go with cellular handsets that would run Turnpike Global Solutions RouteTracker GPS tracking service as well as its Hours of Service (HOS) monitoring system. The company tested several cell phone configurations that included a Bluetooth interface to the Turnpike Global unit, which monitors the vehicle s location as well as electronic data bus outputs, including mileage, fuel consumption, and speed. Driver feedback indicated that the screens of most devices tested were too small and it was difficult to input data through the keyboard. The BlackBerry solution received the most positive feedback from the tests, so the decision was made to standardize on BlackBerry smartphones. Following the issuance of BlackBerry to fleet drivers, Tropical Shipping set up a command center at its headquarters, with five dispatchers using two 46-inch screens to monitor fleet operations. The company purchased the BlackBerry Enterprise Server software to activate and configure the devices and to facilitate and manage transmissions and push new applications to the units in the field. Work orders and shipping information are currently sent to the drivers BlackBerry smartphones via , and the drivers also use to send status updates from the field. Tropical has a number of drivers who have been with the company for as many as years. The company is working closely with these drivers to help them adjust from a paper-driven system to wireless mobile data communication. During 2010, Tropical will be installing TMW s D²Link dispatch system on their BlackBerry units, so by currently using the Blackberry s corporate feature to communicate the job orders, the company is preparing its drivers for the use of the mobile forms that will be part of the new dispatch system. C.J. Driscoll & Associates 5
6 Tropical Shipping s drivers also use the camera feature on the Blackberry to capture any shipment damages, as well as any damages to the truck. Voice services and Internet browsing are disabled on the units provided to the drivers. All drivers carry their own cell phone for personal communications. Dennis Thies stated that the company likes the processing power of the BlackBerry smartphone, which will continue to be a plus for them when they add the TMW dispatch application. Other benefits include the large screen and the keyboard. Tropical has outfitted each BlackBerry with a rugged sheath to protect it from damage. UniGroup UniGroup, Inc., based in St. Louis MO, is the parent company of for-hire carriers United Van Lines and Mayflower Transit and other subsidiary companies. UniGroup is a cooperative with over 800 agents, which employ some 8,000 drivers. The company s largest linehaul agents are required to provide drivers with a cell phone that meets UniGroup s specifications. Overall, 3,500 UniGroup drivers have been provided with cell phones. Of these, 2,900 are using BlackBerry smartphones, with many having used them for the past three years. Mike Lauber, Senior Developer for UniGroup, reported that UniGroup agents and their drivers use BlackBerry to run the D²Link application from TMW, which enables dispatching of loads and exchange of forms-based and free-form messages. The drivers use the smartphone s camera feature to capture any damage to goods during transit or to the vehicle as the result of an accident. A navigation application is used to provide drivers with turn-by-turn directions to their destination. When requested by customers, drivers also use the BlackBerry s Bluetooth feature to interface a barcode scanner attachment. UniGroup reported that the large deployment of BlackBerry smartphones by UniGroup agents has been motivated by features such as the full QWERTY keyboard and large screen, which provide advantages over other cellular devices. Other advantages include good data storage and strong processing speed. Mike Lauber reported that UniGroup is pleased with the way the BlackBerry runs the D²Link application and, overall, is highly satisfied with the BlackBerry solution. Service Fleets Metro Fire Equipment, Inc. Metro Fire Equipment, Inc., based in Mesa, Arizona, is a family-owned fire protection services company, which sells, installs and services fire protection C.J. Driscoll & Associates 6
7 products, such as sprinkler systems and fire extinguishers, for commercial properties throughout Arizona. The company operates over 30 trucks and service vehicles. Theresa Sprickerhoff, a Manager with Metro Fire Equipment, reported that about 60 employees use BlackBerry Curve 8900 smartphones, which operate on the T-Mobile network. The BlackBerry users include 40 mobile workers, as well as 20 office personnel. The company s mobile work force has been using the devices for over a year. Metro Fire provides and pays for the BlackBerry smartphones, though employees who exceed their voice minute allotments usually also carry a personal cell phone. Metro Fire Equipment decided to provide their mobile workers with BlackBerry to improve communication between workers in the field and supervisors. The company s mobile workers previously used standard flip-phones and the Motorola Q, but Metro Fire switched to BlackBerry for ease of use, screen size, the full QWERTY keyboard, and the BlackBerry Enterprise Server. The BlackBerry Enterprise Server enables the company to activate, configure, and upgrade BlackBerry devices in the field, and to download applications. The BlackBerry Enterprise Server software is also used to send corporate s with installation and service orders or other messages to mobile workers as a supplement to the company s paper-based installation and service order system. Metro Fire subscribes to Comet Tracker by ActSoft dispatch and tracking solution, which they run on the BlackBerry smartphone. The company is currently using Comet Tracker s GPS tracking and timecard feature, along with mapping and navigation. However, Metro Fire Equipment s five divisions have been slow to adopt fully automated dispatching, which is a goal for the first part of In addition to the ActSoft Comet Tracker application, Metro Fire trucks and service vans are also equipped with an in-vehicle GPS tracking system, which was installed prior to the deployment of BlackBerry smartphones. Also, mobile workers occasionally use laptops or PDAs with barcode scanners. While Metro Fire relies primarily on GPS data from the ActSoft application on the BlackBerry, it still uses the vehicle-installed system as back-up verification of driver activity, since the installed units cannot be turned off by the drivers. Caldeco Air Conditioning & Heating Caldeco Air Conditioning & Heating performs installation, service and repair of air conditioning and heating systems for commercial and residential customers in the greater Tampa area. Paul Ventrone, Service Manager at Caldeco, reported that the company has deployed approximately 34 BlackBerry smartphones, with 14 used by service and installation personnel, and the balance by management, supervisors, administrative, and sales personnel. The company uses BlackBerry Enterprise Server software to activate and manage the handsets and to transmit corporate s to mobile workers. C.J. Driscoll & Associates 7
8 Caldeco technicians have been using the BlackBerry 8820 smartphones on the T-Mobile network since April, Previously, the field technicians used basic Nokia phones. Dispatchers sent job orders in the form of text messages, which proved unsatisfactory. Initially, the primary motivation to switch to the BlackBerry solution was to be able to send job orders and other messages as s. A subsequent decision to run ActSoft Comet Tracker application for location tracking provided additional confirmation of the need to upgrade to BlackBerry. Caldeco now dispatches work orders via , using project management software from Team Management Systems. Work orders are currently sent out one at a time, though the company is working on a dispatch template that will allow simultaneous transmission of multiple work orders. Caldeco runs ActSoft Comet Tracker on BlackBerry for GPS location, which the company uses for dispatching. GPS locations are updated every minute. Some drivers also run a navigation application on their BlackBerry. In addition, the company is considering use of a barcode scanner, which would be attached to the BlackBerry. Paul Ventrone indicated that the principal advantages of the BlackBerry smartphones are ease of sending and receiving s, and overall affordability compared to vehicle-installed GPS tracking systems. The company is particularly pleased with the BlackBerry Enterprise Server, the GPS performance, and the device s ability to access the Internet. Comments of Application Service Providers The research on benefits derived by fleet operator from the use of BlackBerry smartphones also included discussions with several suppliers of cell phone GPSbased applications, including ActSoft, Cheetah Software, TeleNav, TMW, and others. The Application Service Providers (ASPs) all reported that the BlackBerry is a very good platform for running their applications. The following is a summary of their comments: Several ASPs consider the BlackBerry platform to be better than other handsets for application development. They report that the platform is very controllable, and there is little variation from one BlackBerry model to another. The BlackBerry platform is also the same across carriers, so applications do not need to be modified to work on another carrier s network. If custom features are needed, they are far easier and less costly to develop for BlackBerry than most other handsets. An advantage for developers and end users is that BlackBerry smartphones do not have an end of life. Some time after standard feature phone models C.J. Driscoll & Associates 8
9 are discontinued, the phone manufacturers generally stop supporting the software, but this is not true with BlackBerry. Some ASPs reported that they generally use BlackBerry to demonstrate their applications due to the large screen and full QWERTY keyboard. The large screen and keyboard also make it easier for end users to take full advantage of the application s capabilities. BlackBerry smartphones can run multiple applications simultaneously, while many handsets can run only one application at a time. On many phones, if a voice call comes in, it is necessary to exit the application. If a BlackBerry is turned off, it can be turned back on remotely. BlackBerry smartphones can support attachment of barcode scanners and signature capture readers. BlackBerry smartphones can be managed remotely through the BlackBerry Enterprise Server. Conclusions Fleet operators are increasingly looking for ways to improve operating efficiency without a significant capital investment. Many have come to recognize that communicating with mobile workers via data messages or s can be more efficient and reliable than voice calls. They also recognize the value of running applications, such as for dispatching, task management, navigation, and hours of service, which can reduce vehicle mileage, overtime, and overall operating costs. A growing number of trucking and service fleets are opting for smartphones, particularly BlackBerry, as an affordable but effective platform for enabling mobile workers to send and receive s and other data messages and to run applications that enable them to accomplish more in less time. Many companies are using the BlackBerry Enterprise Server software to manage and control communication with BlackBerry devices in the field. Some companies, particularly trucking firms, are interfacing BlackBerry to other devices for monitoring engine fault codes, fuel consumption, idling time, and driver speed and acceleration, or for barcode scanning or signature capture. For many companies, BlackBerry smartphones have become the core component in a system that enables them to apply the latest technologies for effectively managing workers in the field. C.J. Driscoll & Associates 9
10 C.J. Driscoll & Associates Founded in 1993, C.J. Driscoll & Associates is a leading consulting and market research firm focused on GPS and wireless products and services for both commercial and consumer markets. The company s 2009 Mobile Resource Management Systems Market Study is a widely used report that assesses the U.S. market for vehicle-installed and handset-based solutions for managing mobile workers and assets. The company has also conducted extensive research over the years on interest of consumers and enterprises in a wide range of GPS and wireless solutions. Clem Driscoll, the founder and president of C.J. Driscoll & Associates, is a noted authority on Mobile Resource Management and other location-based applications. He is a frequent speaker at industry conferences and has been quoted in leading publications including The Wall Street Journal, Business Week, Fortune magazine, and USA Today Research In Motion Limited. All rights reserved. BlackBerry, RIM, Research In Motion, SureType, SurePress and related trademarks, names and logos are the property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world. All other trademarks are the property of their respective owners. C.J. Driscoll & Associates 10
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