eld’s it and operations how do they fit together 1

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ELD’s IT and Operations How Do They Fit Together 1

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Page 1: ELD’s IT and Operations How Do They Fit Together 1

ELD’s IT and Operations How Do They Fit Together

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Page 2: ELD’s IT and Operations How Do They Fit Together 1

Mileage & RoutingEnterprise Software

In-Vehicle Navigation

ELD’s with MobileCommunications

The Industry Standard for over 70 Years

Trucker Tested. Trucker Approved.

Results for Fleets. Trusted by Drivers.

Our Products

Confidential and Proprietary. Copyright© Rand McNally 2013.

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Page 3: ELD’s IT and Operations How Do They Fit Together 1

Major Industry Trends & IssuesA Brief Review

Confidential and Proprietary. Copyright© Rand McNally 2013.3

Page 4: ELD’s IT and Operations How Do They Fit Together 1

An ELD, is an electronic device which allows drivers to remain compliant with Hours of Service (HOS) requirements for drive time restrictions.

A new proposed regulation will reportedly require all commercial motor vehicles to operate with an ELD installed.

The proposed regulation was sent to the White House Office of management and Budget earlier this year and “anticipated to be published later this year”, different than the November 8th date previously announced.

The regulation will reportedly call for ELD’s to be implemented within the next 2 years.

Confidential and Proprietary. Copyright© Rand McNally 2013.

Electronic Logging Device (ELD)

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Page 5: ELD’s IT and Operations How Do They Fit Together 1

Compliance Safety Accountability (CSA)

CSA is an automated system that quantifies motor carrier on-road safety performance based on Behavioral Analysis and Safety Improvement Categories (BASICs).

Continued poor CSA performance can result in the shutdown of trucking operation.

This is a new regulation that started in 2010.

5Confidential and Proprietary. Copyright© Rand McNally 2013.

Page 6: ELD’s IT and Operations How Do They Fit Together 1

Driver Shortage

Stricter safety rules combined with an insufficient number of new drivers entering the workforce has created a driver shortage

More than 90 percent of truck drivers leave in their first year, either to go to a competitor, start another career, or are fired*

Costs of recruiting new drivers are increasing – some fleets are spending over $5000/driver in recruitment and advertising costs*

Increasingly, fleets are often forced to hire less experienced drivers

Shortage potentially 30,000 drivers by end of 2014*

Drivers are now like “Free Agents”

6Confidential and Proprietary. Copyright© Rand McNally 2013.

*ATA, Transport Fundamentals, Cost of Truckload Driver Turnover

Page 7: ELD’s IT and Operations How Do They Fit Together 1

ELD Technology How it can help operations?

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Page 8: ELD’s IT and Operations How Do They Fit Together 1

ELD Technology Breakdown

Confidential and Proprietary. Copyright© Rand McNally 2013.

At a core level, ELD’s utilize 5 critical pieces of technology These include:

On-board Computing – The device must be able to run software applications

Display Device – An ELD system must provides a user interface for the driver so they can record duty status information, certify their daily logs, and show law enforcement

GPS – Detects vehicle position by listening to global positioning satellites

Vehicle Diagnostics- Detects engine activity and odometer via a connection to the trucks diagnostic system (J1708/1939)

Wireless Communications – Transmits information to a back-end system to store and retain data

ELD Technology = Mobile Communications Technology8

Page 9: ELD’s IT and Operations How Do They Fit Together 1

9Confidential and Proprietary. Copyright© Rand McNally 2013.

Due to the new ELD regulations, the critical question facing carriers is no longer:

“Do I adopt the technology?”

“Invest In a Platform – Not a Product”

It is “You Cannot Afford To Wait”

With the right ELD system, you will effectively have a full mobile communications platform

Page 10: ELD’s IT and Operations How Do They Fit Together 1

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Automatic Vehicle Location & Geofencing

Confidential and Proprietary. Copyright© Rand McNally 2013.

Location visibility improves asset utilization and minimizes deadhead

miles

Know when assets arrive at their destination and

how long they remain on site

Page 11: ELD’s IT and Operations How Do They Fit Together 1

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Out of Route Driving Detection

Confidential and Proprietary. Copyright© Rand McNally 2013.

10% of miles driven are out of route

(OOR)

Be aware of when off route driving occurs and take

immediate action

Page 12: ELD’s IT and Operations How Do They Fit Together 1

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Electronic Hours of Service

Confidential and Proprietary. Copyright© Rand McNally 2013.

Eliminate costs of paper log books (~$3/mo) and gain

30 minutes per day of productivity from the

driver

Simultaneously improve CSA scores while also

dispatching more efficiently.

Page 13: ELD’s IT and Operations How Do They Fit Together 1

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Truck Navigation

Confidential and Proprietary. Copyright© Rand McNally 2013.

Reduce the stress of driving in unfamiliar areas

Navigation has become a create comfort for many drivers and has

proven to be an effective retention tool

Avoid costly fines from driving on roads where commercial trucks are

not permitted

Page 14: ELD’s IT and Operations How Do They Fit Together 1

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2-Way Email Communication

Confidential and Proprietary. Copyright© Rand McNally 2013.

Improve command and control by streamlining the

flow of communications between driver, dispatchers

and customers

Maximize the ratio of drivers to dispatchers by automating basic tasks

and looking at issues on an exception basis

Page 15: ELD’s IT and Operations How Do They Fit Together 1

15Confidential and Proprietary. Copyright© Rand McNally 2013.

Accident / Critical Event Detection & Alerting

Proactively monitor emergency events as they happen to

ensure

Identify driving behaviors such as following too close behind

other vehicles

Page 16: ELD’s IT and Operations How Do They Fit Together 1

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Driver & Vehicle Performance Monitoring

Confidential and Proprietary. Copyright© Rand McNally 2013.

Provide a fair standard for measuring driver performance.

Let drivers see their own performance in real time. Try the carrot first, then use the

stick with respect to performance incentives.

Understand where your fuel is being used. How much does idling, speeding, improper

shifting cost in gallons?

Page 17: ELD’s IT and Operations How Do They Fit Together 1

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Remote Diagnostics / Vehicle Fault Code Detection

Confidential and Proprietary. Copyright© Rand McNally 2013.

Detect mechanical issues remotely through fault code

alerts. Schedule maintenance proactively.

Roadside breakdowns typically cost more than $500 per

incident. That does not factor in the opportunity cost of the

asset or customer issues

Page 18: ELD’s IT and Operations How Do They Fit Together 1

The ROI of the system is in the hands of the managers who set company policy

Fleets that aggressively deploy the technology typically pay back the initial investment within 6 months

Getting the maximum ROI is usually not an overnight process – set realistic but escalating goals throughout the first year of deploying the system

Simply knowing your metrics is a great place to start. Is there a problem? If so where is at and what is driving it?

Target the low hanging fruit first – Idling, Speeding, Hours of Service, off route driving are easy to track and identify.

As the organization becomes more experienced with the system, begin to mine the mountains of data that is available

Confidential and Proprietary. Copyright© Rand McNally 2013.

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Implementing ELD/Mobile Comm Technology Strategically

Page 19: ELD’s IT and Operations How Do They Fit Together 1

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Other Benefits of EOBR Technology

Automate manual processes like Fuel Tax FMCSA now recognizes modems as

Transponders enabling an ELD to work for Pre-Clearance Bypass.

Turn administration into analysis - less time on the phone or manually tracking data

Maximize the drivers time by reducing paperwork related to VIR and HOS

Free up dispatcher time providing routes/directions

Provide better customer service by having immediate access to information such as vehicle location and ETA.

Confidential and Proprietary. Copyright© Rand McNally 2013.

Page 20: ELD’s IT and Operations How Do They Fit Together 1

Questions & Answers

Confidential and Proprietary. Copyright© Rand McNally 2013.

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Bill [email protected] 858-229-3493