EXECUTE YOUR ELD STRATEGY

Part II - A review of current regulatory and compliance issues that will impact your business.

March 23, 2017

EXECUTE YOUR ELD STRATEGY

Master of Ceremony

Ron Nunes - HNI

EXECUTE YOUR ELD STRATEGYTonight’s Speakers

John SimmsHNI Risk Services

Marc Lonson M2M in Motion

Rocky CaylorCadence Premier

Linda Blisset Il Trucking Association

To Our Sponsors: Thank You!

ABOUT HNI

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Effectively managing your insurance and benefit costs requires change.

Unfortunately, most traditional insurance brokers play the traditional “quote game”, bidding insurance markets you can’t control and delivering anything but change.  

But, you want more than just insurance. In an era of increasing cost, risk and regulations, you want a partner that can keep you on the cutting edge.

As emerging issues pop up on an almost weekly basis, you need to know how they will affect your business. You want the straight scoop from a trusted advisor that knows your business & your goals.

You want INSIGHT. Perhaps our biggest difference is how we deliver insight to our clients; this is how we turn insurance into a strategic business tool.

Agenda1. Recap of ELD Mandate 2. Expectations of the Provider / Vendor 3. Vendors Point of View – Marc Lonson - M2M Technology4. Real Life Experience – Rocky Caylor – Cadence Premier 5. Compliance Changes – Linda Blisset – IL Trucking Association 6. Insurance Company Expectations 7. Your Time to Ask Questions

EXECUTE YOUR ELD STRATEGY

EXECUTE YOUR ELD STRATEGY

ELD Mandate Still On Track. Despite considerable attention to the Trump administration’s directive on a regulatory freeze, the electronic logging device mandate was finalized as a rule in December 2015 and thus beyond an Executive Order’s reach. Legal challenges to the rule by OOIDA have failed to date (an appeal to the Supreme Court remains an improbable possibility) and some in Congress have suggested repeal, but the initial compliance deadlines (December 18, 2017 for users of paper logs and December 16, 2019 for users of AOBRDs) remain in place. – Timothy W. Wiseman, Indianapolis, IN

December 17, 2017 – ELD Mandate Begins December 17, 2019 – AOBR’s are History AOBR vs. ELD Inventory Levels Two ELD Platforms – Open vs. Closed Cost, Features & ROI Sample Timeframe

EXECUTE YOUR ELD STRATEGY

ELD Mandate Solution Expectations

EXECUTE YOUR ELD STRATEGY

• WHAT SHOULD I LOOK FOR IN A VENDOR?

• Is the provider of a prospective solution for your ELD offering something that is accurate and reliable?

• You need to be able to trust, come audit time, that you've captured everything required to comply with the ELD mandate, and that you've not been left high and dry by your technology.

• An unreliable device or system will waste your time and put you at risk during an audit. • Closely related to accuracy is up-time. In other words, how many minutes each month

can you expect the service to be working-or not working? Check that the vendor is transparent about uptime and accuracy.

EXECUTE YOUR ELD STRATEGY

• WHAT QUESTIONS SHOULD I ASK DURING THE RFP PROCESS?

• What steps has the vendor taken to ensure its ELD is compliant with the FMCSA rule?

• Does the vendor have a substantial number of active subscribers to their system? • Can the vendor offer testimonials from top customers? • Does the vendor have a history of success? • Can the vendor document financial stability? • Can the vendor assure you it will be around in the future? • Will the vendor continue to provide positive service after the sale?

EXECUTE YOUR ELD STRATEGY• WHAT QUESTIONS SHOULD I ASK DURING THE RFP PROCESS?

• Does the preferred ELD solution include driver communication capability?

• Is there provision for potential integration with your back office systems?

• Does it come with documentation including cab-cards and manuals?

• Does the vendor technology platform offer driver performance metrics that reduce fuel usage and enhance the company safety profile by improving driver behaviors and reducing truck-at-fault accidents?

• Does the product provide no-cost GPS location tracking?

• Does the product include IFTA and/or weight mile tax automated tax data collection and reporting?

• Does the product track maintenance work performed and forecast upcoming maintenance service requirements?

• Does the product accurately account for tax exempt miles?

EXECUTE YOUR ELD STRATEGY• WHAT QUESTIONS SHOULD I ASK DURING THE RFP PROCESS?

• Does my ELD provider offer an open platform that would allow you to leverage SDKs, APIs, and a robust ecosystem of third-party solutions?

• Who owns my data and what are your data privacy and security policies?• How can your device reduce overall costs?• How “Driver Friendly” is your ELD?

EXECUTE YOUR ELD STRATEGY

FMCSA Certified ELD Website:https://3pdp.fmcsa.dot.gov/ELD/ELDList.aspx

34 ELD Software Providers Currently Certified on the list (3-20-17)Who’s not? – OmniTracs, PeopleNet, Rand McNally, XRS, JJ Keller, Zonar……

EXECUTE YOUR ELD STRATEGYVendor Expectations

Marc LonsonM2M in Motion

EXECUTE YOUR ELD STRATEGYFrequently Asked Questions• If a company purchases a product between now and Dec 2017, does it need to meet ELD rules now, or by Dec

2017?• The solution must be compliant by 12/18/17. The 02/16/19 extension provision was designed for carriers that have an

existing, but non-compliant solution already implemented.

• Is there a limit to Personal Conveyance in time or miles per day for company drivers? For owner-operators?• No. As with pre-ELD mandate requirements, there are no specific time or mileage limits associated with personal

conveyance.

• Do mobile applications need to be physically tied into the tractor or how will that work?• No, the ELD does not need to be tied to a specific vehicle, but it must use engine information to confirm movement.

• Is there a minimum speed specified for driving versus non driving? Like fueling, hooking up etc.• No. Compliant ELD solutions must allow the driver to change his/her status for events such as this (i.e. staying on line

3 - on-duty/not driving), even when the vehicle may be in motion at low mph.

EXECUTE YOUR ELD STRATEGYReal Life Experience

Rocky Caylor Cadence Premier

EXECUTE YOUR ELD STRATEGYReal World Safety & Compliance

Linda BlissetIllinois Trucking Association

EXECUTE YOUR ELD STRATEGY

Insurance Companies & ELD Data $$$$$

• Are excited about the advantages of collecting data from electronic logs and what the data shows them from a risk standpoint

• Identify which trucking driving behaviors are risky from an insurance standpoint  • Assess the different types, cost, & reliability of e-logging technologies to monitor driving

behavior and add value • Develop future possibilities for adapting truck insurance business models from on-board

monitoring cameras • Identify full range of telematics technologies for commercial trucks and how data gathered

from them affect insurance models, liability, and claims• True Performance Based Pricing!

EXECUTE YOUR ELD STRATEGYFrequently Asked Questions• If some, but not all, of a company’s fleet currently has ELD devices, when are they required to be compliant?• Any fleet vehicle that is not currently equipped with a compliant AOBRD (Automatic on-board recording device) or an

EOBR (electronic on-board recording device) must be equipped with an ELD by 12/2017. Whereas, any fleet vehicle that is currently equipped with an AORB or EORD has until 12/2019 to implement a compliant ELD solution.

• If an ELD is permanently mounted in dash and can be seen from the drivers window, does this meet law enforcement access where CAB access is not needed (when wireless and print out is not available)?

• With regard to “Data Transfer,” the FMCSA provided the following response: Although areas within the United States where data connectivity is not available are shrinking, FMCSA understands that some areas of the country do not have such access. Today’s rule allows for alternative methods of data transfer including Bluetooth and USB 2.0. Where data transfer is not practical, the driver can still show enforcement compliance via a printout or the ELD display. Due to potentially hazardous conditions (i.e., weather, traffic, etc.) during roadside inspections, authorized safety officials may ask drivers to hand them their ELD outside of the CMV so that they may examine the ELD display of data at a safe distance outside of the CMV. Absent a printout, an ELD must be designed so that its display may be reasonably viewed by an authorized safety officer without entering the CMV.

QUESTIONS?

Coming in June 2017

“ELD’s, Profitability & Customer Expectations”A Roundtable Discussion