Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/573961
46 COMMERCIAL CARRIER JOURNAL | SEPTEMBER 2015 technology R emote diagnostics surfaced in the late 1990s when telematics systems linked with electronically controlled engines to transmit fault codes to the office. In theory, this new conduit would prevent breakdowns and costly repairs. In reality, the fault code data was difficult to decipher by fleet managers, and the upcharge in telematics was difficult to justify. That all changed five years ago when Daimler Trucks North America teamed with Zonar Systems, a telematics and mobile fleet management software company, to create DTNA Virtual Techni- cian. The diagnostics service became standard on all Freightliner trucks with U.S. Environmental Protection Agency 2010-certified Detroit and newer engines. Whenever a fault code or "check engine" light appears, experts in Detroit's Customer Support Center review and provide informa- tion to the vehicle owner and help schedule a repair if necessary. Other heavy- and medium-duty truck and engine manufactur- ers followed suit. About two years ago, Volvo's Remote Diagnostics and Mack's Guard Dog Connect offerings began using Telogis' telematics offering and Decisiv's service event management platform to connect everyone involved – the call center, fleet and service provider – whenever a fault code appeared. Also, Paccar is installing PeopleNet hardware at the factory to supply its customers with diagnostics services. Have the alignments between telematics companies and OEMs caused fleets to re-evaluate their use of mobile technologies? Is remote diagnostics the "killer app" they have needed? Follow the money The return on investment for telematics comes from operations and not from maintenance, says Stuart Kerr, senior vice president of Enterprise Business for telematics provider Fleetmatics. "In terms of what fleets can save in maintenance costs, the idea of a guy standing there with a part ready to go is more often than not a fantasy," Kerr says. "Instead, clients that are making the most of their investment in telematics are doing so because they have the information to change how they run their core operations." Fleetmatics is one of the largest "pure play" telematics companies with about 28,000 customers that manage nearly 600,000 vehicles combined. Its Reveal telematics system is installed in vehicles and uses Apple or Android devices for the display. Reveal can report fault codes and other engine data, and Fleet- matics is "always open to talking about a partnership" with OEMs, Kerr says. But he says there is also an advantage to being neutral because most fleets operate a mix of vehicles and want telematics systems that work equally well for all makes and models. Large fleets want telematics systems that can put the lo- cation and status of vehicles and drivers in context for their business operations. The integration of telematics data with payroll, fuel purchasing and work order management pro- vides visibility across the enterprise and delivers maximum returns, Kerr says. Social telematics As co-founder and president of Azuga, Ananth Rani entered the telematics market with a low price point. Azuga selected a small "plug and play" OBD II device for light- and medium-duty vehicles made by Danlaw. The device is deployed in three million vehicles and is used by insurance companies such as Progressive to monitor driving behaviors and offer safety discounts to their customers. Using the device, Rani designed new cloud-based telematics applications that engage drivers in competition, gamification and rewards. Azuga calls its niche "social telematics," and since opening in May 2013, the company has signed 1,000 fleet customers that manage about 50,000 vehicles. Azuga's low price is what initially sparked the interest of Aaron's, a specialty rent-to-own retailer. To date, Aaron's fleet has installed Azuga in 2,600 of its 3,000 trucks that deliver furniture, consumer electronics and home appliances to customers. Utilization of vehicles was Aaron's starting point for telemat- ics. Most of its delivery vehicles are 14-foot Isuzu straight trucks rated at 12,000 pounds, and most stores have two assigned to Fringe benefit or killer app? Team-ups between telematics companies, OEMs spur progress BY AARON HUFF in focus: REMOTE DIAGNOSTICS Fleetmatics' Reveal telematics system is installed in vehicles and uses Apple or Android devices for the display.