More Fleets Turn to Tech

Light & Medium Truck, Nov 2007 by Bennett, Stephen, Leone, Dan

Some utility fleets are adopting mobile resource management tools, but smaller operations still face hurdles adopting advanced systems.

More utility fleets are using mobile resource management tools to track vehicles and improve scheduling efficiency, but the entry costs for new technology and the challenge of integrating it with a company's administrative system are deterrents to others, a recent study shows.

Between 15% and 20% of utility fleets use MRM systems, according to CJ. Driscoll & Associates, a research and marketing firm. Less than 10% of utility fleets used the systems five years ago, said Clem Driscoll, president of the firm. The change signals gradual adoption of the technology in utilities, he said.

"It will continue to grow," Driscoll said. "Five years from now will it be over 30%? I would expect so."

Use of MRM systems is most likely to grow among large electrical power and natural gas fleets, because they can help fleets respond rapidly to outages, Driscoll said. The systems also could increase efficiency in dispatching and scheduling, verifying that a vehicle is en route, and confirming that it was at a customer's location at a particular time, Driscoll said.

The systems link the Global Positioning System, the Internet, wireless communications and software programs that manage daily activities such as dispatching and transactions in the field. The GPS uses a network of satellites to pinpoint the location of things on the ground; wireless communications enable the transmission of GPS data back to the fleet. Fleets have a choice between two types of GPS/wireless communications setups, Driscoll said. A GPS receiver and wireless communications device could be installed on a fleet vehicle or drivers could carry GPS-equipped cellphones.

In either case, the systems can provide a range of benefits, including enhanced responsiveness, improved service scheduling of trucks and closer management of mobile workers, which in turn improve overall productivity and customer service, technology vendors said.

The main hurdles to adoption are the cost of the technology and the challenge of integrating MRM systems with existing back-office systems, Driscoll said.

"Cost certainly does figure into it," he said. For a GPS receiver, which enables vehicle tracking, the typical cost is approximately $500 per truck, plus $30 to $40 per month for monitoring service, Driscoll said.

"If they want an onboard computer as well, or a portable computing device that ties into the GPS tracking, the price goes up" an additional $300 to $2,000 per vehicle, depending on the sophistication of the hardware and software, Driscoll said.

Small water utility companies operating in rural markets might not be able to justify that level of investment, Driscoll said. Larger companies with bigger fleets are more likely to have a compelling need, but the investment is substantial for them, too.

"A large utility needs to install the equipment on their service vehicles, integrate the vehicle tracking with other back-office systems - and then there's the monthly service fee," Driscoll said. "So, it's not inexpensive."

Driscoll's company, based in Palos Verdes Estates, Calif., conducted a survey of 500 fleets to gauge interest in MRM systems. He is scheduled to present some of the findings at the Commercial Vehicle Telematics USA Conference & Exhibition in Chicago Nov. 12-13.

Cellular carriers, digital mapping suppliers, and suppliers of MRM equipment, software and services partially funded the survey. It covered a range of fleet types, including local and over-the-road trucking, private delivery, utility and government, and service fleets such as plumbing and heating, electric, towing, appliance service/repair and landscaping.

The survey found that interest in GPS tracking of fleet vehicles was rated highest among all systems and services fleets had tested. Many fleet operators viewed GPS tracking as an important tool for improving driver productivity, route optimization, dispatching efficiency and customer service. Further, increased implementation of GPS and wireless communications is stimulating fleet operators' overall interest in MRM systems, Driscoll said.

Overall, 80% of surveyed fleet operators said their drivers use cellular phones to communicate while on the road, compared with 66% in 2003, Driscoll said.

Participating fleet operators using GPS tracking systems expressed a high level of satisfaction. Nearly three-fourths (73%) indicated that they are "extremely satisfied" or "very satisfied" with their systems, while only 9% indicated that they are not satisfied, Driscoll said.

Utility and telecommunications fleets' responses mirrored some of the overall findings, especially with respect to using cellular networks for wireless communications. Most surveyed utility and telecom fleets use cellphones, but they also tend to have a backup, Driscoll said.

"There is more of a tendency in utility and telecom fleets to use more than one form of communication," Driscoll said. "I think the reason is that they have to be prepared to respond to outage situations and emergencies"