RECORDING, RELIABILITY AND ROBUSTNESS

The three ‘R’s of Telematics

High levels of accurate data recording, reliability and robustness of hardware are the core deliverables of EROAD, arguably New Zealand’s largest telematics solutions provider.

Big claim? Yes, it is, but with over 5000 fleet users and somewhere on the order of 70,000 vehicles using EROAD technology, it’s a valid one.

Now, 54 percent of all heavy vehicle licences and 31 percent of all road user charging in New Zealand is being collected through EROAD technology. The big numbers continue with EROAD delivering approximately $2.5 billion dollars to NZTA since launching the world’s first nationwide electronic road user charging system back in 2009.

NZTA is of course, the government agency charged with revenue collection as part of its operation and for an external provider like EROAD to be trusted to deliver an electronic device to assist in this regard, well, that external provider better have it all together – and EROAD certainly does.

It wasn’t long before heavy transport operators who had recognised the convenience and reliability of EROAD’S product range, thought about the applications for lighter vehicles in their fleet.

EROAD was ready with a product called EHUBOLITE, which monitored light vehicles and assets and today, about 40 percent of EROAD’S business is in light commercial vehicles, and that’s growing all the time.

EROAD moved along with the times, introducing a RUC management application which could buy road user charges from any web-enabled mobile device.

At the same time – and bearing in mind the light commercial vehicle trend of multiple vehicles and multiple drivers – EROAD developed Driver ID – software which matches a driver to a specific vehicle, and a particularly useful application when it comes to monitoring the use and ensuring correct utilisation of pool cars.

EROAD also developed Service Module, a vehicle fleet maintenance and repair management tool.

With these and other related developments contributing to an extensive, locally- designed product line up and successful deployments for each component, EROAD was ready to take on the world, and expanded its operation into the North American market by mid-2011.

Meanwhile, back home the fleet market was seeing the impact of a revised Occupation Safety and Health Act and suddenly, EROAD’S tried and proven systems became very topical and much in demand as safety and compliance tools for the harassed fleet manager, particularly as it pertained to light vehicle use.

“This was one of many turning points for EROAD,” says Andrew Davies, EROAD’S General Manager Sales ANZ. “As fleet users began to realise that what we had to offer across the product range actually answered their needs for making OSH compliance easier with the by-product of making their drivers safer.”

Andrew explains that with the arrival of EV’S and a resurgence in petrol powered fleets as opposed to Class one diesels, the Health and Safety consideration, which started out as a handy ‘’extra’’ telematics function, has become a primary driver for many fleet users.

"In many cases, we’ve found that companies with light commercial vehicles generally have a lot of drivers. Unlike the heavy transport sector, many are not trained professional drivers and while

RUC may be a small part of the company’s business, some of these multiple vehicle/ multiple driver organisations have found the compliance with H&S is much more advantageous."

EROAD could have carried on with the product range it had, but in the wings, the local development teams had been working on a new generation of the company’s hero product.

This was EHUBO2, a much more sophisticated device than Ehubo1, with a significant focus on being driver- centric, both in its functionality and its direction.

As opposed to Ehubo1, which faces outwards to ensure ease of compliance with RUC enforcement, EHUBO2 faces the driver as it relays data to home base (known as Depot as far as EROAD customers are concerned, a web-based data collection centre which can be accessed by EROAD fleet customers) so that the driver AND the fleet manager can see exactly what is happening with the vehicle.

The new direction of EHUBO2 – where a compact screen faces the driver – also sees the device display Gps-accurate speed, RUC and allows two-way messaging between the driver and company.

“The display is mounted on the vehicle dashboard,” explains Andrew “so it’s right there in plain sight. There’s no ‘hidden gadgetry’ mounted sneakily under the dash and which sends end- of- day reports to a line manager, CEO or CFO who may or may not use the information in a way which encourages better driving.

“Because the information is available to the driver, he or she is able to modify their driving as they are travelling. They don’t need to be encouraged to drive more efficiently and more safely either. In most

cases, we have seen the quality of driving, the reduction of incidents and savings in fuel and vehicle consumables improve without the fleet manager’s input

To put this in perspective, customers of EROAD have reported their number of speeding events has reduced by as much as 330 percent, a seven percent reduction in insurance premiums and they also experience a noticeable reduction in fuel costs.

“We have a very large sales team,” says Andrew “and part of their role is to educate the customer and the user in the use of the EHUBO2 when a new system is installed. Transparency is still a key consideration to encourage driver buy-in.”

EHUBO2 utilises gamification technology to improve driver habits; “with the high number of EHUBO2 user data points available through our web-based data collection site, it’s possible for drivers to compare their performance with other users.

“There’s enough motivation there for fleet drivers to improve their standards. Switched on fleet managers can take this a step further by incentivising good driving habits when it comes to speed reduction, reduced fuel consumption, better braking and easier cornering,” says Andrew.

Naturally, EHUBO2 does everything Ehubo1 does in respect of paperless

RUC administration, including automated off-road claims for speedy and accurate refunds.

Admittedly, when lighter commercial vehicles go off-road, the return from offroad tracking is not as great as a heavy vehicle.

If your vehicles are working in civil construction, forestry, quarry industries, the claim-back returns are more than worth it, and EROAD’S systems automatically compute off road vehicle use.

“We update our maps regularly, but even then, we don’t just send out updates as they are supplied. We verify the information first, based on what we know of the roads and what our customers tell us.

“Reliability, robustness and accuracy are what our customers have come to expect and it’s what we deliver, with every part of our business; from local development of our product to acquisition and delivery of data and return on investment. We also make sure every product we develop is making a meaningful social impact – because we believe that every community deserves safer roads.”

What about profit impact? Telematics clearly has the potential to save money, but what does it actually cost?

The answer does depend on the size and nature of the fleet of course, but EROAD’S ideal solution for their customers is a rental package which includes hardware and software. The EHUBO2 with all its functionality is now extremely affordable.

Having the software locally developed means EROAD can control what is upgraded and when, meaning the company is well positioned to advise customers of new product releases or updates.

EROAD could rest happily on its laurels and continue its expansion off-shore without worrying about little old New Zealand’s requirements, but Andrew doesn’t see this happening.

“We’re developing new system enhancements all the time,” he explains. “With in-house engineers, we are constantly looking at ways to improve what we have to offer. This year, for instance, there’s a big push on electronic monitoring of maintenance and servicing, as part of the EHUBO2 package.”

“We have the advantage of seeing company requirements for all parts of the transport sector. Heavy commercial vehicle users maintain their vehicles very strictly. Light commercial users are probably not the best practice users in terms of maintenance or driver fatigue issues. As more light commercial vehicle users become aware of their legal requirements and responsibilities, we’ll be ready to help them just as we have helped the heavy transport sector, with accurate, reliable and robust telematics solutions.”

Chris isn’t being rude – he’s being objective, and he happens to be right.

While Chris is safely in residence on the

Gold Coast, before anyone starts sending emails or bricks through my window, read on for a further explanation.

have never gone through a late amber light or a red one?

Never doing 105km/h in a 100km/h zone or 58 in a 50?

pass a school bus at 20km/h or under?

heart – admit to never answering a text or call while driving?

Chris suggests not. “At some point, every driver has – adjusted – a known rule in the Road Code. In most cases, it’s not an adjustment, it’s a break, and often one with the driver’s full knowledge.”

“I was curious” says Chris, “to know how people justify their behaviour to themselves when this happens, considering the consequences can easily be tragic.”

With 20 years’ experience as a West Australian police officer, Chris has been involved with Highway Patrol, crash investigation, motorcycle police instruction and police pursuit training and pretty much every branch of police service requiring wheels.

He’s seen a lot of tragedy in that time as well. “When you’re a young copper and exposed to carnage on the road on a daily basis, you treat it as part of the job, but when you get older and you have a family of your own, you start thinking “hang on a sec, how can we – as a society – accept this road toll?”

Chris suggests that 1. people don’t recognise the errors of their ways and 2. they justify the actions they know are wrong.

“Take speed limits for example. We know what the speed limits are, they’re posted everywhere, so what I want to know is: how do people justify driving over the speed limit? And that’s just one example. People go through stop signs, run late ambers, fail to indicate, drive without seatbelts, all manner of things, and the big question is “why?”

Chris puts it down to self-deception.

“There are,” says Chris, “many factors to consider when driving, and all too often, we aren’t driving at our best – wrong mindset, too tired, operating on autopilot, unable to react properly in a crisis.

“Despite this, by chance, we get to our destinations without getting a ticket or having an collision and we assume that we are good drivers as a result. This is the deception.”

Chris has made something of a study of behavioural studies, adding this to his driving and driver training skillsets, his experience at the pointy end of the spear when it comes to road safety and of course, his knowledge of legislative considerations, especially in regards fleet management.

LEGAL STUFF

We had a lengthy discussion with Chris on various legal aspects of what fleet drivers tend to do on the road and naturally, we came up against the contentious issue of using cellphones.

“Drivers incorrectly believe that as long as the phone is in a hands-free cradle, it’s all good. They can push the green button and there’s no problem since they’re using the cradle; they’re not in breach of the road rule that says don’t manipulate a cellphone while driving.

“In fact, they’re not in breach of ONE road rule. But they’re not driving with their full attention on the road, which leaves them open to something worse.

“From a prosecutor’s perspective: put yourself in the seat of the charged individual who thought he was doing the right thing. He wasn’t holding his phone, but he was having a conversation. Now let’s say he was involved in a collision which seriously injured or fatally injured someone.

That would have been investigated by Worksafe as well as the police and the first thing they would have done was to pull the call record of that phone. They would have identified he was on the phone at the time of the collision. From there, it will be determined that the driver’s focus was not 100 percent on the act of driving.

“If that is the case, then he doesn’t have to worry about the user hand held device law, that’s overridden by the more serious charge of ‘’dangerous driving causing death’’ or ‘’driving without due care and attention,’’ which are blanket charges designed for nonspecific breaches of the Road Code.

“With the Occupation Safety and Health

Act placing an onus on an individual within an organisation to provide a safe working environment – which today includes a fleet vehicle – the ramifications of the driver’s actions impact on the company and the fleet manager.

“There is a requirement for the organisation to be proactive in the identification of

risks – and there is a requirement for that organisation to be proactive in the mitigation of those risks. It’s the second one most company’s struggle with.

“Telematics,” says Chris, “is part of the formula for proactive mitigation, compliance and safety of the drivers, and it’s a critical part.

“You cannot manage what you do not measure,” Chris says. “So when you look at the legislation for safety in the workplace and the requirement to know what your risk exposure looks like; without telematics – because I can tell you now, no one goes voluntarily to their supervisor and says ‘Hey boss, I’m a shit driver’ – the only way you’re going to know they’re poor drivers is by infringements or collisions. Once again, we’re talking reactive instead of proactive.”

Chris then explains that with telematics, you can determine from a driver’s scorecard perspective, not only who your poor drivers are, but where do those drivers rank against each other?

“Once you’re there, you can begin to target your mitigation dollars towards those individuals who pose the biggest risk to themselves and the organisation, and from there, you can reference your company’s robust and watertight fleet policy which eliminates any lack of understanding between the company and the drivers.”

Chris follows this line of thinking with the importance of fleet managers having an understanding and the ability to implement the policies pertaining to behaviours which are inconsistent with what’s expected of the drivers.

Should these inconsistent behaviours occur, the consequences of those behaviours must be clear and acted upon, not as a punitive consideration, from an educational awareness position.

“There are many reasons for a driver to be unaware of poor driving skills,” says Chris. “They may be having domestic difficulties which are manifesting themselves on the road, it may be a function of age, it may be that self-deception mentioned earlier.

“The point is, we’re not looking at forming a case for instant dismissal, we are looking at ways of improving that driver’s ability for their safety and the minimisation of risk to them and the company.”

Chris suggests solutions might include a four-month strategy which resets every 12 months.

Every month, a report can be generated detailing the performance of your company drivers. If in a month, a driver is considered a high-risk driver, then at step 1, bring the individual in for a discussion, followed by driver training if required, in the second month. At the third month, it starts getting serious, and might require restrictions placed on that individual’s driving with a fourth month being a “show cause for dismissal” meeting.

I WON’T! I WON’T! I SHAN’T!

Teletrac Navman has provided top end technology to improve the efficiency, productivity and above all else, safety, of so many fleets all around the world, yet there is still a reluctance on the part of many fleets to make use of the technology.

“There’s still the ‘big brother’ spectre around telematics,” says Chris. “The benefits of the systems are explained to the CEOS and the CFOS who understand the ROIS and the visibility on where vehicles are and how they’re being driven. Really relevant information that’s useful, but the missing piece is: they don’t tell the drivers – the ones who are going to be most affected by this technology – what’s going on.

“I’ve spent a lot of time contesting with unions who try to stop telematics being implemented, purely because they think they’re protecting their delegates, who perceive the technology as spying.

“First and foremost,” he says. “Drivers should be made aware that the telematics solution is designed to enhance their safety at work.”

“From a change management perspective, it’s absolutely critical when considering telematics for a fleet, that you invite and engage the driver pool – or driver representatives – to the discussion and air what the technology is, precisely what it can record, exactly what data the company is going to use and finally how the company is going to use it.”

Chris relays the experience of his discussions with an electrical services provider implementing a telematics solution but having 72 disenfranchised drivers on their hands as a result.

The negotiations started with Chris and the drivers in a locked room with none of the company executives present.

Chris invited comments from the drivers which were listed on a whiteboard, then, one at a time, those comments were addressed and by the time the points had been covered, the drivers were all keen as to have their vehicles equipped with a telematics solution.

IT’S HERE, HOW DO WE USE IT?

Once the implementation and acceptance hurdle has been overcome – and whenever

Chris steps in, it is invariably overcome – the next part is to use the system and the data properly.

“In order for the drivers to accept what’s been said in terms of telematics being a safety aid and an educational tool, it is important that something constructive is done with the data.”

This may involve a revamp of the company fleet policy and the telematics data can be used to let drivers know that their abilities behind the wheel are not measuring up the way they should.

It is possible to incentivise good driving behaviour based on the telematics data and this is one way to get past the next hurdle – compliance.

Chris has found many fleet managers are reluctant to pull drivers up on inconsistencies with the fleet policy in terms of driving skill.

Many fleet managers consider themselves as friends to the drivers, and an incentives program rewarding adherence to a robust and watertight fleet policy is one way of ensuring the data is used to its maximum potential within that management style.

It is however, important to make everyone in the organisation accountable for doing their part of the contract: drivers must adhere to policy, management must ensure it provides every opportunity for that to happen, which means management needs to understand and act on the telematics data it is presented with.

This may mean driver education, it may mean non-threatening discussion, it may mean company memos pertaining to fuel and serviceable parts cost reductions.

Whatever way the company chooses to use the telematics data, management must follow through once a telematics solution is in place as this fosters a foundation of trust and confidence between employer and employee.

Management did – after all – say the system was being implemented as a safety and educational tool first and foremost.

“No one expects to go to go to work and not come home again, but it happens. Four hundred people died on the roads last year, and that’s 400 families that were devastated that didn’t need to be. Not all of those 400 were the perpetrators either. Many of them were victims. We have the ability to stop that happening.”

Which is a great close to the interview, but while it is a pithy place to stop, there is the unspoken comment that ‘’the ability to stop that happening” comes about through having better disciplined drivers and, from a company fleet user perspective, that discipline is likely to come about through the engagement of telematics.