Fleetmatics Fleetbeat Report From Small to Large Operators: A Look Across 20,000 Service Fleets

FLEETBEAT REPORT From Small to Large Operators: A Look Across 20,000 Service Fleets In this issue... Economic Impact of Telematics Adoption by Commercial Fleets Key Benchmarks for Fleet Operators and Quantifiable Benefits of Business Intelligence-Driven Fleet Management Compiled and presented by Fleetmatics April 2014 I Volume One Copyright © 2014 Fleetmatics IRL Limited. All rights reserved. Fleetmatics is a registered trademark in the US. and other countries. INTRODUCTION The Path to Game Changing Productivity, Cost Savings and Customer Service is More Clear Than Ever Welcome to the iisi Aee Beai Repori ilom Feemaics, a leading global piovide i oi soiwaie as a se vice (Sas) based teei manageme ni soluio rs toi 1tee's oial sces, induding hose wih as tew z5 se ivice vehiclesio ihose with many thousa nds. ReeiBeai is a Ree'malics, and an indusiy, iist A iew oi them aciually. Though plenty oi maikei ieseaich is aleady avaibble, itis is the tiist ime ihaiino maion on the ileeimanagementindusiıy has been geneia'ed wi'h this level of ieal wold da'a support Ree Beaiwas developedby scie niically a nalyzing a Big Da'a pod iom hundiedk oi thousands of ieal woild seivice ve hicles 'hai ge neiaied ers oi billions oidala poin's ove i a íve yea i peiod via theii on boad 'elemaics uni's. No peisonal da'a was sed oi disclosed that co ud ide miny a speciíc cusiomel In Fee Beat teet opeiaiois have an unpecede ned oppor'u rity o see key benchmaiks ielevan o iheii speciic verical maikeisegne n, including incigh's apund issues such z teei vilizaion, piod ucliviy a nd ope aingcoss, and the impac's Flee Bea'piovides in depih seasona, iegional and verical indusiıy de'ail ielevan o teet idling ie nds. ReeiBeal also pese n's a unique ioll upoi the bioad economic a nd e nvio me n'al impaci of elemaics adopionby commeicial tee's based onde'ailed eal woildindusiy be nchmaik dala iom Feemaics combined with comme cial vehicle da'a iom esiabished ihiidpary daa povideis aveiage, oiapplyi ng teei managemen sotwa e. Fur'heimoie, The Fleel Manageme mi maiketis expecied o gow iom $10.91 bilionin 2013 o $30. 45 bilion by 2018, ata Compound Annual Gowih Raie (CAGR) oi 228%, accoiding o eseaich iim Maike'sa ndMaikeis!. With so many bucinessesin'eesed in puichazing teeimanagemenisduions, ReeiBeai gives pospecive buyeis and cuien useis alke a iesouce o help dele imine noionly what to expeci iom a solurion in 'eims of lesu's but also peispecive on al ihatis possible. Solurion piovides aie becoming moie sop hislica'ed, with new capabiliies 'haimove beyond actical G PS iacking and the piove ibial "do'son amap'. Nex geneiaion, businessimellige nce diven solutio rs seive as the neive cen'ei of tee'businesses allowing them o ieach e ni iely newlevels oipIod ucliviiy, cosi savings and dite e miaingcusiomei seivice. With only 126% oi all comme icial ve hicdlesin the U.S. and Canada opimiced by a teeimanagement soluion, acco ding o indusiıy iesea ich tim Fiosia Sullivan (see Appendx), ihe ie is a eal dieieniaion opporiurity toi tee's of all sizes. This includes ihe tho usa nds oi ileei diven smal and medum sized buzinesses locking ioi a compeiive edge, some hing o enable a new cus'omei se vice promise oi a paih 'o giea'e i pioti'abiliy o1 souIce of mo ney io hep gow the business. In iaci iho ugh many Reemaics customeis opeiate mo ie ihan 1,000, o1 evenmany iho usands oi se vice ve hicles, a laige pari oi the Ree'maics cusiomei bze ope iaes 5 40 se vice ve hicles. The etoe, ReeiBeai is hig hly elevanto small and medium sced and laige ileeis alke. Ree Beai will co ninue to be published peiiodically with new insighs, so say funed. KEY TAKEAWAYS Reei ope a'ois cansee key be nchmaks diecly ielevanio iela'ediotheii speciíc business ype, in aieas such as teei ưtizaion, seivice/delive iy s'op pe rioimance, se vice iadus, iuel consumpionand pay oll These incighis can be used o idenity a ieas toi teei and cus'ome i seivice impioveme ni. Addio naly, the da'a inttis eporidelails how, on aveiage, ilkei ope o'ois have anoppor'unity io sig riícanty impiove ilee'poducivity and cosi eticie ncy tho ugh the applicaion ofbuciness imiellige nce diven teei manageme ni. Oigeneial ineiesi, ReeiBeal shows how ileeimanagemenisolurion use canlead iosig riícan'impac's on the eco nomy a nd the enviionment METHODOLOGY Ree 8 eatis basedonamixoi da'a pulled fiom Ree'maics' cusiome i base boking back tive yeas and thid parly iesoUIces. Ai the ime this iesea ich ws compiled, Reemaics' cusiomei baze was compised oi 1o ug hy 20,000 comme cial lee's and o ughly 417,000 actively subscibed ve hicles. Because Fleemaics gewovei ihe ive yeai peiod, these o'ab oi pod oi ilee's and subsc ibed ve hicles iiom which o ga'hei da'a weie smallei ovei 'he eaily partoi ihaipe iod Foi te ndi ng melics, Reemaics' cusiomeis iom the elevani ve rical indusiy segnenis with eno ugh lisoiy'o povide sigriicani tiend analysis weie ised. Inshor, 'his means thai we looked af ileeis with atleasi ive acive seivice vehicles cing ihe 'echnology and ock seps notioindlude those in plo'phase. Reseaich ioi this siudy was cond uc'ed in Novembe i and Decembei 2013 P! A comple'e lisi oi thid parly iesouices ete e nced in Flee Beatcan be to und inihe Appendx on page 18. Speciícally, the Big Piciue tindings on page 5, which ouline the esimaled economic impaci of 'elemaics adoplion by comme cial tees, ae based on Reemaics keyindustıy be nchmaik dala combined with comme cial ve hicle da'a iiom esiablishedihiid pany daiapiovideis such as POLK, which complesa unique da'abase of al commeicial vehicle iegistia'io ns. Oui co ncl usions a ie based on he knowledge that 12.6% oicomme icial ve hiclesin the U.S and Canada cunenty have felemaics uniisirsaled o aid opiimizaion, accoiding io a Fiosia Sulivan siudy iiom 20 12. TABLE OF CONTENTS 05 The Big Picture 06 Fleet Productivity and Utilization Service Call and Delivery Performance 07 Mid-Sized Fleets in Focus 08 Fleet Utilization Service Radius 09 Cost Efficiencies 10 Payroll Reductions 11 Fuel Savings 12 Idling Trends 14 Seasonal, Regional and Vertical ldling Trends 18 Appendix THE BIG PICTURE Estimated Economic Impact of Telematics Adoption by Commercial Fleets The be neit oi elematics adopion by comme cial fee's aie well docume nied. The 'echndogy empowe s teet based oiga rizaiors o educe iuel consumpion, dec eze houisin ihe woikday a nd miigae overime payo u's, peto im moie seivice calls each day a nd become moie eco iie ndly, among myıiad o'hei beneiis. Bui whe n youlock collecively ai the tolal economic impai of thi ngs like milions oi se ivice vehicles idling theii e ngi nesand divingless, and businesses having tai beier visibility and con'id ovei theii payıdl houis, the impactis emaikable. Aspevioudly sialed, Fiosi & Sullivan es ima'es ihat cuienty, 12.6% oial commeicial vehicles in ihe U.S. and Canada have 'elemaics uri's on boaid o aid opimicaion Aee''maics a nalyzed bilions of lisioical pero ima nce da'a poins ga'heiediom acossiis cusiome i base ovei the pasi ive yea is 'o anive ala sei oi pe rioimance ielb'ed ave iages cove ing iuel consumpion and iuel iela'edmone'ay savings, as wel as payoll houi educiors and the iesuing mo ne'ay savings toi opimized feeis. Usingihid pary dalaą wethen de'e mined how many vehicles iepiesent 12 6% oi all commeicial vehiclesin the U.S. and Canada andove laidoui pe rioimance ielb'ed ave lages o aive at the iguies below. Foi the CO, emissio rs savings calculaion we ove ilaid our pero imance iela'edave age ioi iuel consumpiondec eses on'o 'hid pary da'a ihat indica'ed the amoun oi CO, ge ne iaed by a galon oi buined iuel. Sq lei's have a lbok at ihe esima'ed Big Piciuie impaci ihai teei manageme ni echndlogy would have cuienty, assuming thai eve iyone icing his ype of iechnology had the same ies u's as Reeimaics' opimced cus'ome is Telemalics adop 1on rate: Direct Benetlis 12.6% Decrease In tuel consumpilon (gallons per year) 573, 170, 404 Total uel cost savings $2, 150,222,358 Decrease In Co, emissions (tons per yearyaA 1 TỊ 5,032, 436 Decrease In payroll hours per yoar 1,264,493932 Total cost savings due to decrease In payroll hours $34 876, 494,842 Oigin oi Big Pic dlapovided by Reenala" Fosi & Sulvanand HS Aubmoive, Driven by POLKA So why should you cae? Well delve iro seve al ieasonsin each secion that iodlows, yingkey tindings iiom hings like pay oll ied uciio rs inmo impicaions But hee aie a ew B IG ezons why these numbeis aie eye opening and impaciul. 1. Saving billions of dolars means, well. saving billions of dollars. Imagine ihe possibiliies ioi how thai colossal amoun'oimoney can be poued back in'o businesses, pariculaily ihe thousa nds oi mall businesses using vehicle elemaics Moie spending moie jobs, moe oveiall s'ability. The possbilřies aie extiemely compelling Less fuel consumption ma kes an impact on U.S. fuel dependency. While i he EPA and of hei envio nme n'd gioups aie aking measues io ied uce oui couni y's cil depende nce by doing ihings likeincieasing iuel eco nomy sa nda ds toi cais and i ucks, ihe U.S. Depaimenioi Ene igy iseli sa'es ihatone soluion 'o deciease oui depe nde nce on cil and o ieduce giee nho use ga emissions is to develop advanced ve hicle 'echnologies thai use gas and ene gy moe eticie nly. Commeicia ileettelemaics is one ve ıy powe riu example oi echnology ihat enables teeiopeia'ois to use i uel moie eiicienty. Less fuel consumption also means less 0,, the primary greenho use gas emitted through hu man activities. Aco iding io 'he EPA, ihe combusion oi iassil i uek suchas gasdine and diesel o ianspor' people a nd goodsis the second laigesisouce oi CO, emissios, accounting ioi abo ui 31% oi 'oial U.S. CO, emissio ns and 26% oi foal U.S. giee nhouse gas emissions! Deceasing caibon emissions goes a long way in po'ecing ihe Earth iiom ihe inepaiable ham ihey cause.