Penske 2022 Telematics Use and Trends

2022 TELEMATICS USE AND TRENDS

TETAMEL ICS IN THE TRUKIC NG INDUSTRY

Supply chains have become increasingly digital, and fleets, shippers and logistics providers are requesting more and more information about loads, performance and operations. Telematics — the branch of technology that deals with the long-distance transmission of computerized information — is becoming a necessary tool for carriers of all sizes to increase visibility, improve communications, prevent disruptions and minimize downtime.

Telematics speeds the exchange of data and enables fleets to receive real-time updates on loads, manage their fleet more efficiently and optimize operations, thereby increasing profitability. Data can also help fleets and drivers improve safety, plus it can be aggregated and analyzed to understand a variety of vehicle, driver and business performance indicators.

This study examines who is using telematics devices and how fleet decision makers choose technology and use the information it generates.

There are hundreds of telematics devices on the market, and definitions of telematics can vary based on the user and the provider. This report defines telematics as solutions based on devices that collect data from a vehicle’s systems and transmit it over a telecommunications protocol for access and storage in databases. Most often today, telematics devices are units plugged into a vehicle’s diagnostic port or embedded in the vehicle from the factory.

Key Findings • Larger fleets and those with more complex business operations are adopting telematics devices at a higher rate than small fleets.

• Cost is among the most important factor influencing purchasing decisions. Decision makers also look at the ease of installation and feature availability.

• Fleets covering more territory are more likely to use telematics than fleets with coverage in just one territory.

• More than three-fourths of fleets — 76% — share telematics data with at least one fleet management service provider.

• Two-thirds of decision makers said they shop telematics solutions across multiple providers, with larger fleets appearing to weigh their options more carefully than small and medium fleets.

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2022 TELEMATICS USE AND TRENDS

WHO IS USING TELEMATICS TODAY Telematics adoption has been steadily increasing since it was first introduced. Fleets have turned to the technology to obtain status updates, improve driver coaching and increase liability protection. Regulatory requirements, including the electronic logging device mandate that requires nearly all over-the-road drivers to record hours-of-service information electronically, have driven additional growth in the onboard technology market. Additionally, all major truck manufacturers in North America have rolled out remote diagnostics systems to streamline vehicle maintenance.

Given the business insights telematics data can provide, it is no surprise adoption of telematics devices is increasing. However, two-thirds of people still know little to nothing about telematics systems, indicating the market will continue to expand.

While telematics can benefit businesses of any size, larger and more complex business operations are the most prominent telematics users today. More than half of large- and medium-size fleets use telematics, compared to 37% of small fleets. One challenge surrounding the adoption of telematics technology has been the cost, but smaller fleets may have more opportunities to use the technology as the number of tracking technologies increases and options become more cost-effective.

Fleets that cover more territory are more likely to use telematics than fleets with coverage in just one territory.

Additionally, more than half of private transportation companies, 58%, are telematics users, and 50% of private distributors/resellers are telematics users.

Fleets that use a national leasing/rental/maintenance company use or have used a telematics solution at a higher rate (64%) than fleets that do not utilize a national vehicle leasing/rental/maintenance company (33%).

Fleets Using Telematics Solutions by Size

  

54%

  

51%



37%

of Large Fleets

of Medium Fleets

of Small Fleets

Trends by Coverage





57%

37%

of Fleets Covering More Territory — Local, Regional or National

of Fleets Covering Just One Territory

“ At their core, fleets want uptime so they can serve their customers. And, vehicle technology advancements and the insights gained, help them do so.”

– Gregg Mangione, executive vice president of maintenance, Penske Truck Leasing

Fleet size is depicted as: Small fleets (1-5 units); Medium fleets (6-50 units); Large fleets (51+ units).

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THE DECISION-MAKING PROCESS Telematics devices can provide a range of information, and there is a broad spectrum of uses depending on the complexity and sophistication of the operation. With more than 200 telematics devices on the market, features vary.

Still, some functions are table stakes, including GPS, trip distance and fuel tax reporting. Fleets can utilize information for real-time tracking, driver compliance, proof of delivery and to avoid breakdowns. Larger providers may also have data scientists on staff and provide in-depth analysis to customers.

Finding the right solution is essential for fleets. Two-thirds of decision makers said they shop telematics solutions across multiple providers, with 28% of respondents saying they extensively study the features of telematics solutions offered by multiple providers. Larger fleets appear to weigh their options more carefully, with 37% of large fleets saying they extensively study the features, compared to just 27% of small and medium fleets.

Solution Evaluation

39%

28%

18%

10%

Compare Features From Multiple Providers

Extensively Study Multiple Providers’ Features

Use an Outside Resource for Review and Recommendations

Do Not Evaluate Features/Use the Solution Offered With the Vehicle

There are several factors that come into play, but cost ranks among the most important. Fleets also look at systems’ features and functionality. Decision makers for large fleets reported that more factors impacted their selection compared to small fleets. Nearly three-quarters of large fleets — 73% — said feature availability impacted their decisions compared to 46% of small fleets.

“ Systems have come down in cost considerably. Fifteen to 20 years ago, devices and data were a lot more expensive. Fleets may not realize that it is a small upfront investment today for the value and ROI they can get from a telematics system.”

– Samantha Thompson, vice president of customer success and fleet telematics, Penske Transportation Solutions

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SELECTION FACTORS

 58%

Price/Cost of Service

 50%

Ease of Installation and Use

 46%

Feature Availability

 41%

Data Analysis Platform

 35%

Telematics Solutions in Other Owned Vehicles

 29%

Ability to Integrate Non-Telematics Data Sources

2022 TELEMATICS USE AND TRENDS

Fleets also evaluate telematics options offered with the vehicle, but just 29% said those solutions influenced their decision.

Telematics and Vehicle Acquisitions

29%

Said Solutions Factor Into Vehicle Acquisition Decisions

7%

Said Telematics Solutions Have Nothing to do With Vehicle Acquisition

22%

Take Whatever Solution Is Offered With the Vehicle

1%

Don’t Consider Offered Solutions Because They Use a Specific Provider

FINDING WHAT FLEETS WANT Determining what features and tools fleets need can be a challenge, but Penske can work with fleets to help them choose the best telematics device for their goals.

“A lot of times, customers ask for specific information, but you need to drill down into why they need it because there might be a better way to do it,” said Brandie Searle, vice president of digital product management for Penske Transportation Solutions.

“Understanding customers’ needs, goals and how they plan to use the information allows us to develop solutions that meet their needs.”

As part of its Digital Experience, Penske is device agnostic and works to help fleet decision makers find the best provider for their needs. “We will tell you what the provider does well and what they have the ability to do better,” said Samantha Thompson, vice president of customer success and fleet telematics for Penske Transportation Solutions.

No matter how fleets use information, they want systems to be simple and intuitive. Fleet decision makers prefer to filter out the noise, so they know which critical information they need to act on. “Just giving customers information isn’t helpful. They already have enough data. They want insights and the tools to tell them what to do,” Searle said.

With an increased focus on technology, the whole digital experience becomes more critical. “Solutions need to be simple to use and intuitive. People want to know what critical information they need to act on,” Searle said, adding that fleets also want consistent, quality reporting even when systems may be providing information in disparate formats.

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TELEMATICS INFLUENCE ON MAINTENANCE With fleets ranking several maintenance-related telematics outcomes highly, it is clear telematics can provide significant value in maintenance.

Most repairs on today’s trucks are being done with fault codes, and telematics data can help enable decision making, prioritize repairs and drive maintenance efficiency.

The survey found that fleets use a mix of internal and external maintenance providers with the majority obtaining most of their maintenance from outsourced providers, which makes sharing data critical.

Sharing data from the truck enables the maintenance provider to use a truck’s actual odometer reading to help streamline the preventive maintenance schedule, see when there is a potential problem so it can be remedied early, and automatically receive DVIR defect information so needed repairs can be made quickly to ensure compliance and prevent roadside repairs.

How Fleets Select Leasing and Maintenance Partners

73%

70%

68%

Provider Reputation

Vehicle Contract Price/Cost

Sales and Support

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If an over-the-road breakdown occurs, roadside service technicians can draw on telematics data to arrive better prepared to tackle the root cause of the breakdown.

What’s more, the data can help technicians pinpoint a driver’s exact location, speeding the response time.

2022 TELEMATICS USE AND TRENDS

Overall, telematics information can enable a more customized maintenance experience and, therefore, increase uptime.

By analyzing data, fleets can move to a more predictive maintenance model, addressing replacements and repairs before they result in over-the-road breakdowns or lengthy repairs.

Minimizing over-the-road breakdowns has several benefits, including increased driver safety and reduced costs.

PENSKE’S INTELLIGENT MAINTENANCE Vehicle technology is advancing at a rapid rate and maintenance practices have to keep up.

To help address the increased complexity of commercial fleets, Penske Truck Leasing continues to advance its maintenance practices and uses vehicle telematics data combined with their expertise to keep fleets moving.





Proactively Analyzing Data

Enhancing Preventive Maintenance

By carefully collecting and studying data on component failures and repairs on a wide variety of vehicles, Penske identifies specific areas and spots trends that may be problematic. “With the information that we have access to, we look at the repairs that were done for a breakdown and then follow that telematics information upstream to find the patterns of codes that directly led to it. We’ve developed scenarios from those patterns,” said Joe Mlachak, vice president at Penske Truck Leasing.

Penske’s Dynamic PM® is a data-driven preventive maintenance service that improves compliance, quality and uptime. Dynamic PM services are an integral part of Penske’s offerings at its expansive network of truck fleet maintenance facilities in North America.

Technicians can then address these areas and replace necessary parts or provide software updates.

The maintenance team also helps fleets and drivers prioritize fault codes, so they know if a code requires immediate attention or if it can wait for the next scheduled service.

 Improving Service Penske’s innovative maintenance services are better able to maintain the increasingly sophisticated vehicles on the market today, and the emerging technologies that will be part of the transportation industry in the future. Simply put, the program ensures Penske provides the right preventive maintenance for the right truck at the right time.

In Dynamic PM, the maintenance team uses telematics data (when available) to identify necessary repairs, coordinate maintenance resources and talent, and ensure parts or components are available. This leads to better quality maintenance, which means fleets and drivers spend more time on the road.

 Directing Technicians Penske integrates voice technology into its preventive maintenance program, becoming the first organization in the transportation industry to do so. Voice-directed technology enables Penske technicians to receive voice prompts via a headset that directs them through detailed inspection steps.

As a result, Penske can customize each inspection routine based on the vehicle’s age, condition, specifications and reliability trends.

For more information on Penske and our maintenance services, contact us at 844-376-4099.

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SHARING TELEMATICS DATA There are a variety of fleet management service providers that companies share telematics data with, including leasing companies, vehicle manufacturers, insurance providers, outsourced logistics providers and outsourced maintenance providers. More than three-fourths of fleets — 76% — share telematics data with at least one of these providers.

As fleet decision makers place greater importance on improving maintenance tracking and analysis, sharing telematics data with maintenance providers can help fleet managers get the most out of their telematics solution.

Nearly two in three fleets were sharing or likely to share telematics data with their outsourced maintenance provider.

Benefits of sharing telematics data included streamlining preventive maintenance and automatically receiving DVIR defect information.

Technology as a Solution In addition to using telematics, nearly half of fleet decision makers (48%) embrace transportation technology solutions (TTS) — software and platforms that provide business users a resource to manage their data from business vehicles and related operations.

TTS are used to connect multiple data feeds. Solutions are primarily driven by telematics data connecting to other electronic/online data feeds, such as vehicle service and maintenance records, routing and dispatch,

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customer relationship management systems, driver/personnel management, fuel management, etc. While transportation technology solutions rely heavily on vehicle telematics data, integration of other business systems provides users with a broader understanding of vehicle lifecycle management and its impact on related business operations.

Analyses range from descriptive (outlining what happened) and diagnostic (explaining why it happened) to predictive (indicating what is likely to happen) and prescriptive (providing recommended actions).

2022 TELEMATICS USE AND TRENDS

THE BOTTOM LINE Because there are hundreds of telematics devices on the market and technology continues to advance, the overall features and capabilities systems offer will remain in flux.

While certain features (including location information and miles traveled) remain table stakes, providers will continue to roll out advanced features for fleets seeking additional functionality. Fleets and their technology providers are also expected to introduce new integrations, which can enable greater analysis and new uses of data.

While telematics adoption is increasing, a significant number of fleet decision makers know little to nothing about telematics systems, indicating the market will continue to expand. As awareness grows, fleets will likely continue to implement technology while finding new and varied uses for the information and knowledge it provides.

At the same time, fleets will continue to focus on results and look for providers to offer actionable insights rather than streams of data. With devices and data collection becoming more affordable, fleets are more likely to see the value of the technology and calculate a return on investment, driving future adoption as well as new uses for the data.



Introducing Advanced Features





Integrating Actionable Insights



Increasing Telematics Adoption



Expanding Market and Value

Penske’s Digital Experience Provides Insights With half of fleets using telematics devices from different providers, fleet decision makers face an added level of complexity when combining and mining data. Not every provider collects the same information or stores it in the same way, but even with different devices, fleets want to have consistent, quality reporting.

Penske is committed to helping its customers make the best use of their telematics investments, and Penske’s Digital Experience takes the information coming from equipment and telematics devices, processes and analyzes it, and turns it into knowledge.

Because Penske is device agnostic, fleets can choose the system that works best for their operations, business and budget. “We’re not beholden to a certain device. Being able to work with different providers ensures we’re able to be on the cutting edge,” said Brandie Searle, vice president of digital product management for Penske Truck Solutions. Adding that Penske works with several telematics service providers, pulling data directly from the vehicle.

Penske can make it easy for fleets of all sizes, including those with 15 or fewer trucks, to tap into the latest telematics technology and data benefits.

For more information, contact Penske Customer Success at hello@penskecustomersuccess.com or 844-426-4555.

Methodology The Telematics Use and Trends study was conducted for Penske to survey fleet decision makers from small, medium and large fleets. Two online surveys were deployed to gather data. The first survey, which ran from Oct. 14 to Nov. 15, 2021, asked fleet decision makers about their fleets’ maintenance outsourcing, telematics solutions, service providers, and data sharing. It garnered 407 results. The second survey asked fleet decision makers specifically about transportation technology solutions, related features and integrated data feeds.

It ran from Nov. 19, 2021 through Dec. 30, 2021 and garnered 362 results.

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CONTACT US Penske Customer Success hello@penskecustomersuccess.com 844-426-4555