Game Changer Part 2 2018

The fleet executive’s guide to growth, technology and maintenance practices that set you apart from the pack

GA CH ME AN GE RS Brought to you by the editors of Newcom Trucking Group, in partnership with Imperial Oil Limited

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in this issue 4

TECH SAFE: Active safety systems have evolved rapidly in recent years, and their uptake has increased at a similarly rapid pace. Many truck manufacturers have made collision mitigation systems standard, and the government has stepped in to mandate the use of electronic stability control. Find out how to get the most out of their performance.

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LOG IN: Electronic logging devices (ELDs) have been one of the most talked about aspects of the trucking industry for the past several years. However, when ELDs are discussed it is usually for their ability to track a driver’s hours-of-service and several additional features that can be beneficial to carriers are often ignored. Read about the not often mentioned benefits ELD users are leveraging.

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B:11.25”

T:10.75”

S:9.875”

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MINE THE DATA: Your trucks are essentially computers on wheels. The combination of telematics systems, electronic logging devices, and the so-called “black boxes” on all newer vehicles make your trucks a wealth of information, but what does it really tell you? And more important, how can you use that information to put money back in your fleet’s coffers?

PULSE READER SURVEY: Statistics Canada reports that more than three-quarters of all Canadian adults owned a smartphone in 2016. Combine those phones with in-cab telematics devices and the potential for app use is almost endless. This month we ask readers – what apps drive you?

WELCOME TO GAME CHANGERS

S

ince the Great Recession of 2008, Canadian motor carriers have hoped for the Great Recovery.

For almost a decade that eluded them as a slow growing economy kept freight volumes modest and freight rates depressed. That changed significantly over the past year. A booming economy south of the border, improving oil pricing and consumer confidence have coalesced to drive a strengthening economy, tighter capacity and the first significant rate increases in a decade. But a strong economy presents its own set of challenges.

This is our second installment in the series and focuses on how to leverage technology to augment growth. The first installment focused on HR challenges and is available in the Knowledge Centre section on www.trucknews.com. The final installment, focusing on maintenance issues, is coming later this Fall. I also encourage you to turn to the special Knowledge Centre entitled Game Changers on www.trucknews.com for more news stories, features and videos on the subject. Finally watch for our webinar coming in November.

How can motor carriers seize the opportunities presented by a strengthening economy to grow their operations, improve their bottom lines and create separation from competitors? Welcome to Game Changers, a series of three digital supplements focused on managing human resources, technology and maintenance issues while continuing to grow.

All these projects would not be possible without Imperial Oil Limited and I would like to thank them for their support and thought leadership.

Lou Smyrlis Managing Director, Newcom Trucking and Supply Chain Group

All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries. Imperial Oil, licensee.

Sponsored by Imperial Oil Limited GAME CHANGERS | PART 2

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BY D EREK CLOUTHIER

ELDS AND ON-BOARD COMPUTER SYSTEMS FOR FLEETS ARE CONSTANTLY EVOLVING

T

hanks to government mandates in the U.S. and soon Canada, electronic logging devices (ELDs) have been one of the most talked about aspects of the trucking industry for the past several years.

However, when ELDs are discussed it is usually for their ability to track a driver’s hours-of-service (HOS), and several additional features that can be beneficial to carriers are often ignored.

“The technology has dramatically changed, particularly from 2010 and beyond,” says Rob Eskens, vice-president of sales for Manitoulin Transport.

Manitoulin has been using on-board computer systems for

4 GAME CHANGERS | PART 2

many years and made the transition to PeopleNet’s ELD and on-board system in 2010 because it offered the ability to gather all the big data being collected from the company’s fleet, placing it in one spot through new programs that made the information more manageable to analyze.

“It increased our efficiencies in what we were looking at and what’s happening with each particular unit,” says Eskens, adding that the ELD makes up just one component of the company’s entire on-board computer system.

“The actual on-board computer is monitoring things like idling and speed,” he adds. “It helps us reduce stuff like truck exhaust emissions.”

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THE EVERCHANGING ELD

Manitoulin uses ELDs to track shipments through ongoing Lowering emissions is important to Manitoulin, and not just communication with its drivers. for the obvious reasons of reducing fuel consumption and sav“Sometimes the status of the shipment is more important ing money. than the shipment itself, so our drivers are using it for real-time Eskens said with most carriers now looking to lower their pickup and delivery information,” says Eskens. “The device as a greenhouse gas (GHG) emissions, and customers wanting communication tool is almost as important as monitoring the fleets they do business with to do the same, ELDs and on-board hours-of-service and the exhaust emissions.” computers have enabled Manitoulin to position itself in the Because its ELDs are GPS enabled, Manmarket by being able to prove it is curbing itoulin can locate its trucks, automatically its carbon footprint. dispatch, and better understand each shipTom Cuthbertson is the vice-president of ment’s arrival times. regulatory compliance for Omnitracs, and Omnitracs’ fleet “It has reduced the phone call volume he says companies need to understand the management products capture information into our company,” says Eskens. “It has difference between fleet management prodfor fuel management, improved our online presence and abilucts and ELDs, which may not record fleet vehicle performance, ity to supply information that customers management information. dispatch messaging, want very quickly.”

“Omnitracs’ fleet management products driver behavior, Eskens says PeopleNet did a good job at capture information for fuel management, and comprehensive selling its products to Manitoulin, highvehicle performance, dispatch messaging, integration with fleet driver behavior, and comprehensive intemanagement systems lighting the benefits of using on-board computer systems and ELDs. gration with fleet management systems to to support all if not “They were right,” he says. “The ability to support all if not most of the operations of a most of the operations carrier, regardless of their size,” says Cuth- of a carrier, regardless gather data and actually be able to analyze it quickly without a lot of manual intervenbertson. of their size. tion has been useful.”

Like Eskens, Cuthbertson said the evoThat usefulness has also turned into a lution of ELDs and on-board computer sysprofitable tool. tems have come a long way over the past “It helped us realize this dramatic cost decade, producing specific exception report- – TOM CUTHBERTSON, VICE-PRESIDENT OF ing structures that are more comprehensive REGULATORY COMPLIANCE FOR OMNITRACS reduction in our operations,” says Eskens.

“They have paid for themselves.” for a carrier’s day-to-day needs.

Terry Shaw, executive director of the Manitoba Trucking There are alerts for low hours, aiding the driver and shipper Association, says a study conducted by Transport Canada on when it comes to service level needs, as well as fuel managethe use of ELDs claims the return on investment is somewhere ment to help with international fuel tax agreement payments. in the area of two-to-one.

With Omnitracs and other technology companies develop“Increased HOS compliance from all heavy commercial road ing new tools to help fleets manage their operations, and a users is a benefit,” Shaw says. “Administratively, for companies Canadian ELD mandate set to kick in by 2020, Cuthbertson there are benefits through streamlined awareness of a driver’s says it is important for trucking companies to be on the ball. hours, and for drivers, the administrative burden of tracking “I would remind carriers to be sure that the training is comand managing their hours is certainly reduced. As well for the pany-wide and the driver gets sufficient time,” he says. enforcement community both roadside and during audits, Ken Davey, director of IT and loss prevention for Accord ELDs provide clearer and more reliable information than paper Transportation, says his company helped drivers get used to logs do.” the idea of operating ELDs by making the use of smartphones With new technology, the training can at times seem endless. mandatory prior to implementing e-logs.

Despite what can be a steep learning curve for some, Peter “We provided our safety department employees and even McDonald, safety director for TransX, says drivers who are our IT department personnel as tech trainers and support to reluctant to make the switch from paper logs to ELDs warm up assist drivers with advice and support on the use of their smartto the devices once they learn how to operate them. phone and some apps,” Davey says. “Gradually, by the time we McDonald says the features on ELDs and on-board comintroduced e-logs, our drivers were all using their smartphones puter systems continues to improve, and one he’d like to see to scan documents, email with dispatch, and report accidents in the future is something that integrates trip plans within an or damaged freight with pictures included.”

ELD system so drivers can plan their entire day through an Training is essential with respect to ELDs, and not just for application like Google Maps and have the ELD estimate the drivers, but all employees due to the multitude of functions number of required hours to complete the plan. today’s devices offer.

Sponsored by Imperial Oil Limited GAME CHANGERS | PART 2

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BY JA M E S M ENZ I E S

THE EVOLUTION OF ACTIVE SAFETY SYSTEMS

AND HOW TO GET THE MOST OUT OF THEIR PERFORMANCE

While an active safety system can help with reaction times to improve roadway safety, effectiveness relies greatly on the base components that are actually doing the work to slow or stop a vehicle – the tires and brakes.

– KEITH MCCOMSEY, BENDIX

A

ctive safety systems have evolved rapidly in recent years, and their uptake has increased at a similarly rapid pace. Many truck manufacturers have made collision mitigation systems standard, and the government has stepped in to mandate the use of electronic stability control.

Next-generation systems are already in the works that will include active lane keeping, and even fatigue recognition. But there’s still room for improvement, especially as it relates to how these systems communicate with the driver.

“One of the things they all have in common is, they have to deliver information to the driver,” Fred Andersky, director, customer solutions controls with Bendix, said of today’s active driver assistance systems. “They have to let the driver know something is about to happen, or something is happening. The way they do that is through the HMI…The issue we run into is that, even though the SAE provides some guidelines around what these interfaces might look like, in reality there is no NHTSA-driven regulation that defines or demands that interface look or work a certain way. So, we end up seeing a lot of different approaches. Some that are good, some that are bad.”

Inconsistent messaging between various systems on the market can cause confusion for the driver. Andersky believes

6 GAME CHANGERS | PART 2

there should be some standardization in the industry, so that a driver using a Bendix Wingman Fusion system, for example, would receive the same warning message as when he’s driving a truck equipped with a Wabco or Detroit Assurance system.

Deborah Thompson, technology lead, human factors, with Volvo, says augmented reality could help get important alerts to drivers without them taking their eyes off the road, by displaying the warning directly on the windshield in a driver’s line of sight.

“The technology is starting to get incorporated into the vehicle,” she said of augmented reality. “It allows you to project information on the windshield so it’s within a driver’s field of view, so the driver doesn’t have to take their eyes off the road when a critical event occurs.”

But while these are some of the shortcomings of the advanced driver assistance systems (ADAS) on the road today,

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there have certainly been many success stories as well. Schneider, for one, has seen a 95% reduction in accident severity and a 70% reduction in frequency since it began adopting ADAS, according to David Smith, driver assistance systems engineer with Daimler Trucks North America.

He reports 83% of fleets with more than 100 trucks are now spec’ing collision mitigation systems, but only 36% of small fleets are doing so.

“It comes down to the large fleets’ ability to do their own research,” Smith said of the disparity between small and large fleets spec’ing advanced driver assistance systems. “And smaller fleets don’t have as many vehicles, so the probability of them being in one of those unfortunate accidents is simply lower.”

The active safety systems currently available in the market will eventually provide the foundation for autonomous driving

in the future, according to Andersky.

“System fusion will get us to the future,” he said. “Adaptive cruise control requires the braking system to work with the engine management system – the cruise control – to enable that feature. As we move forward, there is going to be more integration of these different systems.”

There is also likely to be more functionality coming to the active safety system arena. During a recent product update, Peterbilt laid out its active safety system roadmap. It includes: stop-and-go traffic assistance, to come later this year; lane-keeping assist to be brought to market next year; object detection in 2020; and driver state monitoring in 2021. The latter will feature inward-looking cameras that can detect driver fatigue and distraction.

It’s important to remember, however, that these active safety systems only work as well as the underlying mechanical systems on the truck. Radar and cameras need to be properly calibrated and pointed in the right direction. And base braking systems need to be properly maintained to ensure the stopping distance required by the system is achievable.

“While an active safety system can help with reaction times to improve roadway safety, effectiveness relies greatly on the base components that are actually doing the work to slow or stop a vehicle – the tires and brakes,” said Keith McComsey, director, marketing and customer solutions for wheel-ends at Bendix Spicer Foundation Brake. “Keeping those components maintained to their intended performance capability has a direct impact on slowing and stopping.”

Mark Melletat, executive director of fleet sales and service with Wabco Americas, agreed active safety systems must be incorporated into a fleet’s preventive maintenance program.

“Collision avoidance systems require the same routine maintenance schedules as other truck components such as ABS,” he said. “The inspection is very simple: test drive the truck and make sure the system is not setting any active fault codes.”

Bendix’s Andersky said the most common issues involve radars slipping out of alignment.

“Radar alignment is a relatively easy fix, however, as the system can typically easily inform the driver what needs to be adjusted,” he added.

For a fleet that’s spec’ing collision mitigation systems for the first time, it’s crucial that drivers and technicians are trained on the system’s capabilities – and equally important, what they’re not capable of achieving.

Buffy Wilkerson, national account manager with Wabco, emphasized the importance of training when speaking on the subject during the Spring meeting of the Technology & Maintenance Council.

“Every party in the company needs to be on-board,” she said.

Sponsored by Imperial Oil Limited GAME CHANGERS | PART 2

7

BY EL I Z A B ETH BAT E

BY J OH N G . S M I T H

MINE THE

data Y

our truck is a computer on wheels. The combina tion of telematics systems, electronic logging devices,

and the so-called “black boxes” on all newer vehicles

make your trucks a wealth of information, but what does it really tell you? And more important, how can you use that information to put money back in a fleet’s pocket?

Owning a telematics system and compatible software is the first step toward putting all that valuable data to good use, but if you have the hardware installed and confusion still reigns

8 GAME CHANGERS | PART 2

every time you look at the numbers, you may need some coaching to make the most of your investment.

The analysts at telematics maker Geotab give managers three pieces of advice: First, take it slow and take the time to explore. When you become more familiar with a system, you know at a glance what kinds of data are available to you and whether you have the data to help make specific business decisions.

Second, get help if you need it. Not everyone is a technolog-

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SET REASONABLE TARGETS, AND REAP THE REWARDS

a

Don’t start off trying to tackle multiple areas,

start with one area, set

benchmarks and continue

to monitor and measure the

data.

Start small, see big results

ical wizard, and if even exploring a system leaves you with a sense of anxiety, you’ll benefit from hiring a data scientist or analyst to figure it out. Even a few hours with an expert can bring clarity to an otherwise murky subject.

The good news is that the company making your system should have someone able to walk you through some of the basics. If they don’t have someone on staff designated to help teach clients how to visualize their data and put it to work, they should be able to help find a data scientist that’s up to the task.

And finally, keep it simple. Focusing on too much information can make it hard to use any of it. If you really want to turn your data into dollars, narrow your field to just a few data points.

Data pours off trucks like water from a fire hose, and trying to take a drink could leave you feeling like you’re drowning.

While larger fleets can often afford to hire a single person, or even a whole team to help them download, sort and analyze data full-time, fleet managers at smaller companies may need to learn to do those tasks themselves. The best bet for fleets wanting to use their trucks’ information to make a difference in a bottom line is to start small.

“Don’t start off trying to tackle multiple areas, start with one area, set benchmarks and continue to monitor and measure the data,” Geotab’s experts say.

Starting small means picking a single area of concern and focusing on that specific problem. Trying to manage too many metrics at once could not only lead to confusion and frustration, but often trying too many things at once can lead to uncertain results – it’s hard to tell which change is having what effect if there are too many changes being implemented at once.

Simple areas to start with include improving driver behavior to increase fuel efficiency and improve safety, and lowering maintenance and repair costs. All three areas present opportunities for a noticeable return on investment, without spending a lot of time or effort trying to distill too much information.

Using the data coming off a truck, drivers and managers can pull just one set of numbers to make a big difference. For example, many companies have focused on idling, differentiating between the unavoidable time in traffic or in a yard, and that which burns fuel for no good reason.

Goals can then be set to reduce everyone’s average idling time, or just focus on those drivers whose idling time is the highest. Telematics devices can even be programmed to create idling alerts, reminding drivers to turn off the engine if they’ve been sitting too long.

Just like idling, speeding or hard braking events can be measured by telematics devices, allowing managers to download the information, map it out and use it to make safety-related improvements.

Sponsored by Imperial Oil Limited GAME CHANGERS | PART 2

9

>

Systems can be programmed to isolate braking, speed, sudden lane changes, and other areas that may indicate a driver needs work on a smoother technique behind the wheel.

Safety first

Kristin Costas, Lytx director product management, says fleet managers will often tell her that they don’t need to monitor driver behavior for safety issues like speeding, texting, or not wearing seatbelts because they have policies in place forbidding those activities.

Just because a policy exists, doesn’t mean it’s being followed, says Costas, who teaches fleet managers to use Lytx telematics and driver-facing video systems to help alter driver behavior.

Video systems like the one Lytx and other companies offer in combination with telematics data allows managers to pinpoint events – such as a hard braking or sudden lane change – and see video of what the driver was doing before and during the event, in addition to the video focused on the road ahead. This allows fleets to verify whether a driver was distracted, speeding, or even wearing a seatbelt.

Even systems without video capability may have data points to help drivers strengthen their in-cab habits. Systems can be programmed to isolate braking, speed, sudden lane changes, and other areas that may indicate a driver needs work on a smoother technique behind the wheel.

Improving those driver behaviors fleet-wide will have obvious benefits such as fewer collisions and potentially lower insurance premiums as a result, not to mention the potential for less time lost due to injuries.

But there are some not-so-obvious benefits to driving improvements as well.

Drivers who follow at a safe distance, slow down, and brake smoothly save fuel and maintenance costs over time, making them a better long-term investment for a fleet over a driver who is quick but inefficient.

Once a carrier can leverage one or two data points into a better bottom line, it can choose to add more information to find further improvements, or be happy using what seems manageable.

Big data, big business

Not all useful, money-saving data needs to come exclusively from your own trucks to be effective. Telematics companies and truck manufacturers are using their data to create big savings opportunities for carriers.

With thousands of vehicles and millions of data points connected through their software, companies like PeopleNet and Geotab are harnessing that information and providing it to

10 GAME CHANGERS | PART 2

users to help make life easier.

One big data-based solution involves moving from preventive maintenance to predictive maintenance.

A PeopleNet predictive solution involves pulling information continuously from thousands trucks using vehicle identification numbers (VIN), focusing on makes and models. The system then works to identify when a related component is likely to malfunction. Once the technology has a reasonable idea when something will break down, alerts can be sent to fleets to let them know to get a part fixed just before it’s about to cause a problem.

The predictive maintenance model allows fleets to maximize uptime by not replacing parts too early -- reducing service bills -while also not waiting until the systems fail, causing lost hours while a truck is down.

A similar idea from Geotab goes one step further. With the launch this spring of data.geotab.com, Geotab is sharing information pulled from over 1 million vehicles for free.

The company carefully made the data anonymous and is allowing fleets, governments, and schools to use it to do everything from seeing when their brakes are likely to fail, to which pot-hole-filled routes cause the most damage, to where a new stop sign might be needed.

Seller beware

Just like the selling of names, phone numbers, and email addresses, brokerage firms even exist to facilitate the buying and selling of fleet data. Everything from route information, to load weights, to driving habits and fuel consumption may be of interest to someone. But selling your data isn’t necessarily recommended.

Even sources that say they use only anonymous data may have trouble removing all identifiable markers from a fleet’s information, presenting very real privacy concerns for everyone involved, Geotab spokespeople note.

Once data is sold, it’s out in the world forever and there’s no getting it back.

Another consideration: although fleets generally own their own data -- not the telematics company providing it – selling data directly from the system that’s used may violate user agreements.

There are so many ways telematics data can generate money, this one may be best left alone.

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Dispatches

Pu se Reader Survey Tell us your thoughts on ... Apps Whether you’re on the road or at home, a phone is likely at your side. Statistics Canada reports that more than three-quarters of all Canadian adults owned a smartphone in 2016. Combine those phones with in-cab telematics devices and the potential for app use is almost endless. This month we asked – what apps drive you?

Do you use a smartphone or other app-enabled device while at work?

YES

NO

87 % 13 % What kind of apps do you regularly use on your work devices? (select all that apply) 84% 74% 71% 38% 29% 27% 19% 19% 15% 14% 13% 12% 11% 9% 8% 8% 7% 7%

Email Weather GPS Social media News Restaurant/ truck stop locators Messenger apps like Whatsapp or BBM Music/ movies/ entertainment Fuel price trackers Games Logistics/ dispatch/ load matching Food/ exercise trackers Parking locators Fleet management Other Weigh-scale pay/ bypass Expense/ receipt trackers Maintenance

Did you ever drive while using a phone app that was not hands-free-enabled?

NO

69

I would never use my phone % while operating a vehicle

YES

23

I have used non-hands-free

% apps when driving

YES %

8

But only in my personal vehicle

What kinds of apps could benefit from improvements to make your job easier? (select all that apply) 58% 55% 31% 30% 24% 19% 18% 18% 16% 17% 8%

GPS Weather Parking locators Restaurant/ truck stop locators Maintenance Dispatch or load matching Expense/ receipt trackers Fleet management Trucker forums Weigh-scale pay/ bypass Other

$

Today’s Trucking Pulse surveys are conducted once per month, covering a variety of industry issues. To share your voice in future surveys, email elizabeth@newcom.ca.

Next month: Towing and recovery Sponsored by Imperial Oil Limited GAME CHANGERS | PART 2 11 SEPTEMBER 2018

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