2 017 TELEMATICS BENCH MARK REPORT - Teletrac · The physical environment plays a large part in influencing business conditions, with difficulties that ... More than half of respondents’

2017TELEMATICSBENCHMARKREPORT

Survey name lock-up

AUSTRALIA TRANSPORTATION EDITION

ForewordThis report presents the findings of a survey completed during 2017 by professionals in the Australian transportation industry — specifically, in the subcategories of commercial transportation, manufacturing and retail. The survey was administered and these results compiled by an independent research group. Each respondent has experience in fleet operations either as an owner, manager or in a maintenance or administrative office occupation.

KEY THEMES

Costs are one of the largest organisational challenges, as transport operators seek some measure of control over their expenses.

The physical environment plays a large part in influencing business conditions, with difficulties that are imposed by infrastructure, and delivery models undergoing a shift to distribution centres due to the rise of ecommerce.

Telematics has grown in importance as its adoption by transport operators has become so widespread that it is now nearly universal. Telematics solutions are still used primarily for vehicle/equipment tracking but operators also appreciate its value in improving customer service.

Driver safety and compliance are concerns as businesses acknowledge driver fatigue as an important issue. Operators are making themselves acquainted with Chain of Responsibility regulations and look to telematics to support operational safety.

2017 Telematics Benchmark Report — Australia Transportation Edition 2

Cost management is the top priorityMore than half of respondents’ primary business challenge for 2017 is managing costs. Growing their revenue and minimising vehicle/driver incidents follow.

Financial matters lead the list of business challenges, with costs and revenue receiving a combined total of 74 per cent —far ahead of any other consideration.

One financial pressure involves the fees levied by the Australian government for road use. In 2016 the chair of the Australian Trucking Association stated, “Trucking operators are overcharged for our use of the roads, with the National Transport Commission finding that truck and bus operators will be overcharged by $515 million over the next two years.”1

TOP BUSINESS CHALLENGES FOR 2017

18%

Managing costs

Growing revenue

Minimising vehicle/driver incidents

Business expansion

Regulatory changes

Customer retention

Risk management

Finding, retaining and developing talent

Other

19%

20%

23%

51%

16%

15%

5%

3%

(Respondents could select more than one answer)

1. “Independent Price Regulator Critical for Trucking Industry,” Australian Trucking Association, November 24, 2016.http://www.truck.net.au/media/media-releases/independent-price-regulator-critical-trucking-industry


Flexibility is limited in some expense areasAlthough costs occupy the prime position in reported business challenges, this issue is complicated by the fact that some expenses offer relatively little opportunity for managers to reduce them. Market pressures largely determine expenditure regarding the top two budget items.

LARGEST EXPENSE AREAS

57%Fuel

56%Payroll

30%Equipment/vehicle

maintenance

23%Purchasing new

equipment/vehicles

11%Other


Fuel and payroll comprise the largest negative numbers on the balance sheet. One factor is a long-term driver shortage that exerts upward pressure on wages.

Australia is rapidly running short of truck drivers, and is on course for an economic hit in the next decade as transport companies increasingly fail to find enough staff to meet the growing demand to move freight.2

2. “Wheels Not in Motion: Australia Running Short of Truckies,” The Age, May 6, 2016.http://www.theage.com.au/victoria/wheels-not-in-motion-australia-running-short-of-truckies-20160506-goo7o5.html

Business software

1%


Ongoing business investment is not optional Transport operators are aware that staying competitive requires a constant analysis of market trends and operational efficiencies, along with an allocation of funds to keep up with demand.

PLANNED INVESTMENTS IN 2017(Respondents could select more than one answer)

Nearly all (94%) of survey participants intend to make investments in their business during this year. Hardware and technology dominate the list of planned expenditures, representing the top four priorities.

53%

Upg

radi

ng fl

eet

44%

Inte

grat

ing

tech

nolo

gies

and s

yst

ems

36%

Impl

emen

ting

tech

nolog

y for

regulatory compliance

32%

Expa

ndin

g fl e

et27

% F

indi

ng, r

etain

ing an

d developing talent

27%

Impr

ovin

g cu

sto

mer experience

20%

Mor

e effi

cien

t GPS tracking

15%

Bra

nd aw

areness

6% N

o investments planned

1%Other


Markets point to a gain in deliveriesTransportation trends are heavily weighted toward prospects in freight delivery, over short and long distances.

TRANSPORT SEGMENTS WITH THE BIGGEST GROWTH OPPORTUNITY

Short-haul freight delivery

42%

Long-haul freight delivery

41%

Small package delivery

24%Public and government

17%Oil and gas7%

Other7%


Courier and messenger services

15%

Delivery continues to dominate the transportation sector, and is anticipated to hold that position for the immediate future.


When tight schedules are typical and on-time delivery is essential, traffic problems have a considerable effect on operations.

Australia’s 2017-2018 federal budget includes a record $75 billion allocated for infrastructure spending over the next 10 years — which may help in mitigating traffic problems.3

9%ACCESS TO FUEL

11%TRUCK STOPS

SERVICE STATIONS

18%CONSTRUCTION

PROJECTS21%

ROADWAY DESIGN (LENGTH OF LANES, ACCESS TO THE ROAD NETWORK)

36%AGING ROADS AND BRIDGES

55%TRAFFIC CONGESTION

INADEQUATE SIGNAGE AND

SIGNALS

NOT EXPERIENCING

ANY CHALLENGES

OTHER

UNDERPASSES AND TUNNELS


5%

5%

5%3%


MOST CHALLENGING INFRASTRUCTURE ISSUES

In transportation, traffic is a bottleneckImperfect infrastructure exerts an impact on the transportation sector, with most difficulties encountered at the street level.

3. “Federal Budget with $75 Billion Infrastructure Commitment,” Prime Mover, May 10, 2017. http://www.primemovermag.com.au/news/article/federal-budget-with-75-billion-infrastructure-commitment

Driver fatigue management is top of mind among regulatory issuesWhen asked about matters requiring adherence to legal standards, transportation professionals gave one answer over others by a wide margin.

TOP COMPLIANCE CONCERNS FOR 2017

4. “Truck Driving: One of the Deadliest Workplaces in Australia,” The Sydney Morning Herald, February 3, 2017.http://www.smh.com.au/business/workplace-relations/truck-driving-one-of-the-deadliest-workplaces-in-australia-20170202-gu3rjv.html

Speed managementVehicle managementFatigue management

37%59%70%

Driver fatigue may be related to long hours: a university study released in a 2017 report that more than 10 per cent of Australian truck drivers said they worked more than 80 hours a week, with 82 per cent saying their weekly work time exceeded 50 hours.4

Fatigue management leads the list by 11 points over vehicle management and accounted for a 70 per cent score, indicating that respondents are aware that they will be accountable for infractions of the rules regarding tired drivers or equipment operators.



None Other

7% 1%

The future of technology in transportLooking toward the future of the industry, organisations attempt to anticipate which changes will need to be accommodated – and which may confer an advantage.

EMERGING TECHNOLOGIES THAT ARE MOST TOP OF MIND IN 2017(Respondents could select more than one answer)

With fatigue management the leading compliance concern, it’s no surprise that fatigue monitoring was the technology most top of mind.

A number of technologies are being investigated for monitoring or counteracting driver fatigue. One is a seat suspension system designed to cancel out road vibration. Another tracks facial movement and can trigger an audible alarm if the driver’s attention wanders. The most complex currently under review consists of a cap or headband that measures electrical activity in the brain.5

Fatigue monitoring61%

19%Big data analytics

12%Autonomous/self-driving vehicles

12%Machine vision technology

12%Drones

3%Artificial intelligence

1%Platooning

1%Smart cities

1%Other

14%None

5. “Three Ways Technology is Being Used to Monitor and Reduce Driver Fatigue,” Rig Hauler, July 20, 2017.http://www.righauler.com/trucking/3-ways-technology-is-being-used-to-monitor-and-reduce-driver-fatigue/


The chain of responsibility is taken seriouslyOrganisations are confident in their knowledge of the regulations.

STATEMENT: “I THINK THAT OUR ORGANISATION THOROUGHLY UNDERSTANDS CHAIN OF RESPONSIBILITY LAWS.”

STR

ON

GLY

DIS

AG

REE STR

ON

GLY

AG

REE

1

2

3

4

5

3.92average score The resulting figure indicates that these respondents have

taken care to make themselves conversant with Chain of Responsibility legislation. The survey phrased this question as a statement of belief rather than fact and without supporting evidence it remains to be seen how completely these laws are understood and followed.


Telematics technology is becoming an essential business toolTransportation professionals have discovered that telematics is a game-changer in this industry.

ORGANISATION USES A TELEMATICS SOLUTION

An overwhelming proportion (88%) of transport businesses are using telematics or plan to within the next year. This is evidence that the technology is becoming a vital asset in a competitive marketplace.

72%

9% 7% 12%

Yes,

acro

ss a

ll ve

hicl

es/a

sset

s

Yes,

whe

n pr

ovid

ed b

y ve

hicl

e/eq

uipm

ent m

anuf

actu

rer

No,

and

no

imm

edia

te p

lans

to d

o so

No,

but

I pl

an to

in th

e ne

xt y

ear


Vehicle tracking remains the most important telematics applicationAmong respondents who use telematics or plan to introduce it in their operations, one use of the technology leads all others.

WHAT ORGANISATIONS MONITOR WITH TELEMATICS

Responses were spread over a variety of options — suggesting that telematics is appreciated for its multifunctional capability — but vehicle tracking rated eight percentage points over the next-highest selection, showing that the original purpose of GPS fleet tracking remains its most popular attribute.


Vehicle tracking

Maintenance

Harsh braking

Distance driven

Driver performance

Engine hours

Speed

Idling

Fuel usage

Driver fatigue

Proof of service/jobs completed

Other

82%

53%

30%

57%

45%

24%

74%

46%

28%

57%

34%

5%


The advantages provided by telematics, rankedThe ways that telematics helps respondents in their occupation.

TOP BENEFITS OF USING TELEMATICS

Although responses are widely spread, an emphasis on compliance shows that organisations are aware of how these regulations will affect them, and the value of telematics in meeting these legal obligations. In addition, improved customer service ranked high — in third place among 14 possible answers. This suggests that many users of the technology are increasingly looking beyond how it facilitates getting the job done and recognising the broader benefits of telematics for the entire organisation.

Peace of mind, knowing where vehicles and equipment are

56%Meeting

compliance requirements

42%

Improved customer service

36%More efficient routing

and dispatching

34%

11%Reduced

maintenance costs

11%Improved

fuel efficiencyImproved driver

behaviour

32%

7%Reduced

insurance premiumsOther

4%Fewer

accidents

3%

Time and cost savings

21%Improved

driver safety

12%

Fewer unexpected equipment failures

1%Preventing

fuel loss

1%



Telematics pays off in improving safetyThose who have implemented telematics technology, and those who plan to do so, both see improved driver safety as an outcome of this business decision.

Preventing excessive speed and driver fatigue far outweigh other safety benefits afforded by telematics - which reveals what survey participants are looking for in terms of improved safety or their greater ability to measure these criteria.

TOP SAFETY BENEFITS REALISED BY USING TELEMATICS

Speed prevention

58%Monitoring hours to prevent driver fatigue/exhaustion

39%Monitoring and benchmarking driver behaviour

30%Improved driver productivity/efficiency

23%

Accident insight/details

12%

13%More insight into vehicle performance/maintenance needs

None

3%



Technology flow is upward, starting with those in the field.Even though businesses haven’t yet implemented technological solutions in all their back-office and administrative work, the majority of drivers and equipment operators rely on mobile devices provided to them.

OFFER MOBILE DEVICES TO DRIVERS FOR FLEET MANAGEMENT

Eighty three per cent of respondents furnish their field staff with mobile devices, allow use of personally-owned units, or intend to provide these within the next year.

6. “Little Things Can Make A Big Difference – Mobile Apps For Truckies” Truck Dealers Australia, May 17, 2017.https://truckdealersaustralia.com.au/editorial/little-things-can-make-big-difference-mobile-apps-truckies/

No, but we plan to in the next year

14%

No, employees can bring their own device and link to company systems

6%

No, we don’t use mobile devices/technology for fleet management

17%

Yes

63%

Recent mobile apps offered to Australian truck drivers include a GPS-enabled petrol station finder that includes the current fuel price, a localised weather report, a speedometer checker and a public toilet locator.6


Measuring future staffing needs remains labour-intensive — and partly intuitiveWhen gauging personnel requirements, organisations rely on different methods - from technical approaches, to paper records or nothing at all.

HOW THEY CURRENTLY FORECAST HIRING/BUSINESS NEEDS

Guessing

8%

Not currently doing this

30%

Other

8%

Tools for big data analysis

21%

Manually pulling records/paper-based processes

43%

Technology is not currently a primary influence in evaluating or forecasting workforce requirements, with only 21 per cent of professionals using big data for this task. A larger number (30%) do not perform any calculations.

7. “Drones and Driverless Trucks: Can Australian Truckies Stave Off Job Threat?”, The Guardian, May 28, 2017.https://www.theguardian.com/sustainable-business/2017/may/29/drones-and-driverless-trucks-can-australian-truckies-stave-off-job-threat

The necessity of anticipating driver staffing needs and locating new talent, will continue for as long as human drivers are required. This will be for some time. In 2017 the chair of the Australian Trucking Association said, “The immediately foreseeable future of truck automation won’t involve replacing drivers.”7



Drivers are monitored and measuredOn the job, driver behaviour is under review.

CURRENTLY EVALUATING AND BENCHMARKING DRIVER PERFORMANCE

53%Yes 35%

No

12%No, but plan to in the next year

Sixty five per cent of respondents are currently evaluating and benchmarking driver performance or planning to do so in the next year.


Survey overview and methodologyThe 2017 Teletrac Navman Telematics Benchmark Survey is compiled from responses from more than 1,200 fleet operations and fleet management professionals from around the world. This report affords a view into best practices and trends in telematics and fleet management. Of the total survey respondents, 107 who indicated that their primary industry was transportation and are based in Australia provided the data used to produce the 2017 Australia Transportation Benchmark Report. Results may not amount to 100 per cent due to questions with multiple selections. For reporting purposes, all statistical values have been rounded to the nearest whole number.

FLEET SIZE1-9

10-24

25-50

51-100

101-500

500+

13%

8%

22%

22%

5%

30%

INDUSTRIES REPRESENTED

81%

12%

7%

Transportation

Manufacturing

Retail

(number of vehicles)


Teletrac Navman is a leading software-as-a-service (SaaS) provider leveraging location-based technology and services for managing mobile assets. With specialized solutions that deliver greater visibility into real-time insights and analytics, Teletrac Navman helps companies make better business decisions that enhance productivity and profitability. Its fleet and asset management technology uncovers information that would otherwise go unseen, helping customers reduce risk and confidently move their business forward with certainty. It tracks and manages more than 500,000 vehicles and assets for more than 40,000 companies around the world. The company is headquartered in Glenview, IL, with additional offices in the United States, United Kingdom, Australia, New Zealand and Mexico. For more information visit TeletracNavman.com.au.

United States

2700 Patriot Boulevard, Suite 200

Glenview, IL 60026 · USA

Tel: [+1] 866.527.9896

Australia

Ground Floor, 16 Giffnock Avenue

Macquarie Park NSW 2113

Sydney, Australia

Tel: [+61] 2 9886 8500

Mexico

Av. Eugenio Garza Sada No. 3820 Piso 6

Colonia Mas Palomas

C.P. 64780 · Mexico

Tel: [+52] 81 8248.4600 ext 1001

New Zealand

7-11 Kawana Street

Northcote, Auckland 0627

Tel: [+64] 0800 447 735

United Kingdom

Keele University Science Park

Innovation Centre 2

Staffordshire, ST5 5NH · UK

Tel: [+44] 0 1782 55 79 50

192017 Telematics Benchmark Report — Australia Transportation Edition

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2 017 TELEMATICS BENCH MARK REPORT - Teletrac · The physical environment plays a large part in influencing business conditions, with difficulties that ... More than half of respondents’