MOBILITY MODELS: DEVELOPING YOUR FLEET’S … · WHITE PAPER. 3. MOBILITY MODELS: DEVELOPING YOUR FLEET’S CONNECTED STRATEGY. There are many components of the ELD mandate that

MOBILITY MODELS: DEVELOPING YOUR FLEET’S CONNECTED STRATEGY

MOBILITY MODELS: DEVELOPING YOUR

FLEET’S CONNECTED STRATEGY

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Introduction

On-road communications have always been vital to the success of the transportation industry. But in today’s advancing technological landscape, methods of recording, transmitting and analyzing data at every point in the supply chain are continuously evolving and increasing in importance. And with more technology options for on-road communication, inevitably, comes more questions from both operators and fleet managers.

Chief among those questions is: should fleet employees be allowed to connect personally owned mobile devices to the company network? Conversely, should they be allowed to use company-owned mobile devices for personal purposes as well as business? This white paper examines those questions from a fleet’s perspective and offers pros and cons of various device ownership options to help you determine the right strategy for your organization’s mobile workforce.

Technology and Regulations: Evolving Together

As technology has evolved from the simpler days of CB radio communication, so have federal requirements. Two recent regulations, each with a significant technology component, impact the land transportation industry as a whole: The Electronic Logging Devices (ELD) mandate and the Food Safety Modernization Act (FSMA).

Electronic Logging Devices Mandate

Although operators have been logging their hours of service (HOS) for nearly eight decades, the Federal Motor Carrier Safety Association (FMCSA) has been working since 2011 to develop legislation that streamlines the process. The ELD mandate, finalized in December 2015 by the FMCSA, requires the use of ELDs to electronically record a driver’s Record of Duty Status (RODS), which includes HOS, in qualifying vehicles.

This mandate aims to provide a technology solution that will help provide information to reduce crashes, injuries and fatalities in the land transportation industry. In addition to the safety components, ELDs have a number of benefits, including saving drivers an estimated 20-40 minutes per day previously spent recording HOS, adding up to 50 hours of productivity per year.

Regulations That Have a Direct Impact on Fleet Technology• ELD Mandate: Will require all drivers who

are currently required to keep RODS toelectronically record their HOS by Dec.2017

• FSMA: Includes new requirements forshippers, carriers and receivers in thefood transportation industry involvingthe safety of transportation equipment,operations, training and records

• Distracted Driving: Each state’s regulationsvary regarding cell phone use while behindthe wheel. Fleet managers should stayup-to-date on changing legislation.

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There are many components of the ELD mandate that fleet managers should take into consideration when determining their mobile workforces, including:

• Mobile devices functioning as an ELD must have the capability to sync with the vehicle’s engine.

• A non-functioning ELD must be repaired or replaced within eight days.

Food Safety Modernization Act

The Food and Drug Administration (FDA) has recently published the final component of the FSMA, designed to prevent food safety problems rather than react to problems after they occur. This final component, the Sanitary Transportation of Human and Animal Food (STF), which was finalized in March 2016, is meant to ensure that transportation practices do not create food safety risks.

For shippers, an important part of achieving compliance with new STF food safety protocols means having the ability to provide documentation of written procedures, agreements and training for up to 12 months. To be regulation compliant, upon inspection the driver’s mobile device should be able to display these records, including real-time load data.

Distracted Driving

The National Center for Statistics and Analysis of the National Highway Traffic Safety Administration estimates that at any given daylight moment in the U.S., approximately 660,000 drivers are using cell phones or manipulatingelectronic devices while driving.

Although many states have laws against text messaging and various forms of cellphone use—which can include even holding a handheld device for any reason—distracted driving remains one of the top safety concerns among U.S. drivers.

Fleet managers should become familiar with the distracted driving laws enforced in all states in which their fleets haul to ensure company policies regarding mobile device use are in alignment.

Selecting a Mobility Model

Technology in the transportation industry is constantly evolving; for example, fleets are moving toward smaller, tablet-like devices that offer easy installation—including factory-fit—to reduce downtime. Moreover, fleet managers are seeking enterprise solutions, rather than individual products and solutions, to address their fleets’ needs while maintaining higher levels of operational efficiency. Selecting a mobile connectivity solution is becoming an increasingly important choice for today’s fleet managers.

Three primary mobility models for fleets have emerged:

Each model represents a different option of ownership, management and enablement, and the tools provided below will help you select which model will best benefit your fleet’s operations and keep your drivers compliant with federal, state and company policies.

Fear of Distracted Driving A 2015 survey conducted on behalf of Ford Motor Co. found that 88 percent of survey respondents (under age 34) were more fearful of a distracted driver than of snakes, spiders or public speaking.

Company Owned

Bring Your Own Device (BYOD)

Company Owned, Personally Enabled (COPE)

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Three Things to Consider When Selecting a Mobility Model

In addition to federal and state regulations, these business considerations should factor into a fleet owner’s mobility model decision:

Data Security and Privacy

To those in charge of fleet’s IT systems, security is the most critical issue when a mobile device is connected to the company network. The network can be exposed to a host of risks within the following areas, for which companies should have policies in place:

• Confidentiality of proprietary information: Multiple unauthorized individuals (family, friends, strangerswho find a phone left at a truck stop) may inadvertently have access to devices, exposing information tobreaches that the company will often go undetected until the data has been misused.

• Customer liability due to loss or improper use of personally identifiable information found in email,documents, phone calls, or text messages.

• Data and network integrity issues due to malware and jail-broken devices.

IT Support

Fleets must consider whether their IT teams have the resources and capacity to provide technical support to multiple hardware platforms, versus having a streamlined model that can be applied to all company devices.

Cost

Depending on who makes the purchase, the costs of maintaining a mobile device will differ. The question comes down to, who pays for what?

• If a driver purchases the device:

• Some fleets opt to provide reimbursement for data charges incurred while the driver is on-duty.

• The fleet might face increased operational costs resulting from providing customized (or outsourced) IT support for each driver’s device.

• The fleet is spared the cost of purchasing devices for each driver.

• If the company purchases the device:

• The initial increased capital expenditure may result in future administrative and operational savings.

• Many vendors offer corporate discounts on hardware and data plans, reducing the fleet’s upfront costs.

With the above considerations in mind, the next step before making a final decision for your fleet is to look at the pros and cons of the different mobility models.

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Company Owned

Company-owned devices are fleet-managed and remain under the control of the company. This means that the transportation company owns the communication devices and does not allow drivers to download personal applications, such as Facebook or YouTube, on them.

Who Uses This Model:

Fleets that are seeking a highly reliable compliance device to be used for mission-critical business functions only, with no variability and the lowest risk.

PROS

• Offers highest levels of data security

• Ensures compliance with company standards

• All IT operations are streamlined

• Ensures that device is solely being used for businesspurposes

• Commercial-grade devices have increased durabilityand life span

• If the device breaks, the fleet can provide the driverwith a replacement without losing significant uptime

CONS

• Can deter drivers who seek some level of deviceownership

• In the event of a system outage, all drivers aresubject to loss of uptime

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Bring Your Own Device (BYOD):

The BYOD model allows employees to bring their own devices—including smartphones, laptops and tablets—to the workplace for use and connectivity on the corporate network.

Who Uses This Model:

Typically, owner operators and small fleets with five trucks or less, which can more easily manage a mobile network with multiple devices and platforms.

PROS

• Offers drivers choice of device and applications thatbest meet their personal and business needs

• Fleets are not responsible for the cost of the devices,unless the company chooses to provide a subsidy orreimbursement

• Empowers drivers who seek a higher level of owner-ship and control of the device

CONS

• Potential for driver harassment violations; forexample, being able to track a driver when he or sheis off-duty

• Data has increased vulnerability to exposure (i.e.hacking)

• External IT support systems must cater to multipleplatforms and hardware, which can result in higherexpenditures and lower efficiency

• If a data overage occurs, it can be difficult to identifyif personal or business use was the cause

• Fleet must take the time to ensure each mobiledevice is compliant with current regulations

• Consumer grade devices are less durable and have amore rapid replacement cycle

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PROS

• Fleets can give drivers the ability to use personalapps when off duty but still ensures security ofcompany data

• All IT operations can be streamlined

• Ensures compliance by allowing drivers to select adevice from a pre-approved list of options

• Commercial-grade devices can be deployed, offeringincreased durability and life span

• Device can be used as part of a driver retention/incentive program

CONS

• If a driver leaves the company, he or she will have tosurrender the company-issued phone number.

• If fleet management does not have a network-based security plan in place, there is potential for asecurity breach

Corporate Owned, Personally Enabled (COPE):

Instead of enabling corporate functions to work on personal devices, the COPE device option sets up a framework to support and allow personal use of company devices. The company selects preferred devices, buys and owns them, but the employee is allowed, within set limitations, to install applications they want for personal use on the device. The company also establishes usage and cost thresholds for employees. Most importantly, in a COPE environment, the company reserves the right to disconnect devices on the corporate network when necessary (as in the case of a security breach) to keep their networks and information secure.

Who Uses These Devices:

Increasing in popularity among fleets of all sizes that seek a middle ground between corporately owned, corporately enabled mobile devices and BYOD.

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A New Enhancement: Driver Companion Apps

Driver apps are the latest frontier in mobility. Those with a fleet management system in their vehicles can now download a companion app from the Google Play or Apple Store to stay connected with compliance information and other business functions.

These apps sync and communicate in real-time with the fleet management system in the vehicle, allowing drivers to stay connected while they are away from their vehicles. With these apps, drivers can monitor hours of service, dispatches, messages – and stay in touch with other drivers – anytime, anywhere. This type of mobility is a complement to both the Company Owned and COPE models.

What’s the Difference?

A common industry misconception is that BYOD and COPE are equal models. However, it is important that fleet managers recognize the primary distinguishing factor between the two: the owner of the device. If the driver purchases a mobile device that is used for both personal and work purposes, this is representative of a BYOD model. If a fleet purchases mobile devices for its drivers and allows for both personal and business use, a COPE strategy is in place.

PeopleNet’s ConnectedFleet™ platform is an easy-to-navigate system that includes multiple technologies serving one core function: mobile connectivity. Its components can be used across a variety of mobility models and device types, including fixed-mount, tablet or handheld. Based on a fleet’s size, fleet managers can decide which of the following features will offer the most value.

Managed Mobility Solutions PeopleNet offers a multi-platform enterprise Managed Mobility Solution for fleets that support a COPE communications device strategy. The Managed Mobility Solution allows drivers to install and access any approved applications for business and personal use, as well as subscribe to specific data based on their needs and receive updates in real time. The device remains a safe and secure hub for company information, as fleet managers have the ability to control the security of every mobile device in the fleet remotely. In doing so, they can protect devices from viruses and malware, ensure that data is never compromised, and monitor and approve apps and/or websites. In the event of a data theft or breach, fleet managers can remotely assist drivers with troubleshooting and disable all company devices if necessary. With managed mobility, drivers and fleet managers can access whatever they need from wherever they are— without compromised security.

Mobile Gateway PeopleNet’s Mobile Gateway™ is an intelligent vehicle-bridging unit that serves as a wireless hub to provide connectivity to a variety of devices such as in-cab displays, mobile devices and wearables. Users can access vehicle or third party data such as: weather, traffic patterns, dispatch events, route connections, and video for streaming.

ConnectedTablet The PeopleNet ConnectedTablet™ operates within the typical in-cab environment and outside the cab as a ruggedized mobile computer. It connects to the PeopleNet Mobile Gateway via Wi-Fi to run applications including: ELDs, Vehicle Management, Onboard Event Recording, and In-Cab Navigation, among others.

ConnectedDriver Mobile Application Drivers using the PeopleNet ConnectedDriver™ Mobile Application – on either Android or iOS – can receive important updates, view messages from the back office, and view their HOS totals on their personal mobile devices at any time and anywhere.

“In an increasingly connected world, drivers need remote access to information. The ConnectedDriver app gives them the freedom to live their lives off the clock and still be prepared for their next day at work.”

Cliff Dixon, Vice President of Information at Quality Carriers, a PeopleNet customer

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Summary

Mobile communication is the lifeline between drivers and operations, providing real-time essential information and updates. Selecting a model of mobile connectivity requires a critical analysis of each option, primarily weighing the cost, data security and operational support. Additionally, with the publication of regulations such as the ELD mandate and FSMA, fleet managers must factor in the implications of these rules on the company’s mobile strategy.

About PeopleNet

PeopleNet provides solutions to help fleets improve safety and compliance and reduce costs. PeopleNet’s network communications, mobility and analytics products are used by more than 2,000 truckload, LTL, private, and energy services fleets throughout North America. PeopleNet was established in 1994 and is headquartered in Minnetonka, Minnesota, with an office in Ontario, Canada. PeopleNet is a Trimble (NASDAQ: TRMB) Company and part of its international Transportation and Logistics Division.

To learn more about PeopleNet and its products, visit www.peoplenetonline.com or call (888) 346-3486.

Documents

MOBILITY MODELS: DEVELOPING YOUR FLEET’S … · WHITE PAPER. 3. MOBILITY MODELS: DEVELOPING YOUR FLEET’S CONNECTED STRATEGY. There are many components of the ELD mandate that