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FLEETSolutions MAGAZINE CORPORATE GOVERNMENT LAW ENFORCEMENT UNIVERSITY UTILITY VOL. 12, NO. 1 JANUARY/FEBRUARY 2019 ● T E C H N O LO GY FOR FLEETS AND BEYOND 5 TIPS FOR RIGHT-SIZING YOUR FLEET Page 8 APRIL 15-17, 2019 Page 20 BIT.LY/NAFAFLEETSOLUTIONS
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CONTENTS FLEETSolutions Vol. 12, No. 1 • January/February 2019 The contents of this publication may not be reproduced, in whole or in part, without the express written consent of NAFA. Opinions expressed in any article are those of the author or subject and not necessarily those of NAFA. NAFA assumes no liability for the accuracy, sufficiency or completeness of claims, statements, representations or 14 opinions contained in any advertisement or article in this publication. Claims made in any advertisement in this publication do not constitute endorsement of the product or service by NAFA. NAFA HEADQUARTERS STAFF Phillip E. Russo, CAE: Chief Executive Officer PRESSMASTER/SHUTTERSTOCK.COM Bill Schankel, CAE: Chief of Staff and Operations The Finer Points Tina Lynn Mercardo, CEM: Director of Meetings and Events Of Fleet Data Katherine Vigneau, CAFM®: Director of Education Pam Nobles, M.A.: Vehicle data provided by telematics devices and Director of Learning and Communities vehicle tracking systems is being used to reduce Ken Hunter, APR: Director of Marketing and Communications vehicle downtime, keep up with preventative Scot Blum: Senior Manager, maintenance, improve driver safety, make informed Marketing and Communications decisions when selecting new vehicles, and more. Christine Goyette: Senior Manager, By Bill Romba Chapter and Community Relations Donald W. Dunphy: Communications Manager/Editor Gena Galeros: Manager, Membership Recruitment and Retention 10 Maureen Smith: Membership Database and How To Be A Virtual Fleet Manager Membership Services Coordinator Danielle Barrouk: Certification Assistant Working remotely can benefit both fleet professionals and organizations, but Bill Romba: Marketing and Communications Assistant there must be defined guidelines, solid data protection and a variety of other Mallory Wymer: Education Assistant important aspects to consider to make sure it works well for everyone involved. By Donald Dunphy NAFA EDITORIAL ADVISORY COUNCIL Chair: Ted Roberts, Fleet Management Weekly Vice Chair (A): Tod Trousdell, Roberts Trousdell 22 Diagnostic Alert! Frank Castro, CAFM®, Snohomish County Public Utility District #1 From preventative reminders to predicting trouble, the diagnostic capabilities of Ken Kadet, Element Fleet Management telematics are becoming more reliable and beneficial. Plus, in many cases, fleet Tom Krause, West Bend Mutual Insurance Reporting Director: Maria Neve, professionals already have these tools at their disposal – but may not be making Merchants Fleet Management the most of them. By Sandy Smith ® >> bit.ly/NAFAFLEETSOLUTIONS NAFA 125 Village Boulevard, Suite 200 Work-Life Balance and The Telecommuter Princeton, NJ 08540 (609) 720-0882 FAX: (609) 452-8004 The trap of ones’ own making – in terms of telecommuting – frequently is the inability to www.nafa.org • info@nafa.org call it a day, unlike those at headquarters who can leave work behind mentally when they Published by leave physically. By Donald Dunphy 5950 Northwest First Place Gainesville, FL 32607 Fleet Policies: Help Has Arrived (800) 369-6220 FAX: (352) 332-1252 www.naylor.com This article, part three in the series, covers what a fleet policy manual should look like and Group Publisher: Heather Greyling provides a policy outline as well as sample policy statements on various topics. Editor: Shaneen Calvo By Katherine Vigneau, CAFM® Project Director: Jason Zawada Project Manager: Adam Lingenfelter Project Coordinator: Cindy Samons What Do Fleet Managers Do For Fun Marketing: Taylor Hicks Advertising Representatives: Shane Holt, On Their Summer Vacation? Robert Shafer, Matthew Yates A family of fleet directors put their fleet management experience to the test with eye-opening Design and Layout: Gordon Klassen vacations - first in Europe and then across America - that unfolded with an intriguing story NAFA I&E Exhibit and Sponsorship Sales about the evolution of mobility. (770) 576-4971 By Kathy Wellik, CAFM® www.nafaexpo.com • nafa@naylor.com Show Manager: Mark Miller Client Services: Erin Kelly Sales Lead: Scott Groves Sales: Jordan Gil, Shane Holt, Rob Shafer IN THE NEWS..............................6 INDEX TO FLEETSolutions ©2018 (ISSN 1053-1203) is the official magazine of NAFA Fleet Management ADVERTISERS.........................28 Association. Subscription rate is $85 U.S. What’s In and is included in membership dues. Subscriptions What’s In My Fleet? NAFA sent to Canada are $106 U.S. and $181 U.S. to other countries. HOT TOPICS........................... 30 Postmaster: Send address changes to FLEETSolutions NAFA Member Wins 125 Village Boulevard, Suite 200, Princeton, NJ 08540 USA Pro Tip Green Fleet Award For advertising: www.naylor.com For non-member subscriptions: www.nafa.org/store Comments/permissions: publications@nafa.org Ask the Expert Get Social with NAFA PUBLISHED DECEMBER 2018/NAF-S0119/6248 #nafafleet @nafafleet #nafa2019 COVER IMAGE: ©ISTOCK.COM/METAMORWORKS, ICON CREDITS: WHAT’S IN MY FLEET: SHUTTERSTOCK.COM/TEDDYANDMIA, PRO TIP: ©ISTOCK.COM /JUSUN, ASK THE EXPERT: SHUTTERSTOCK.COM/IQONCEPT, HOT TOPICS: YEVGENIJ_D/SHUTTERSTOCK.COM, ONLINE ONLY: LENA PAN/SHUTTERSTOCK.COM, GET SOCIAL: MATTJEACOCK/SHUTTERSTOCK.COM FLEETSolutions THE MAGAZINE FOR FLEET MANAGEMENT 5
IN THE NEWS What’s In NYPD’s Emergency Service Unit Is Prepared For Anything With The BEAR NEW YORK POLICE Department’s However, said James Korotki, Emergency Service Unit (ESU), a CAFM®, District Supervisor for the component of the NYPD Special City of New York’s Department of Operations Bureau, performs tactical General Services, “As our world has (Special Weapons and Tactics, or changed it was decided to upgrade SWAT) and technical rescue duty to the BeatCat’s big brother, the for other department elements. BEAR.” Members of ESU are cross-trained rescue system with dual side-by- The vehicle is built on a heavy in multiple disciplines for police, side hydraulically controlled ramps duty Freightliner 108SD chassis. It first aid, and rescue work, and they to access elevated positions and has the ability to withstand weapons require high-performance gear that possibly rescue members of the delivering up to 7.62 armor-piercing can withstand extreme conditions service or confront persons intent on and .50 caliber BMG (Browning and missions. One of NYPD’s lethal activities. machine gun) ammunition. “This is most important and effective is ESU currently has one BEAR in its critical to ESU’s mission of protecting the military-grade BEAR (Ballistic inventory, purchased in 2012, but is members who are possibly Engineered Armored Response) expected to take delivery of another encountering gunfire that might be in the near future. truck. out of the norm, especially in this age The BEAR is a unique vehicle of the ‘active shooter’ phenomenon,” designed and produced by LENCO Korotki said. With a special ramp mounted on NAFA FLEETSolutions will feature Industries Inc. of Pittsfield, Mass. NYPD purchased its first group of top called MARS (Mobile Adjustable a behind-the-scenes look at NYPD’s LENCO products back in 2004 with Ramp System), the BEAR gives ESU fleet operations in the March/April the agile BearCat. members the ability to use a tactical/ 2019 issue. Have unique, odd, or unconventional equipment in your fleet? FLEETSolutions wants to share it with readers and colleagues. Submit your suggested unique fleet vehicles to editorial@nafa.org. 6 www.nafa.org • info@nafa.org JANUARY/FEBRUARY 2019
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IN THE NEWS Leverage Telematics Tips For To Reduce Right-Sizing Insurance Costs Your Fleet By Ronald Gitelman, CAFM®, By Larissa M. Clinard, CAFM®, Fleet Coordinator, Yale University Fleet Manager, J. F. Ahern Co. FLEET TELEMATICS HAVE many beneficial uses including logistics, utilization, tracking, and fuel fraud detection. Yet many overlook potential insurance cost savings that could be derived from the data. Speeding, hard braking and Is your fleet “right-sized”? DOES THE THOUGHT of right-sizing your fleet conjure acceleration, location I.D., and landmark information can up unpleasant conversations with managers about assist both the organization and the insurance company in realizing cost savings. vehicle utilization? It certainly doesn’t have to, if you Driver Behavior impacts insurance costs regardless of consider these five suggestions: the organization’s insurance structure. Harsh acceleration 1. Understand the Objective of Right-Sizing and sudden stops may identify distracted driving issues. Many managers hear “right-sizing” and immediately Speeding may indicate reckless driving. Some telematics think “downsizing.” Right-sizing should cover much more vendors offer sensors that can track whether the driver is than a simple utilization equation. Before you begin using their seatbelt. As technology continues to advance a right-sizing exercise, know your end goal. Are you options to disable communications devices while driving looking to rid your fleet of under-utilized vehicles and will become commonplace and distracted driving may equipment? Evaluate whether your vehicles have the decrease substantially. appropriate cargo or passenger capacity for how they Your company’s vehicles, especially if there is a are being used. Do you have too many of one type of company logo affixed, could easily become someone equipment and not enough of another? Understanding else’s cash cow through false claims or exaggerating crash what kind of right-sizing you are trying to achieve is consequences. paramount to success. Location Identification through telematics helps prove 2. Know Your Fleet whether the vehicle was in the location, what its speed was prior to the accident, and whether driver behavior was A right-sizing effort must begin with a good an issue. This information can reduce claim amounts and understanding of your fleet. It may sound obvious, but safeguard future insurance costs. do you know what you have and how it is being used? GPS Tracking is very useful in locating stolen or carjacked Do you have any specialized vehicles or upfits that will vehicles. The fleet manager knows the vehicle has tracking need to be considered differently than other vehicles? but the thief likely doesn’t know. Speaking from personal Ensuring you understand your assets and how they experience, Yale has used our telematics equipment to locate are being used allows you to consider options most stolen vehicles and minimize damage. Speed Data provides significant information to your effectively. organization via a reduction of illegitimate injury claims. 3. Know When to Be Boldly Different This information assists the management of reckless driver Sometimes, the most fruitful right-sizing activity requires behavior before it becomes an issue, not to mention inherent creative or previously unutilized options. Though it can scheduling and logistics benefits. require extra effort and may be met with resistance Location Tracking and Landmarks also allow organizations to initially, approaching right-sizing conversations and monitor time spent at stops to ensure drivers aren’t misusing analysis with a goal to divert from “the way it’s always company resources or extending times at a work site. Alerts notify organizations when a vehicle enters and leaves an area, been” can produce meaningful results. providing a data trail to verify the vehicle is authorized to be in 4. Get Stakeholders on Board the area and at what time. Through telematics, an organization As with any important initiative, buy-in from your key can ensure drivers aren’t frequently driving through high-risk stakeholders can mean the difference between success areas. and failure. Have a meaningful dialogue with those who One last consideration: Is your organization self-insured or will be impacted. Prepare for those discussions with a does it use a commercial insurer? Self -insured organizations clear plan at the ready, supported by facts and targeted seek to reduce claims because the payments up to a certain amount are paid out of the organization’s funds. Anything savings or efficiencies. above the limit is usually handled through a commercial 5. Revisit Right-Sizing Often insurer. Ideally, right-sizing should be an ongoing activity, a Organizations that primarily use a commercial insurer do continuous mindset for improvement. This can help so to reduce claims and keep premiums manageable. Large avoid the negative association that right-sizing connotes, claims or numerous claims can increase both out-of-pocket being only for when it is time to reduce assets or find costs as well as premium costs in the future. savings. Knowing that the fleet is continually identifying If your organization desires to reduce insurance costs, work with your insurer to leverage your technology’s benefits. ways to maximize its resources helps to build trust and These can offer a wealth of data that maximize savings. credibility with leadership. ■ 8 www.nafa.org • info@nafa.org JANUARY/FEBRUARY 2019
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BUSINESS MANAGEMENT How To Be A Virtual Fleet Manager By Donald Dunphy IMAGINE YOUR FLEET MANAGEMENT office being in almost any location other than your organization’s headquarters. It’s no secret that many do more than imagine it every day. In fact, for fleet professionals who oversee global or national operations, or work for companies where nearly all the vehicles are decentralized, remote workplaces are necessities. How can both organizations and fleet employees benefit from working remotely or from home, what must they provide each other to enable or prove their work, and how is the data being protected when it flows from outside of the confines of the Regular Member J.J. Keig, CAFM®, office network? FLEETSolutions spoke Corporate Fleet Manager - The Americas with individuals who have made these for commercial real estate services and advancements work for them. investment firm CBRE Inc. “That was a little over four years ago, and was seen Can You Incorporate “Mobility” as a very progressive action.” Into Your Job? It may sound counterintuitive that Fleet managers are attuned to the a fleet manager isn’t traveling him or mobility-focused evolution of their herself. In the new reality of mobility fleets, but how about mobility in their services, it’s not necessarily about what own jobs? “When my current position gets you there, but about achieving the was advertised a number of years ago, it most efficient way of getting the work was specifically identified as a ‘virtual’ done. Sometimes that means “flying in” position, right out of the box,” said NAFA the work on the internet. 10 www.nafa.org • info@nafa.org JANUARY/FEBRUARY 2019
According to a Gallup report, 43 This is critical because Keig was using Skype. For me, a dedicated space percent of employed Americans said stuck on the road at the same time as is really important. You couldn’t do they spent at least some time during many of his drivers were, and because of this type of work at a kitchen counter 2016 working remotely, according to CBRE policies that take a stand against or dining room table where there’s no the survey of more than 15,000 adults. distracted driving, neither he nor his clear differentiation between family space NAFA Regular Member Nancy Barlage, drivers could be working by cellphone in and workspace.” CAFM, Fleet Manager for Element Fleet the middle of driving. “You must have a good web platform Management, is one. “All told, my commute had the potential so that they’re secure and fast, and your “For the most part, I do exactly the to consume a minimum of three hours information is consolidated in one place,” same as I did as a fleet manager for a every day, to and from work,” Keig said. said Barlage. private company,” Barlage said. “The “When the opportunity for a virtual fleet There are intangible requirements corporate fleets I previously managed manager opened up, that was a significant to consider as well. “You need a clear, were decentralized, so I never saw attraction.” actionable fleet policy with a system to drivers, branch managers, or directors manage acceptance,” said Elizabeth Wills, unless I traveled (to their locations). Now, Equipping a Telecommuter Vice President of Customer Experience I am connected by laptop, working nearly Fleet professionals tend to agree that for Donlen. “Also, you should have a 90 percent remotely, and I doubt any of if someone intends to work offsite, some documented and agreed-upon process for the fleets I currently manage can discern parameters are necessary. compliance and escalation; and standard a difference.” “At the minimum, you need a home operating procedures for day-to-day fleet Keig’s fleet oversight spans the United office (area) set up with a reliable actions such as the transportation process, States and Canada. Realistically speaking, computer and phone access,” said maintenance approvals, driver requests, even in the office setting, his work would NAFA Associate Member Maria Neve, etc.” A profile that outlines contacts, be of a virtual nature because he requires Government Sales Manager for Merchants scenarios, requests, and processes, says data communication to stay in touch with Fleet Management. Wills, can make concrete how to proceed all the drivers that comprise CBRE’s fleet. “I’m completely set up with a computer, with situations that could arise in a The distance between his home and the docking station, two monitors, my headset, workday away from headquarters. office is about 32 miles, and during and Element has integrated Skype into Keig recognizes the value of face- typical Dallas rush hour traffic, Keig’s our phone system,” said Barlage. “I don’t to-face communication and suggests commute could be an hour-and-a-half on need to log in to check voice mail because that whatever equipment is authorized a good day. Throw in potential disruptions they are transcribed to my email, and I by an employer for telecommuting use and that commute could double. return my calls through my computer should be technically robust enough to support “facetime” functions. “That’s not to discount the inherent importance of in-person, face-to-face communication,” Keig counters, “and that should be expected from the virtual employee throughout the year. Such a dialog is very important for retaining proper work relationships.” Protecting the Data Fleet professionals, both in-house and with fleet management companies, are responsible for an ever-increasing amount of data, not only from the companies, customers, and employees, but also from the vehicles themselves. Biases against accessing the numbers from outside of the headquarters’ computer networks persist. Further, organizations regularly invest in internet connections that are faster and more robust for the purpose of work, where many individuals think about home connectivity in terms of price control. A home Wi-Fi system might be fine for domestic wireless devices and FLEETSolutions THE MAGAZINE FOR FLEET MANAGEMENT 11
BUSINESS MANAGEMENT Continued from page 11 Netflix streaming, but when working How Is Data Stolen? According to a 2015 report from data security company TrendMicro: with a client’s data, weak or dropped signals could do disastrous things to 12% your information. “At a minimum, our company has were caused by malicious 41% insider leaks of data breaches strong mandated security which is required from a regulatory standpoint,” 17.4% are due to lost or stolen laptops, were the result of tablets, and said Neve. “Also, every time an employee unintentional disclosure smartphones (not including lost accesses one of our internal systems, you devices) are presented with a statement of data protection and your privacy rights prior to your agreement to access the system. 25% “Furthermore, we have a lot of were caused by hacking and malware redundancies built into the backend of our systems, so if a system goes down in one location, it is accessible from another, and so on,” Neve said. Therefore, a fleet specialist working off-site would need to you need to access it,” said ARI’s Business costs. A web-based portal is most beneficial maintain the same level of data security Intelligence and Analytics Team Leader, for all fleet stakeholders since it offers as would someone who commutes to HQ NAFA Regular Member Adam Seifert, access from any internet-connected device.” every day. CAFM. “A comprehensive fleet management Whether the equipment the “Vital for all fleet managers, but even platform delivers the fully transparent telecommuters use are their own or the more so for those who work remotely, view the fleet manager needs to better organization’s, it is imperative to keep a is a powerful, web-based fleet information understand the ‘why’ behind their fleet watchful eye out for these technologies. platform that provides access to your entire challenges, fueling smarter, data-driven According to a 2015 report from data range of fleet data wherever and whenever decisions that improve efficiency and control security company TrendMicro, nearly half 2 1 4 3 12 870125_BACKRACK.indd www.nafa.org • info@nafa.org 1 JANUARY/FEBRUARY 2019 18/05/17 11:31 PM
of all data breaches occur when identity- theft criminals access information Proactive because of a lost or stolen device. By this company’s accounting, nearly 41 percent of all data breach events from 2005 Data Protection As published on IT professional site NewEggBusiness.com, telecommuting through 2015 were caused by lost or workers should pay attention to the following and protect their work proactively. stolen laptops, tablets, and smartphones. While it might be tempting to conduct • Public wireless networks can be vulnerable to malware attacks. Work from business while sipping a venti latte a secure network setup that you are confident in. at Starbucks, remain vigilant about • Be sure to have up-to-date security measures on your laptop, smartphone, your equipment and never leave your or tablet utilizing business-grade endpoint antivirus, web filtering, a network devices unattended. firewall, and device-level encryption. • Set some boundaries. The company equipment should be used only by Proving Your Work the employee, not other family members, and should be committed strictly The prevalent myth is that a body at to company business. Companies need a clear remote work policy that is work tends to be seen working, while a agreed to in writing by the worker. body working offsite could be doing just about anything. That’s a possibility, of • Invest in a better-quality internet service or insist upon it as a prerequisite course. Even under the same roof as the for allowing remote work. If connectivity drops in the middle of crucial work, boss, how many times a week will you the result could be worse than an inconvenience. actually see him or her? Chances are not • If you decide to work away from home, do not leave your equipment very often when you think about it. Your without supervision. presence is noted through emails, phone calls, and possibly co-working platforms like Slack. for a remote role,” Neve said. “They importantly, a higher quality employee Neve said that, ultimately, proof of need to be fairly independent, with the for the company.” your work should not be about cataloging ability to make and meet self-imposed “This method of work can be every minute spent on a project. More deadlines.” effective,” said Wills, “as long as the importantly, the projects should be clearly Barlage added, “It takes some employee has the right tools and support defined from the start and their completion discipline. If you don’t have the ability from their company. Set expectations and should be the indicator of productivity. to isolate yourself a little at home, or don’t ground rules for working remotely, insist “It’s a part of a corporate culture that like to be isolated, or you don’t have the on the correct tools to do the job, and you should hire people that you know can ability to properly use your equipment have the appropriate approved standard do the job in whatever environment they (bad internet and/or phone connections), operating procedures.” are in, be it at headquarters, at home, or remote work might not be a good fit Not every fleet type easily lends itself out in the field.” for you.” to remote functions. For example, many If an organization insists upon more ARI’s Adam Seifert said, “Finding the government f leets also have garages obvious proof, technology makes it easy right individual to oversee a company’s or involve a f leet manager’s physical to deliver. “From (Merchants’) standpoint, fleet operations can be a pain point for presence in a consistent manner. For every time you log into a computer or many organizations given the current those fleet managers who can conduct access a system, you leave a ‘footprint,’” economic landscape. With unemployment business primarily by internet and Neve said. rates dropping to near 50-year lows, phone, however, virtual work can be “In my mind,” stated Keig, “remote fleet manager positions outside of major a viable option, especially if the right work does not change anything. The work metropolitan centers can often go unfilled employee lives a considerable distance is accomplished regardless of where I do for extended periods of time. away. it, and is supported with documentation “Transitioning the fleet manager role “As long as there’s a meeting of the of that work throughout the year.” to a remote or virtual position allows minds and there’s a clear and elementary companies to recruit from a significantly u ndersta nd i ng of expectat ions,” It’s Not for Everyone larger pool of talent,” Seifert added. Keig said, “all the requirements and Some employees thrive in an open “Organizations which embrace the associated work goals should be able to environment while others excel in a notion of a virtual f leet manager are be achieved, even from many miles away structured setting. The key is in knowing no longer bound by geographical limits from headquarters.” ■ who performs best under such conditions and have more opportunities to find the before programs begin. ideal fleet manager candidate. This often See additional telecommuting “People who require a heavy hand in results in lower recruiting costs, shorter insights in the digital exclusive at oversight probably aren’t the right people time to hire, reduced turnover, and, most bit.ly/NAFAFLEETSOLUTIONS. FLEETSolutions THE MAGAZINE FOR FLEET MANAGEMENT 13
BUSINESS MANAGEMENT The Finer Points Of Fleet Data By Bill Romba “INFORMATION TECHNOLOGY AND BUSINESS are becoming inextricably interwoven. I don’t think anybody can talk meaningfully about one without the talking about the other.” – Microsoft founder Bill Gates The fleet management industry has employs the same model as CompStat, of these issues to the attorney’s clients) seen an evolution in recent years centered which was also developed by the NYPD whose practice focuses on these matters on information technology (IT) and to increase efficiency and maximize and obtained the following insights. vehicle data. With the advent of telematics resources with regard to stopping crime. A fact pattern was posited by the devices and vehicle tracking systems, fleet “We have 13 different shops, and then attorney where a company owns, managers are utilizing IT more than ever. there are three to four different shops rather than leases, its vehicles. In that The statistics provided by these tools per district,” Martinez explained. “We situation, contract law likely determines can be used to reduce vehicle downtime, have FleetStat meetings where we look who owns the data generated by the keep up with preventative maintenance, at the out-of-service rates of each of the vehicles. Under the law in most states improve driver safety, make informed commands. We also look at the number in the U.S., the agreement between the decisions when selecting new vehicles, of vehicles that are waiting for parts, as company that purchases the vehicles and more. well as our personnel records that show and the OEM it purchases them from will how much sick time people are taking.” identify the data the vehicle collects, and How Can Data Be Used? By utilizing this system, Martinez who has certain rights to it, including NAFA Regular Member William said that NYPD is also able to prioritize the right to access it and to use it for McCarty, Director, Office of Budget and certain vehicles in the fleet. For example, specific purposes. Management for the City of Springfield, he explained that the 1,800 units that The contract documents provided to Ill., said that his team uses vehicle data comprise the fleet’s emergency response vehicle purchasers generally contain for maintenance intervals and diagnostics, vehicles “are the most critical because disclosures about the data the vehicles as well as the effective deployment of they’re the first vehicles dispatched when collect, what is stored in the vehicle, equipment and staff. someone calls 9-1-1. We’re able to make what data the OEM has access to, their “Optimizing our preventative them a priority at the shop and look at position about who owns the data, and maintenance scheduling is obvious, and yet, their out-of-service numbers separate what rights the purchaser and the OEM prior to a relatively recent upgrade to our from the rest of the fleet.” have with respect to the data, according systems and data capturing capabilities, to the attorney. preventative maintenance scheduling was Who Really Owns a Fleet’s Data? With that said, if a company outsources largely a manual process,” McCarty said. While access to this technology and its fleet responsibilities to an FMC, then “As for a service delivery example, we’ve information can be highly beneficial for under the law in most states in the U.S., been able to utilize telematics data to fleet operations, vehicle data has become in the absence of an agreement to the optimize the deployment of equipment for a hot-button issue for fleets because of the contrary, the data would likely belong to snow plowing. The result is vastly improved ownership and liability concerns that can the vehicle owner. efficiency and performance, as well as go along with it. This is because the FMC would be increased citizen satisfaction.” The issue of data ownership can acting on behalf of that company, the Responsible for some 10,000 vehicles, get a bit technical when there are attorney noted. The contract through NAFA Regular Member Robert Martinez, multiple parties involved, such as which the company hires the FMC would Deputy Commissioner for Support Services f leet management companies (FMCs), likely make clear that the FMC has no for the New York Police Department veh icle manu factu rers, and the ownership rights with respect to the data; (NYPD), said that he and his team utilize organization running the vehicles. NAFA that it is simply collecting and handling a proprietary process called FleetStat to FLEETSolutions spoke with an attorney the data as part of its contractual duties better manage their vehicles. This method (requesting anonymity due to relevance to the vehicle owner in order to carry out 14 www.nafa.org • info@nafa.org JANUARY/FEBRUARY 2019
its responsibilities under the contract; not necessarily mean they will act on that possession of that data but chose not to and that the vehicle owner has the right information. In the event of an incident, monitor or review it, and that driver and/ to get access to the data when it wants. this could potentially lead to legal trouble. or vehicle causes an accident. “This is a major topic simmering in the Depending on the specific facts of In this scenario, depending on the world of vehicle ownership, not just for the incident, according to the attorney, facts of the incident, a company that fleets, but also private consumers,” said under the law in most states in the U.S., a owns a fleet of vehicles could potentially McCarty of data ownership. “I expect it to company that owns a fleet of vehicles could be found to be negligent or reckless if it begin escalating in the next few years.” have liability under a theory of negligent could have had access to data showing supervision if it could have accessed data that one of its vehicles wasn’t maintained The Question of Liability from or about one of its vehicles that would properly or was in an unsafe condition, In addition to who owns the have shown that the driver was possibly the attorney warned, and either chose information collected, the question of impaired or driving erratically, or that the not to get access to that data, had the which parties are liable in the event of driver or the vehicle shouldn’t have been data and didn’t monitor or review it, or a crash also presents itself. Just because on the road. reviewed the data but didn’t take action fleets have access to data on things like The organization could also potentially based on the data, and the vehicle causes service history and driver records does have liability if it is shown to be in an accident. “This (data ownership) is a major topic simmering in the world of vehicle ownership, not just for fleets, but also private consumers.” — NAFA Regular Member William McCarty, City of Springfield, Ill. FLEETSolutions THE MAGAZINE FOR FLEET MANAGEMENT 15
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BUSINESS MANAGEMENT Continued from page 15 Security Is Imperative system, so we had to upgrade it to have NYPD’s Martinez also explained that Just like with anything else stored a much more secure network.” courts typically like to see historical data on a computer server, it is very important McCarty added that, because he for vehicles that are involved in accidents. to make sure the proper security works for a city government, most of The NYPD has a policy in place where it methods are in place to protect any the information that his fleet gathers is saves the information recorded from a sensitive information. considered to be in the public domain. vehicle’s event data recorder (or “black “We have some of the best in the “As a public entity, we believe that box”) so that it is prepared in the event world,” said Martinez of the NYPD’s data most data generated from our taxpayer of a lawsuit. security protections. and ratepayer-funded vehicles and “We started a policy two or three years “We get around 80,000 attempts a day equipment is public information,” ago because our legal people were telling to hack our network. About 75 percent of McCarty explained. “However, we do us that judges wanted to see as much data those attacks are coming from China. So have an expectation that our providers and information for every vehicle accident what we do with our fleet data, which is (telematics, fuel, etc.) supply a level of as possible,” he stated. “So now, for any different from most, is include it on our security within the systems we utilize. vehicle that has more than $2,000 worth main network. We don’t use third-party Additionally, our IT department employs of damage, we download the event data servers for anything,” he explained. a high level of security mechanisms to the recorder even if the airbags didn’t go off, “We have 60 fueling locations in our city network where our asset system and just to show that we had a negative report. system, and we found that the security associated data reside.” We also put a whole package together on (for the fueling network we were using) While it can seem intimidating, the accident report.” wasn’t up to our level. Our fuel system has confusing, and at times, even unnecessary, These reports, he explained, are to have our vehicle information, as well as the world has become a very data-driven stored electronically and include things data from our personnel to make sure the place. But, as with anything new, there like photos of the vehicle, as well as person fueling the vehicle is authorized are still a few issues to be worked out information on the repair, if repairs were and a current NYPD employee,” Martinez in the coming years. In the meantime, necessary. This way they only need to look noted. “Our security people felt that a fleets will need to adjust to this new up the accident number, should lawyers hacker could just hang outside one of our reality or risk being left behind the require information on a specific incident. fueling locations and get into our fuel technological curve. ■ New year, new rewards. Give your fleets the very best. LAST CHANCE! — OFFER ENDS JAN 31, 2019 — $60 SiriusXM Select Package (12-month introductory rate) 68% Off the current monthly retail rate Free Activation an additional $15 savings Fleet-only discounts Free 2-month All Access Unparalled entertainment for corporate fleets and trials for your eligible at the push of a button for individual drivers self-pay drivers your drivers — no fumbling with smartphones Learn More: siriusxm.com/fleet © 2018 Sirius XM Radio Inc. Sirius, XM, SiriusXM and all related marks and logos are trademarks of Sirius XM Radio Inc. All rights reserved. 935671_SiriusXM.indd 1 FLEETSolutions THE MAGAZINE FOR FLEET MANAGEMENT 17 15/11/18 11:18 PM
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20 www.nafa.org • info@nafa.org JANUARY/FEBRUARY 2019
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MAINTENANCE MANAGEMENT Diagnostic Alert! From Preventative Reminders to Predicting Trouble, Diagnostic By Sandy Smith Capabilities Are Becoming More Reliable and Beneficial THE WORLD OF CONNECTED vehicles was low when it tripped a float as the wireless antenna can capture the data. certainly gets the attention. Yes, it is vehicle stopped and started. Another “The system reads diagnostic codes off the entertaining to think about a driverless triggered an alarm for low oil – because on-board vehicle computer and generates car to take you to your next business the vehicle’s oil line blew. jobs, which are both reported to the shop meeting, or groceries arriving from the “We turned if off. Why pay for and added to the next work order opened store without the need to tip the something I can’t do anything with?” on that vehicle,” Amos said. delivery person. Maka said. “That’s the struggle for most It has not been an easy process. The Some might view these scenarios fleets these days.” city has translated various codes from with excitement, while others, with a In the years since, though, telematics manufacturers into the f leet system. bit of fright. Regardless, there is still has begun offering more actionable data; “After a year it is still a work in progress somewhat of a stagger step between fleets and third-party vendors alike are to accurately map everything. However, the world of fully autonomous vehicles figuring out how to better make use of it has helped let the shops know about the and now. the information. common problems even before drivers Today, telematics often includes the Maka is trying once again with the report them, so we are committed to ability to diagnose vehicle issues. Over- help of a third-party vendor. He hopes refine our translations however long the-road truckers can use an existing to build historical data to see “which it takes.” telematics system to connect with the vehicles we need to get rid of.” Whether instantly or over time, remote engine manufacturer for constant Where some see struggle, NAFA diagnostics “allows the fleet to determine monitoring of performance. Other Regular Member Chris Amos, CAFM, if there is any issue, and proactively new products on the market use an sees opportunity. As Commissioner of schedule in service for that vehicle prior onboard diagnostics (OBD) connector to Equipment Services for the City of Saint to on-road failures that may occur,” said determine insights such as tire pressure Louis, Missouri, Amos has been using NAFA Associate Member Sherry Calkins, and acceleration. telematics for more than a decade and Associate Vice President of Strategic In many cases, f leet professionals recently changed vendors to “accurately Partners for Geotab. Remote diagnostics is already have these tools at their disposal collect odometer readings and better use included in Geotab’s solution. “As a result, – but may not be making the most of them. of this diagnostic feature.” diagnostic management has improved NAFA Regular Member Chris Maka, The city currently has 700 vehicles uptime of vehicles, and even offers the Fleet Director for Lewis Tree Service, with passive telematics hardware ability of over-the-air updates that can bravely waded into this area about (meaning there is no active cellular correct many issues without the vehicle eight years ago, when he used GPS collection); Amos expects that to rise needing to go to a service location.” data to provide insights into vehicle to 1,200 eventually. That doesn’t count Still, the adoption of telematics for performance. “We quickly realized vehicles with passive telematics, in use diagnostics has been much slower than that the diagnostic data coming in was for police, fire, and the like. for things like vehicle tracking or driver overkill. We didn’t know what to do with The passive telematics devices behavior, said NAFA Associate Member it,” he said. That led to a frequent alert download when a vehicle pulls in to refuel Chris Ransom, Director of Solutions that one particular vehicle’s antifreeze or when in a larger vehicle yard where a Engineering at Verizon Connect. 22 www.nafa.org • info@nafa.org JANUARY/FEBRUARY 2019
“Some fleet owners are still reluctant to change how their business has always run its diagnostics,” Ransom said. “Diagnostic alerts are a big part of this new age of the connected vehicle. For example, using diagnostic trouble codes (DTCs) directly from the vehicle’s engine control module, GPS vehicle tracking solutions can alert a fleet manager of maintenance issues in real time. Thus, major downtime or costly repairs can be avoided by resolving problems early. We expect that technology like DTCs will continue to help progress connected vehicles forward, including the road toward self-driving vehicles.” Granted, some widely adopted aspects of telematics – such as route optimization – can yield improved maintenance by reducing vehicle wear and tear, Ransom said. “Another misconception is that better maintenance ends with trouble codes and meter values (engine hours and odometer). H o w e v e r, telemat ics actually offers a variety of benefits that can lead to better driving and less vehicle maintenance, f rom w i ndsh ield replacements to fewer brake replacements.” More and more vehicles are moving toward hav i ng telematics – and, therefore, diagnostics – embedded, with OEMs playing an important role. According to analysts w ith Berg Insight, shipments of vehicles with embedded OEM telematics systems should grow from 26.8 million in 2017 to 67.2 million in 2023. The number of service subscribers to these embedded systems will increase at a compound annual growth rate of 31.9 percent. Intel reports that connected cars are the third fastest- growing technology, behind phones and tablets. FLEETSolutions THE MAGAZINE FOR FLEET MANAGEMENT 23
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MAINTENANCE MANAGEMENT “Customers can access On the Road a new level of detailed, from Testing to Adoption actionable data to t least 46 companies – from tech The Renault-Nissan-Mitsubishi alliance help proactively giants Apple, Cisco, and Google parent Alphabet to every OEM – also is expected to test a ridesharing service in Japan in 2019. predict and prevent have joined in the race to move autonomous vehicles from All of those companies are a little behind Aptiv, which bought nuTonomy in late 2017. unplanned downtime.” testing into mass adoption. nuTonomy has been testing driverless taxis The technology can’t help but advance. in Singapore since 2016. Aptiv paired with —Sherry Calkins, Geotab In recent years, the worlds of tech and Lyft to showcase its driverless technology auto production have converged, and for at the Consumer Electronics Show, CES, in good reason. While true tech companies 2018. Attendees could visit locations up Next Stop: Predicting Trouble may have mastered the software, building and down the Las Vegas strip with very With embedded vehicle diagnostics the vehicle itself has remained a challenge. little interaction. already on board, the next step may On the other end of the spectrum, OEMs Those sorts of limitations – keeping be what leads more fleets to use them. know how to build cars, but may not yet vehicles on a fairly distinct path – are a mile Predictive analytics can take a specific have the information to help map a route. marker on the road to full implementation. vehicle’s data, compare it with overall The National Highway Transportation BMW has said some of its cars will be able insights about that make, model and/or Safety Administration has set 2025 as the to fully drive themselves along limited use, and anticipate issues. goal for fully autonomous vehicles in which roadways by 2021. Drivers will still need That’s where Maka hopes to go after there is no human driving function. It may to take over in a construction zone or when building some historical data. “When I be a long way off, but the pathway there is exiting a freeway. have good data, I can start comparing becoming increasingly clear. it against work orders,” he said. “I can’t Going Commercial even get to that until I get the data into a Mass Transit If need leads to innovation, a driver manageable situation.” GM appears on track to deliver a fleet shortage may put autonomous vehicles into All the same, the promise is there. of self-driving taxis in 2019. In an earnings heavy trucks first. Tesla has announced Recently, Geotab partnered with call with analysts in October, GM CEO Mary plans for a self-driving semi. Volvo has Uptake, an artificial intelligence and Barra said the company had invested $500 too. Waymo – the Google sibling – is Internet of Things software provider, million in its autonomous arm – GM Cruise – also in on these discussions. Granted, it on an AI-powered f leet management and would double that in the fourth quarter. may be a good while before regulators solution. “Customers can access a new If it hits the 2019 deadline, GM may be and legislators are comfortable with level of detailed, actionable data to help the first to deliver a fleet of self-driving unattended big rigs driving down the proactively predict and prevent unplanned ridesharing cars. But others are right behind highways. downtime,” Calkins said. it. Volkswagen has teamed with Intel- But commercial uses are starting to Still, we are a “few years away” from owned Mobileye, launching an innovation emerge. Grocery delivery is being tested what Calkins terms “the Holy Grail,” center in Israel, due to open in 2019. The in Arizona using a self-driving Toyota Prius. or coming up with “an AI-powered, joint venture intends to deliver self-driving Walmart has a similar project with Waymo, always-on service advisor that will detect, taxis to that nation by 2022. VW will provide using a Chrysler Pacifica. “The purpose of analyze and recommend specific vehicle the electric vehicles for the project. all of this: to learn,” said Tom Ward, Vice maintenance actions.” In London, taxi company Addison Lee President of e-Commerce Operations at Already, though, machine learning is Group partnered with software company Walmart, in a blog post. helping to predict battery and electrical Oxbotica to develop autonomous taxi cabs “Autonomous driving will not just components failure, Calkins said. “Early with a goal of being on the road in 2021. revolutionize car traffic, but mobility as prototypes with our customers have shown The goals are high, according to Andy a whole,” explained Dr. Michael Hafner, some very promising results, specifically Boland, Addison Lee’s CEO. “By providing Mercedes-Benz’s Head of Automated in terms of actionable insights that could ridesharing services, we can help address Driving and Active Safet y, during reduce their downtime and reduce costs congestion, and free space used for parking an interview that was posted on the of unnecessary battery swaps.” and improve urban air quality through zero- company’s website, Predictive diagnostics, Ransom said, is emission vehicles.” The only question that remains is when. inherently exciting because of its ability to FLEETSolutions THE MAGAZINE FOR FLEET MANAGEMENT 25
MAINTENANCE MANAGEMENT Taking the Next Step…. T here are a multitude of choices when looking for a company that offers fleet diagnostics and telematics. If you want to narrow your search while also supporting the companies that support NAFA – either as members, sponsors, or advertisers – and also have categorized themselves as being involved in telematics, check out the NAFA Online Buyer’s Guide (http://nafa.officialbuyersguide.net/). It is a convenient and handy resource designed to make finding information and companies quick and easy. And it may just remove one of the (CDL) pre-trip inspection,” Amos said. prevent breakdowns most frustrating challenges for a f leet “I recall seeing a sign or PowerPoint that used to mean professional: relying on the driver. slide years ago that read, ‘The most unexpected expenses, “It is amazing to me still after 40 years dangerous part of a vehicle is the loose missed stops, and frustrated customers. managing f leets how many drivers can nut behind the wheel.’ Technology has To help prevent roadside breakdowns look at red lights on a vehicle dashboard finally afforded us a fighting chance and extend the life of tires, for example, and ignore them until something to remotely identify vehicle problems tires should be properly inf lated. catastrophic happens, or drive out of monitored by the on-board computer “Predictive diagnostics should be used a vehicle yard without a turn signal via electronic sensors without relying to help prevent the dreaded under- working when they just supposedly on the driver and put that information inf lated tire.” completed a commercial drivers’ license into actionable format.” ■ EXPAND YOUR EXPERTISE WITH ISM ISM is dedicated to helping supply management professionals increase their knowledge and expertise with opportunities to help you increase your proficiency in procurement and enhance your career. Your Next Inspiration is at an ISM Event. ISM Indirect 2018 | November 7-9 | Las Vegas, NV Marketing, fleet, human resources and other indirect expenses often don’t receive the same scrutiny as direct ones, even though they may comprise 50% of a company’s purchases. Learn from industry veterans who know the cost of business — and how to tame it. www.ismindirect.org Don’t miss the chance to sponsor or exhibit at an ISM event. Contact ISM today at krich@instituteforsupplymanagement.org or +1 480.455.5941. NAFA Ad 8_18.indd 1 7/19/18 10:22 AM 26926030_Editorial.indd www.nafa.org 1• info@nafa.org JANUARY/FEBRUARY 2019 22/07/18 3:16 pm
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