How Telematics Data can be used for Life-cycle analyses of Fleet Assets?

HOW TELEMATICS DATA CAN BE USED FOR LIFE-CYCLE ANALYSES OF FLEET ASSETS?

When is the last time, the fleet manager of your organization conducted the lifecycle analyses of assets from the acquired data of the telematics solution? An effective life-cycle analysis of an asset determines the remaining life of the asset in the fleet before the cost of ownership and operation are no longer costeffective.
The analysis can be formulated on the annual operating cost vs. the cost of ownership. Operating costs may include the maintenance cost, fuel economy, downtime cost while the cost of ownership can be modeled on the capture purchase and disposal costs. Despite the life-cycle analyses of assets being the critical skill, the process can be made less time consuming and hectic with the proper storage and management of data in the fleet management system.

Categorize your asset for life-cycle analysis

The preliminary step to the life-cycle analysis of an asset demands the categorization of assets based on their configurations, acquisition costs, and operating use cases. The lifecycle and operating cost may vary depending on the usage of the vehicle.

Vehicles can be classified according to the American Public Works Association’s (APWA). According to which a 10 character code can be generated for each vehicle based on its class, unit type, fuel, weight, application, power source, wheel configuration, transmission, and a user-defined field which can be used to classify the fleet asset.

Another method that can be used to standardize the asset data and to ensure the correct categorization of assets is by using the VIN decode tool.

Here it is worth mentioning that while setting up the life-cycle categories, few factors need to contemplate. The life-cycle categories should be defined carefully with a balance. As the much precisely defined category will lead to having fewer assets resulting in a sample set statistically too small to analyze. While the broadly defined categories will combine assets that have different capital and operating costs, making the analysis results too general to establish accurate life cycles.

Input Ownership Cost Data

Another important factor used for life-cycle analysis is the cost of ownership. The capital cost of an asset for a period (monthly or annually) can be calculated as a difference in residual value from one period to another in which asset is in service.

It has been observed as a general practice in the fleet, operating assets are not sold in their early life due to which early year residual value cannot be obtained from the data. However, the value can be calculated by constructing a residual cost curve based on the asset’s configuration, mileage, condition, and locations.

Another method to find the residual cost is to use depreciation to estimate the period’s residual value. The sum of years or double declining methods is the best for modeling residual values, as they decline in value sharply in the early years and flatten out in later years, which is like actual asset values on the market.

Moreover, the functions of Excel can also be used to calculate the period’s depreciation expense.

Add Maintenance Cost Data

While analyzing the life-cycle of an asset, it is worthy to note the month in which maintenance of an asset occurred and what was the utilization of an asset at that current time. Besides this, the cost of maintenance can be calculated from the time the asset is in-service till the time it is taken out of service.

The zero cost of an asset while waiting to be disposed of should not be included as recording accurate meter readings on the work order is essential to correlate the repairs to the life-to-date usage of the asset.

When you are dealing with the operating cost of an asset, the major chunk is generally contributed by the maintenance costs. However, not all maintenance data is worth useable.

For data to be used in the life-cycle analysis, it should consider predictable, unpredictable, and reoccurring repairs and maintenance that are related to the actual operation of the asset including preventive maintenance, inspections, breakdowns, warranty claims, and recalls also knownas target costs.

Random maintenance cost required after crash repairs or user-requested modifications, weather-caused repairs, and vandalism are known as non-target costs and does not defines how well drivers are trained, where assets are stored,or what management decides. Non-target costs are not related to the regular operation of the asset, and does not occur at normal intervals related to age or use of the asset.

Other Operating Costs

With the aging of an asset, a general assumption is made according to which assets become less reliable; demanding more frequent and longer repairs. By using the downtime method, the reliability and maintainability of an asset can be used for life-cycle analysis. Moreover, downtime cost i.e. the cost to provide an alternative asset (spare or rental) when the asset is out of service or repair will also be added in the category to generate more accurate statistics.

Focus on a Few Categories

While running the analysis, it is insignificant to set up the data for categories with fewer assets, as it will be time-consuming with no or limited return. However, it is advisable to plot the operating cost for such assets which can be later used (at the time of major repair) to identify whether it is their point of replacement or maintenance is more suitable for a fleet.

Life-cycle analyses enable you to focus on the majority of the fleet that is expensive to own and maintain providing you an opportunity to identifying an optimal replacement cycle and build back-up to the replacement budget request

How IoT is impacting automotive industry?

HOW IOT IS IMPACTING AUTOMOTIVE INDUSTRY?

IoT revolution has been greatly impacting the automotive industry like never before. With the IoT revolution, the automotive industry is experiencing the convergence of auto manufacturers and technology companies 

These impacts can be visibly seen in car leasing, car rental services, public transportation, auto manufacturing. Recently Ford Motors announce the integration of telematics into their vehicles. Similarly, Apple and Google are in the process of developing autonomous vehicles.
According to Gartner’s prediction, by the end of 2020, the number of connected devices will reach by 20.8 billion which seems to be possible with its far reach in the automotive industry only.
IoT connected vehicles offer proactive fleet maintenance which not only saves the customers from breakdown and downtime of the leased vehicle but will also improve the customer relationship and extend the leasing contract. IoT connected vehicles provide the real-time data of the asset such as location, fuel tank empty, or battery issues beforehand to save time.
Similarly, IoT connected vehicles can be of significant use in the car rental industry. The fuel level information of rented car can be obtained through telematics. Similarly, the virtual key solution can be used to lock/ unlock the car door by using smartphones to avoid the management of car keys. Moreover, maintenance and car wash may also be automated through telematics
IoT can also prove to be beneficial for auto manufacturers as the Original Equipment Manufacturers (OEMs) provides post-sale services during the warranty period. The OEMs can use IoT to reserve their customers by introducing special offers by monitoring their distance or service interval.
Car manufacturers can leverage telematics to connect all their older vehicles and gather valuable sets of data that help them build better vehicles. Knowing that customers are having battery issues or that particular faults occur after many years in the real world can help them build better new vehicles.
The buzz of IoT will be over after some period and some other new technology will evolve on the top of it, but IoT will serve as the commodity and embrace the new evolving technologies one will need to embrace IoT.

How telematics can optimize the performance of first responder vehicles?

How telematics can optimize the performance of first responder vehicles?

For organizations managing their fleet around the clock for an emergency response such as first responders, and public works, also needs the telematics for their own safety. Due to the heightened sense of responsibility sometimes these first respondents fail to take the right precautions for themselves when they are behind the wheel.

According to the crash data examined by the National Highway Traffic Safety Administration (NHTSA) of the United States, unfortunately, the frequency of crashes involving ambulances, firetrucks and police vehicles happens more often than we might think. The most common cause found for these incidents was the excessive speed and inadequate seatbelt use.

Telematics, GIS (geographic information systems) mapping, GPS and cellular communications are already extensively used by organizations involved in fleet operations to smooth down their day-to-day operations.

Now they can also be used as in guiding teams, tracking progress and assigning workers in the aftermath of blizzards, thunderstorms, floods, heatwaves, and events where the public’s safety is a concern.

Tying these technologies together is fleet management that not only saves time by providing real-time information about location, weather conditions, traffic conditions but also provides the performance analytics that can be beneficial for on-the-spot resource deployment decisions as well as for the preparation of future events.

With Eagle-I fleet management solution, driver behavior can be monitored to ensure the safety of the response time along with these alerts can be issued about the status of seat belt and any speed violation.

Fleet managers can also use fleet management software for keeping the schedule of vehicle maintenance, and can also identify the problem before the vehicle’s breakdown by using OBD data. Moreover, the fleet managers can keep the record of the utilization of an asset by using the software and important decisions can be made about under-utilized or over-utilized assets.

The implementation of telematics will make sure you are ready to deploy your fleet in case of an emergency. Telematics solution such as Eagle-I ensures the data aids in every aspect of the emergency response team and assures the work to happen coherently and in
sync, enabling the rapid response.

Would you like additional information?
Call now Eng. Mohamed al Jamal, Phone +966 56 638 7859
Or email us at news@dms-ksa.com
We are here to help.

Perks of Digitized Fleet Management

PERKS OF DIGITIZED FLEET MANAGEMENT

When it comes to fleet management, how to cut down the cost is a topical issue.It is perplexity to observe that business involved in fleet management does not want to invest in new technology until it’s crucial for their business survival due to their increased expenses. But how can one’s business achieve an increase in productivity, while saving money without being frugal with resources?

While every fleet managers tend to achieve more with fewer resources but for various challenges such as time, cost,communication,customer service hinders the proper fleet management. Digitization the fleet management is not always considered as vital for business growth but it can give you the chance to reallocate your resources to focus on more important aspects of your fleet management role.

When you choose to digitize your daily fleet management
tasks such as choosing drivers and their dispatching route, updating the customers about their expected arrival, scheduling maintenance, you are able to enhance the productivity and efficiency of your business.

Time: When your vehicle is stuck in traffic congestion, it does not only impacts your fuel economy but will also directly impact the cash flow and time consumed to complete the jobs assigned. Eagle-I handles your nightmare of scheduling your vehicles at the right address with the lowest possible mileage.

When you digitize your fleet with Eagle-I vehicle tracking and fleet management solution,you can navigate around traffic congestion saving your fuel besides being able to fit in more jobs per day.

Cost-saving: Your fleet is your asset. If your fleet is draining more money from the business than they should, then it is the right time to digitize your fleet management.

With the integration of telematics solution you can not only track
the progress of vehicles but it allows you to remotely access the vehicle location, updated traffic and weather condition and dynamic route management options with just a single click on your mobile or desktop screen thus saving your time and fuel consumption.

Staying connected: Another important factor to increase the productivity ofyour business is to stay connected. With the digitization of your fleet, you can always stay connected to your driver no matter the size. This not only assures the timely delivery but also helps you to stay informed and adapt to the last minute changes if your schedule doesn’t quite go according to plan.

58% of fleet managers surveyed estimate that around 33% of the time their drivers fail to reach their destination within the first ETA given to the customer. Late deliveries equal to poor service.

Customer service: According to the rough estimate, 58% of fleet managers surveyed that around 33% of the time their drivers fail to reach their destination within the first ETA given to the customer which means late deliveries equal poor service.

As a fleet manager, you need to have a full control of your fleet which is only possible when you automating your daily fleet management tasks with good dispatching service that can integrate with existing ERP systems such as Eagle-I vehicle tracking and fleet management solution which does not demands the sacrifice of your huge financial investment.