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White PaperElectronicLoggingDevicesThe Top Five Reasons your Fleet NeedsELD TechnologyElectronic logging devices (ELDs) may be named for their capability to automatically track driver hours and ensure complianceto Hours of Service (HOS) regulations, but the reality is that electronic logging is typically just a small component of a muchlarger mobile fleet management solution. ELDs also help drivers and fleets increase fuel efficiency, retain drivers, improvesafety, deliver an exceptional customer experience, and much more.With all the competition and challenges facing trucking, this technology is becoming a must for carriers who wish to staycompetitive. To help clearly convey some of the major benefits of adopting ELD we have compiled this paper which covers ourtop five benefits of ELDs, including Hours of Service compliance, fuel efficiency optimization, driver retention, and improvedfleet safety and customer service.www.omnitracs.com
1Eliminate Hours of Service violationsHours of Service violations are a major source of frustration for fleet managers. They result in fines,damage to CSA scores, and increased insurance premiums that hike up operational costs. In somecases, they can even result in an out-of-service order.It can be frustrating for fleet managers as much of the responsibility rests with the driver. Just onecareless driver who falsifies logs can have a devastating impact on an entire fleet.Leveraging electronic logs is the ultimate answer for fleets with Hours of Service concerns. It eliminatesthe human component from the equation, which immediately prevents some of the most common andsevere offenses. This includes: form and manner, falsification of logs, and unknowingly exceeding drivetime.Electronic logs also mean your drivers will no longer have to spend countless hours on paperwork.According to the FMCSA, electronic logs alone will save 708.00 per driver, per year from paperworksavings alone.1Not convinced? Consider this: 25% of all Hours of Service violations end in an out-of-service order. Out-of-service orders cost drivers hundreds, even thousands of dollars. Eight of the top 20 roadside inspection violations are HOS-related. 15% of roadside inspection violations — and the most frequent violation — are simple formand manner errors.www.omnitracs.com
Increase your Profit Margin by 30%2with Improved Fuel EfficiencyDriver behavior is by far the largest single contributor to improving fuel efficiency. So much so that,according to the U.S. Department of Transportation, the most efficient drivers 35% better MPG than yourleast efficient drivers.1 With driver performance monitoring, fleets can not only identify the best driversand build a plan to retain them, but also transform below average drivers into top performers. This canhave a profound impact to the bottom line.Did you know? Any more than ten seconds of idling uses more fuelthan restarting the engine. Idling consumes almost a gallon of diesel fuel/hourand constitutes nearly 8% of total fuel use. For a truck that consumes 70,000 of diesel fuel ina year, 5,600 is spent on idling. By modestly decreasing speed to 65 MPH, theaverage vehicle can achieve a fuel savings of 7,200 annually. Fuel economy decreases by .5 MPG for every 5MPH a truck drives over 55 MPH. (We recommend60 MPH as a safe and fuel efficient highwayspeed.4) According to a recent study by the FMCSA, a 5%increase in fuel economy, which is easily attainableby fleets that adopt telematics translates into a 30%increase in profit margin due to the multiplyingeffect of slim profit margins.1www.omnitracs.com
Retain your Best Drivers with Metric-Based3Incentive PlansWith the driver shortage now reaching as high as an estimated 45,000 drivers, and driver turnover in thetruckload space hovering over 95% for the third year in a row, carriers are undertaking extreme measuresto attract and retain drivers.Some of these tactics include: Driver pay increased as high as 15% in 2014. 48% of truckload carriers are now offering sign on bonuses.3 Truckload carriers are ordering new luxury tractors to attract drivers.Did you know? According to the FMCSA,it typically costs upwards of 8,000 to replace a driver.3With all the competition heating up, fleets need to get more and more creative to address the problem.One method to improve retention is to implement a driver incentive program. Programs like these areunique because they provide bonus pay to the most efficient, and therefore most profitable, drivers foryour business. Best of all, these programs are easy to administer by simply basing the incentive paymentsoff of driver performance data dashboards that are available on the Omnitracs MCP and XRS platforms.To learn more about implementing a driverincentive plan, contact a product specialisttoday by calling (800) 348-7227.Example Screenshot from Performance Monitoringon the MCP50 Platformwww.omnitracs.com
4Improve Fleet SafetyOnboard technology from Omnitracs can go a long way in helping improve fleet safety. In fact, manyOmnitracs customers report a 20% reduction in critical events after implementing Omnitracs technology.Why does it have such a profound impact? Because when used effectively it addresses nearly all theleading causes of accidents.Let’s take a look at how our solutions help address these common problems.29%of crashes are caused by eitherspeeding or aggressive drivingOmnitracs Critical Event Reporting application can helpreduce speeding and aggressive driving by monitoringbehavior in real time.22%of crashes are caused bylack of familiarity with roadsOmnitracs In-Cab Navigation provides the driver with a clearview of unfamiliar roads, and prevents low bridge collisionsby providing only truck-specific directions.13%of crashes are caused bydriver fatigueOmnitracs Hours of Service application automatically notifiesdrivers of available drive time, which minimizes the impact offatigued and drowsy driving.10%of crashes are caused byequipment malfunctionWith solutions for vehicle health, fleet managers can preventunplanned breakdowns and accidents.8%of crashes are caused bydistracted drivingOmnitracs’ proprietary In-Motion Interface technology andhands-free text-to-speech capability help you reduce in-cabdriver distraction.“There is a well established relationship between speed and crash outcomeseverity. A 5% decrease in average speedleads to approximately a 10% decrease ininjury crashes and a 20% decrease in fatalcrashes.”2— FMCSAwww.omnitracs.com
5Improve Customer ServiceBeing able to provide excellent customer service is vital to the growth of any business — transportation isno different. With onboard technology, your managers can view driver location, delivery status, availabledrive time, and vehicle health in real time. This arms your managers with all the information they need todeliver an excellent customer experience.Let’s take a look at three examples of how technology can improve the customer experience.1Allocate loads based on driver location2Respond to a customer inquiry3Improve driver-manager-customer communicationHave a job that needs to be picked up, but not sure about your resource availability to deliver?With vehicle availability and location data, you can quickly identify your available capacity basedon location, hours, and delivery status information. This gives you the data you need to take thejob confidently knowing that you have the bandwidth to deliver.With GPS data, vehicle data, and available drive time information at your fingertips, you canhandle all of your customers’ needs in one phone call. Having this data on hand also eliminatesthe need to place tedious and sometimes frequent check calls to your driver. This can help youfree up bandwidth so you can focus on what you should be doing — growing your business!Having access to all this information puts your manager and your driver on the same page.This creates an environment where problems can be addressed quickly without confusion orargument. It is less taxing on the driver’s time and enables fleet managers to coach and instructefficiently and quickly.This improved communication and problem resolution capability also has a profound impact onthe customer experience. With less time being spent resolving internal issues, more time andenergy is made available to show your customer how important your business is to them.In ConclusionElectronic logging devices (ELDs) provide fleets with more than just a convenient Hours of Service tool,but provide a wide array of fleet optimization capabilities. The capabilities this technology can provideto carriers are significant, and provide fleets with a major competitive advantage that refuse to leveragetechnology effectively.For more information on ELDs and how Omnitracs can help take your fleet to the next level, contact ustoday. We are available to provide product demonstrations and share our experience helping make theworld’s best fleets even better.www.omnitracs.com
Sources1. udy of the Impact of-a Telematics System Full Report.pdf2. search/large-truck-crash-causation-study3. http://www.trucking.org/News and Information Reports Driver Shortage.aspx4. http://cumminsengines.com/uploads/docs/cummins secrets of better fuel economy.pdfAbout Omnitracs, LLCOmnitracs, LLC is a global pioneer of fleet management, routing and predictive analytics solutions for private andfor-hire fleets. Omnitracs’ nearly 1,000 employees deliver software-as-a-service-based solutions to help more than50,000 private and for-hire fleet customers manage nearly 1,500,000 mobile assets in more than 70 countries. Thecompany pioneered the use of commercial vehicle telematics over 25 years ago and serves today as a powerhouseof innovative, intuitive technologies. Omnitracs transforms the transportation industry through technology andinsight, featuring best-in-class solutions for compliance, safety and security, productivity, telematics and tracking,transportation management (TMS), planning and delivery, data and analytics, and professional services.Learn how you can use our applications,platforms, and services to reduce costs,increase profitability, and stay competitive.Visit www.omnitracs.com and let us showyou how you can save time and money.717 N. Harwood StreetSuite 1300Dallas, Texas 75201U.S.A.(800) 348-7227www.omnitracs.com 2015 Omnitracs, LLC. All rights reserved. Omnitracs is a trademark of Omnitracs, LLC. All other trademarks are the property of their respective owners. Omnitracsendeavors to ensure that the information in this document is correct and fairly stated, but Omnitracs is not liable for any errors or omissions. Published information maynot be up to date, and it is important to confirm current status with Omnitracs. (10/15)www.omnitracs.com
Leveraging electronic logs is the ultimate answer for fleets with Hours of Service concerns. It eliminates the human component from the equation, which immediately prevents some of the most common and severe offenses. This includes:
