America's private truck fleets are increasingly employing telematics to help drive down the cost of doing business, according to industry leaders responding to a survey commissioned by PHH FirstFleet.

In addition, truck fleets are "going green" in order to implement environmentally sound practices. PHH FirstFleet is a national provider of asset management, financial and high technology operational support to the private trucking and transportation industry throughout North America. The survey of private truck fleets was conducted online and during PHH FirstFleet's recent Fleet Management Conference attended by senior fleet operations managers for Fortune 500-level companies.
"Telematics is the trucking industry's newest asset in the fight to curtail soaring prices that impact fleet profit margins,” said Michael C. Lewis, president and general manager, First Fleet Corp. “Private truck fleets are using the data available through telematics to understand fuel consumption, the effects of new engine emissions standards and driver behavior. PHH FirstFleet's mission is to help our customers aggregate and analyze this data to create solutions that reduce operating costs, optimize their truck fleets and educate their drivers to be more effective."
In addition, Lewis said, "Because many of our natural resources are non-renewable and trucking by-products may be detrimental to the environment, we encourage our customers to adopt aggressive 'green' policies that favor recycling and reducing polluting emissions."

• Survey results on telematics technology

"Telematics" is a general term used to describe a wide range of devices used in vehicles; most include a combination of Global Positioning System (GPS) and telecommunications technology.
In the PHH FirstFleet survey, 60 percent of the fleet managers said they are adopting the devices to track equipment status and driver activities. Seventy-nine percent of those surveyed said they were installing the technology in 75 percent to 100 percent of their fleet, with 42 percent reporting the main concern was to track delivery times. Thirty-nine percent of the respondents indicated they wanted to optimize routes and fuel management, and 38 percent thought their drivers would perform better and drive more responsibly if they knew they were being monitored. Equipment endurance (18 percent) and security (20 percent) were lower on the scale as motivation to install telematics.
Implementation of telematics has been a positive experience for a vast majority of the fleet managers who are currently using this technology, with 83 percent saying that telematics helped improve performance, and 68 percent saying that telematics became fundamental to the entire operation. Fifty-seven percent were pleased by the visible return on this financial investment.

• Concern for the environment

"Going Green" turned out to be popular at the fleet managers' companies, with 65 percent reporting that some type of environmentally conscious initiative had been put in place. The majority use outside contractors to conduct recycling programs and handle waste products, but the investments have not been big and the programs remain very low key, said 59 percent of the group polled. However, "green" initiatives are on the rise, with 67 percent reporting plans for additional investments this year.

• Fleet managers' other top concerns

Fleet managers were outspoken in their written responses on the issues facing fleet management today:

– One retail operations director voiced an interesting comment pertaining to C-level corporate attitudes towards their private fleets: "(There is a) serious lack of management awareness that the fleet is a competitive asset and requires resources to achieve the highest levels of services and cost benefits."

– "Driver shortages coupled with higher fuel costs – a double hit, difficult to overcome. We've implemented pay practices for drivers that have significantly increased retention and instituted fuel hedging policies," said Roy Martin of Advance Auto Parts.

– Murphy-Brown's Brian Reding thought some good public relations might be a solution to the driver shortage problem: "We need to convince people that being a truck driver is a very good and satisfying occupation – show the public a positive image of the industry."

– Chuck Schwenzer of Tropicana felt it was a top priority "(to improve) fleet performance statistics and the ability to collect, measure data, separate 'fact from fiction,' then implement changes based upon the information collected."

– Fuel is on everyone's mind. A food manufacturing industry fleet manager commented on "rising (fuel) costs that cannot be passed on to our customers. This pushes us as managers to look at all available alternatives in an effort to offset price increases."
– Even the oil companies are feeling the heat, as one fuel industry fleet manager said: "Our concern is rising fuel costs. Our fuel costs were 40 percent over budget in 2005."
As one supermarket transportation executive succinctly concluded: it all comes down to "understanding and controlling escalating operating costs. Those who are successful at this will have the greatest chance for survival."
The survey, which drew nearly a 50 percent response, almost double the spring 2005 poll, was commissioned by PHH FirstFleet and conducted by Starmark Market Intelligence. For a full summary of the PHH FirstFleet National Survey of Fleet Managers, visit www.phhfirstfleet.com.