Compliance. Staying in compliance with regulators is a tedious, labor-intensive, costly proposition for many companies. For example, fleet operators whose vehicles travel in multiple states must keep track of those miles so the right fuel tax can be paid. At the same time, keeping in compliance with drivers’ hours of service regulations is a top priority. AVL systems that provide automated and tamper- proof DOT driver logbooks and allocate miles by state without driver participation virtually pay for themselves just in these areas alone.

Incentive pay programs. Reduced to its simplest terms, incentive pay rewards the driver for performing the job as quickly and safely as possible. Actual trip data generated by the AVL system can be used to develop drive and stop standards to develop an incentive pay plan for drivers.

Defending drivers involved in accidents. Incontrovertible trip data protects drivers who may be wrongly assigned blame in accidents. For example, a driver accused of running a stop sign and causing an accident can prove he was stopped at that very stop sign.

Defending against fraudulent claims. Some companies are targets of fraudulent claims against their vehicles. Trip data can be reconstructed showing a vehicle’s exact location at any time so this can be used to successfully repudiate the “eye witness” testimony of unscrupulous criminals.

Reduced liability insurance. Monitoring and reducing driver speed reduces accident probability. Insurance companies look favorably at companies that control their drivers’ speed and some offer reductions in liability premiums.

Fuel and maintenance savings. Monitoring and controlling vehicle speed and engine idling reduces fuel consumed and engine wear extending engine life. The longevity of vehicle components like gearboxes, axles, and break liners is extended as well through reduced wear.

Financial analysis and reporting. Actual operational data produced by an AVL system can be soundly integrated with financial data for accurate profit and loss reporting and transportation ratemaking.

A few considerations in selecting the most suitable vendor are these: Decide what functionality is most important to your business and identify which vendors’ systems are best capable of delivering this. Many lower-priced systems provide vehicle location but do not automatically report miles by state and do not have DOT driver log capability. Negotiate with vendors who understand the intricacies of fleet operations. Ideally, the vendor should have persons on staff who have successfully managed fleet operations themselves.

Develop a list of questions: What distinguishes the vendor’s technology? Does the vendor hold patents? How will drivers like the system? How much driver interaction is required? Is voice communications needed and does the vendor provide this? Can the system be upgraded from passive to interactive? How is the quality of the maps and how fast do they load? How fast does the system execute reports? Does reporting capability exist that compares actual with planned data? What kind of training and customer support is accessible? What maintenance support (hardware and software) is offered?

Develop a vendor “short” list:

Just because a vendor’s name is well known does not necessarily mean their product (or price) is best for your company. Take into account the total cost of the system: hardware, software licensing, installation, maintenance, upgrades and communications charges. It is not uncommon that vendors sell hardware relatively inexpensively but charge expensive (and recurring) messaging or reporting charges for their systems. It is unwise however, to purchase a system of this kind based on price alone. The ultimate purchase decision should be based on value delivered.

Once a “short” list of vendors is identified, there can be no substitute for testing the vendor’s system on your fleet in your environment. Calculate a return on investment analysis. A system that provides the right functionality should rapidly pay for itself in well under a year.

In the ideal relationship, fleet operators and AVL vendors function as partners. Find a provider that is committed to working with you. The vendor should be willing to customize its reports specific to your business and make modifications to its system if necessary. Finding the best AVL vendor is not easy. A better understanding of what you need and asking the right questions makes it easier. Companies that operate vehicles face enormous pressure to control their costs, comply with governmental regulators and to continually enhance the future performance of their fleet. AVL technology helps in so many ways it should not be overlooked.

Literature

1. http://en.wikipedia.org/wiki/Logistics

2. Creveld van, Martin. 1977. Supplying War: Logistics from Wallenstein to Patton. Cambridge: Cambridge University Press

3. Engels, Donald W. 2006. Alexander the Great and the Logistics of the Macedonian Army. Berkeley: University of California Press

4. Roth, Jonathan P. 2003. Logistics of the Roman Army at War (264 B.C. - A.D. 235). Leiden/Boston/Köln: Brill