Today’s fleet industry is focused on leveraging vehicle telematics to help lower operating costs, save fuel and lower emissions, improve driver efficiency, and improve safety. While each of these objectives by themselves may provide some benefit, how can you ensure that you are managing all of them with your telematics solution to provide maximum returns?

There are many telematic products in the marketplace today that offer what seem to be robust solutions simply by leveraging traditional GPS functionality. But is that enough? The challenge is that many organizations require more than just a simple technology solution; they require a more robust, end-to-end program to help them achieve their goals.

There are several key things that a company must understand before choosing a telematics solution.

• Many telematic products offer an overwhelming number of features and/or functionality — most often at a premium price — that may not be leveraged within a given organization. It’s critical to fit the solution to your particular needs.
• A standalone telematic product fails to address the driver education requirements. A robust training and communication effort needs to be implemented to ensure drivers understand their impact on efficiency and overall cost. Without this, an organization may not fully maximize their returns.
• While some reports may be available in the short term, the need for ongoing, easy to understand scorecards at both the fleet and the driver level is needed to drive change and hold long-term gains.

Finding the right technology solution that fits an organization’s needs is the key to providing a strong ROI. Whether it’s the fleet, IT, or sustainability group in your organization that is driving the business need for a telematics solution, finding the most comprehensive solution of measurement, training, and reporting is the key to cost effective success.

About the Author

Nicholas Ehrhart
Nick Ehrhart, Donlen’s Telematics and Driver Behavior Analyst, manages the Donlen Telematics® program. Nick is a Certified Automotive Fleet Manager (CAFM) and uses his experience as a fleet manager to help customers maximize the benefits of Donlen’s GPS/Telematics program. Nick earned his B.S. from the Kelley School of Business at Indiana University in Business Process and Operations Management.

It seems like everyone wants to know your business these days.

Transparency is the buzzword and everyone from stakeholders, investors, the EPA, and vendors want to know what you are doing in your company and with your fleet to be GREEN.

Have you calculated your facility’s carbon footprint?

Do you know the amount of GHG emissions that your fleet produces a year?

What have you done or are you planning to do to be earth-friendly and green?

Regardless of your feelings and views about climate change, we all need to “get our ducks in a row” and cover our bases with regard to these issues.

The handwriting is on the wall and whether our company and fleets are large or small we will all be feeling the impact of forthcoming imposed guidelines, regulations, and requirements whether on a local, state, or federal level.

Where should one begin?

I think it is important to have a corporate mission statement that includes recognition of the need to implement policy and action toward achieving green goals and objectives.

It is also important to quantify — where you can — the GHG emissions of your fleet and how you intend to reduce or offset these emissions. Some options are vehicle choice, telematics, driver behavior, and offset projects.

Begin a program of recycling paper, plastic, and aluminum soda cans at work with all your employees. Keep track of how much you have saved the environment by not having these things end up in landfills.

Let others know through your website, newsletters, and community programs that you care and are working and partnering with others to make a positive difference for the environment.

These are only a few suggestions you can use to begin a green Initiative.

I would welcome your ideas and other things being done that address these issues.

The opinions expressed by guest bloggers are solely theirs, and do not necessarily represent that of Donlen.

About the Author

Chuck Kukal
Chuck has been with Infinity Insurance Company for more than 6 years as a part of the Administrative Services Team supervising the day to day operations of fleet. Infinity has a fleet of 400 Jeep Compass' which are provided to adjusters, special investigative agents, and business development personnel. He was instrumental in developing a new Fleet Safety and Risk Management Program which included a new driver training program. He is active in the company's overall green initiative with the recycling, vanpooling, and carpooling programs and in 2007 worked towards making Infinity’s fleet the insurance industry's first fleet to become Climate Neutral. Chuck was a speaker at the Power of Green Fleet Symposium and contributor to articles in Automotive Fleet and Fleet Financials magazines, as well as a panelist at the 2009 Donlen-sponsored Green Fleet Conference in Chicago, Illinois.

The recent instability of the global economy has affected us on many levels. Industries that were once booming were no longer and unemployment was at record high levels. Oil, a major commodity in the marketplace, became a concern as fluctuations in the barrel captivated the world’s attention. The need for alternative vehicle technologies became prevalent, and although mass production and implementation are within reach, financial barriers continue to keep manufacturers and consumers at bay. Until these alternative vehicles are readily available and are financially attainable by the average consumer, fleet managers and individual drivers alike must look at driver behavior as a key component to help minimize associated costs.  

The Energy Information Administration projects an average increase in gasoline prices from $2.35 per gallon in 2009 to $2.84 in 2010.¹ In order to reduce fuel costs, increase miles per gallon, and have the added benefit of slowing down environmental degradation, appropriate driver behavior training is necessary. The EPA reports that driver behavior alone can impact as much as 33% of a vehicle’s fuel economy², and there are several simple things that drivers can do to help mitigate these factors.

• Reduce idling time: Idling a vehicle not only consumes excess fuel and emits unnecessary carbon dioxide, but represents one of the poorest, yet manageable, driver behaviors.
• Plan ahead: Pre-trip planning is beneficial as shorter, more efficient routes utilize less gas and therefore reduce carbon output.
• Clean out unnecessary items: Reducing weight in a vehicle has a measurable impact on fuel economy.

In combination, these small changes can add up to substantial savings for an organization.

Fleet managers are downsizing, shifting toward more economical vehicle selectors, implementing driver behavior courses, and using telematics devices to help alleviate overall spend. However, costs can be uncertain and prices could shift significantly in the near future. Individuals are rarely mindful of their bad driving behaviors unless they experience a dramatic condition. Take for example, when fuel reached $4.50. Consumer perspective changed rapidly and the market demand for large/intermediate SUVs and trucks dropped substantially. There was increased consumer interest in fuel efficient and hybrid vehicles.

Fast forward to current market conditions: the economy seems to be improving; the dollar continues to strengthen; oil has stabilized in comparison to the past couple years; vehicle sales are making their way back to historical levels; many hybrid vehicles are hitting the market; and current legislation is aimed directly at fleet performance and the effects of carbon. However, ask yourself one question “Has my driver behavior changed from the summer of 2008 to now?” I am certain it has. Why? People do not make dramatic decisions or implement behaviors until it is absolutely necessary. Such was the case when fuel prices hit $4.50, the market was crumbling, jobs were being cut at devastating rates, vehicle manufacturers were not producing efficient quality products, and the monetary system was in crisis. Everyone seemed to be more conservative during this time, even down to their driving habits. This is a natural reaction and unfortunately it may take several repetitive events for us to realize that “if it happened once it can happen again.” Driver behavior training should be implemented and continuously reinforced in order to not only minimize costs but secure a “greener” future.   

¹ http://www.eia.doe.gov/steo

² http://www.fueleconomy.gov/feg/why_differ_detailed.shtml

About the Author

GreenKey
DonlenGreenKey.com was established to help you get the latest information about greening your fleet. We invite you to explore our online resource and community, and share your best practices with others.

Many of today’s private and public sector fleets are migrating to hybrid vehicles for a very important reason: better fuel economy equals cost savings and carbon reduction. With invoice costs and retail demand of hybrid vehicles becoming more competitive with their gasoline counterparts, hybrids are a viable option for a fleet’s selector list. Keep in mind it is not just the battery that equates to the higher MPG; rather the ability to couple an Atkinson cycle engine with electric power the mainstay of today’s hybrid vehicles.

The Atkinson cycle engine is not a new technology; it was invented in 1882 by James
Atkinson to bypass patents covering the existing traditional 4-stroke Otto cycle engine.
An Atkinson engine’s efficiency advantage could be up to 14% more than that of an Otto engine. So why haven’t we seen Atkinson cycle engines utilized in vehicles prior to the hybrid? Power. Because a smaller portion of the compression stroke is used to compress the air-fuel mixture, an Atkinson engine does not take in as much air as a similarly sized Otto engine. Coupled with an electric motor however, this power gap is closed. Not only is efficiency improved by the electric motor, but by the utilization of a more efficient combustion engine as well.

Some vehicles that currently utilize Atkinson engines include:

• Ford Escape / Mercury Mariner Hybrids
• Ford Fusion / Mercury Milan Hybrids
• Toyota Camry Hybrid
• Toyota Prius
• Chevy Tahoe Hybrid
• Lexus RX 450h Hybrid
• Lexus HS 250h Hybrid
• Mercedes ML450 Hybrid  
• Mercedes S400 Blue Hybrid

So the next time you climb into a hybrid and step on the gas pedal, remember this: it’s not just electric motors and batteries that are contributing to your MPG, but a 130-year-old invention that has finally come to light.

About the Author

Brad Jacobs
As a client consultant at Donlen, Brad Jacobs partners with clients to identify long-term cost savings and policy opportunities. Brad has been a key contributor to the development and implementation of several Donlen initiatives, including: Donlen Dashboard™, Scorecarding and Benchmarking, Donlen GreenKey™, and Donlen Telematics®. Prior to joining Donlen, Brad held several management positions with Enterprise, focusing on fleet operations and relationship management. Brad is a graduate of the University of Missouri and holds a bachelors degree in Mechanical Engineering.

Recently the DOE’s Energy Information Administration released its Short Term Energy Outlook, in which they predicted the price of gas to rise to $3.00 during the upcoming summer months. While $3.00 isn’t far from the current average price of $2.66 nor as high as the prices seen during the summer of 2008, it can still make a significant impact on a fleet’s overall fuel spend. For fleets that have already right-sized their vehicles, monitoring the fleet’s fuel efficiency is one of the most powerful ways to control fuel spend.

For instance, an average fleet sedan has an Environmental Protection Agency (EPA) combined city/highway fuel economy rating of 24 miles per gallon (MPG). Analyzing data from the Donlen MasterCard® fuel card program an average fleet driver can range between 19 – 34 MPG. The driver that achieves fuel efficiency greater than the EPA rating is utilizing the vehicle in an efficient manner and reducing fuel costs. Unfortunately, the driver with ratings below the EPA fuel economy rating are collectively increasing fuel spend for the fleet. This means that a driver who drives 25,000 miles a year in an average fleet sedan with fuel efficiency in the lower range of economy will spend on average $2,000 more per year than a vehicle whose driver operates more efficiently.

Even more drastic is the range of efficiency for a hybrid vehicle. Let’s look at a Prius as an example. The EPA lists the 2010 Toyota Prius at a combined city/highway rating of 50 miles per gallon. An average fleet driver in a 2010 Prius can range between 40 MPG to more than 61 MPG. That variance in efficiency can cost you an extra $700 per vehicle.

So what is the best way to manage fuel spend? Educating and training fleet drivers on the most efficient way to operate their vehicles, and showing them their impact on the overall potential savings when they do, may be the most powerful way to help you control
fuel expenses.

**All calculations based on annual mileage of 25,000 and fuel price of $3.00. All savings are presented as annual savings. All fuel economy data from http://www.fueleconomy.gov/ and actual fuel efficiency from Donlen Fuel Data

The Donlen Corporate Fleet Fuel MasterCard® Card is issued by Regions Bank pursuant to a license by MasterCard® International Incorporated. MasterCard and the MasterCard Brand Mark are registered trademarks of MasterCard International Incorporated.

About the Author

GreenKey
DonlenGreenKey.com was established to help you get the latest information about greening your fleet. We invite you to explore our online resource and community, and share your best practices with others.