In the trucking industry, terms like SaaS, The Cloud, compliance and fuel variability are omnipresent, but they become even more interconnected when you insert the ELD (electronic logging device) mandate into the conversation. Suddenly, they hold even greater significance, especially to fleets.
In essence, the mandate requires that fleets become more proactive in managing driver hours of service through the implementation of ELDs. As a result, it’s likely that the market will become oversaturated with products that address this need. Some of these new offerings will specialize in the logs alone. Some will deliver other benefits that can shape driver behavior and yield gains in fuel utilization, vehicle maintenance and out-of-route miles.
SAAS
With the implementation of the ELD mandate, many questions are being raised about The Cloud and software as a service (SaaS) because compliant software will be deployed as a result of the mandate.
The reality is that the need for on-premise software is diminishing fast, especially given the major advantages of SaaS compared to on-premise methods. Among them:
- Saved time – Eliminates the need to schedule IT installations, purchase expensive databases and hire personnel for maintenance.
- Scalability – Allows a fleet to add capacity in minutes, not days or months.
- Affordability – Costs typically can be spread out over time with a monthly payment versus an up-front cost to purchase software. A monthly payment, however, can be expensed as it occurs instead of having to depreciate the cost over time.
- Flexibility – Software never will be out of date, there’s no need to schedule IT maintenance and there are no files to download or DVDs needed to conduct an upgrade.
STREAMLINE FLEET MANAGEMENT SERVICES
With the ELD mandate, a noticeable change in efficiency and savings is expected. The seamless integration of advanced telematics technology via ELDs has the power to impact costs related to accidents, fuel, accountability and wear and tear.
From a business perspective, the ELD mandate will ensure accurate measurement of off-duty and on-duty activities. While cumbersome paper logs require the time to be logged in 15-minute increments, electronic logs round to the minute, thus affording more drive time and the ability to service more customers.
Put in perspective, if drivers gain 10 minutes for every four stops, that’s 40 minutes back in their day – enough time to service one more customer. Long term, this may mean less overtime hours, less vehicles on the road or potentially even fewer service days.
Using ELDs instead of more traditional paper methods can put a driver’s mind at ease. They can be assured that their logs are completed and accurate. No more forgetting to complete them throughout the day. ELDs also can prompt drivers when they may be short on time, encouraging them to rest.
Safety is also a factor. Overall, companies are starting to look at safety scores and relating them to how drivers are performing.
IMMEDIATE SAVINGS
One compelling aspect of the mandate is the immediate savings that can be realized when implementing an ELD solution. Using technology can help manage a fleet better and comply with the convergence of routing, dispatching, telematics and compliance into single-point solutions.
The website ELDfacts.com provides some insight into the potential savings per driver per year using the Federal Motor Carrier Safety Administration identified assumptions:
- Driver filing RODS (record of duty status): $487.
- Driver submitting RODS: $56.
- Clerk filing RODS: $120.
- Elimination of paper driver logbooks: $42.
- Total yearly savings in paperwork: $705 per year per driver.
GPS
The nature of the software helping to enforce the ELD mandate requires GPS tracking. GPS opens up the avenue for gains in productivity and efficiency.
Knowing where a driver should be relative to where they are shows unplanned stops or out-of-route mileage. Holding drivers accountable for unplanned stops can result in mileage savings of 10 to 15 percent and add one additional delivery a day.
GPS solutions also can monitor safety and driver behavior – such as harsh driving activities like speeding, fast starts, cornering, braking and idling – which can impact both fuel and fleet maintenance.
Cyndi Brandt is the director of product marketing and alliances for Omnitracs Roadnet Technologies (www.omnitracs.com). It is a global pioneer of innovative software and SaaS fleet management solutions serving the transportation industry.
