Vehicle on track?

Taking care of a fleet of vehicles is an important part of earning profits for any company. Could an appropriate fleet management software be the solution?

When a company has a fleet of more than 50 to 100 trucks, the assets need to be protected. Investing in a fleet is a big expenditure. It could cost anywhere from AED750,000 to AED5 million (US$204,000 to almost US$1.4 million) and the expenses do not end there. In fact, they begin from there. Annual replacements of parts such as tyres could cost a minimum of AED20,000 (US$5,435). With other costs to be considered, a turnover ratio becomes difficult to achieve.

With a fleet management software in place, a proprietor can ensure his investment is going in the right direction and his assets are being looked after. The software manages a variety of parametres such as safety of drivers, road safety, vehicle tracking, fuel and maintenance costs. The status of each vehicle can be controlled which increases their life span and generates more profit. Planning can be to the mark as drivers are able to avoid traffic delays and enhance the value of their trips.

“All the companies we have worked with have experienced very quick return on investments. In less than six months they are able to generate profits,” says Rani Ghazzawi, General Manager, FMSi, Abu Dhabi.

FMSi provides Fleet Management and Vehicle Tracking (AVL) solutions, based on GPS/GPRS/SMS/Satellite Communication/offline and semi online technologies. Set up in 2003, the company has a number of oil and gas companies as their main clients – ADCO, ADNOC, Shell, EPPCO, NDC (National Drilling Company), Drake and Skull, and Halliburton among others.

Since most of their clients belong to the heavy industrial sector, FMSi’s Fleet Management software solutions are suitable for all kinds of vehicles from heavy industrial trucks, oil tankers to forklifts and bulldozers. So, even if a vehicle is being rented out to a client, it can be supervised from the comforts of the office. This gives the proprietor an upper hand on the handling of his asset. Today with the rapid changes in all sectors, adapting to improvements in technology is the only thing to give one company an edge over another.

“Besides the regular advantages, a fleet management software solution can help you negotiate a better premium with insurance companies. As they know you have invested heavily in the care of your fleet,” says Ghazzawi.

One of the most important facts of a fleet management solution is the prevention of accidents. With the daily havoc on Dubai roads, this is a major concern. The software generates a number of detailed reports that inform the office of the driver’s behaviour on the roads directly leading to the prevention of minor and major accidents. Typical reports show the detail of each trip with the driver’s name, vehicle description, trip start/depart/arrive/end time and location, street names and times, drive time, idling time, parking time, maximum speed, average speed, distance and odometre reading.

Activity reports display trip and event information for a driver or vehicle graphically in the form of a timeline. It can display up to 24 hours (a full day) of information and can be zoomed in to display various time periods down to an hour.

Another more specific Driving Errors Report shows, on trip-by-trip, daily, monthly or summary basis parametres such as over speeding, over revving, harsh braking and excessive idling. The accident analysis shows engine speed (RPM) in one second intervals and value of other inputs.

A collection of these reports provides ample information to the company of drivers’ behaviour and areas of concern.

“One of our clients, National Drilling Company (NDC) has started a monthly rewards programme for their drivers. Based on these reports, the best 10 drivers are nominated for an award and the worst 10 are warned with official letters. It’s an example of creating initiative, competitiveness amongst them to be the best,” says Ghazzawi.

Since FMSi’s set up in Abu Dhabi five years ago, the industry, in Ghazzawi’s words, “has seen a huge metamorphosis. Previously there was no market for our solutions in the oil and gas industry, but today this industry has a very severe safety policy and our solutions have made a lot of people’s life easy.”

Just as the market has changed year after year, Ghazzawi says so have companies’ philosophies. Previously, they were reluctant to invest in technology as they thought it to be redundant. But as the economy has progressed coupled with the government’s initiatives, attitudes have changed. “They’ve had to change with all the competition out there,” says Ghazzawi. “Today, when a sales person contacts a company with his solution, 90 per cent of all clients are aware and are interested. The UAE is the leading market in the entire GCC and Arab world. It’s the most technologically advanced country.”

But even though the market is aware, the work doesn’t end there. Ghazzawi feels the main challenge lies in client education. Once the software solution has been installed, the client needs to be aware of all the reports that can be generated as well as the way the software should be used and tracked. Education also needs to take place on an ongoing basis as clients need to be educated about newer versions.

The education of drivers is also imperative. Their attitudes need work. Ghazzawi feels companies need to spend time on the drivers’ psychological state in order to have an impactful solution to all their problems.