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2017TELEMATICSBENCHMARKREPORT
Survey name lock-up
AUSTRALIA TRANSPORTATION EDITION
ForewordThis report presents the findings of a survey completed during 2017 by professionals in the Australian transportation industry — specifically, in the subcategories of commercial transportation, manufacturing and retail. The survey was administered and these results compiled by an independent research group. Each respondent has experience in fleet operations either as an owner, manager or in a maintenance or administrative office occupation.
KEY THEMES
Costs are one of the largest organisational challenges, as transport operators seek some measure of control over their expenses.
The physical environment plays a large part in influencing business conditions, with difficulties that are imposed by infrastructure, and delivery models undergoing a shift to distribution centres due to the rise of ecommerce.
Telematics has grown in importance as its adoption by transport operators has become so widespread that it is now nearly universal. Telematics solutions are still used primarily for vehicle/equipment tracking but operators also appreciate its value in improving customer service.
Driver safety and compliance are concerns as businesses acknowledge driver fatigue as an important issue. Operators are making themselves acquainted with Chain of Responsibility regulations and look to telematics to support operational safety.
2017 Telematics Benchmark Report — Australia Transportation Edition 2
Cost management is the top priorityMore than half of respondents’ primary business challenge for 2017 is managing costs. Growing their revenue and minimising vehicle/driver incidents follow.
Financial matters lead the list of business challenges, with costs and revenue receiving a combined total of 74 per cent —far ahead of any other consideration.
One financial pressure involves the fees levied by the Australian government for road use. In 2016 the chair of the Australian Trucking Association stated, “Trucking operators are overcharged for our use of the roads, with the National Transport Commission finding that truck and bus operators will be overcharged by $515 million over the next two years.”1
TOP BUSINESS CHALLENGES FOR 2017
18%
Managing costs
Growing revenue
Minimising vehicle/driver incidents
Business expansion
Regulatory changes
Customer retention
Risk management
Finding, retaining and developing talent
Other
19%
20%
23%
51%
16%
15%
5%
3%
(Respondents could select more than one answer)
1. “Independent Price Regulator Critical for Trucking Industry,” Australian Trucking Association, November 24, 2016.http://www.truck.net.au/media/media-releases/independent-price-regulator-critical-trucking-industry
2017 Telematics Benchmark Report — Australia Transportation Edition 3
Flexibility is limited in some expense areasAlthough costs occupy the prime position in reported business challenges, this issue is complicated by the fact that some expenses offer relatively little opportunity for managers to reduce them. Market pressures largely determine expenditure regarding the top two budget items.
LARGEST EXPENSE AREAS
57%Fuel
56%Payroll
30%Equipment/vehicle
maintenance
23%Purchasing new
equipment/vehicles
11%Other
(Respondents could select more than one answer)
Fuel and payroll comprise the largest negative numbers on the balance sheet. One factor is a long-term driver shortage that exerts upward pressure on wages.
Australia is rapidly running short of truck drivers, and is on course for an economic hit in the next decade as transport companies increasingly fail to find enough staff to meet the growing demand to move freight.2
2. “Wheels Not in Motion: Australia Running Short of Truckies,” The Age, May 6, 2016.http://www.theage.com.au/victoria/wheels-not-in-motion-australia-running-short-of-truckies-20160506-goo7o5.html
Business software
1%
2017 Telematics Benchmark Report — Australia Transportation Edition 4
Ongoing business investment is not optional Transport operators are aware that staying competitive requires a constant analysis of market trends and operational efficiencies, along with an allocation of funds to keep up with demand.
PLANNED INVESTMENTS IN 2017(Respondents could select more than one answer)
Nearly all (94%) of survey participants intend to make investments in their business during this year. Hardware and technology dominate the list of planned expenditures, representing the top four priorities.
53%
Upg
radi
ng fl
eet
44%
Inte
grat
ing
tech
nolo
gies
and s
yst
ems
36%
Impl
emen
ting
tech
nolog
y for
regulatory compliance
32%
Expa
ndin
g fl e
et27
% F
indi
ng, r
etain
ing an
d developing talent
27%
Impr
ovin
g cu
sto
mer experience
20%
Mor
e effi
cien
t GPS tracking
15%
Bra
nd aw
areness
6% N
o investments planned
1%Other
2017 Telematics Benchmark Report — Australia Transportation Edition 5
Markets point to a gain in deliveriesTransportation trends are heavily weighted toward prospects in freight delivery, over short and long distances.
TRANSPORT SEGMENTS WITH THE BIGGEST GROWTH OPPORTUNITY
Short-haul freight delivery
42%
Long-haul freight delivery
41%
Small package delivery
24%Public and government
17%Oil and gas7%
Other7%
(Respondents could select more than one answer)
Courier and messenger services
15%
Delivery continues to dominate the transportation sector, and is anticipated to hold that position for the immediate future.
2017 Telematics Benchmark Report — Australia Transportation Edition 6
When tight schedules are typical and on-time delivery is essential, traffic problems have a considerable effect on operations.
Australia’s 2017-2018 federal budget includes a record $75 billion allocated for infrastructure spending over the next 10 years — which may help in mitigating traffic problems.3
9%ACCESS TO FUEL
11%TRUCK STOPS
SERVICE STATIONS
18%CONSTRUCTION
PROJECTS21%
ROADWAY DESIGN (LENGTH OF LANES, ACCESS TO THE ROAD NETWORK)
36%AGING ROADS AND BRIDGES
55%TRAFFIC CONGESTION
INADEQUATE SIGNAGE AND
SIGNALS
NOT EXPERIENCING
ANY CHALLENGES
OTHER
UNDERPASSES AND TUNNELS
(Respondents could select more than one answer)
5%
5%
5%3%
2017 Telematics Benchmark Report — Australia Transportation Edition 7
MOST CHALLENGING INFRASTRUCTURE ISSUES
In transportation, traffic is a bottleneckImperfect infrastructure exerts an impact on the transportation sector, with most difficulties encountered at the street level.
3. “Federal Budget with $75 Billion Infrastructure Commitment,” Prime Mover, May 10, 2017. http://www.primemovermag.com.au/news/article/federal-budget-with-75-billion-infrastructure-commitment
Driver fatigue management is top of mind among regulatory issuesWhen asked about matters requiring adherence to legal standards, transportation professionals gave one answer over others by a wide margin.
TOP COMPLIANCE CONCERNS FOR 2017
4. “Truck Driving: One of the Deadliest Workplaces in Australia,” The Sydney Morning Herald, February 3, 2017.http://www.smh.com.au/business/workplace-relations/truck-driving-one-of-the-deadliest-workplaces-in-australia-20170202-gu3rjv.html
Speed managementVehicle managementFatigue management
37%59%70%
Driver fatigue may be related to long hours: a university study released in a 2017 report that more than 10 per cent of Australian truck drivers said they worked more than 80 hours a week, with 82 per cent saying their weekly work time exceeded 50 hours.4
Fatigue management leads the list by 11 points over vehicle management and accounted for a 70 per cent score, indicating that respondents are aware that they will be accountable for infractions of the rules regarding tired drivers or equipment operators.
(Respondents could select more than one answer)
2017 Telematics Benchmark Report — Australia Transportation Edition 8
None Other
7% 1%
The future of technology in transportLooking toward the future of the industry, organisations attempt to anticipate which changes will need to be accommodated – and which may confer an advantage.
EMERGING TECHNOLOGIES THAT ARE MOST TOP OF MIND IN 2017(Respondents could select more than one answer)
With fatigue management the leading compliance concern, it’s no surprise that fatigue monitoring was the technology most top of mind.
A number of technologies are being investigated for monitoring or counteracting driver fatigue. One is a seat suspension system designed to cancel out road vibration. Another tracks facial movement and can trigger an audible alarm if the driver’s attention wanders. The most complex currently under review consists of a cap or headband that measures electrical activity in the brain.5
Fatigue monitoring61%
19%Big data analytics
12%Autonomous/self-driving vehicles
12%Machine vision technology
12%Drones
3%Artificial intelligence
1%Platooning
1%Smart cities
1%Other
14%None
5. “Three Ways Technology is Being Used to Monitor and Reduce Driver Fatigue,” Rig Hauler, July 20, 2017.http://www.righauler.com/trucking/3-ways-technology-is-being-used-to-monitor-and-reduce-driver-fatigue/
2017 Telematics Benchmark Report — Australia Transportation Edition 9
The chain of responsibility is taken seriouslyOrganisations are confident in their knowledge of the regulations.
STATEMENT: “I THINK THAT OUR ORGANISATION THOROUGHLY UNDERSTANDS CHAIN OF RESPONSIBILITY LAWS.”
STR
ON
GLY
DIS
AG
REE STR
ON
GLY
AG
REE
1
2
3
4
5
3.92average score The resulting figure indicates that these respondents have
taken care to make themselves conversant with Chain of Responsibility legislation. The survey phrased this question as a statement of belief rather than fact and without supporting evidence it remains to be seen how completely these laws are understood and followed.
2017 Telematics Benchmark Report — Australia Transportation Edition 10
Telematics technology is becoming an essential business toolTransportation professionals have discovered that telematics is a game-changer in this industry.
ORGANISATION USES A TELEMATICS SOLUTION
An overwhelming proportion (88%) of transport businesses are using telematics or plan to within the next year. This is evidence that the technology is becoming a vital asset in a competitive marketplace.
72%
9% 7% 12%
Yes,
acro
ss a
ll ve
hicl
es/a
sset
s
Yes,
whe
n pr
ovid
ed b
y ve
hicl
e/eq
uipm
ent m
anuf
actu
rer
No,
and
no
imm
edia
te p
lans
to d
o so
No,
but
I pl
an to
in th
e ne
xt y
ear
2017 Telematics Benchmark Report — Australia Transportation Edition 11
Vehicle tracking remains the most important telematics applicationAmong respondents who use telematics or plan to introduce it in their operations, one use of the technology leads all others.
WHAT ORGANISATIONS MONITOR WITH TELEMATICS
Responses were spread over a variety of options — suggesting that telematics is appreciated for its multifunctional capability — but vehicle tracking rated eight percentage points over the next-highest selection, showing that the original purpose of GPS fleet tracking remains its most popular attribute.
(Respondents could select more than one answer)
Vehicle tracking
Maintenance
Harsh braking
Distance driven
Driver performance
Engine hours
Speed
Idling
Fuel usage
Driver fatigue
Proof of service/jobs completed
Other
82%
53%
30%
57%
45%
24%
74%
46%
28%
57%
34%
5%
2017 Telematics Benchmark Report — Australia Transportation Edition 12
The advantages provided by telematics, rankedThe ways that telematics helps respondents in their occupation.
TOP BENEFITS OF USING TELEMATICS
Although responses are widely spread, an emphasis on compliance shows that organisations are aware of how these regulations will affect them, and the value of telematics in meeting these legal obligations. In addition, improved customer service ranked high — in third place among 14 possible answers. This suggests that many users of the technology are increasingly looking beyond how it facilitates getting the job done and recognising the broader benefits of telematics for the entire organisation.
Peace of mind, knowing where vehicles and equipment are
56%Meeting
compliance requirements
42%
Improved customer service
36%More efficient routing
and dispatching
34%
11%Reduced
maintenance costs
11%Improved
fuel efficiencyImproved driver
behaviour
32%
7%Reduced
insurance premiumsOther
4%Fewer
accidents
3%
Time and cost savings
21%Improved
driver safety
12%
Fewer unexpected equipment failures
1%Preventing
fuel loss
1%
(Respondents could select more than one answer)
2017 Telematics Benchmark Report — Australia Transportation Edition 13
Telematics pays off in improving safetyThose who have implemented telematics technology, and those who plan to do so, both see improved driver safety as an outcome of this business decision.
Preventing excessive speed and driver fatigue far outweigh other safety benefits afforded by telematics - which reveals what survey participants are looking for in terms of improved safety or their greater ability to measure these criteria.
TOP SAFETY BENEFITS REALISED BY USING TELEMATICS
Speed prevention
58%Monitoring hours to prevent driver fatigue/exhaustion
39%Monitoring and benchmarking driver behaviour
30%Improved driver productivity/efficiency
23%
Accident insight/details
12%
13%More insight into vehicle performance/maintenance needs
None
3%
(Respondents could select more than one answer)
2017 Telematics Benchmark Report — Australia Transportation Edition 14
Technology flow is upward, starting with those in the field.Even though businesses haven’t yet implemented technological solutions in all their back-office and administrative work, the majority of drivers and equipment operators rely on mobile devices provided to them.
OFFER MOBILE DEVICES TO DRIVERS FOR FLEET MANAGEMENT
Eighty three per cent of respondents furnish their field staff with mobile devices, allow use of personally-owned units, or intend to provide these within the next year.
6. “Little Things Can Make A Big Difference – Mobile Apps For Truckies” Truck Dealers Australia, May 17, 2017.https://truckdealersaustralia.com.au/editorial/little-things-can-make-big-difference-mobile-apps-truckies/
No, but we plan to in the next year
14%
No, employees can bring their own device and link to company systems
6%
No, we don’t use mobile devices/technology for fleet management
17%
Yes
63%
Recent mobile apps offered to Australian truck drivers include a GPS-enabled petrol station finder that includes the current fuel price, a localised weather report, a speedometer checker and a public toilet locator.6
2017 Telematics Benchmark Report — Australia Transportation Edition 15
Measuring future staffing needs remains labour-intensive — and partly intuitiveWhen gauging personnel requirements, organisations rely on different methods - from technical approaches, to paper records or nothing at all.
HOW THEY CURRENTLY FORECAST HIRING/BUSINESS NEEDS
Guessing
8%
Not currently doing this
30%
Other
8%
Tools for big data analysis
21%
Manually pulling records/paper-based processes
43%
Technology is not currently a primary influence in evaluating or forecasting workforce requirements, with only 21 per cent of professionals using big data for this task. A larger number (30%) do not perform any calculations.
7. “Drones and Driverless Trucks: Can Australian Truckies Stave Off Job Threat?”, The Guardian, May 28, 2017.https://www.theguardian.com/sustainable-business/2017/may/29/drones-and-driverless-trucks-can-australian-truckies-stave-off-job-threat
The necessity of anticipating driver staffing needs and locating new talent, will continue for as long as human drivers are required. This will be for some time. In 2017 the chair of the Australian Trucking Association said, “The immediately foreseeable future of truck automation won’t involve replacing drivers.”7
(Respondents could select more than one answer)
2017 Telematics Benchmark Report — Australia Transportation Edition 16
Drivers are monitored and measuredOn the job, driver behaviour is under review.
CURRENTLY EVALUATING AND BENCHMARKING DRIVER PERFORMANCE
53%Yes 35%
No
12%No, but plan to in the next year
Sixty five per cent of respondents are currently evaluating and benchmarking driver performance or planning to do so in the next year.
2017 Telematics Benchmark Report — Australia Transportation Edition 17
Survey overview and methodologyThe 2017 Teletrac Navman Telematics Benchmark Survey is compiled from responses from more than 1,200 fleet operations and fleet management professionals from around the world. This report affords a view into best practices and trends in telematics and fleet management. Of the total survey respondents, 107 who indicated that their primary industry was transportation and are based in Australia provided the data used to produce the 2017 Australia Transportation Benchmark Report. Results may not amount to 100 per cent due to questions with multiple selections. For reporting purposes, all statistical values have been rounded to the nearest whole number.
FLEET SIZE1-9
10-24
25-50
51-100
101-500
500+
13%
8%
22%
22%
5%
30%
INDUSTRIES REPRESENTED
81%
12%
7%
Transportation
Manufacturing
Retail
(number of vehicles)
2017 Telematics Benchmark Report — Australia Transportation Edition 18
Teletrac Navman is a leading software-as-a-service (SaaS) provider leveraging location-based technology and services for managing mobile assets. With specialized solutions that deliver greater visibility into real-time insights and analytics, Teletrac Navman helps companies make better business decisions that enhance productivity and profitability. Its fleet and asset management technology uncovers information that would otherwise go unseen, helping customers reduce risk and confidently move their business forward with certainty. It tracks and manages more than 500,000 vehicles and assets for more than 40,000 companies around the world. The company is headquartered in Glenview, IL, with additional offices in the United States, United Kingdom, Australia, New Zealand and Mexico. For more information visit TeletracNavman.com.au.
United States
2700 Patriot Boulevard, Suite 200
Glenview, IL 60026 · USA
Tel: [+1] 866.527.9896
Australia
Ground Floor, 16 Giffnock Avenue
Macquarie Park NSW 2113
Sydney, Australia
Tel: [+61] 2 9886 8500
Mexico
Av. Eugenio Garza Sada No. 3820 Piso 6
Colonia Mas Palomas
C.P. 64780 · Mexico
Tel: [+52] 81 8248.4600 ext 1001
New Zealand
7-11 Kawana Street
Northcote, Auckland 0627
Tel: [+64] 0800 447 735
United Kingdom
Keele University Science Park
Innovation Centre 2
Staffordshire, ST5 5NH · UK
Tel: [+44] 0 1782 55 79 50
192017 Telematics Benchmark Report — Australia Transportation Edition