Telematics: Not Just for Personal Anymore

While the use of telematics-based insurance to date has primarily been seen in monitoring personal-vehicle use, insurers are increasingly relying on the underwriting tool in the commercial-fleet and trucking industries.

“If I’m doing a risk assessment for an insurance company, a lot of underwriters are looking for some kind of refined [global positioning system],” says Beth Lowrey, senior associate for Mercury Associates Inc.—a Washington D.C.-based management consulting firm for large fleets.

Insurance players on the commercial  side are adopting programs to tap into the wealth of knowledge a telematics system can deliver—and initial data looks very promising for loss ratios, sources say.

“We’ve seen very good improvement in frequency and severity,” says Scott Stevens, vice president of captive and specialty programs at The Hartford, which launched its FleetAheadprogram more than two years ago.

Through a partnership with a telematics service provider (all insurers in this space partner with a provider instead of developing its own device, as in the personal auto insurance market), he adds, the Hartford’s loss-control staff can work with clients to improve loss costs and exposures.

Other insurers are in the process of doing the same. “We are there to work with management in order to tune their ability to improve driver performance,” says Chris Hayes, risk-control director of transportation services from Travelers, which early this year began IntelliDrive Fleet Safety Solutions for commercial lines.

Travelers partners with several telematics providers for the actual numbers. “We do not have any data feed,” explains Beth Tirone, Travelers’ senior director for commercial auto product development. “This is strictly providing services from a risk-control perspective.”

Liberty Mutual, too, is finding value in telematics. The carrier unveiled its Onboard Advisorloss-prevention and risk-management services exclusively through Liberty Mutual Agency Corporation regional companies in 2010 to small and medium-sized fleets. The insurer uses statistics from its approved telematics partners to create a score used for pricing at the time of renewal.

Onboard Advisor Program Manager Chris Carver says Liberty Mutual in the past six months has been contacted by several telematics providers wishing to partner up.

“The industry is growing fast,” he says. “It’s a great opportunity for businesses that now starting to grow [after the economic downturn]. Owners can stay in control of their fleet and control costs.”

After all, telematics is not a one-way street of benefits to the insurer. The insured can improve safety, fuel use, customer satisfaction and prevent or limit losses from theft.

There is enough data—or at least sufficient anecdotal evidence—to support the technology investment, which is decreasing as competition increases. Systems can also be leased.

“If you use it and use it right, [you’ll benefit],” Lowrey says. “You’ll see it in your bottom line. And you’ll see it in your insurance premiums.”

The applications are numerous. Fleet owners acting as their own risk managers can track drivers’ locations, monitor a driver’s habits like hard-braking and accelerating, and reduce fuel consumption by looking at the data to notice trends such as the impact of idling, or the use of one route versus another. Carver says owners can cut down on “unnecessary wear-and-tear on their fleet.”

Owners have also reported a reduction in brake-pads costs, Stevens adds, because programs centered on telematics “create better, more safety-conscious drivers.”

The value for insurers extends beyond potential reductions in loss-cost trends and narrowing poor risks. Telematics may also help preserve the exposure base. By cutting down on costs for its insureds, businesses can remain profitable.

For the insurer, information can be provided by some systems to give a much more accurate view of an accident. Was the traffic light green or red? How fast was the driver going?

Insurers say information yielded from telematics systems can also help cut down on fraud. Using data on such critical factors as speed, claims professionals can determine whether an alleged injury was in fact possible.

The industry appears to have assuaged the fear of Big Brother. Owners and operators are taking to the idea, and insurers with telematics-based programs are sticking by buyers’ sides to assist in rolling out systems and fostering an environment of constant improvement rather than conveying a dark cloud of constant criticism. 

“This doesn’t work if management isn’t fully engaged,” says Hayes. “We’re looking to foster owners as coaches while we get them comfortable with the idea and our involvement.”

More insurers relying on data-gathering tools in the commercial-fleet, trucking industries

BY CHAD HEMENWAY, PROPERTYCASUALTY360.COM

April 6, 2012 

Lowrey, who also owns a risk-management and consulting service for small and medium fleets, says drivers’ unions have voiced concerns as telematics gain popularity, but the fact is, “Owners are looking at performance anyway,” implying that drivers would still be watched closely regardless of the new technology.

Fleet owners typically pitch the idea to drivers by focusing on safety and job security.

“’If you get hijacked, we want to know—we want to know where to look for you,’” Lowrey says owners will say to drivers. “But the majority of drivers have been around and they don’t worry about it, so long as it doesn’t seem like you’re nitpicking them to death.” 

Industry-wide, telematics usage remains in its infancy. Solid favorable loss-cost trends for the industry may not be readily available and use may be limited to big insurance brands but, according to a report by research and consulting firm Celent, telematics use is growing and “not going away any time soon.”  

Critics also say telematics could “cannibalize” books of business, based on the idea that policies could be written at lower premiums based on more hard data. Yet that same data would also help better calculate risks, Celent adds, noting it “would be better to cannibalize one’s own book than watch someone else do it.” 

Telematics: No Longer Just a Dot on a Map

Telematics solutions have come a long way since the beginning days of simple vehicle tracking. With a multitude of capabilities, such as remote vehicle diagnostics and routing/driver productivity tools, finding the right solution can be a daunting task.

Telematics is more than simply locating vehicles via a "dot on a map" or employing GPS routing capabilities. 

There are many companies that sell devices to track GPS location; however, this only provides limited information for fleet managers. A complete wireless fleet management system combine’s exact GPS location tracking with precise diagnostic monitoring to give fleets a complete and accurate picture of vehicle operations. 

Determining telematics needs, fleet benefits, and whether a return on investment (ROI) will be realized can be a tough job. 

Determining Telematics Needs 

Fleets should utilize telematics technologies specific to their business needs. With the abundance of options available to fleets today, the number one priority is determining which telematics solution best fits a fleet's needs. 

Clearly defining overall goals and deliverables an organization is seeking should precede any telematics products review. Sit down for a consultation with your fleet management company. Together, decide exactly what you want to get out of the telematics solution and how it will affect your core competencies. 

Recommended telematics technology can vary dramatically, depending on fleet type and goals.

For service response vehicles, real-time vehicle tracking is useful for dispatch purposes, as it is for fleets where security is paramount - for example, carrying or delivering valuable goods. The data available from vehicle tracking can be useful for any fleet type in helping manage and make better decisions, from replacement planning to fuel fraud monitoring to maintenance management. 

Before companies review technologies such as vehicle tracking, GPS navigation, or other new tools emerging in the market, Lynx Telematics partner, Geotab - a GPS satellite-based fleet and resource management systems company - suggests each company look at four operational areas for costs and to develop key performance indicators. 

According to Colin Sutherland, VP of sales at Geotab, the four indicators are:

■ Risk and driver safety.

■ Fleet operational costs.

■ Resource cost of productivity.

■ Regulatory compliance. 

Perhaps the most overlooked and important consideration is how the company uses this new data to change behavior. Companies with the most success have either hired additional resources or are leveraging resources of their fleet leasing provider, assuming the provider delivers telematics information integrated with their existing products and services. 

Most companies use technology that contains a GPS tracking component. When additional detail regarding vehicle use and performance is desired, diagnostics capabilities that interface between the telematics device and vehicle's onboard computer are required. 

Diagnostics capabilities include vehicle powertrain performance information, seatbelt utilization, airbag deployment, fuel level monitoring, etc. 

The application of diagnostics all depends on what you're trying to achieve and what type of vehicles you're operating. 

Businesses that use a fully-integrated vehicle tracking, navigation, and analytics solution are typically first to experience dramatic returns on their solution investment, according to GE Capital Fleet Services. An integrated, enterprise-wide approach to telematics use will enable a business to apply quality process disciplines to mobile operations - much like a manufacturing organization applies to an assembly line, said Doug Peters, telematics analytics leader, GE Capital Fleet Services. 

"There are many ways to use telematics technologies to improve a business. Think about financial and operating performance requirements and consider integrating telematics into as many aspects of your fleet management program as possible.  Effective use of the right solution helps fleet managers improve vehicle maintenance and compliance and helps operations managers transform driver productivity through optimized routing and scheduling," said Peters. 

"The most important aspect of an effective solution is the ability to convert large amounts of vehicle-generated telematics data into relevant, actionable business insight. GPS information - when combined with other operating or market data - provides meaningful insight regarding mobile operations that helps businesses identify where specific process improvements can quickly increase employee productivity, improve customer service, and enhance profitability," he added. 

Reaping the Benefits of Telematics 

According to Peters, a comprehensive approach to integrated mobile resource management is increasingly valuable in today's environment. "Leveraging technology solutions such as telematics provide companies the ability to monitor, manage, and optimize operations of their mobile resource pool." 

Potential benefits of telematics use in fleet include:

■ Lower accident rates.

■ Decreased occurrence of catastrophic maintenance/repairs.

■ Ability to track and correct driver behavior.

■ Safety awareness.

■ Ability to manage costs (i.e. reduce fuel consumption and overtime).

■ Reduced insurance premiums.

■ Increased fleet policy compliance.

■Optimized workforce productivity (e.g., re-sequencing existing routes and re-assigning deliveries).

■Improved environmental impact (i.e. reduced time spent idling or driving long distances). 

Another telematics benefit is the speed and focus it provides in measuring results.  For example, telematics can help determine if the safety training you just implemented has been effective in changing behavior, whether company policies are being followed, if new sales initiatives are being met, etc. What used to take quarters and years to measure, if it could be measured at all, now takes days and weeks - all with much greater accuracy. 

“However, the greatest telematics benefit currently with ever increasing fuel prices, is reduced operation costs, which includes lowering fuel consumption and vehicle maintenance costs” according to Vincent Rush,Business Development Manager with Cincinnati based Lynx Telematics. 

"Fuel costs are reduced by eliminating unauthorized vehicle use, reduced speeding and idle time, and improved routing. Repair and maintenance costs are reduced by the ability to identify problems early and schedule maintenance through automated odometer readings. Wireless fleet management also improves driver safety and reduces greenhouse gas emissions." 

What can't be seen can't be measured - and telematics technology enables fleets to "see" into vulnerable areas of the business that are otherwise impossible to measure. Equipped with this information, you can identify process improvement targets quickly and with more certainty, as well as measure your performance with accuracy."

Should Fleets Invest in Telematics? 

The days of "out of sight, out of mind" are behind us. According to GE Capital Fleet Services, telematics delivers valuable access to fleet data and analysis, including vehicle performance metrics, trends, and customizable mapping. As companies search for ways to save money, reduce environmental impact, and improve fleet productivity, fleet executives have an opportunity to deliver by utilizing innovative technology solutions. 

The ability to capture and view detailed, real-time data and exceptions supports efforts to change driver behavior and realize savings.

If an organization has clearly defined goals, can make the investment, and has resources to review data flows and manage exceptions, the return on investment can be significant. 

Telematics technology has been thoroughly tested and proven for many years. The price points now support compelling ROIs and adoption rates are increasing quickly. Fleets are using it in bigger numbers to drive out costs and gain competitive advantage. The use of telematics is quickly becoming 'table stakes' to stay competitive. 

A fleet's investment in telematics depends on the application. Some fleets may simply need a tool to allow drivers to get from point A to point B. 

For those folks, a GPS navigation system might help," said Mark Goettel, senior acquisition & integration analyst for Wright Express. 

Geotab's Sutherland noted, "If you don't know where you are going, any road will take you there. Before companies invest in GPS navigation or GPS tracking systems, they should first consider the requirements of the company to reduce operating and claims costs and the fleet operating budget, and to manage overtime."   

Sutherland cautions fleets against investing in small, standalone components such as GPS navigation or real-time location for dispatch. 

"By investing in a technology solution that offers integrated data for driver safety and risk loss control, fleet expense management, human resource management, and carbon footprint reduction, companies can start with one of the four areas for return on investment and strategic growth and then implement the other areas over time," said Sutherland. 

Business today is extremely competitive. Profitability requires a keen eye on costs and efficient utilization of all assets. Telematics offerings help fleet managers bolster fuel economy, improve driver performance, manage maintenance intervals, and dispatch vehicles effectively. Those results clearly drive to reduced cost and better asset utilization. In addition, a more fuel-efficient fleet is a greener fleet. 

ROI of Telematics: Staying in the Black 

It is not always straightforward to quantify ROI. While goals and objectives of many businesses may be similar, telematics ROI depends on the company's level of efficiency and ability to execute policies.

Each client's ROI will be different depending on the type of solution that fits their fleet. At the very least, fleets should expect ROI to exceed the cost of telematics equipment and fees. 

An additional ROI benefit includes reduced payroll hours due to a driver's inability to inflate hours.

Many savings are not as easy to quantify, but just as important. The ability to prove service or a delivery time to a customer is helpful and saves in goodwill credits, but is not always easy to put a dollar amount on. The reduced risk of knowing where your vehicles are 100 percent of the time is also difficult to quantify, but clearly valuable. Many customers recover not only stolen vehicles, but their contents as well, and help drive criminal convictions based on finding the vehicle and knowing where it went after it was stolen. 

Generally speaking, companies focused on productivity improvements will see a greater return than those focused solely on vehicle operating costs or risk and safety improvements. That's not to say a company can't achieve fantastic ROIs by reducing fuel and lifecycle costs or reducing accident rates.

Per Sutherland's experience at Geotab, ROI must be grounded in fact as well as achievable and measurable. 

 "Traditionally, fleet managers seek ROI in fuel and maintenance expense reduction," said Sutherland. Using vehicle health-based predictive maintenance, "fleet managers can remove one preventive maintenance routine annually, which in itself will pay for the solution." 

Reduced idle time is one of the most obvious areas in which fleets can realize an ROI, according to Goettel of Wright Express. 

"Many fleets can't believe how much their vehicles are idling. We'll perform ROI calculations based on a calculator we use, and typically we see 'break-evens' of between two and six months," explained Goettel. "Telematics pays off much quicker than people would think." 

Businesses today can choose from a wide assortment of telematics technologies that deliver a range of benefits. “To ensure the best return on investment, a company should work with a provider that understands the company's business requirements and delivers actionable intelligence," suggested Peters of GE Capital Fleet Services. "A provider that delivers insight, rather than just data, can expedite the speed with which a business can implement operational changes to improve productivity, compliance, safety, and customer and driver satisfaction."

 Lynx Telematics, located in Milford Ohio, is an OEM (Original Equipment Manufacture) that specializes in developing proprietary fleet GPS Tracking devices for fleets of all sizes and functions.
For information on how Lynx Telematics can help your company save an average of $2500 per vehicle annually, contact Business Development Manager, VincentRush at (513) 965-6318

Lynx Telematics is an OEM that controls design, engineering, firmware, software development, IT support and manufacturing processes of our product, allowing us to produce the highest quality product in our industry, while offering our customers competitive pricing.

As your partner, we provide ongoing training and support to insure that the product is properly sold to the end user, maximizing the re-sellers profitability.

As one of the pioneers in telematics technologies, Lynx Telematics provides our clients with powerful end-to-end vehicle telematics tools. Our technology offers a real solution that delivers safety, saves money and provides an unprecedented level of peace of mind to our customers.

GPS Tracking and Fleet Management

At Lynx Telematics, located in Milford, Ohio, we ready to help your business improve its bottom line in several ways:

·         Lowering your fuel costs

·         Reducing your Labor Costs

·         Improving your Customer Service

·         Increasing your Productivity

·         And many more based on customization of a solution that fits your needs.

Lynx Telematics GPS fleet tracking provides you with an arsenal of powerful tools that will help reduce operating expenses while actually increasing productivity and improving customer service.
There is no need to install additional software or hardware on your computer to get started with fleet tracking. You can use our system 24/7 from any computer or mobile device with Internet access.
Lynx Telematics products are used by companies such as UPS, Orkin and Frito Lay as well as thousands of small fleets, sales organizations and busing companies.
We hope you enjoy this overview of how GPS Tracking works. If you’d like to discuss your company’s specific needs and how Lynx Telematics can help, please contact us.

The Science Behind GPS

The Global Positioning System (GPS) is a combination of 27 satellites that transmit signals to GPS receivers all over the globe.
By measuring the travel time of the radio signals between the receiver and the satellite, the distance between the GPS receiver and the satellite can be determined. Here's the formula:

[distance] = [speed] * [travel time]

By combining, or triangulating, the distance from the three or four nearest satellites over time, location, speed, and direction of the GPS receivers can be determined.
This location data becomes useful for fleet owners when it’s aggregated for all their vehicles and presented on a map and/or in reports.

Active vs. Passive Tracking

Active: the data from the GPS receiver is transmitted every 60 seconds to a remote user at regular intervals. This gives you real-time location information.

Passive: all the GPS data is stored in the receiver and must be downloaded once all the vehicles return to the office

Real-time tracking has become the most popular method despite its higher cost because of the huge benefits of having real-time information to make on-demand management decisions.

Covert or Open?

Some vehicle tracking companies offer units that have no exposed wires or antennas, allowing for covert installation. Some business owners prefer covert installations to keep behavior honest while providing subtle coaching when problems are detected.
Other business owners and fleet managers prefer to keep the tracking out in the open and let employees know that they're watching.

Uses of GPS Tracking

While Most Industries Use Fleet Tracking for their Trucks, Vans, Semis, etc…

·         Construction/Paving/Landscaping

·         Plumbers/Electricians

·         Wholesaler/Supplier/Distributors

·         Emergency/Repair Services

·         Transportation

·         Roofing/Garage Installation

Some Industries Track More Unconventional Assets:

·         Taxi Cabs

·         Ambulances

·         Buses

·         Boats

·         Trains

·         Lawn Mowers

·         Heavy Equipment (Bulldozers, Excavators, Skid steers, etc.)

·         Mobile Medical Units

·         Street sweepers

They All Experience the Same Benefits:

·         Overtime Reduction

·         Improved Customer Service

·         Timesheet Automation/Verification

·         Increased Productivity

·         Fuel Reduction

·         Vehicle Mileage Reduction

·         Increased Fleet and Workforce Security

·         Improved Routing

Keep In Mind…

There are very few GPS Solutions that offer the right combination of the features you need to achieve the maximum benefits of a GPS system. These features include: usability, technology development and financial stability. As an original equipment manufacturer (OEM) we put the majority of our resources into R&D to constantly develop and customize solutions for our individual customer needs. From technology to data reporting we offer the most complete, "Plug and Play" solution on the market today.

The best GPS solutions provide the information securely over the Internet. As long as you know the login and password, you can access your system from any Internet-enabled computer. The flexibility and 24/7 accessibility of an Internet based solution makes it the far superior choice when deciding on a specific GPS solution.

Learn More about Global Positiong Systems on Wikipedia.

 For more information on how Lynx Telematics, an OEM located in Cincinnati, Ohio can help your company crack down on cargo theft or custom design a solution to meet your fleet management needs, contact Vincent Rush at (866) 314-0461

LynxTelematics is an OEM that controls design, engineering, firmware, software development, IT support and manufacturing processes of our product, allowing us to produce the highest quality product in our industry, while offering our customers competitive pricing.

As your partner, we provide ongoing training and support to insure that the product is properly sold to the end user, maximizing the re-sellers profitability.

As one of the pioneers in telematics technologies, Lynx Telematics provides our clients with powerful end-to-end vehicle telematics tools. Our technology offers a real solution that delivers safety, saves money and provides an unprecedented level of peace of mind to our customers. 

Our product, LynxSafe, is the newest and most advanced in-vehicle communication system currently on the market. It combines GPS/satellite and GSM cellular technology to provide users and family members with immediate access to real-time information delivered directly via any internet enabled device including I Phone and Android smart phones.

All of our devices benefit from the innovation of U-Blox technology and a 3D Accelerometer, providing the industry’s most accurate pin point locating technology to within a 3 ft. radius.

Telematics: Privacy....Issue or Perception?

We Don't Have a Privacy Issue Today.....We Have a Privacy PERCEPTION!

In the public dialogue about mobile privacy concerns, I’ve yet to hear a plea to turn back the clock to when mobile apps were supported by subscription fees.

Surprisingly, many consumers don’t understand the "pact with the devil" that free services come with a loss of privacy. With the exception of enterprise offerings, subscription fees have shrunk or disappeared for most location-based services. At the Institute for Communication Technology Management at the University of Southern California, Allison Cera of Lucent-Alcatel talked about the intersection of technology and identity. More than half of the people in her study felt they shouldn’t have to provide information about themselves just to get the most out of online services. Among the most connected technology users, the expectation of privacy was lower.

As companies rework privacy agreements, it’s interesting that Cera’s research indicates people prefer a simpler privacy policy that is easier to understand, over one that provides more comprehensive protection. In addition to simplicity, people prefer uniformity. Almost 90 percent want to see Internet and mobile service providers, social networking sites, and search engines all governed by the same laws and regulations regarding the collecting, analyzing, and sharing of online data.

Google knows all? Google has experienced heat from lawmakers and consumers over its efforts to consolidate user privacy standards and share data among its offerings. Google announced plans to connect user data across desktop and mobile services including Google+, Gmail and YouTube. “Our new privacy policy makes clear that, if you're signed in, we may combine information you've provided from one service with information from other services," blogged Alma Whitten of Google. "In short, we'll treat you as a single user across all our products, which will mean a simpler, more intuitive Google experience."

You know where I’ve been. Would consumers exchange transparency into whereabouts and driving behavior for a cheaper insurance premium? GPS and Telematics companies are providing the technology behind a new insurance product, which bases premiums on driving behavior. TomTom for example,  has teamed up with insurance broker Motaquote for the launch of Fair Pay Insurance, a product that rewards “good” drivers with lower premiums. Drivers who sign up for Fair Pay receive a TomTom navigation device. They will also have a LINK tracking unit fitted in their vehicles, allowing driver behavior and habits to be monitored by the insurer. This information can also be viewed by the policy-holder in their driver dashboard.February 15, 2012 By: Janice Partyka of GPS World and Wireless Pulse.

Lynx Telematics and LynxSafe
One of  the questions that I am asked by General Managers and dealer Principles of  Auto Dealerships about the  marketing of a Telematics device to the general consumer is, "How do we overcome the privacy issue?"

First of all, let me say that in this country, we do not have a "Privacy Issue", but rather a "Privacy Perception".

Today, our kids post half naked pictures of themselves online on social media sites such as Facebook and voice their ideas, opinions, vacation plans and location updates in "real-time", informing their "Friends" and "Friends of Friends" every aspect of their lives and relationships. 

Facebook in turn, harvests this information and uses it as their "Product" to lure advertisers. 

I see parents in my "Friend Circle", routinely "Checking In" when they attend movies, restaurants, or vacation spots, in effect notifying the world of Facebook, that THEY ARE NOT HOME AND THEIR HOME AND ALL THEIR VALUABLES....ARE UNOCCUPIED!!!!!! 

If you have a "Rewards" card from a gas station or the popular Kroger Plus card, you are providing marketers with valuable information about your likes and dislikes and where you spend your money. 

I recently changed my dietary habits and have lost nearly 30 lbs since January 1st. As a result, Krogers has started sending me coupons for all those products that I used to routinely buy at their store.

Granted, their are still people like my Mother out their that will not actually write a check and go to such great lengths to hide from "Big Brother" that she cuts the strips out of her large bills, because she thinks that the anti-theft devices at the stores entrances are actually reading the amount of cash she has in her purse.

But for the most part, we talk a good game about protecting our privacy but out actions rarely line up with our paranoia.

With our Lynx Telematics product for auto dealerships and LynxSafe for parents of Teen Drivers and elderly drivers, the only people that have access to the information such as location, excessive speeds, driving without a seat belt, texting and driving, mechanical failure and accident notifications are parents and loved ones who the purchaser of the product grants permissions to. 

As the purchaser of a new automobile from a dealership, a new owner can protect the life and well being of their investment with a permanent connection to the dealerships service department.

The owner of the vehicle, sets up their preferred communication method via email, phone call or direct mail, and the service department send notifications to the customer at the first symptoms of mechanical malfunction or notifies of when an oil change is necessary.

The whole idea is to catch and treat the symptoms, before they require major and costly repairs. The consumer can get the maximum ROI in their investment and the dealership, through their service department, can create a unique value added service that can lead to future purchases while maximizing revenue for their service department.  

For more information, contact Vincent Rush of Lynx Telematics at (866) 314-0461 

 For more information on how Lynx Telematics, an OEM located in Cincinnati, Ohio can help your company crack down on cargo theft or custom design a solution to meet your fleet management needs, contact Vincent Rush at (866) 314-0461

 

LynxTelematics is an OEM that controls design, engineering, firmware, software development, IT support and manufacturing processes of our product, allowing us to produce the highest quality product in our industry, while offering our customers competitive pricing.

As your partner, we provide ongoing training and support to insure that the product is properly sold to the end user, maximizing the re-sellers profitability.

As one of the pioneers in telematics technologies, Lynx Telematics provides our clients with powerful end-to-end vehicle telematics tools. Our technology offers a real solution that delivers safety, saves money and provides an unprecedented level of peace of mind to our customers. 

Our product, LynxSafe, is the newest and most advanced in-vehicle communication system currently on the market. It combines GPS/satellite and GSM cellular technology to provide users and family members with immediate access to real-time information delivered directly via any internet enabled device including I Phone and Android smart phones.

All of our devices benefit from the innovation of U-Blox technology and a 3D Accelerometer, providing the industry’s most accurate pin point locating technology to within a 3 ft. radius.

Telematics and Cargo: Cracking down on theft!

Telematics and Cargo: Cracking down on theft

Ursula Sautter of “Telematics Update”, explores how telematics can help prevent cargo theft

Cargo theft has been around as long as people have transported raw materials and manufactured goods from one place to another. Unfortunately, as the methods of freight carriage became more complex, so did the criminal methods focused on them.

Cargo theft in Europe costs businesses more than 8.2 billion per year. And that's just for reported incidents; experts believe official statistics reflect only a small percentage of actual thefts. In the US, the FBI estimates, the figure has reached $30 billion a year and is likely to increase further. Most of the goods—electronics, pharma products, clothing, footwear, cigarettes—are stolen from trucks but sometimes also from shipping containers, cargo lanes and warehouses.

And cargo theft has many victims: Aside from the direct monetary loss, shippers face indirect costs for goods replacement, higher insurance premiums as well as loss of reputation. State and local governments lose sales tax revenues. The good news is, under the aegis of the Transport Asset Protection Association (TAPA), a growing number of producers and manufacturers, logistics companies, freight insurers, security firms, supply-chain consultants and other stakeholders in Europe, the Americas, and Africa are using telematics to address the threat.
"By sharing information, establishing ever more stringent security standards and lobbying legislators and law enforcers," says TAPA board member Luc van Herck, a transport security specialist at Nike, "we aim to identify target areas where losses occur most frequently, share industry best practices to prevent further incidents, and gain official support."

Real-time intelligence
The organization's Web-based Incident Information Service (IIS), for instance, continuously captures and shares online data on where a theft has happened to a TAPA member, what kind of load was stolen, and which modus operandi was used so that other TAPA members can use that real-time intelligence "to avoid incident hotspots," says van Herck, "protect their goods in transit and, if required, to report and trace stolen property." Additional data comes from insurance claims and law enforcement statistics.

Since the system is based on Google maps, it is easy to use: incident locations are marked on a road map and haulers or shippers only need to check whether that spot lies on their fleet route. TAPA's Trucking Security Requirements (TSR) specify the minimum acceptable safety standards for road transport of valuable products and materials and the methods that should be used by shippers and logistics providers to maintain them. The Freight Security Requirements (FRS), in turn, specifies corresponding standards and procedures for goods handling and storing in transit.

In addition to locks that prevent the separation of tractor and trailer and brake release/shut down devices, there are plenty of other telematics tech that can help. “Geo Fencing” devices can trigger an alarm if a rig travels outside its predetermined route or enters high-risk areas. GPS-enabled track and trace solutions can locate stolen vehicles. Both, especially when equipped with anti-jam mechanisms, may significantly improve vehicle or load recovery processes, especially handy when stolen property leaves a state or country jurisdiction.

Beyond the driver's cab
Yet security mechanisms are no longer just found in the driver's cab. Holistic telematics security units like Novacom Europe's externally powered Vwise, for instance, provides real-time information and analytics about truck, trailer and load, including a whole array of wireless sensors placed at strategic points in or on the tractor-trailer. When one of these concealed devices registers certain pre-defined events—a door opening, a lock unsealed, a curtain tampered with—the unit's modem sends out an alarm to the network-operating center via GSM/GPRS or satellite. The center can then alert the end user.

Such start-to-finish monitoring systems are particularly important these days, says Willem Duijf, sales and marketing director at Novacom Europe, because many of the trailers shuttling thousands of miles "across Europe to take cargo from point of supply chain inception to destination are passed on from one hauler to another, left unattended on ferries, and picked up by yet another carrier company again."

Tracking Freight
Even the freight itself can be tracked and traced. Affixed to pallet, crate, carton, or even individual items, always-on M2M sensors can monitor asset condition (factors such as ambient and product temperature, air quality, weight, lighting) and location along the entire supply chain, keeping fleet managers informed of any unauthorized or unscheduled events. (For more on M2M, see Telematics and M2M: New business models and Telematics and M2M communications: Creating the Internet of things.)

"Any chain of security devices can be sabotaged or destroyed by criminals," admits Duijf, "but we are trying to make this as difficult as possible by creating better asset protection, detection, protection, and visibility." All that is an ongoing process, he adds: "Technology is evolving as we speak, getting more and more comprehensive. It's a cat-and-mouse game."

What counts most in the end, says van Herck, is not the technology. Instead, it is people's 100% commitment to working "in concert to accurately adopt and audit" the standards. "You can have all the alarms you want," he argues, "but if you don't get people to implement and respond to them, they won't work."

So far, TAPA's efforts have proved remarkably successful. Members who comply with the organization's standards have seen a reduction in their overall losses, especially compared to the rest of the industry, according to van Herck. Since it introduced TSR, Nike "has been able to reduce the number of cargo theft incidents by 90%."

Ursula Sautter is a regular contributor to TU

For more information on how Lynx Telematics, an OEM located in Cincinnati, Ohio can help your company crack down on cargo theft or custom design a solution to meet your fleet management needs, contact Vincent Rush at (866) 314-0461

 

LynxTelematics is an OEM that controls design, engineering, firmware, software development, IT support and manufacturing processes of our product, allowing us to produce the highest quality product in our industry, while offering our customers competitive pricing.

As your partner, we provide ongoing training and support to insure that the product is properly sold to the end user, maximizing the re-sellers profitability.

As one of the pioneers in telematics technologies, Lynx Telematics provides our clients with powerful end-to-end vehicle telematics tools. Our technology offers a real solution that delivers safety, saves money and provides an unprecedented level of peace of mind to our customers. 

Our product, LynxSafe, is the newest and most advanced in-vehicle communication system currently on the market. It combines GPS/satellite and GSM cellular technology to provide users and family members with immediate access to real-time information delivered directly via any internet enabled device including I Phone and Android smart phones.

All of our devices benefit from the innovation of U-Blox technology and a 3D Accelerometer, providing the industry’s most accurate pin point locating technology to within a 3 ft. radius.