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Logistics and Transport Management

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    Operational Fleet Management

    LTM 3.10 2

    Fleet management is the management of acompany's transportation fleet.

    Fleet management includes commercial motor vehicles suchas cars, ships, vans and trucks, as well as rail cars.

    Fleet (vehicle) management can include a range of functions,such as vehicle financing, vehicle maintenance,vehicle telematics (tracking and diagnostics), drivermanagement, speed management, fuel management andhealth and safety management.

    These functions can be dealt with by either an in-house fleet-management department or an outsourced fleet-managementprovider a 3PL.

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    Operational Fleet Management

    LTM 3.10 3

    The development of Telematics has greatly improved thevisibility of operations and facilitated the TransportManager s job;

    The term telematics covers many different systems;

    however, it generally refers to remote devices that helproad freight operators by combining informationtechnology (IT) and modern telecommunications tocontrol or monitor vehicles, drivers, trailers and othermobile assets.

    Some of these systems can monitor the location ofvehicles and their activity at any given time as well asdriver performance and personal security

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    Advantages of Telematics

    4

    Modern telematics systems are more sophisticated and, in many cases, easier touse and more affordable than ever, which means they can help operations of allsizes. These systems give you the ability to:

    Monitor your operation in real timeHelp drivers locate delivery points and avoid congestion and trafficincidents

    Communicate better with your drivers, resulting in improvements to youroperation and better customer serviceHelp verify insurance claims, as historical records determine where avehicle has been and at what time and at what speed. Such measurescan be used to support risk management strategiesManage vehicle maintenance costs by identifying opportunities to improvedriving practicesTarget driver training towards those who will benefit most from using anappropriate telematics system

    Automatically provide much of the information required for compliancewith legislation such as the Working Time Directive, while other featurescan help significantly in terms of lone worker issues

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    Telematics System

    LTM 3.10 5

    A typical system operates by the

    on-board computer controlling theprocess.

    Once appropriate information isrelayed back to the office-basedcomputer, an operator can see thevehicle s exact position on acomputerised map.

    Other information can also be sentback as part of this process such

    as driver and vehicle messages.

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    Types of Telematics Systems

    LTM 3.10 6

    Basically there are 5 types of systems which can be usedtogether (integrated) or in distinct modules;

    They are:

    1. Telematics for Vehicle and Driver (Parametric) Data2. Paperless Manifest and Proof of Delivery (POD)3. On-Board Satellite Navigation (Sat-Nav)4. Traffic Information Systems

    5. Safety and Security Systems

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    1. Vehicle & Driver - Tracking

    LTM 3.10 7

    The most basic function in all fleet management systems, isthe vehicle tracking component.

    This component is usually GPS-based, but sometimes itcan be based on a cellular triangulation platform.

    Once vehicle location, direction and speed are determinedfrom the GPS components, additional tracking capabilitiestransmit this information to a fleet management softwareapplication.

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    1. Vehicle & Driver - Tracking

    LTM 3.10 8

    Methods for data transmission include both terrestrial andsatellite.

    Satellite tracking communications, while more expensive,are critical if vehicle tracking is to work in remote

    environments without interruption.Users can see actual, real-time locations of their fleet ona map.

    Trailers and tractors can be tagged and trackedseparately;

    A common application is Geo Fencing ;

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    Geo-Fencing

    LTM 3.10 9

    Geo-fences are lines and shapes that an operator can draw on the mapthat create virtual boundaries for the vehicles being monitored.

    These then trigger an alert should a vehicle cross that boundary. Thereare many types of geo-fence provided by different suppliers:

    Operating area - alerts base once a vehicle goes out of its operating area.This can be used for security purposes or identifying unauthorised use of thevehicleExclusion zone - alerts base if the vehicle enters an area prohibited by theoperatorLocations - typically distribution depots and customer locations. These areused to provide alerts as vehicles approach or enter premises. Messages canalso be sent to customers advising on vehicle arrival times, so that warehousestaff are ready to receive the delivery. This data can also be used historicallyto produce and support key performance indicators (KPIs)

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    Typical Mapping Screenshot

    LTM 3.10 10

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    Vehicle Tracking

    LTM 3.10 11

    Vehicle tracking systems are commonly used by fleetoperators for fleet management functions such as

    fleet tracking,

    routing,dispatching,on-board informationMonitoring schedule adherence andSecurity.

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    Vehicle Tracking

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    Along with commercial fleet operators, bus companiesuse the technology for a number of purposes, including

    monitoring schedule adherence of buses in service,

    triggering changes of buses' destination sign displays at theend of the line (or other set location along a bus route), andtriggering pre-recorded announcements for passengers.

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    Vehicle Routing

    LTM 3.10 13

    Vehicle routing provides drivers with a visualrepresentation of their progress and is a powerful tool tohelp them navigate the remainder of their journey.

    This can help drivers to make the best use of valuable

    time and fuel when locating a delivery point.Routing and mapping software can also contain otheruseful information such as real-time traffic information, orthe location of fuel stations, restrictions, accommodationand lorry parking areas.

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    Vehicle Routing

    LTM 3.10 14

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    Maintenance Diagnostics

    LTM 3.10 15

    Advanced fleet management systems can connect to thevehicle's onboard computer, and gather data for the user.

    Details such as mileage and fuel consumption aregathered into a global statistics scheme.

    Remote alarms can indicate that a vehicle will require amechanic upon return to base or sooner;

    Refrigeration compartment temperatures can be tracked

    and automatically uploaded ensuring the the food safetychain is preserved;


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