Maximum monitoring

Speaking to a number of existing suppliers in the Middle East, caution is often voiced for companies new to the systems to adopt a progressive approach to its implementation. Whilst capabilities of the software are far reaching and of undoubted long term benefits to a company, it takes a certain measure of time to become aware and accustomed to its purpose. Identifying the initial requirements and becoming aware of varieties of software seems a valuable first step in reaping the benefits of a fleet management system.

From his role as logistics consultant, Ed Simpson has monitored the progress of fleet management devices for over 15 years. A frequent visitor to the Middle East, in order to conduct logistics related training seminars, Simpson is able to clearly identify the current regional market climate for fleet management solutions. “Whilst there are only a small number of system suppliers with offices in the region, in fact every fleet management supplier in the world is a potential Middle East supplier,” he says.

“Each time a fleet systems supplier finds a single customer in the Middle East they are considered a ‘Middle East supplier’. Suppliers find it harder to find the first customer in a new region but because of efficient global help desks and automated communications via modems, the location of the supplier is unimportant,” explains Simpson.

Of the few suppliers with offices in the region, Trakker first set up operations in the UAE in 2005. With an office in Dubai and a 24 hour call centre located in Abu Dhabi, the company supplies the C-track range of GPS/GSM fleet management systems. Marketed as a product leader in South Africa, Pakistan, Europe, Australia and Brazil, the systems possesses the capability to control over 170,000 units from fleet managers across the world.

“When we started in 2005, fleet managers liked the idea but were slow to commit to the product. Business such as this takes time. In the US and Europe, it has been in use over 30 years now, and likewise has a long standing presence of 25 years in South Africa,” reflects Naim Hadi, general manager, Trakker Middle East.

“2006 was a tough year for us. We contacted a lot of businesses and potential clients, but reservations were voiced on the cost of buying in bulk, as to cover a whole fleet you could be talking about 100 units. However, in the first three months of 2007 we have made twice as much business as we experienced in the whole of 2006,” he says.

It is largely thought amongst suppliers that education and awareness of products is the key to establishing the concept in the Middle East. Many share Trakker’s optimism that the market conditions for fleet management products is fast approaching a brink, whereby it will soon enter a more cemented position within industry sectors.

“I believe in a relatively short matter of time that tracking devices will be as standard as having a PC in an office. Whilst protecting and operating procedures for static assets is a significant part of any company’s balance sheet, they are often unable to exercise the same control over moving assets. This technology makes that affordable and it will spread,” confirms Mohammed Aljaibaji, regional business development manager, Fleet Management Solutions ME.

Another local supplier with an office present in the region who strongly believes the market to be still in an education process is Fleet Management Solutions (FMS).

However, the company also identifies a vast range of industries and sectors open to the benefits of fleet management systems, exemplifying the large push required by suppliers to educate them all. These include service and delivery, transport and trucking, bus and motor coach, trailer and containers, shipping and marine, government and military, oil and gas, and heavy equipment.

“These companies need to monitor, control and protect their valuable and remote assets, possibly against the personnel side and their or abuse of asset, or from the location point of view. So assurance is added that the asset remains where it is supposed to be whilst in remote locations,” says Aljaibaji.

“In this region once people learn of this product and what technology can do they may be open to being sold much more than what they need. They, therefore, get too much information and data that will not be easily absorbed by their staff, thus rendering the system very expensive and complicated,” he continues.

Whilst a system may offer complicated features, its appearance and implementation is in contrast very simple. Take Trakker’s C-track software, which comes in the form of a small black box that fits snuggly under the dashboard of the vehicle. Two versions of the software are currently available to fleet managers, the C-track Assist and the C-Track Solo, both of which offer tracking via the internet or the company’s call centre.

In the C-track solo, a variety of sensors allow the programme to be scaled to each fleet’s requirement. This is demonstrated best by the slightly obscure case of a fleet of garbage disposal lorries. “One of our customers, a French company in Abu Dhabi, required a system tailor made to manage waste disposal trucks. Each truck contains a driver and two assistants which needed to be monitored when the vehicle parks and lifts garbage containers,” says Hadi.

“Alongside this, we needed to develop sensors to monitor the weight of garbage in the back of the truck, for Abu Dhabi Municipality charge according to the weight collected. Another good example is cement mixers towed by lorries, which require special sensors to monitor the movement of cement to ensure it arrives at a construction site in suitable condition,” he smiles.

Last month, Volvo Trucks revealed its plans to launch its own line of fleet management systems in the Middle East. A common trend amongst vehicle manufacturers, DaimlerChrysler already targets its Fleetboard package to commercial fleet operators of all truck brands in the region. The corporation, which also owns Mercedes group, believes the software can overcome the initial cost that deter some companies from other products.

“No expensive initial investment is required. All you need to run FleetBoard is internet access and a working GSM network. Moreover, FleetBoard is the only telematics system offering a performance analysis tool, which evaluates the driving style by grades and analyses the recorded data for the entire fleet. Relevant factors such as the individual trip, over-revving, braking behaviour, and stops are taken into account for the evaluation. This calculation is the optimum basis for a fair driver bonus system,” says Uwe Hermann, regional sales manager, FleetBoard, DaimlerChrysler Middle East.

“Using objective data in this way makes it possible to develop a driving style that saves fuel and reduces wear and tear in addition to driver fatigue and accident prevention. Practice shows that it is realistic for each driver to save two litres of fuel for over 100 kilometres,” he proclaims.

The issue of cost is one that appears to continuously resurface with fleet management system suppliers. However, another ace up a supplier’s sleeve in convincing potential customers of the long term benefits found within the issue of insurance. A number of insurance firms in the Middle East lower rates according to the implementation of fleet management software. Security wise, any system offers a solid platform to counteract theft, with potential thieves unlikely to escape the satellite scope monitoring their every move – a fact not unnoticed by insurance firms.

“The benefits of our products in cutting costs are obvious – it increases productivity and decreases insurance premiums. Since last year we have an agreement with Oman Insurance and Emirates Insurance for special premiums to our customers. In the case of logistics companies, it could save as much as 10% on insurance costs,” exemplifies Hadi of Trakker.

Of the region’s logistics companies currently operating with fleet management systems, Aramex is not short in its praise of the concept. Operating with an Omntec fleet management system for over a year, the company has experienced a strong sense of peace of mind.

“It is quite crucial to our operations, in fact we are expanding the technology to other vehicles we have. With the regional Aramex centre for the UAE and the Gulf based in Jebel Ali Free Zone, there used to be a grey area from the time vehicles departed to the time they arrived at their desired destination,” says Hussein Hachem, vice president of Aramex in UAE and Oman.

“You are talking hundreds and thousands of kilometres with vehicles holding hundreds of thousands dollars worth of stock. GPS gives you and the customer peace of mind. Both can monitor where the package is at what time, therefore know when to expect the goods allowing business decisions to be made accordingly,” he emphasises.