SynX Blog

As technology becomes more prevalent in our lives, we are often so reliant on innovative features, automatic software updates and ease of use that we don’t stop to think about what this means for our privacy and security. Detailed customer data enables businesses to provide us with the products and services that we expect, often in a more meaningful way. But where such data contains personal, financial or medical information, companies have both a moral and legal obligation to keep it safe from cybercriminals.

With the General Data Protection Regulation (GDPR) coming into force on the 25th May, that obligation has taken on a new urgency. Transpoco, as a cloud fleet management solutions provider expanding its focus further to connected vehicles and automotive OEM technology research, has already made the journey towards the implementation of a strong information security management system by getting certified to ISO 27001. ISO 27001 is designed to bring benefits to any type of business and is applicable to all users, including small and medium sized organisations.

“Companies can no longer overlook information security in the Big Data era and should have processes in place to prevent data from being accessed, corrupted, lost or stolen. We know this from our long experience with vehicle data. The ISO 27001 certification helps us in making our processes better and shows our adherence to a recognised standard” argues Rebeca Luna, Transpoco’s Information Security Manager.

“We have always been committed to providing information security excellence. Becoming ISO 27001 certified, in addition to our existing ISO 9001 certification, is an extra step for us to further demonstrate this commitment and reassure information is protected, in full alignment with the GDPR requirements coming into effect in May”, adds Ms. Luna.

SynX, Transpoco’s fleet management solution, helps other companies that rely on vehicles and driving to overcome their daily challenges. Like so many other companies dealing with large amounts of digital data, certification to ISO 27001 was seen as a logical step.

With more and more of us willingly ready to compromise our privacy and security in exchange for what we regard as more valuable access to state-of-the-art technology, the onus is on businesses to ensure that this data is secure. While for everyone the real test will come in just a few weeks with the introduction of the GDPR, companies like Transpoco can be confident that they are putting their best foot forward.

“I want to sincerely congratulate Transpoco on their certification to ISO 27001”, says Geraldine Larkin, Chief Executive for the NSAI (National Standards Authority of Ireland - Ireland's official standards body, an organization using measures and standards like  ISO 27001 to benefit society and give Irish enterprise a global advantage), “This major global standard forms the scaffolding required for companies to engage in best practice behaviours in cybersecurity.”

“It takes a team of committed, hard-working people to achieve certification to international standards, but I know that it is time well-spent,” adds Geraldine Larkin.

Choosing the right suppliers for your fleet might seem quite difficult, as it involves a number of factors and aspects to be considered before making a decision. Price is very often scrutinized as companies (and fleet managers are not excluded from the trend) are constantly urged to gain the best performance at the lowest cost. But the truth is that the cost of a service cannot be the singular guiding point for choosing your fleet’s provider.

There is no perfect formula to guarantee the selection of the right supplier, but as usual, if you consult relevant co-workers, keep in mind your business trajectory and use common sense, you are more likely to make the correct decision.

#1 - Think about your company’s needs—keep in mind the expectations of your business, your main activity and what you would like to get from your service provider. Feel free to make ad-hoc requests and see where you go with these and how they can adapt to your needs—if they make an advantageous offer in terms of price, but not consistent with your needs, maybe you ought to look elsewhere.

#2 - Reliability—a lot of things can be learned, but reliability is probably not one of them. Check for reliability in a provider: see if they promise to be somebody you can trust after the first call or email; get feedback from other team members that might have approached different vendors for the service you are looking for and get their opinion.

#3 - Remember to gain the advantage of expertise—if you are choosing a provider and are going to use its services, remember they are experts and their job is to help you with your fleet. Do not commit the mistake of not asking beforehand or not including all the necessary points before actually working out the time constraints, but try to use your resources wisely.

#4 - Involve stakeholders in the process—make sure everyone potentially interested in the acquisition of the new service or vendor is involved in the selection process; they might provide useful insights or ask questions you had not thought about, that can later be used as a starting point for your vendor’s proposal.

#5 - Measure the performance of your supplier—use technology and any tools available for you to evaluate the performance vs costs of your supplier; it is actually quite an immediate process, providing you have a fleet management solution, and can be extremely helpful as a future reference.

#6 - Review your agreement—once a vendor is chosen and you work with a particular provider, this does not mean you are tied to them. Make sure you bear this in mind if you are setting up an agreement with your provider; and depending on the measured performance of your supplier, you will be able to modify the agreement, advance further requests or switch to another provider.

If you either own or use a fleet of vehicles, their maintenance should be one of the top priorities: you have to make sure that vehicles are kept in a roadworthy condition at all times and that they are safe for vehicle users, passengers, other road users and pedestrians.

Far from being solely a “must-do” legal obligation—and this is particularly addressed to those who tend to treat maintenance reactively—maintaining your vehicles reduces the risks of incurring unplanned downtime, of them being impounded or suffering delays because of roadside inspections, which can all damage your business.

What then are the other business benefits you can get out of regularly maintaining your vehicles, and why should fleet maintenance be your primary focus?

#1 - Global cost reduction. Overall fleet costs can only decrease if you consistently practice maintenance as vehicles are less likely to suffer problems and consume fuel, and are obviously less subject to mechanical issues if you are regularly servicing.

#2 - Operating cost reduction. If fewer vehicles incur breakdowns or these happen less frequently, you will lower operating and replacement costs—something that may need to be calculated in when resources are stretched and you need to comply with deadlines and assignments—there is also a better chance for your business to grow if your fleet is operating at maximum capacity.

#3 - Improved fuel consumption. Vehicles kept in good shape are generally more fuel efficient.

#4 - Customer satisfaction. Consistent on-time deliveries can be reached only if your vehicles are properly maintained—and they have less risk of being pulled over for inspections.

#5 - Higher vehicle value. Though depreciation is always a factor, keeping vehicles in a roadworthy condition can only protect their integrity and enhance their residual value.

#6 - Reduced risks of long roadside checks. If your vehicles are regularly maintained, roadside checks won’t take as long and you won’t incur the risk of downtime due to failed compliance.

#7 - Improved working environment. Increasing the safety of your drivers will always be regarded as a plus and can only make them feel more secure in their job, and they are more likely to be in compliance with traffic laws.

When it comes to road safety and operating safe vehicles on the road, everyone needs to feel involved; and the bus sector, including school buses, has been the target, in recent years, of an enforcement campaign conducted on a European level.

According to the RSA of Ireland, school buses are considered to be particularly high-risk vehicles; they experience peak usage during the time of year when buses are hired for purposes other than conveying children to school.

The ROSPA (The Royal Society for the Prevention of Accidents) adds that some of the buses, especially those dedicated to voluntary activity, might not be fully fit for purpose. All coaches and minibuses registered on or after 1 October 2001 must have forward-facing or rearward-facing seat belts fitted (different for buses with an urban use). Older coaches and minibuses that are transporting three or more children must have a forward-facing seat belt, either three-point or a lap belt, fitted for each child. According to UK legislation, passengers aged 14 and over are personally responsible for belting up, but the driver is legally responsible for ensuring that younger children are using seat belts or appropriate child restraints.

These common issues, together with the increasing traffic at the times highlighted previously, can contribute to greater risks which have to be properly addressed. The reinforcement campaign targeting the bus sector and, particularly, school buses, is going to see an increase in roadside inspections and check-ups to be carried out at operators’ premises.

As regards to the reinforcement actions conducted in 2016 and currently in force, according to the RSA of Ireland, around 50% of the buses inspected at the roadside had defects—of these, one in five presented major faults. 1028 school bus operators’ premises were visited over the same period and less than half of them were found to be compliant. Inspections conducted on school buses since the start of the 2017/18 school year proved that more than half of them were defective.

The DVSA is also targeting school buses and increasing inspections with the aim of improving road safety and roadworthiness, especially after various cases of school buses were found to be faulty following cost-cutting attempts by operators or companies having their licence revoked due to "negligent" maintenance.

There are a number of measures you can actually put in place as a bus haulier to guarantee the roadworthiness of your vehicles, perform risk assessments to help protect your young passengers and to avoid roadside penalties or even more serious consequences. As the issues found in the school buses are indicative of operators posing risks to road safety (rather than merely a deterioration of the fleet’s operational ability), it is important to emphasize the importance of roadworthiness and safe vehicles. Non-compliance with legislation is unacceptable and safety systems should be strengthened. Technology and data provide a useful aid to keeping vehicles roadworthy: check out our maintenance and vehicle inspection software to prove just how useful!

In fleet management, where costs go up and down (with some more evident than others), the continuous search for efficiency and the need to keep costs in check are a constant priority. In order to optimise costs for fleets, all cost-generating factors need to be properly assessed. And fleet vehicle depreciation, though not classed as an operating cost per se, does have an impact on the bottom line of a fleet and needs to be thoroughly examined before making purchasing or remarketing choices.

Fully understanding what depreciation is can indeed help you make the right business decisions. A simple definition of fleet vehicle depreciation is the decline in the value of fleet vehicles. In other words, whenever they are bought, they invariably become less valuable with use and the passing of time. Depreciation can also be looked at as the value of an asset over its useful life—this entails the gradual and permanent decrease in the economic value of the asset. Fleet vehicle depreciation today makes up for around 30% of the total cost of ownership.

For an average fleet, depreciation is the largest cost—most of which occurs in the first two years of a vehicle’s life. Depreciation is inevitable but not impossible to tackle: knowing depreciation better and applying good strategies won’t make it go away but will help you handle it. The general trend is to focus attention on the price of a vehicle, though fleet managers should equally consider other aspects as outlined below:

1. Original fleet vehicle cost. Though not the chief cost, it is actually where vehicle depreciation starts. Nothing you can really do much about. However, if you are in a position to acquire more assets, you may apply leverage if bulk buying—the more vehicles supplied, the better chance of negotiating a lower price. Finding vehicles where a low purchase price matches a high resale value is obviously another extremely desirable option; though it might not always suit your business.

2. Choose vehicles with relevant specs. When procuring vehicles, carefully determine the most suitable options for your drivers, your fleet and ultimately your company. Try to avoid vehicles with specifications that are not aligned with your fleet needs, especially ones with multiple options but low resale value. Assess the rental possibilities if you need vehicles that do not exactly match your fleet requirements.

3. Apply regular and preventive fleet maintenance. Fleet maintenance is definitely a key factor when it comes to depreciation. Keeping fleet vehicles in good shape helps improve their resale value and, at the same time, maintenance costs start to increase with vehicle age, so both aspects need to be kept in mind. Keeping vehicles properly maintained via an efficient maintenance program helps to ensure that your vehicle is an appealing used product.
   
   
4. Timing is money. Bringing vehicles into service at the most advantageous point will help maximize resale value and get the most out of the model-year. Buy as many vehicles early in the model-year whenever possible; bearing in mind the time of year when you need assets the most.

The website Honest John hosts a page called ‘Real MPG’ which gathers and publishes real fuel consumption data and highlights the gap between the official fuel economy data stated by vehicle manufacturers and real-world fuel consumption. According to their findings, the average vehicle delivers just 80% of the officially advertised fuel economy.

Real MPG began in 2011 thanks to the website Honest John, one of the most famous resources for vehicle buyers, which feature tips and professional answers to technical questions posed by readers. Because Honest John was receiving more and more complaints from buyers who could not reconcile the MPG of a vehicle used in a real-life setting with the MPG advertised by the manufacturer, it created this page specifically for vehicle buyers to submit their own MPG findings together with engine model and ‘type of driving’.

The debate on real versus advertised MPG and the reliability of vehicle testing is ongoing, though it has become more intense in recent years due to the gap between official and real MPG appearing to be on the increase.

The NEDC (New European Driving Cycle)—the official vehicle testing method for the last 40 years—has often been judged as incapable of simulating real-life driving as it is no longer compatible with modern engines or the stats are drawn from vehicles adjusted to obtain better results (allegedly). The Worldwide Harmonised Light Vehicle Test Procedure (WLTP) has come into force since September 2017 and is seen as a more realistic testing method—though it is still not exactly real-life driving—as it includes a greater range of driving situations (urban, suburban, main road, motorway), longer test distances and stricter car set-up and measurement conditions. From September 2018, all new vehicles will have to be certified under the WLTP. According to Real MPG, WLTP should be more reflective of real-world driving, but it is still laboratory-based and unlikely to return the realistic economy figures that buyers need.

But, apart from the vehicle testing, what exactly did the Real MPG discover? Apparently, just one in ten vehicles matched the figures quoted by carmakers in 2017. The worst performing car, according to Real MPG, was the Smart Fortwo which achieved 67% of its advertised fuel economy, followed by the BMW 5 Series and Land Rover Discovery Sport with both delivering just 68 per cent of their stated MPG. Best performing cars were the Land Rover Defender, with an average of 105%, followed by the Mazda MX-5 (102%) and the Toyota GT86, with a real-world fuel economy of 98%. In terms of commercial vehicles, the Ford Transit data collected in Real MPG demonstrated a real-world fuel economy of 78% in its 2.2 TDCi 125 variant and 67% in the 2.2 TDCi 155. The Citroen Berlingo 2018 demonstrated 93% in its 1.6 HDi 90 variant and 84% for the 1.6 e-HDi 90.

These investigations and debates around real-world fuel consumption do highlight that fleet costs and fuel costs are quite tricky to manage if you are too much influenced by advertised MPG because of the gap between the manufacturer’s claims and the real-world fuel economy. Driving style and maintenance is extremely important, and real-world MPG data is what counts at the end of the day. Best practices in terms of efficient driving, fleet policies controlling use of vehicles, driver training and appropriate maintenance that avoids wasted fuel have to be combined together with the monitoring of real fuel usage—cross-checking mileage and the cost of fuel used. Today you can manage fuel on a real case by case basis: let us know if you need to capture fuel data and run vehicles more efficiently.

The Easter weekend is just around the corner and most people are looking forward to some R & R with time off to make visits and enjoy a well-deserved break. If you are not among the lucky ones buying chocolate eggs or sitting with their feet up eating goodies, it is probably not so much down to watching your calorie intake but rather because you are one of those who have to spend the Easter break driving for work.

Driving over Easter can be riskier than usual as roads can become very busy and the rise in driving activity can be associated with an increased risk of potential collisions and accidents. On these particular occasions fleet drivers and motorists in general tend to be extra vigilant, as people tend to change their behaviour and adopt unsafe driving practices in order to reach their destinations as fast as possible. This might lead to dangerous motoring actions such as speeding or taking chances when overtaking for the abovementioned purpose. In this situation, fleet drivers who are active during this time in particular need to be patient, considerate and extra careful.

Regarding traffic, last year around 20 million vehicles were on roads during the Easter break in the UK, peaking on Holy Thursday and Easter Monday—post-work periods and the timing of school breaks especially impacted traffic levels.

In this particularly challenging time we would like to reiterate some good practices for fleet drivers:

#1 - Never ever overlook vehicle inspections: apart from being a fleet compliance requirement, doing your daily walkaround checks reduces the risks of having an accident and keeps the vehicles in a safe, roadworthy condition. Do not commit the mistake of skipping checks because of time constraints—if you need a quick and sound process to do this, sign up for our SynX Driver app and start doing paperless checks from your smartphone.

#2 - Always practice safe driving: wear your seat belts, avoid drinking and driving, maintain the safety distance when following a vehicle, respect speed limits and be patient. Do not follow the temptation to practice aggressive driving or take rush decisions that can lead to a dangerous misestimate.

#3 - No distractions: keep your eyes on the road even if you are queuing. Do not use smartphones or tablets while driving as something unexpected can happen at any given moment.

#4 - Drive defensively: keep an eye on other road users (bicycles and pedestrians included). Be especially careful at traffic lights, intersections or crossings.

#5 - Fight fatigue: take appropriate rest breaks and follow the EU regulations on driving hours.

We wish you a happy Easter—at home or on the road!

Managing a fleet—something we talk about every single day—is (or at least seems to be) all about overseeing the operation of vehicles to carry out tasks vital for a company. In order for these tasks to be completed with a positive outcome, fleet managers, or anyone responsible for the vehicles, are involved in a wide range of functions, from fleet maintenance to safety, from driver training to fuel management just to mention a few.

Despite a fleet being so integral to a company, and key to the development of the organisation, it is still often considered something completely separate from the business activity. The decisions made in this area directly impact the health of a business which depends very much on the success of a fleet operation. If a fleet is run efficiently, the company will necessarily be more efficient, too—and vice versa.

Though this might still not be clear to you, with this post we try to make some observations of how some fleet traits should be aligned with your company goals and how it will impact the wellbeing of your business as a whole (and not just the fleet activity itself!)

1 - Vehicle choice and company mission: the type of vehicle you choose for your company fleet should be consistent not only with the duties it is going to perform, but also with the company objectives and image. This does not mean that certain types of vehicles should be chosen to merely impress but, much more importantly, should be able to complete the kind of work that needs to be done in order to fulfil the company objectives; they should be taken care of properly for safety and compliance sake and offer a positive point of reference to other fleets.

2 - Fleet management and company missions: the goals of your fleet should be aligned with your business goals. The striving of fleet managers to fulfil responsibilities such as driver productivity, safety, accident  management and so on should be goal-oriented and connected to the overall mission. The success of the fleet is just a part of the global success—global success is possible only with successful fleet management.

3 - Fleet management and customer service: if companies have a customer service that is responsive and efficient in dealing with problems as they crop up—of paramount importance is the way they are managed and solved—the internal relationship between company members and the fleet should adopt a similar practice. Fleet managers should establish a cooperative, working relationship with all internal corporate functions associated with fleet operations. Senior management needs to be kept informed about fleet performance, budget requirements, new products and programs which, along with their bearing on fleet management operations, should be maintained. If the ‘internal customer’ is satisfied and happy, the external one will likely follow suit.

4 - Fleet improvement and company improvement. Fleet managers not only monitor the working activity of fleet vehicles and related aspects, but also implement innovative initiatives to drive operational costs down and improve efficiencies. The fleet manager is seen as the in-house expert on all matters dealing with fleet management, and is backed by management in general as the fleet is viewed as a critical revenue-generating component of a company's business plan.

After procuring a fleet, part of the operational and risk assessment actions needed to correctly manage a fleet falls upon proper fleet maintenance. If a fleet does not have a robust maintenance programme, it incurs risks and it could place other road users in dangerous situations. Such a maintenance programme does not only need to cater for actual maintenance work on the vehicles, but also to maintain control and administration work to ensure appropriate use of the fleet.

How then can companies ensure that fleets are properly maintained and which items should a robust maintenance programme include other than the strictly adhered-to maintenance calendars?

#1 - Appropriate processes in place—not only should a proper maintenance schedule exist, but also other procedures that deter general misuse of vehicles including the operation of vehicles that aren’t roadworthy: drivers should have access to specific vehicles, vehicle information should be shared with relevant staff, keys should only be given to authorised personnel and vehicles should undergo a procedure to be allocated for specific jobs.

#2 - HR, vehicle usage and fleet policies—anything related to the use of a vehicle, including rules outlining where it can be driven for personal use, should be established and shared so that staff are fully aware of fleet policy. Inappropriate use may mean that a vehicle is driven uninsured or could result in potential maintenance breaches.

#3 - Compliant maintenance facilities—both if maintenance is taken care of in-house or whether it is outsourced, maintenance facilities need to be reviewed on a regular basis to ensure maintenance operations are appropriate. Having an in-house facility or outsourcing might depend on the size of the company or on in-house capabilities or if the company has leased vehicles or not. In any case, it is best practice to ensure maintenance compliance is taken care of by the relevant party.

#4 - Fleet maintenance best practice sharing—it is essential for a fleet organisation to share best practices and gain expertise with the help of professional maintenance organisations. If you have an external maintenance facility or wish to get one, you could share it with another organisation that has proved to be particularly fluent in fleet maintenance practices.

#5 - Appropriate staff training—far from thinking about intensive training for drivers, who are not as specialised as maintenance experts and mechanics, appropriate training should focus on making sure drivers are suitably trained to use the vehicles they drive. Familiarising drivers with a vehicle in order to ensure standards are upheld and all new features and compliance regulations are integrated into their daily routine should be commonplace.

#6 - Appropriate information recording and maintenance monitoring—any organisation in charge of a fleet should keep a fleet asset register along with fleet maintenance and servicing records. This type of information should be preferably managed on a fleet management software app or some other application to guarantee global sharing of the information with stakeholders and ensure that issues are promptly addressed.

Exactly like any aspect of a fleet operation, the lifecycle costs of a fleet vehicle shouldn’t be regarded as something simplistic or easy to determine. Fleet vehicles are often considered as one dimensional assets whose basic function is to deliver goods, convey specialists to wherever they need to provide their services, help sales teams build their customer base and retain customer loyalty through meetings and negotiations (for which they need a vehicle), and so on. In the main this is usually how fleet vehicles are thought of, and therefore people usually concentrate solely on the outlay for the asset, but the truth is that operational expenses are also a considerable part of the lifecycle cost of a fleet vehicle— and not the only one.

What then are the various aspects that make up the full fleet vehicle lifecycle costs—or, at least, what should we think about when we want to determine a vehicle lifecycle and the costs associated with it?

#1 - Fleet procurement—this is the process of obtaining vehicles or even goods or services and basically boils down to the decision between purchasing or leasing. However, it is a far more complex process than simply ‘buying’ as it involves preliminary preparation, negotiation and strategy phases.

#2 - Operational management—fuel, maintenance, tyres, driver wages, insurance, compliance expenses and anything strictly related to the operation of vehicles and needed for it should be considered in the lifecycle; some aspects might overlap (or not) with that of fleet procurement or fleet management.

#3 - Fleet management—as we know, fleet management involves the coordination of vehicles and the drivers who perform different tasks to achieve the goals required by an organisation. Fleet management might be performed by a single individual, or a group of people if we are dealing with a larger organisation. But fleet management hasn’t for some time been seen merely as logistical, the fleet management team is now expected to concern itself with increased safety, sustainability as a target and the reduction of expenses. So, if operational and fleet management roles might overlap, some activities more connected to company goals and their costs are more typically the jurisdiction of fleet management.

#4 - Risk management—not strictly speaking separated from fleet management itself, and potentially involving not only drivers but risks associated with the company as a whole, the cost of risk management has to be carefully assessed and the related risk and compliance management strategy has to be effective: driving is sometimes a precarious activity and any potential issue that might come up needs to be tackled and prevented before it becomes too costly.

#5 – Remarketing—or vehicle remarketing as we understand the controlled disposal of vehicles, whether due to the termination of a leasing contract or redundancy: the objective of remarketing is to resell/relocate the vehicle in time to minimise the effect of depreciation. The impact of depreciation is something that especially needs to be considered when examining lifecycle costs.