It has been a very busy year in the trucking industry with
many decisions finally being made about hours of service, EOBRs, and the value
they bring to the industry and individual trucking companies. The added
applications and functionality of the latest technology can not only greatly
affect a trucking company’s bottom line but completely change the way it
operates as well. With features like text-to-speech, navigation and route
optimization, video playback functionality, access to Wi-Fi and internet, and
automated logs, a trucking company can see drastic changes in not only the back
office operational side but a direct impact of these features with a monetary
value added to them.
Take a look at what an average company may uncover as
benefits by upgrading to a newer mobile communications technology:
·
Fewer out –of–route miles.
o
Text-to-speech functionality can actually save
the driver time from pulling over to read an urgent message. By simply pressing
a remote device on the dashboard of the truck, a driver can listen to the
message without taking the focus off of the road. It is then possible to act
upon that message with any urgency needed.
o
Navigation and route optimization can
drastically reduce the miles being lost by taking a wrong exit, or even
misjudging the correct road to take to a destination. Although this information
is standard in most of the technology coming out right now at no extra charge,
some companies see this as a value-added application and may charge a monthly
fee for use.
·
Better quality of life for drivers
o
Less paperwork and data entry ensures that
drivers can concentrate on managing minimal responsibilities easier and
automating much of the information needed by dispatch. This greatly reduces
errors, phone time, and even turnover.
o
Internet and email availability enables drivers
to have information when they need it and not rely on ancillary devices and
added costs.
o
Safety videos and executive level information
can now be streamed or uploaded to the masses over newer on board communication
devices. This can save time organizing group meetings with drivers and
administrative personnel.
·
Reliability of newer technology
o
When an older system breaks down, it can be very
frustrating. When a driver is relying on information and processes that are
taken away, it can be blinding. Trying to fix older equipment that is teetering
on the end of shelf life can be counterproductive and time costly. Newer
equipment will have a higher success rate of operational ability as well as efficiencies
in cosmetics and overall product design.
With constant changing FMCSA
rulings, the inevitable mandates on Electronic On-Board Recorders (EOBR) seem
to be likely enforced in the next two years. With the addition of this added functionality
and value of innovative mobile communications equipment in the market, there is
an influx of used mobile communications equipment with a diminishing shelf life
coming out of trucks. The window for this
equipment becoming obsolete is growing shorter proving legacy models to be
defunct. This is good news for manufacturers and service providers of these new
systems, as upgrading is definitely in the near future. For instance, the happy
customers that have used Qualcomm OmniTRACS for the past ten plus years now
will be forced to grasp on to the new technology and outlay capital for another
system, as compatibility of the preceding wiring harnesses, separate components, and even some mounts will not
match up. PeopleNet customers however, actually have a backwards compatible OBC
that can function with newer add-on components such as the BLU2 or Tablet
displays. These may require different wiring harnesses and cable assemblies,
but the added cost of the main component is not required unless investing in
PeopleNet as a new customer.
The upgrading of fleets to newer
technologies has flooded the secondary market with used equipment. For example,
the supply of used OmniTRACS alone added from just a few of the top trucking companies
in North America has created a saturation of tens of thousands of used Qualcomm
systems into the market. This absolutely does not mean every system is
operational and worthy of use by another company, however, this does diminish
the value of used equipment greatly on the open market with so much equipment
available. In fact, after quality control testing procedures have been
performed involving large batches of used equipment, results have seen over a
65% failure rate (in some cases, even 100%). Unless a policy is in place to
ensure success in purchasing used equipment, there is risk involved on the open
market.
Fleets are still using equipment
that was considered innovative ten to fifteen years ago. The three-piece
OmniTRACS MCT equipment is so outdated with such a minimal amount of users, it
holds no value in resale on the secondary market with virtually no demand. With
so many units out there (most of which are non-functional), a recycling effort has
begun to relieve a company of this equipment to ensure proper disposal. For
more information on Pivot Technology Resources Equipment Recycling Program,
please go to
http://www.pivotresources.com/services-recycling/ .
A fleet can still find much value
in the secondary market before deciding to upgrade. Over the next two to five
years, companies that are looking to get into used mobile communications systems
have much to consider. Some questions when investing in any used Qualcomm
OmniTRACS, Xata MobileMAX equipment, or even any used PeopleNet equipment, are
listed below:
1. Can
the equipment fill a need at a cost equal to the specific reasons necessary?
a. Why
pay full manufacturer’s pricing for new equipment to use for six months until
an upgrade is decided upon? (a band-aid fix)
b. Is
there recourse if the used equipment is not functioning properly?
2. Is
there a warranty on the equipment to ensure satisfaction of performance and
cosmetics?
a. Is
there a return process defined and accepted if the equipment does not perform
or meet expectations?
3. Does
the equipment belong to any fleet that has not authorized the transfer?
a. In
many cases, eBay, Craigslist, and other advertisements will (unknowingly and
knowingly) list equipment that has been blacklisted from the service provider
as the equipment may have been lost in transit and claimed on insurance,
stolen, or even shut off because of unpaid monthly services. Purchasing this
type of equipment is leaving a company with junk.
As a breakdown, finding success
investing in used equipment is simply reducing the risk involved. By defining
warranty terms, the expectations of the equipment, and support policies and procedures,
the secondary market can be a very substantial resource for saving money on quality
used equipment.
Pivot Technology Resources was
founded four years ago with the sole purpose of eliminating the risk of
investing in used mobile communications and asset tracking equipment in the
trucking industry. For more information on Pivot Technology Resources, please
visit www.pivotresources.com or
call 800 679 0177 and speak with a representative.
