Using EOBR Technology to Positively Impact Your Bottom Line 1

Using EOBR Technology to Positively Impact Your Bottom Line

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Confidential and Proprietary. Copyright© Rand McNally 2012.

Our Background – 70 Years Serving in Transportation

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Launches Hazmat Routing


A Leading Provider of Transportation Technology 200,000+ IntelliRoute® TND™ navigation devices in use 20,000 mobile communications systems on air 94% of top 100 transportation firms use IntelliRoute® 91% of top 100 transportation shippers use MileMaker® 80+ industry integration partners More than 1 million Motor Carriers’ Road Atlases in circulation Over 100 customers in Moving and Storage industry

Our Business Today

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Mileage & RoutingEnterprise Software

In-Vehicle Navigation

Mobile Communications & EOBR

The Industry Standard for over 70 Years

Trucker Tested. Trucker Approved.

Results for Fleets. Trusted by Drivers.

Our Products


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Major New Product Announcement :

New device transforms tablets, smart phones or Rand McNally's GPS navigation devices into a compliant EOBR systems

Installation in 10 minutes or less Compact size - just 3 ½ inches by 5 inches Rand McNally’s HOS, Vehicle Inspection Report (VIR), Two-Way Messaging

and Driver Performance features available through an app that runs on the display device

Same back-end portal with the same functionality as other Rand McNally in-cab products

Commercial availability in April 2013

5Confidential and Proprietary. Copyright© Rand McNally 2012.

Major Industry Trends & IssuesA Brief Review

Confidential and Proprietary. Copyright© Rand McNally 2012.6

An EOBR, is an electronic device which allows drivers to remain compliant with Hours of Service (HOS) requirements for drive time restrictions.

The proposed regulation §395.16, would require all commercial motor vehicles to operate with an EOBR installed.

The EOBR regulation is included in the Highway Bill that was recently passed by Congress and has been signed by the President.

The bill calls for EOBRs to be implemented within the next 3 years. The law states:

The device shall accurately record driver hours of service, record the location of the vehicle, be tamper resistant, be synchronized to the operation of the vehicle, and allow law enforcement access to the data contained in the device. The device shall not be used to harass the vehicle operator.


Electronic On-Board Recorders (EOBR)

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Compliance Safety Accountability (CSA)

CSA is an automated system that quantifies motor carrier on-road safety performance based on Behavioral Analysis and Safety Improvement Categories (BASICs).

Continued poor CSA performance can result in the shutdown of trucking operation.

This is a new regulation that started in 2010.


Unexpected rises can have an immediate profit impact to an already margin-tight business.

Fuel prices projected to stay above $4.00/gallon

3 Source: U.S. Crude Oil and Liquid Fuels, U.S. Energy Information Administration. 2012

2010 2011 2012 2013Diesel Fuel $2.99 $3.84 $4.15 $4.11

Fluctuating Fuel Prices


Driver Shortage

Stricter safety rules combined with an insufficient number of new drivers entering the workforce has created a driver shortage

More than 90 percent of truck drivers leave in their first year, either to go to a competitor, start another career, or are fired*

Costs of recruiting new drivers are increasing – some fleets are spending over $5000/driver in recruitment and advertising costs*

Increasingly, fleets are often forced to hire less experienced drivers

Shortage potentially 250,000 drivers by end of 2014*

Drivers are now like “Free Agents”


*ATA, Transport Fundamentals, Cost of Truckload Driver Turnover

Demystifying EOBR TechnologyWhat is it? How it can help your operation?

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EOBR Technology Breakdown


At a core level, EOBR’s utilize 5 critical pieces of technology These include:

On-board Computing – The device must be able to run software applications

Display Device – An EOBR system must provides a user interface for the driver so they can record duty status information and certify their daily logs

GPS – Detects vehicle position by listening to global positioning satellites

Vehicle Diagnostics- Detects engine activity and odometer via a connection to the trucks diagnostic system (J1708/1939)

Wireless Communications – Transmits information to a back-end system to store and retain data

EOBR Technology = Mobile Communications Technology12


Due to EOBR regulations, the critical question facing carriers is no longer:

“Do I adopt the technology?”

Make sure you get the most out it!

Invest In a Platform – Not a Product

It’s now “How do I maximize the value (ROI) I derive from it?”

The key lesson to keep in mind is this:

With a compliant EOBR system, you will effectively have a full mobile communications

platform

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Automatic Vehicle Location & Geofencing


Location visibility improves asset utilization and minimizes deadhead

miles

Know when assets arrive at their destination and

how long they remain on site

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Out of Route Driving Detection


10% of miles driven are out of route

(OOR)

Be aware of when off route driving occurs and take

immediate action

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Electronic Hours of Service


Eliminate costs of paper log books (~$3/mo) and gain

back up 30 minutes per day of productivity from the

driver

Simultaneously improve CSA scores while also

dispatching more efficiently.

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Truck Navigation


Reduce the stress of driving in unfamiliar areas

Navigation has become a create comfort for many drivers and has

proven to be an effective retention tool

Avoid costly fines from driving on roads where commercial trucks are

not permitted

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2-Way Email Communication


Improve command and control by streamlining the

flow of communications between driver, dispatchers

and customers

Maximize the ratio of drivers to dispatchers by automating basic tasks

and looking at issues on an exception basis


Accident / Critical Event Detection & Alerting

Proactively monitor emergency events as they happen to

ensure

Identify driving behaviors such as following too close behind

other vehicles

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Driver & Vehicle Performance Monitoring


Provide a fair standard for measuring driver performance.

Let drivers see their own performance in real time. Try the carrot first, then use the

stick with respect to performance incentives.

Understand where your fuel is being used. How much does idling, speeding, improper

shifting cost in gallons?

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Remote Diagnostics / Vehicle Fault Code Detection


Detect mechanical issues remotely through fault code

alerts. Schedule maintenance proactively.

Roadside breakdowns typically cost more than $500 per

incident. That does not factor in the opportunity cost of the

asset or customer issues

The ROI of the system is in the hands of the managers who set company policy

Fleets that aggressively deploy the technology typically pay back the initial investment within 6 months

Getting the maximum ROI is usually not an overnight process – set realistic but escalating goals throughout the first year of deploying the system

Simply knowing your metrics is a great place to start. Is there a problem? If so where is at and what is driving it?

Target the low hanging fruit first – Idling, Speeding, Hours of Service, off route driving are easy to track and identify.

As the organization becomes more experienced with the system, begin to mine the mountains of data that is available


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Implementing EOBR/Mobile Comm Technology Strategically

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Other Benefits of EOBR Technology

Automate manual processes like Fuel Tax Turn administration into analysis - less time

on the phone or manually tracking data Maximize the drivers time by reducing

paperwork related to VIR and HOS Free up dispatcher time providing

routes/directions Provide better customer service by having

immediate access to information such as vehicle location and ETA.


Questions & Answers


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Documents

Using EOBR Technology to Positively Impact Your Bottom Line 1