By Mark Boada, Executive Editor
North American fleets that have adopted telematics know both the benefits and challenges of putting them into place. While the technology has been proven to help increase fuel economy, design more efficient delivery routes and improve fleet safety and driver behavior, it can be difficult for senior management to approve the expense to implement it and to get driver buy-in.
Those challenges multiply, though, when managers of multinational fleet managers try to create a uniform telematics program across all the countries where the company operates vehicles. First, there’s the matter of getting commitment and funding from each country subsidiary. But most vexing, though, can be the wide variations in local laws, infrastructure, available in-vehicle technology and driving culture.
One of the pioneers in taking on those challenges is PepsiCo, the beverage and snack food giant that operates more than 70,000 sedans, trucks, tractors, and other transportation assets in some 200 countries on six continents. Bob Zimmer, PepsiCo’s senior manager of supply chain fleet technology, is the company’s project point man, and he explained how the company’s going about making it happen in a NAFA webinar last month. (Members can access the archived, hour-long webinar via NAFA’s website.)
Make a targeted business case
Zimmer said he starts with getting senior management in every country to back the initiative by making a targeted business case. “It’s important to get that buy-in from the top because you have to show where the money is going to come to pay for it,” Zimmer noted.
From the fleet’s experience in North America, he said, PepsiCo’s headquarter executives know that the technology has generated impressive savings: millions of dollars in fuel expenses through a 30% reduction in idling; as much as a 60% reduction in vehicle breakdowns through improved preventive maintenance; greater driver productivity from more efficient route planning; fewer accidents, and a crackdown on out-of-route mileage and unauthorized off-hours use of fleet vehicles.
But when approaching country management, Zimmer said PepsiCo focuses on just one of those goals. “Pick the one you think is the easiest to accomplish,” he advised. For him, that usually comes down to idle reduction, which alone he says should cover the cost of the program, hardware and software included.
The post How PepsiCo is Creating a Global Telematics Program appeared first on Fleet Management Weekly.
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