Will The Integration of OEM Telematics Cause a Stir? | Utilimarc Fleet FYIs

Gretchen Reese (00:06):

Hey there, welcome to Fleet FYIs, the weekly podcast by Utilimarc, that reveals how you can make the most of your data for smarter fleet management. My name is Gretchen and every week you'll hear from me and some of the industry's finest in candid conversations that will shed some light on not only two decade's worth of data insights, but some of the industry's hottest talking points and key metric analysis with the aim to help you better understand your fleet from every angle.

Gretchen Reese (00:33):

But before we begin, if this is the first time you've heard our show, thanks for stopping by. I'm so glad you decided to come along for the ride with us. But I've got a quick favor to ask you. Once we finish today's episode, if you could take a few minutes to leave us a review on your favorite podcasting platform, we would really appreciate it. Give us a rating, five stars I hope (laughs), or tell us what you liked or leave us a comment or a question about what you've heard in today's episode. But if we haven't yet covered a topic that you're interested in hearing more about, let us know. We would be happy to go over it in detail in a later episode. If that sounds good to you, let's get back to the show.

Gretchen Reese (01:17):

Hello everyone and welcome back to another episode of the Fleet FYIs Podcast. We're back again today with another Shorts Episode and I'm pretty excited for this one because personally, I think that this topic is actually pretty relevant to the industry right now, even though it caused a little bit more of a stir maybe about a month or two ago. Today, we are talking all about OEM Telematics. And I'll be honest with you, any fleet manager who relies on GPS and fleet monitoring data in order to make fully informed decisions for their fleets, needs telematics. And granted, that's just my personal opinion, but I like to think that it's shared by many.

Gretchen Reese (01:57):

And in fact, they don't just need telematics, but they need telematics solutions that offer profound insights and access to real time data across their fleet no matter what asset type, no matter what type of vehicle class, you know the drill. And today, it's kind of interesting because fleet managers actually have the option of using in house OEM Telematics or seeking out a third party provider to fit their vehicles with the necessary hardware. Think someone like Geotab or Samsara or whomever else is going to be. More OEMs, as we speak, and I don't mean literally right now, but over the next few months and years, will be coming out with their own solutions for telematics breaking into the market and featuring a few selling points that aftermarket providers lack. Now, this additional option for how fleet managers can collect data it is important to consider in regards to, say for example, your fleet specific needs, and also the objectives for data analytics. But to get into the real point of this episode, I wanted to touch on everything OEM Telematics. So if you're ready, let's dig in.

Gretchen Reese (03:14):

So to kick off this episode and the question in question (laughs) of will the integration of OEM Telematics cause a stir throughout the industry? I figured I should probably start with the basics of what are OEM Telematics? Now, for the folks that have been in fleet that are listening to this show, you know, no matter how long you've been in fleet, you've probably heard of the term telematics before. And OEM telematics are different than, you know, your commercial solutions like your Geotab or your Samsara but not to the point where it's astronomically different. Now OEM Telematics, their data solutions that are created directly by original equipment manufacturers, such as Ford or BMW, who now both offer factory embedded telematics options within the vehicles as you purchase them.

Gretchen Reese (04:05):

Now, the term OEM Telematics, it's built up quite a buzz in recent years because telematics have long been sourced from third party providers and added to vehicles after acquisition. So this is kind of a big change here and a little bit different to how we've been used to doing things. And manufacturers are actually catching on to this trend, this trend of wanting to monitor vehicles and understand, um, more about your vehicles from the data that they can gather and they're creating their own solution for this data reporting, collection and reporting, I should say. But the major difference between OEM and Aftermarket Telematics is that, whilst factory ready vehicles have the hardware built in right from production, Aftermarket Solutions are installed after the fact, we've already covered that. But also, because telematics software has been designed by the manufacturers themselves, customers are actually getting access to far more vehicle specific information that otherwise might not have been caught by third party software. So there's a little bit of an interesting thing to think about.

Gretchen Reese (05:09):

And the question that a lot of people ask, you know, what are these OEM Telematics for? Is it just for the newer electric vehicles? Is it just for the light du- duty vehicles? No. Uh, OEM Telematics they're not just for EVs, they're not just for light duty. Ford actually, if we take one manufacturer specifically, Ford offers the option to integrate their same telematics system into any other make or model car ensuring actually the seamless unification of all vehicles on the same platform. So it doesn't matter the class, if they make the vehicle you can embed the telematics there.

Gretchen Reese (05:53):

One thing I think that many people are actually asking as well, you know, aside from what the main differences between OEM Telematics and Aftermarket Solutions is, why are manufacturers installing data telematics devices in the first place? Well, I think the biggest thing is, is that manufacturers actually recognize the value of data in today's world. It's that simple. For better fleet management, profitable decisions and pinpointing waste reduction opportunities, fleet managers rely on highly accurate insights collected directly from their vehicles, from their assets, you know, no matter what it is.

Gretchen Reese (06:28):

But here's the thing, before OEMs launch their own telematics options, there was a huge lost opportunity for both manufacturers and customers who needed more profound vehicle specific insights. Here's where the gap that they're starting to fill is. For OEMs, it created an opportunity to bring to the p- to the table a product that is ready to go off the lot, you don't have to worry about spending time to install it straight away. And it offers a deeper and more dynamic view of the fleet statistics. Sounds like a pro there, right? And the thing is, is integrating any telematics platform into a fleet management strategy can reap numerous benefits, for any company, for any organization.

Gretchen Reese (07:10):

Now, this is talking about beyond increasing efficiency, increasing profitability and safety among the fleet. The ability to make smart statistics based decisions is an invaluable asset for any fleet manager or for any organization. And when you start to compare OEM and third party providers, there's very different benefits to analyze when you're starting to make your decision about which telematics solution that you want to use and you want to rely on. For example, let's talk about the benefits of OEM Telematics for just a second. Firstly, we've got no downtime, which almost seems a little bit strange to think about (laughs) when you think about integration of telematics, right? But with no downtime, that's one of the biggest sellers for OEM Telematics in general.

Gretchen Reese (07:56):

Lengthy downtime, I'm sure as you all know, can be an absolute nightmare for any fleet manager or really any manager in any industry, but specifically for fleets. And it's tried to be, or I should say, people actively try to avoid it at all costs. Now, this is where some people do prefer that OEM tema- Telematics solution because unlike their aftermarket competitors, OEMs are offering vehicles with factory installed telematics hardware that's ready to be activated at a moment's notice. All it takes is, you know, calling in the activation.

Gretchen Reese (08:27):

Now, this can save managers the time of installing third party hardware after the vehicle acquisition itself, as well as the additional time for program activation. Now, this process, which could take up to months for a large fleet, installing Aftermarket might just take a few hours of activation for fac-, uh, factory ready telematics solution for your fleet. Now the thing is, again, it all depends on the type of solution you're looking for. Geotab or Samsara could be perfect for someone, Ford or BMW Telematics could be perfect for somebody else. It's not always a one size fits all solution.

Gretchen Reese (09:01):

The second benefit to OEM telematics though, if we're focusing specifically on that, is potentially deeper insights. Now I highlight the word potentially for a very specific reason. Fleets that use OEM Telematics in their vehicles benefit from the wider breadth of data available to them. And the vehicles, like I said, have embedded hardware and sensors that give telling insights. But access to this data can potentially be off limits to third party providers, which gets a little bit touch and go. So essentially, what this means is fleet managers that are using manufacturer telematics for their fleets could potentially have a major advantage depending on the partnerships that have been established. Access to richer data could potentially help fleet managers figure out unanswered questions, identify problem areas, and ultimately have the whole picture before making decisions.

Gretchen Reese (09:51):

Now, you could also do something like this if you had an Aftermarket Telematics device and you worked with an outsourced, uh, business intelligence company, that could be another way to do it. So again, like I said, it's not a one size fits all solution, but it could potentially be, um, right for your fleet. You just have to look into it to make sure.

Gretchen Reese (10:11):

Third, we're looking at increased safety. Again, take all of this with a pinch of salt just in case, but many car fac- manufacturers offer clients exclusive benefits like vehicle monitoring, security maintenance all through the same platform. We've all heard this, especially with all the vehicle ads coming up now that it's officially time to start Christmas shopping. I mean, I think I've probably already seen the Santa sleigh car ads or whomever it was at least four times by now in (laughs), uh, I think eight days. But anyways, feeding this information directly back to the manufacturer not only helps keep fleet managers, um, or helps mana- fleet managers keep track of safety amongst their fleet, but it also helps OEMs figure out how they can make people safer for their drivers, which is kind of an interesting benefit, I think.

Gretchen Reese (10:55):

Last on the list, but certainly not least, that is definitely a tongue twister if you say that about five times fast (laughs). But the last major benefit of choosing OEM Telematics as your telematics provider, again, potentially, is the convenience of maintenance and service scheduling. Now, manufacturers can keep drivers up to date on their specific vehicles needs as well as receive real time diagnostics. Many OEMs also have dedicated applications for their telematics platforms, which can allow fleet managers to access all of their data in one place. Drivers can input qualitative data themselves and schedule maintenance with their manufacturer directly on the app.

Gretchen Reese (11:34):

Now again, like I said, if this is not, and I should again specif- specify, and I'm sorry for sounding like a broken record, but OEM Telematics aren't a one size fits all, it doesn't work for every fleet, no matter what your industry is, no matter how big your fleet is, it doesn't work for everybody. You could potentially have the same, if not better results, if you outsource your analytics or, for example, you outsi- you outsource, um, business intelligence insights to a company that works with fleet data and they can give you the same if not better insights that are specifically tailored for your fleet. It all depends on what you're willing to work with and whatever platform you feel most comfortable with and what can deliver the best results for you.

Gretchen Reese (12:25):

Now, let's play devil's advocate because I always like highlighting the challenges of these because it's not always, like I said, it's not the one size fits all solution, but it's not also the shiny gold crown that can be perfect for everything. The thing is, is as a newer option on the market, OEM Telematics evidently still has room for improvement. I mean, anything that's new to market will. And these systems are not brand agnostic as their aftermarket counterparts are, which could be impractical for non-uniform fleets. So typically, when you rely on OEM Telematics, it works to buy only from the same manufacturer, and work with all of the different models that they have available.

Gretchen Reese (13:03):

Which brings me to my first point and the first challenge that's on this list is that OEM Telematics may not be viable for mixed fleets, plain and simple. Evidently, the majority of fleets are made up of a mix of models, makes, years, we all know this, but this poses a big challenge for fleet managers looking to use OEM Telematics because this would mean having your data spread out on multiple platforms or receiving insights on some of your assets, but potentially not all of them, unless a company is looking to completely replace and update their fleet with newer vehicles all in one go, which would be one, a huge financial investment, but also completely impractical. Relying on one manufacturer's system could be completely impossible for your fleet.

Gretchen Reese (13:47):

Second, we have the limiting options. And similarly, like I said, relying on OEM systems can be a bit limiting for companies who prefer specific makes of a vehicle for certain jobs, especially if they vary, you know, different years, different models. Managers could be forced to sacrifice their preferences for the sake of unifying the fleet which could potentially be less cost effective and productive in the end. And in many cases, it can actually be a major asset to have certain manufacturer vehicles in the roles where they work best. I mean, that makes sense, right? But if you're trying to utilize OEM Telematics, it might not work out the best and it could be a potentially a cost sink.

Gretchen Reese (14:25):

Lastly on the list, we have a conflict of interest. This I think is pretty understandable to see why this could be a potential challenge for integrating OEM Telematics into your fleet management strategy. But for fleet managers, depending on data insights to identify when to right size their fleet, OEM systems can be a potentially tricky situation or solution. Now with telematics systems provided directly by your manufacturer, there is no incentive for them to let you know when it's time to downsize your fleet as it goes directly against their own company's interest. Now, aftermarket providers, this would never be an issue because they're not tied to any specific manufacturer and they're never the ones that are selling you the vehicles. So that's where it can get a little bit touchy. And to be honest, if I was a manufacturer, I'd want you to buy from me not sell a vehicle that I just sold to you. So it makes sense when you think about it.

Gretchen Reese (15:29):

Now remember, when I started to talk a little bit about how you could outsource BI and fleet analytics to potentially work with an Aftermarket Telematics solution? Well, I wanted to touch on that just a little bit because I think most of you should be familiar with Utilimarc by now and if you're not, "Hi, here we are. We're the ones who run the Fleet FYIs Podcast show (laughs). But I wanted to tough a little bit on how business intelligence and whether it's an Aftermarket Telematics solution or even an OEM Telematics Solution could work together to help fleet managers manage their fleet.

Gretchen Reese (16:01):

And I'll start off with the basics here. So Utilimarc works with OEM Telematics in a very unique way, which allows clients to access data from manufacturer embedded hardware all on one unified platform, no matter the manufacturer or no matter the model. So basically, that whole siloed data piece where you could have a bunch of platforms trying to figure out if you're using, say for example, a Chevrolet and then you're using a Ford, and then you're using a Bobcat, and then something from Tesla, you wouldn't have to worry about that being all on four different platforms or five different platforms, it would all be in one space for you.

Gretchen Reese (16:37):

And the cool thing is that with our analytics team, now, we have an analytics team that's probably I would say about 15 deep at this point, maybe 20 deep, but the cool thing is, is that with all of that data, all of that telematics data, all of your different types of data sources, our team will then create custom telematics dashboards that allow for detailed data reporting that's piped into a telematics system and then onto Utilimarc's platform. We have a lot of clients that use Geotab so we're pretty familiar with their Aftermarket Telematics solution. Um, but we'll then use that data for benchmarking different analyses and custom reporting for a variety of customers that we do have.

Gretchen Reese (17:17):

Now, regardless of whether you would utilize someone like Utilimarc for outsource BI or whomever it would be, this is especially useful for fleets that are ready to start using embedded telematics data to their advantage and they're looking for experienced industry providers. Now, a little bit of a humble brag moment, Utilimarc's one of them, so hey, way to go Utilimarc team (laughs). But the thing is, is that we like to tell people that our deep knowledge of industry specific metrics and the BI platform serves as a major value add to any type of telematics service. But like I said, we use Geotab a lot, we really like that team over there.

Gretchen Reese (17:52):

And when they collect fleet information all in one place, Utilimarc can provide that super deep vertical analysis, that makes the data even more profitable than it already is. So it's kind of a cool solution to consider whether you're using OEM or Aftermarket. But the thing is, whether you decide to integrate OEM Telematics, Aftermarket Solutions, or even outsource BI, any new type of data stream, like I said, at the beginning of the show, or at least are trying to allude to, can likely cause a bit of a stir in the industry, and sometimes it's just the newness factor of it actually being released that causes that bit of the start. But especially if like OEM telematics, you have the ability to keep a "metaphorical lock" on certain types of data from Aftermarket Solutions. This could potentially be big, we don't know.

Gretchen Reese (18:40):

But I want to hear what you all think. Do you think that OEM Telematics will cause as much of a stir as some people think? Or do you think it's just potentially a big fuss for something that just adds to the options of telematics solutions that are already available on the market? I want to know. Tag me on LinkedIn, send me an email or use the hashtag #utilimarcfleetfyis. Personally, I think this will be a super interesting topic to monitor and I'm looking forward to hearing what you have to say.

Gretchen Reese (19:05):

But anyways, before this episode gets too much longer because this is a Shorts Episode (laughs), even though it doesn't really seem like it this week, I just wanted to mention if you didn't listen to last week's Thursday episode, Utilimarc will be at this week's Fleet Ford conference in San Jose so make sure if you go to that, that you try and find us. We love chatting with all of you and make sure you tune in for the next episode of Fleet FYIs coming this Thursday. Ciao.

Gretchen Reese (19:32):

Hey there, I think this is the time that I should queue the virtual high-five because you've just finished listening to another episode of the Fleet FYIs Podcast. If you're already wanting more content, head over to utilimarc.com, which is Utilimarc, U-T-I-L-I-M-A-R-C.com for the show notes and extra insights coming straight from our analysts to you. That's all from me this week. So until next time, I'll catch you later.