Smart Trailers: Creating The Next Information/TITLE
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March 10, 2019 Truckload Carriers Association presentation on Smart Trailers
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- 1. Smart Trailers: Creating The Next Information Al Anderson, Corporate Director of Heavy Duty Sales, Peterson Manufacturing Clem Driscoll , President, C.J. Driscoll & Associates Norm Thomas, General Manager, I.D. Systems Tom Pirnie, President, Grand Island Express Paul Menig, CEO, Business Accelerants™
- 2. Speaker Introductions • Corporate Director of Heavy Duty Sales • Peterson Manufacturing Al Anderson
- 3. Disclaimer This presentation was not intended or written to be used, and it cannot be used, as legal advice. It is for educational purposes only.
- 4. Speaker Introductions • President • C.J. Driscoll & Associates Clem Driscoll • GM • I.D. Systems,Inc. Norm Thomas • President • Grand Island Express Tom Pirnie • CEO • Business Accelerants™ Paul Menig
- 6. Key Takeaways The meaning of “Smart Trailers” Integration with Your Operation ROI Justification Data Application and Analysis
- 7. Smart Trailers: Creating The Next Information Clement Driscoll President C.J. Driscoll & Associates
- 8. Market Growth for Smart Trailer Products Source: C.J. Driscoll & Associates 2019-20 U.S. Mobile Resource Management Systems Market Study 6 Million Trailers 2022 Dumber Telematics SMART 6 Million Trailers 2019 Dumber Telematics SMART 42% SMART Telematics 23% SMART Telematics
- 9. Large Fleets Operating Large Numbers Inventory Management • Inventory management – Where are they? Detention Management • How long have they been detained at a customer location? Reefers • Has the required temperature been maintained? Source: C.J. Driscoll & Associates 2019-20 U.S. Mobile Resource Management Systems Market Study
- 10. Trailer Monitoring Solution Providers SkyBitz >450,000 Orbcomm 305,000 Spireon >250,000 I.D. Systems 115,000 Omnitracs 115,000 Dry Van Containers Chassis Flatbeds Frac Tanks Oil Tanks and Tankers >200,000 Trailers >100,000 Containers Source: C.J. Driscoll & Associates 2019-20 U.S. Mobile Resource Management Systems Market Study
- 11. Factors to Consider when Developing an ROI for a Smart Trailer Product Utilization suffers when not knowing where trailers are located • May be able to sell some trailers due to improved utilization • Extend trailer life by balancing trailer use in the fleet Is the right trailer attached to the cab? • Does it become detached? Reduce accidents and mileage through monitoring of tire pressure and temperature Reduce losses due to trailer and cargo theft Ability to monitor location/movement/damage to trailer cargo Compliance with Food Safety Modernization Act (FSMA) for reefers Source: C.J. Driscoll & Associates 2019-20 U.S. Mobile Resource Management Systems Market Study
- 12. Benefits of Using Smart Trailer Technology Optimize trailer utilization Identify empty trailers Identify low usage trailers Capture real-time video of cargo Reduce cargo damage Build reefer revenues FSMA Compliance Utilize trailer rearview cameras Avoid backup accidents Capture incident details Enable real time monitoring Door open/closed Cargo safe Source: C.J. Driscoll & Associates 2019-20 U.S. Mobile Resource Management Systems Market Study
- 13. Smart Trailers: Creating The Next Information Norm Thomas General Manager I.D. Systems
- 14. Technology Considerations • Past: Reducing fleet size • Present: Deploying a Smart trailer Health status of various components (ABS, TIS, Lights) Materials planning on inbound Environmental data and chain of custody Security
- 15. Load Sense Makes Sense • More components = more data • More data = paralysis or poor decisions • To make smarter and faster decision: Efficient assembly of the data Effective dissemination of the data Insightful analysis of the data “We make inconsistent decisions because of a lack good information. We don’t just need faster information. We need smarter information to make better decisions faster.” Max Fuller Chairman - US Xpress Enterprises
- 16. Smart Trailer Expenses • You must consider the full ecosystem, for example: Do I need to know ABS health status? Can I rely on the driver to look at that little red light? If I have lights not working, when will my driver know that and do I want to know it as it occurs? What if I have a TIS system? Do I need to know if it engages while the trailer is moving? • These have integration cost and require hardware components to gather and send that information.
- 17. Smart Trailer Examples • Weight Sensor: Dispatcher checks weight before sending a driver and losing valuable drive time. • ABS: Sensors gather status information and alert if the ABS system is not working properly. • TIS: Auto inflation frequency, and does it inflate while in transit? When / Where, What tire location? • Security: Door status? hen did it open? Is the trailer inside a geofenced landmark? • Cargo Capacity Percentage: How much cube space am I losing when loaded? Am I at 100%? When did it unload? • Cargo Claims Validation: What did the cargo look like when loaded at destination, and what did it look like at the final / next destination? Consider resource planning at the destination on inbound cargo: Can you analyzing how cargo was loaded and notify the destination that inbound freight requires someone to remove load locks, or that the cargo was hand stacked so pallets are required and a lumper, etc.
- 18. Smart Trailers: Creating The Next Information Tom Pirnie President Grand Island Express
- 19. Reefer Tracking Provides Protect Cargo and Reduce Damage/Claims • Temp deviation by the minute • Malfunction alerts • Remotely change Improve Fleet Utilization • Real time status • Create Geofences • Status and Visibility at Shipper Alarms and Alerts • Low Fuel • Door Open outside geofence • Reefer alarm alerts Ensure Customer and Regulatory Complliance • Full audit trailer of air inside trailer • Traceability for USDA or FSMA
- 20. Back Office Integration McLeod integration alls communications within TMS Lots of information quickly Use to improve backhauls Built-in security levels
- 21. Smart Trailers: Creating The Next Information Paul Menig CEO Business Accelerants™ Powered by Tech-I-M
- 22. Technology Adoption Curve 1st to Try Enthusiasts 2.5% Look what I did Visionaries 13.5% Why should I Pragmatists 34% I should have tried this earlier Conservatives 34% If I must Skeptics 16% Source: Iowa State Research
- 23. ELD Adoption Curve 1st to Try Enthusiasts 2.5% Look what I did Visionaries 13.5% Why should I Pragmatists 34% I should have tried this earlier Conservatives 34% 1988 If I must Skeptics 16% 2019
- 24. AMT Adoption Curve 1st to Try Enthusiasts 2.5% Look what I did Visionaries 13.5% Why should I Pragmatists 34% I should have tried this earlier Conservatives 34% 1990 If I must Skeptics 16% 2019
- 25. Trucking Industry Leaders Adoption Source: NACFE 2017 Practices Tractor Aerodynamics Powertrain Tires Idle Reduction Chassis Trailer Aerodynamics
- 26. Smart Trailer Definition • pecialS • achineM • ctivelyA • espond & RelayR • echnologyT
- 28. It MUST Help the Fleet To… Move Freight Faster Lower Costs Improve Safety Reduce Driver Stress Inform Everyone Improve Society
- 29. Smart Trailer Today Antilock Brakes Trailer Telematics Reefer Controls Temperature Monitoring Door Open/Closed Loaded/Unloaded Sensing
- 30. Smart Trailer Next 2-5 Years Trailer Stability Control Lighting Sensing and Control Weight Sensing Tire Pressure Sensing and Control Backup Cameras Lift Gate Sensing and Control
- 31. Smart Trailer 2025-2030 Additional Braking Controls for Automated Vehicles Package Identity Sensing 360º Sensing Wheel End Sensing Landing Gear Sensing and Control
- 32. Smart Trailer 2030-2040 Auto-Adjusting Bogies Electric Axles Automated Trailer Operations
- 33. Fleet Recommendations 1 • Press for standardization that allows mixing and matching of trailers and tractors 2 • Pay more attention to business performance indicators influenced by the trailer and its contents 3 • It’s about the freight—not the trailer, tractor, engine, transmission, or axle
- 35. Audience Q&A
- 36. Smart Trailers Your Tomorrow IS Determined by What You Do Today
- 37. Complete the Survey To access the survey for this session • Open the TCA Annual Convention App • Go to Schedule • Select Managing Driver Turnover and Retention, then scroll down • Select Session Survey • Select your responses to the questions App Download Instructions Search “TCA Annual Convention App” in App Store or Google Play Store
- 38. A recording of this session will be available on Truckload Academy Online Learning Center Remember to apply the credits you earned toward a #TruckloadAcademy certificate or renewal of a certification
- 39. Backup
- 40. Smart Trailer
Editor's Notes
- Welcome, Everyone. We have an excellent panel put together for you today. While Congress discusses funding infrastructure, we are going to talk about the next information highway on your trailers.
- I’m Al Anderson, the Corporate Director of Heavy Duty Sales for Peterson Manufacturing. I’m your moderator today, coming from more years in the trucking industry than I care to say. As an active member serving in multiple capacities in ATA’s Technology and Maintenance Council, as a Recognized Associate, and Silver Spark Plug recipient, I’ve seen quite a bit of technology in our industry. The next decade is going to see as much, and maybe more, technology than we have seen to date.
- Before I introduce our panelists, as a reminder, the speaker comments and the material provided are for educational purposes only, and do not constitute legal advice.
- Our first panelist is Clem Driscoll, the founder and president of C.J. Driscoll & Associates, a leading consulting and research firm focused on commercial telematics. He is a graduate of the University of Notre Dame and has an MBA from St. John’s University. He has written numerous articles on telematics and location-based services and is a frequent speaker at industry conferences in the U.S. and abroad. He has been quoted in The Wall Street Journal, Business Week, Forbes, Fortune Magazine, the L.A. Times, the Washington Post, and USA Today, as well as in many leading industry trade publications. He’s just completed the 2019-2020 market study of Mobile Resource Management Systems. He will give us just a few insights from his talks with hundreds of people in the industry. Norm Thomas is our next panelist. Norm has been the chief information officer at a major fleet before moving to being CEO of Transcommunications, which is now TransCard. He then went on to help fleets implement CarrierWeb and PeopleNet products and services. Today, he is the General Manager of I.D. Systems, a maker of mobile asset tracking technology. Few people can talk from both sides of the table, from the fleet side purchasing and integrating these products and services, as well as someone developing and selling such products and services. Next will be Tom Pirnie, President of Grand Island Express. He represents you on this panel. . . . Like you, he wants to know how new things will translate to real world improvements at the fleet. Grand Island Express is repeatedly rated one of the best fleets to drive for, year after year. They’re already using telematics on their reefers, door sensors, weight gauges, and recently purchased air disc brakes for its latest trailers. Paul Menig has been around the trucking industry for years. He developed automated mechanical transmissions, radar collision warning, and tire pressure control systems at Eaton. He then went on to head the Mechatronics engineering group at Daimler Trucks North America, continuing to lead the development of everything electrical and electronic, brakes, and safety systems. He continues to be active in future truck activities in the Technology and Maintenance Council and is President of the National Transportation Center Foundation, which is looking to attract, train, and retain people in the transportation industry and Keep America Moving.
- This excellent panel is going to discuss the next generation of trailers. They will be much more than a dumb box to hold packages and parts, being hauled around by a tractor. They will be an important part of your fleet management program, getting smarter all the time with telematics, sensors, actuators, and information. Information that will be a part of your fleet management program. You will use that information to drive faster, on time delivery, improve productivity of your drivers, allow them more time to drive, improve the safety of your operation, and improve employee engagement, making everyone, not just drivers, happier to be moving freight in America.
- We will touch on these key takeaways today through planned questions with our panelists. What is meant by a “smart trailer,” how will it integrate in to your operation, how will you justify the return on investment, and what will you get in terms of data and analysis.
- Clem, you have the best big picture view of telematics and mobile resource management in the United States, especially with your recent report. Here are four questions we all would like to hear you address. 1. What can you tell us about the current status of the market, the forecasted growth, and the drivers for that growth? 2. How many companies are offering products now and who are the biggest players? Are there one or two small companies with disruptive business models that we should watch? 3. You’ve spoken with suppliers and with fleets. What do you believe are the factors to consider when a fleet is calculating the return on investment for adding more “smarts” to trailers in particular? How does this compare to the factors they have used for the tractor in the past? 4. Given what you have seen for real world results on the tractor telematics, what do you expect will be the benefits to the fleets for making the trailer smarter?
- We have followed monitoring market growth since its inception in the early 2000s. Early adopters were fleets with a large number of trailers who adopted trailer monitoring primarily for inventory management. Market growth was fairly slow and steady going through about 2015, when we estimated there were about 800,000 units in service. The rate of growth has increased to about 17% since 2015. Reasons: Continually growing awareness of the benefits of telematics for monitoring mobile assets Lower prices The Food Safety Modernization Act (FSMA) has resulted in increased deployment of telematics solutions on reefers to improve monitoring of temperature of perishable products. The growing involvement of trailer OEMs in developing and installing their own solutions or installing customer-specified solutions from aftermarket suppliers.
- Many fleet operators need the capability to keep track of where their trailers are located in order to optimize use of the trailers. Detention at customer locations can be costly. The ability to confirm to customers subject to the Food Safety Modernization Act (FSMA) can increase reefer loads.
- Telular, SkyBitz’s parent company, was recently acquired by AMATEK, a global manufacturer of electronic instruments. 75%+ of SkyBitz’ US units in service are trailers. ORBCOMM is the largest U.S. supplier of reefer monitoring solutions. Looking only at trailers, Spireon is the 2nd largest supplier. Many suppliers of GPS fleet management solutions offer trailer monitoring solutions. Most have a limited installed base.
- Telular, SkyBitz’s parent company, was recently acquired by AMATEK, a global manufacturer of electronic instruments. 75%+ of SkyBitz’ US units in service are trailers. ORBCOMM is the largest U.S. supplier of reefer monitoring solutions. Looking only at trailers, Spireon is the 2nd largest supplier. Many suppliers of GPS fleet management solutions offer trailer monitoring solutions. Most have a limited installed base.
- Norm, as a supplier now, what are the main factors you discuss with fleets when suggesting they invest in technology for trailers? Load sensing was one of the first features of trailer tracking that helped with ROI. It seems that technology for load tracking is, itself, getting more sophisticated. What’s happening and why? Advantages are one thing, but there are always one-time costs and time to invest in using new technology. What are some of the expenses you have seen customers deal with when adding smarts to trailers? Are you able to provide some real world case studies of fleet benefits for smarter trailers?
- Tom, can you give us a picture of key metrics used by your fleet for such things as productivity, equipment utilization, driver satisfaction? And, can you show us how they have progressed over some period of time. And can you identify major enhancements to your equipment over those years? What are the top questions that your fleet asks when new technology is proposed? What hoops does a provider need to go through to prove their technology will help your fleet?
- We have been able to integrate with McLeod to allow for communication to the device within our TMS system. This system is able to give us a lot of information in a short time frame. I anticipate using this to our benefit in the future for selling to backhaul accounts. There is a level of security that we have built in with this that becomes a large selling point for manufacturers. I was able to use this information this week in Ohio while talking with a customer regarding the security of our network.
- We have been able to integrate with McLeod to allow for communication to the device within our TMS system. This system is able to give us a lot of information in a short time frame. I anticipate using this to our benefit in the future for selling to backhaul accounts. There is a level of security that we have built in with this that becomes a large selling point for manufacturers. I was able to use this information this week in Ohio while talking with a customer regarding the security of our network.
- Paul, this may be a challenge, but let’s focus on the trailer, not the tractor. You know quite a bit about adoption of new technology. Can you give us an overview of what you have seen in the last 35 years? What is a “smart” trailer in your opinion? Now, let’s break that down. What do you see in the next 3-5 years. Taking it one step further, what do you see from 2025-2030? Finally, what does the long range future hold, the time from 2030 to 2040? Last, what recommendations do you have for fleets and the industry as it relates to smart, intelligent, wise trailers?
- This technology curve was developed by several people at Iowa State. For some consumer products, it can take 100 years and for others it can take 5 years. Basically, there are people, even in our industry, that are techno-geeks and want to try everything that someone comes up with. They are enthusiastic innovators. Those technologies that make it through that phase, attract a larger group of early adopter visionaries. Then things begin to take off as the pragmatic early majority and the conservative late majority are dragged into the market. They don’t jump. And, there will always be a few people that are skeptical laggards and may never adopt the new technology. Let’s look at some trucking examples.
- All of you now, I hope, have an ELD. There is a large percentage of you moving from AOBRDs to ELDs because you were among the people on the left side of the curve and adopted early. The first products I am aware of started with Schneider in 1988. It’s now 2019 and even the skeptics have had to tow the line. So, that’s 30-years.
- I started working with automated mechanical transmissions in the mid 1980s. Product was out in the hands of fleets by 1990. I often tell the story that in 1990 at Eaton, I had to create a strategic forecast for the AMTs. We said by the year 2000 30% of on-highway class 8 tractors would have AMT’s. Well, that didn’t happen, and I changed jobs. The two are NOT related. In 2000, I’m working at my biggest customer, Freightliner and have to put together a forecast for AMT usage. We put together a plan that says by 2010, 30% will have AMTs. That did not happen either. In 2010 I had to update the forecast and again said by 2020 something much greater than 30% will have AMTs. That did happen. It’s now 2019 and roughly 75% of vehicles have an automatic or automated mechanical transmission. It still varies for vocational and specialized markets, so it is still not 100%. I could talk about anti-lock brakes, wide based tires, single piece windshields, even electric windshield wipers.
- Several top fleets in the industry participate in a review of adoption of technology in various areas. Over roughly 15 years, adoption has steadily increased for a variety of fuel saving technologies and practices, but none have reached 100% penetration. Practices have reached about 70%. Square nosed tractors are almost a thing of the past with aerodynamics now about 60%. Lots of fleets are still running older engines, so adoption of the latest engine technology is at about 40%. Low rolling resistance tires are also around 40%. Trailer aerodynamics increased significantly since 2008, but has only reached 20%. I expect the record production of trailers in the last few years will keep the percentage adoption of trailer aerodynamics low for many years to come. My conclusion is that it takes approximately 30 years from start to high adoption rates, even with some government regulations.
- So what exactly is a “smart trailer” versus a ”dumb trailer.” I could define a smart trailer as a special machine actively responding and relaying data and information thanks to technology. Huh? Basically, that trailer is going to have a lot more sensors, wires, computers, actuators, and be able to tell you all about it. As a side note, when I started in trucking at Eaton, I became convinced that it was all about the transmission and the axle. The engine was useless unless the gears were right to turn the wheels at the right speed with the right torque. When I started at Freightliner, I recall going to all the engine manufacturers and making a presentation regarding which comes first in the selection process, the engine or the vehicle manufacturer. In the mid-90s, it was clearly the engine that was chosen first. Freightliner had a different long term vision. The vehicle OEMs all wanted you to choose them first. They’ve pretty much accomplished that now that they have their own engine and transmission. But what about the trailer? When I started, the average was something like 3.5 trailers per tractor. That’s right, there’s an important element called a trailer. The ratio has changed, I believe. I’ve seen some data to suggest it is as low as 2.7 trailers per tractor now. I’m not sure how that analysis treats the chassis hauling containers, which is much greater now. So, is it about the transmission, no. Is it about the engine, no. Is it about the tractor, no. Is it about the trailer. Sort of.
- It’s really about the freight inside the packaging inside the trailer. Trailers need to get smarter to help you keep that freight moving efficiently from point A to point B. I’ve been in this industry long enough to know, the majority of fleets need hard data to support investing in new technology.
- New technology must do such things as help move freight faster, lower overall costs, improve safety, which affects cost, but also impacts the image of a company. Technology may reduce driver stress. My wife wants to know when that package will be delivered. That requires informing everyone in the chain. I did a blog to FleetOwner IdeaXchange recently, where I tracked how two Apple Watches were tracked from manufacture in China to delivery in Portland, OR. I also discussed some trade show materials that went by ground from Connecticut to Oregon. Another thing a smart trailer can do is improve society in terms of congestion, air quality, and convenience.
- You actually have more than a dumb trailer today. Since 2001, all new trailers have a computer for the antilock brakes. Trailer telematics and reefer controls have been used by fleets for over a decade now. We all expected the FDA in January 2018 to require better tracking of temperature monitoring. The FDA did not require it, but Amazon and Walmart are pushing it. Fleets learned the benefits from connecting sensors for door open/closed and load present or not in terms of managing wasted dead-head miles and precious driver hours of service.
- In the next 2-5 years, the early adopters and visionaries will be adding more stability controls to avoid rollovers, sensing individual lights that are not working, adding weight sensors to get the bogie position just right. The EPA did not require tire pressure monitoring or control in January 2018, but many have already started using it and seeing benefit. I expect this will come back onto the table and be required at some point. Wireless backup cameras are making significant strides. For those doing local deliveries, more will be sensed and controlled for the lift gate.
- Five to ten years from now, even more will be sensed and reported on for the trailer. As we move to better, safer vehicles, the tractor will need better information about the brakes on the trailer. As we move to autonomous operation in limited and controlled environments, that additional trailer information will be critical. Sensing will extend to more than just backup cameras. Light duty trucks from GM and Ford, already have radar sensors to sense if there is something in the way of changing lanes. The same feature is in the earliest stages for trailers. Some fleets are concerned about wheel ends coming off and fires starting from bad brakes or bearings. I’ll bet some of you have had a driver cause damage by forgetting to lift the landing gear when pulling away.
- As we go further out, I can imagine someone will have automatic controls for adjusting the bogie to get the weight right rather than relying on a driver to adjust it. Electric axles are already in prototype applications for the tractor. An extra motor on a trailer has already been suggested. Finally, why have a tractor if the trailer can power itself? Several concepts for powered trailers have already been put forth in the industry. They are not ready today, but maybe beyond 2030.
- I recommend you do three things. One. Press for standardization in the smart trailers so that you can minimize the cost of maintenance and assure mix and match operation between tractors and trailers. Two. Start paying more attention to key performance indicators related to the trailer and its contents. Three. It’s all about moving the freight. It’s not the trailer, the tractor, the engine, transmission or axle.
- We are in the business of moving freight from point A to point B, safely, quickly, cost efficiently, with minimal impact on infrastructure and congestion.
- Welcome, Everyone. We have an excellent panel put together for you today. The next generation of trailers will be much more than a dumb box to hold packages and parts, being hauled around by a tractor. They will be an important part of your fleet management program, getting smarter all the time with telematics, sensors, actuators, and information. Information that wil . . .
- I encourage anyone in the audience to raise a question. (I don’t know if we will have microphones available or people soliciting questions on 3x5 cards). Potential Starters: Here’s a general question: it used to be the engine was chosen first. What’s the first thing a fleet will look to specify and buy—the tractor, the trailer, the driver, the engine, the transmission, or what? Aaron, do fleets have the ability to track things such as direct parts costs, labor costs, out of route miles, opportunity costs, liability costs, damage costs, insurance costs, etc.? Which of these will play a role in justifying new technology for trailers? Norman, what do you project will be the cost to a fleet for telematics in the future? Will we ever see a single telematics device instead of one for the fleet management system, one for the tractor diagnostics, one for the trailer telematics, and, and, and? Clem, have you heard anything here today that surprises you, or is it all reinforcing what you’ve heard in researching your report? Did we miss something? Paul, what are your thoughts for the future if we, instead of saying trailer, say package carrier device?