Success Stories in Fleet Tracking
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`September 1, 2005
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`Vehicle tracking software lets Lowitt management put a “geo-fence” around an employee’s
`driveway, creating an alarm condition if the employee uses a company vehicle for personal use.
`PHOTO COURTESY OF LOWITT ALARMS
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`One of the most cutting-edge areas in security technology today is vehicle and (cid:229)eet tracking.
`Advances in global positioning systems (GPS) have brought costs down to where companies
`wanting better control of their service trucks – or consumers who want to keep close track of their
`vehicles – can afford to use GPS for that purpose.
`In this article, SDM pro(cid:228)les three security companies that have used vehicle tracking systems on
`their trucks – and have experienced productivity gains and cost savings as a result. All three
`companies were so pleased with the technology that they have begun to offer (or soon plan to offer)
`similar capability to their customers.
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`TELETRAC Ex. 1008
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`Lowitt Alarm trucks are equipped with a global positioning system that tracks the truck’s position
`every 10 minutes.
` PHOTO COURTESY OF LOWITT ALARMS
`Reports Help Metrodial/Lowitt Alarm Save Money
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`When Lowitt Alarm of Hicksville, N.Y., installed tracking devices in its truck (cid:229)eet, its goals were
`twofold.
`“We wanted increased productivity and decreased unauthorized use,†notes Andy Lowitt, vice
`president of dealer relations for Metrodial, a wholesale central station operator, and its sister
`company, Lowitt Alarm.
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`The company selected a vehicle tracking system from Guardian Mobile Monitoring Systems, which
`uses transmitters installed in each truck to communicate with either Sprint or Verizon Wireless
`cellular networks. Information about each truck’s location is communicated every 10 minutes to
`a database maintained by Guardian, which can be accessed by authorized Lowitt Alarm users over
`the Internet.
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`The system also can detect how fast a vehicle is traveling and is programmed to send automatic e-
`mail noti(cid:228)cation to Lowitt management if any driver exceeds 75 miles per hour.
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`“We set it at 75,†Lowitt explains, adding that speed is one of numerous parameters that can be
`determined by the company using the service. “If someone goes over 75, the service manager
`can call him up and tell him to slow down.†Management also receives automatic noti(cid:228)cation if a
`truck moves after 8:00 p.m. or before 6:00 a.m., indicating that an employee may be using the
`vehicle for personal use. This capability is made possible by creating a “geo-fence†around the
`employee’s driveway.
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`Other data, such as where each vehicle is throughout the day, is stored in the Guardian database.
`Authorized users can generate reports summarizing that information by logging in on the Internet.
`“I go in and say, ‘Run a report that shows me where each guy was that day and tell me the
`duration of his stops,’†Lowitt says. Lowitt also (cid:228)nds it helpful to look at a report that uses
`color to highlight any point where a driver stopped for more than an hour, with shorter stops (5-15
`minutes or 16-60 minutes) highlighted in different colors. The service, which costs about $50 per
`month per vehicle, can easily pay for itself, Lowitt says: “You can save more than $50 in
`overtime, gas and unauthorized use.â€
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`Metrodial recently began to offer vehicle tracking as a service to its wholesale alarm monitoring
`customers, and several of them have begun to offer it to their customers. Lowitt expects the vehicle
`tracking service to become more appealing later this year when Metrodial begins to add optional
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`emergency response capability. “If the driver has a panic button, the central station will get a
`signal and will have the correct 911 answering point to contact,†notes Lowitt.
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`How vehicle tracking systems work
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`Although vehicle tracking systems contain several distinct elements, the one that is most visible to
`the end-user is a two-way radio that is typically mounted under the vehicle’s dashboard. Such
`devices can be as small as a package of cigarettes, but most are two or three times that size. Two-
`way radio vendors that supply products (either directly or through third parties) to the alarm
`industry include Guardian Mobile Monitoring Systems; GPSi LLC, which makes the Guidepoint
`system; Fleet Management Solutions; Chapman Location Systems; and others.
`The two-way radios communicate with a satellite that can provide latitude and longitude
`coordinates for the vehicle. Depending on how the system is con(cid:228)gured, latitude and longitude
`information is sent to a central database at regular intervals, typically every 10 minutes. The two-
`way radio uses a mixture of wireless and wire line communications to deliver vehicle location data
`to the central database. A number of wireless technologies can be used for the (cid:228)rst leg of this
`connection, but security companies usually use either a satellite or cellular-based system.
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`Several cellular operators, including Verizon Wireless and Sprint, have begun to deliver GPS
`information to providers of vehicle tracking services over their networks. The (cid:228)rst leg of the link –
`between the vehicle and the cellular network operator’s (cid:228)ber backbone – uses cellular
`communications. Beyond the (cid:228)rst leg, data travels on a high-speed wire-line link to the central
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`database. Satellite-based systems work in a similar manner, with the (cid:228)rst leg using wireless
`communication from the vehicle to the satellite and back down to a satellite earth station, where
`the data moves onto a (cid:228)ber link for communication to the central database.
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`The central database is typically operated by the two-way radio vendor or by a third-party company
`with whom the two-way radio vendor has a business arrangement. With most systems, authorized
`end-users can access vehicle information stored in the database over the Internet using a Web
`browser that interfaces with software maintained by the database operator. That interface enables
`end-users to view data in a wide range of formats. For example, users may be able to obtain maps
`that plot the route each vehicle took during the day, indicating any spot where the driver stopped
`for more than a certain number of minutes. The system software also may be able to provide
`automatic e-mail noti(cid:228)cation to speci(cid:228)c managers when certain conditions occur – such as when
`a truck exceeds the speed limit or a truck moves after regular business hours.
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`Recognizing that the security industry is a logical sales channel, some vehicle tracking service
`suppliers have begun to partner with wholesale central stations. Central stations such as Metrodial,
`COPS and others have begun to sell the service to their alarm dealer customers, who may use the
`service themselves or may, in turn, sell it to their business and residential customers, typically
`installing the radios in the vehicles and charging a monthly service fee. Some such services may
`include browser interfaces branded with the alarm dealer’s name and logo – and the alarm
`dealer is the end user’s only point of contact on the service. Often the central station involved
`in the supply chain provides little, if any, monitoring of the vehicle tracking system unless
`emergency services are offered – in which case, central station operators become involved in
`providing emergency assistance to drivers who press a panic button.
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`Fire Alarm Maintenance Co. Resells Vehicle Tracking Services
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`When Fire Alarm Maintenance Company, Aspen, Pa., installed GPS systems in its service vehicles,
`its main goal was to “improve service response time by knowing who was in what area at what
`time,†says Bill Pederson, general manager. The system met that goal and provided other bene(cid:228)ts,
`as well. “It helps us know where the men are and when they’re quitting and starting,â€
`Pederson says. “We also get route reports every day – where they were and how they got there.
`It’s like a bread crumb trail.â€
`The company, also known as Famco, plans to use the system to keep track of vehicle maintenance,
`too. Because the system can tell how many miles a vehicle has traveled, it soon will be able to alert
`management when it’s time for oil changes or other maintenance work.
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`Famco uses cellular-based devices from Guardian Mobile Monitoring Systems in each vehicle.
`System monitoring is provided by wholesale central station operator COPS. Famco has begun to
`offer the same capability, using the same equipment and monitoring service, to its business
`customers – and at press time, expected to close a deal with a sprinkler company. That company
`was particularly attracted by the maintenance tracking capability, Pederson says. Famco customers
`using the service will access their vehicle information through the Internet using a Famco-branded
`browser interface.
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`Pederson expects to sell the vehicle transmitters for close to their $500 cost. “I want to make the
`money on the monitoring,†he says, adding that he anticipates charging customers $300 to $400
`per vehicle per year for monitoring and netting about $100.’
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`The GPS devices installed in the Hawk Security trucks, dubbed Guidepoint, cost about $500 each.
`PHOTO COURTESY OF HAWK SECURITY
`Hawk Security Keeps Tabs, Routes Better Using GPS Tracking
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`“If you have hourly employees in your truck, you can’t afford not to have it,†says Michael
`Shirley, director of Hawk Security Services of Fort Worth, Texas, about the vehicle tracking system
`his company uses. “We had guys leaving job sites early or getting there late and never telling us.
`We want to make sure our trucks are productive.â€
`Currently Hawk Security has GPS systems installed only on trucks operated by hourly workers, but
`the company soon plans to install them on all 30 of its trucks. Employees paid by the piece-rate are
`allowed to drive trucks home – and having GPS in those trucks should help ensure that the trucks
`are not being driven except on company business. “Even for piece-rate people, it will pay for
`itself,†predicts Shirley, who notes that the ability to review the route that a driver takes between
`jobs will be useful. “We don’t want them stopping by their house on the way. Even though
`piece-rate people are doing it on their own time, they’re using our gas.â€
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`The GPS devices installed in the Hawk Security trucks, dubbed Guidepoint, cost about $500 each
`and were provided by GPSi, LLC. The devices use a cellular network to communicate with a
`monitoring facility operated by Teletouch Communications, which charges a fee of about $40 per
`month per vehicle. As with the setup that Lovitt Alarm uses, automatic e-mail noti(cid:228)cation can be
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`con(cid:228)gured to (cid:228)t each customer’s needs and preferences. Hawk gets automatic noti(cid:228)cation when
`a driver exceeds 60 miles per hour.
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`Authorized Hawk Security personnel can check the location of their service vehicles as needed,
`which can help in locating the nearest truck with a part needed for a job.
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` PHOTO COURTESY OF HAWK SECURITY
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`Authorized Hawk management also can use the Internet to obtain customized reports on demand. â
`€œThe operations manager reviews reports every Monday when he gets ready to do time sheets,â€
`Shirley says. Although technicians were advised in advance that the new system would be
`implemented, Shirley says initially vehicle reports and time sheets didn’t always match. â
`€œNow they do,†he says.
`Internet access to vehicle information is also helpful for the installation manager, who uses the
`system to determine which other trucks are in the area when a technician in the (cid:228)eld needs a
`certain part. The work coordinator uses the system in a similar fashion when additional technicians
`are needed to help out on a job.
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`Hawk is looking into offering vehicle tracking as a service to its customers, probably using
`Teletouch for monitoring. “We would get revenue up front and possibly part of the recurring
`revenue,†Shirley says.
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