#643

TABLE OF CONTENTS

Fleet Management Solutions:
Automotive & LCV Value Chains

CON

Introduction
Executive Summary
Connected

Fleet Management Services – Use Cases
Data Availability

In the past few years, a number of automotive OEMs have sought to take a portion of the fleet management
solutions (FMS) market for themselves. These automakers are ultimately looking to leverage the market’s solutions
to enhance operations, often through boosted factory connectivity. While the trend initially began with selectmanufacturers of heavy vehicles, there is now a pioneering wave of Light Commercial Vehicle (LCV) players andother manufacturers addressing the FMS market - seeking to take a share of the increasing service revenues
funded by fleet managers.

Electric Vehicle Use Cases
OEM API Deep Dive
Fleet Management – Needs by Sector
Scenarios for OEMs
Partner Selection Considerations

Our Fleet Management Solutions: Automotive & LCV Value Chains report identifies the key opportunities andchallenges facing OEMs wishing to participate in the FMS value chain. It further helps them gain a clear
understanding of the strategies needed to incorporate FMS and their associated services, while outlining the
products, services, and business models already being pursued by stakeholders. Planning, marketing, and IT
teams benefit further from detailed analysis of key fleet management service strategies organized by OEM.

OEM Activities in Fleet Management Services
Aftermarket FMS Supplier Profiles
FMS Value Chain

RELATED SBD REPORTS
546 - Connected Services Guide – LCVs
While the use of connected car services iswidespread among passenger vehicles, with many
OEMs having launched their services in at least one
market, the Light Commercial Vehicle (LCV)
segment is still in the early stages of maturity.

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Key questions answered> How are OEMs andsuppliers more broadly
incorporating the FMS into
their broader corporate
strategies?

> What types of products,
services, and businessmodels are stakeholders
pursuing as an outcomeof their higher focus into
FMS?

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Fleet Management Solutions: Automotive & LCV Value Chains
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September 2023

643-23FLEET MANAGEMENT SOLUTIONS: AUTOMOTIVE & LCV VALUECHAINS

Contents
643 – FLEET MANAGEMENT SOLUTIONS: AUTOMOTIVE & LCV VALUE CHAINSIntroduction ≫Executive Summary ≫Fleet Management Services - Use
Cases ≫
Data Availability ≫Electric Vehicle Use Cases ≫OEM API Deep Dive ≫

4
6

22

34
46
58

Scenarios for OEMs ≫Partner Selection Considerations ≫OEM Activities in Fleet Management
Services ≫Route4me•

Spireon

•

Targa

•

Verizon Connect

103 • Vulog•

Webfleet Solutions

•

HERE

Stellantis

•

Ford

•

Samsara•Mercedes-Benz•

Motorq•Renault•

Volkswagen•

General Motors

General Motors OnStar API•

Toyota•Rivian Fleet OS•

Nissan•Ford Pro•

Mercedes-Benz API

Aftermarket FMS Supplier Profiles ≫•Stellantis Free2Move•

Holman•GeoTab•

Kuantic•

Michelin Connected Fleet

66

91

•

•

•

Fleet Management Services – Needs
by Sector ≫75

FMS Value Chain ≫214

Next Steps ≫

242

133

Total number of pages - 245

Introduction

Introduction

Introduction
This 2023 report is an update to the original ‘Fleet Management Solutions for
OEMs’ report that was published in 2020. This update includes a refresh of the
OEM and aftermarket products covered in the original report, new electric vehicle
use cases and updates to passenger vehicle leasing.
The operational benefits and potential return on investment for fleet managers
implementing telematics-based fleet management are well documented in theaftermarket.
The relatively low barrier to entry for new Fleet Management Solutions (FMS)
companies to come to market has attracted many software as a service (SaaS)
companies to the market. Companies offering SaaS account for >90% of all FMS
business.
In recent years, automotive OEMs have sought to take some of this market forthemselves, based on factory connectivity. This trend began with makers of heavy
vehicles but now there is a pioneering wave of light commercial vehicle and car
makers entering the FMS market, seeking to take a share of the increasing service
revenues funded by fleet managers.
This report looks at the opportunities and challenges facing OEMs wishing toparticipate in the FMS value chain.
What are the key questions answered in this report?

6

SectionContent

Executive Summary

Key questions answered in this report and chapter overviews

FMS – Use Cases

Use cases that support the management of jobs and drivers

Data Availability

Insights into the availability of data and consent processes

Electric Vehicle Use
Cases

Insights and reports that can be produced using raw data

OEM API Deep DiveA closer look at the Application Program Interfaces offered byOEMs

FMS – Needs by
SectorCloser look at each sector of fleet management and theassociated needs

Scenarios for OEMs

Decisions for OEMs to make and the relationships that should becreatedPartner Selection
Considerations

Important factors to consider when selecting a partner•

Use cases – How to leverage fleet management solutions to create new value
for B2B customers?

•

Value chain – What is the value chain for fleet management solutions and what
will be the role of OEMs?

OEM Activities in
FMS

Comparison of OEM activities in the fleet management sector•

Passenger and LCVs – What are the differences and similarities between fleet
management solutions for passenger cars and LCVs?

Aftermarket FMS
Supplier Profiles

Profiles of individual aftermarket suppliers•

Partnerships – What considerations need to be taken when looking forpartnerships?

FMS Value Chain

Insights into the fleet management value chain•

OEM Products – Overview of OEM products in market (EU and US)•

What EV-Specific features will come next for FMS products?

Next Steps

What steps to take next in OEM Fleet Management Solutions
and Value Chains
6

Example slides
from the report

Executive Summary

For OEMs, the FMS value chain can be complex but profitable
Aftermarket
FMS

Service
Strategy: Partner or build

Aftermarket FMS

FMS Services

Sales channel
Direct B2B

Revenue

Needs by sector

Complexity &FMS subs
value

Job & drivermanagement

Logistics

Partnership FMS

Dealer$$$$Last mile

Field service

Fleet
managers

Shared & taxi

OEM

Corporate fleet

OEM FMS$

Captive
Finance

Lease & rental

Vehiclemanagement
Vehicle volume
8

Revenue
8

Use Cases

Driver & Job Management

FMS categories: Driver & Job Management
Service CategoryPre-scheduled ‘last mile’routingEnterprise operations, live
dispatch & workflow
management

Shared vehicle services

Driver analytics

Fleet TCO, fuel & fuel cardmanagement, insurance

Asset health management,
Service, Maintenance &Repair management

What’s the value proposition?

Market maturity?

How many solution providers?

This is where the highest volume of fleet
management services currently lay.

2020

2020

Fleet managers or dispatchers can see live
and accumulated data about their fleet anduse dashboards and reports to pinpoint
inefficiencies in operations.

Concept

Typical return on investment comes from fuelsavings from better route management andreduction in vehicle idle time, detours andnon-optimal activity.

Mature2023
Concept

Niche

Crowded2023
MatureConcept

MatureExample of marketing: (Masternaut/Michelin)Live vehicle positions can be sub-divided by
vehicle type, capability and shift pattern.
Dispatchers can find the closest vehicle to a
job and get estimate time of arrivals.
Driver’s activities such as first ignition-on andlast ignition-off, as well as breaks can be used
to automate timesheets.
As well as the live portal, it is common toprovide customisable analytics and reports sothat fleet managers can see vehicle utilisation
data that’s most important to their business.
These services are commonly supplemented
with a driver app for 2-way dispatch comms.

99Data availability

Data process

Phase 1. Make more data available in the API.
Fleet Operator

Telematics Provider
Vehicle ownership

Single marque fleets arerare and not every
vehicle in the fleet will
have in built connectivity.

New vehicle arrives withfleet manager. In-built
connectivity must first be
enabled.

If an OEM API is to be
used, data must be
streamed from eachvehicle with in-built
connectivity to a single
software platform.

For vehicles thataren’t fitted with inbuilt connectivity, anaftermarket dongle
must be fitted.

In built connectivity
provides enoughinformation to monitor
vehicle but not enoughfor job management.

OEM

Telematics providers
cannot give aguarantee that insights
will be available based
only on in-built
connectivity.

Data aggregators facea similar challenge.

Fleet managers do nothave the expertise or time
to bring data from different
vehicles or sources,
generate insights andupload to their own
platform.

Fleet operator
decides to only use
aftermarket
hardware.

TSP recommends theinstallation ofaftermarket
hardware to cover
weak points of OEM
data.

10
10

Use Cases

Emissions KPIEmissions KPI for ICE fleets. Useful for compliance checks.
Showing emissions KPIs helps to reduce carbon
footprint, cut operating costs and ensure regulatorycompliance.

Goals

Data requiredCorerequirements:

Advancedrequirements:

•
•
•
•

Vehicle identification number
Miles per gallon
Idling time
Odometer•

Diesel emissions fluid usage(for compliance)
Coasting and acceleration
Torque measurements••

Who benefits?
•••

SamsaraCurrent features:

Fuel consumption & emissions
per mile. Emissions perdelivery.

Areas forimprovement:

Telematics to monitor vehicle
performance and identify
areas for improvement

MaturityThis is a mature sector that is well understood.
Governments have set targets for emissions
reductions. Fleet managers also want to improve
efficiency by setting emissions targets.

Governments are interested in reducing real world
emissions and have put targets in place. From thefleet managers perspective, the benefits of setting
emission KPIs are therefore broad.

•

Lease companies need to meet emissions targets fortheir lease fleets. Being able to monitor their emissions
and then reduce them is a high priority for them. They
also want to know where they are saving carbon to
get green credits.

•

The most mature systems can give live fuelconsumption readings and historical data to show
if emissions targets can be met.

•

On-board monitoring and KPIs could be used to
identify a vehicle that is non-compliant.

•Emissions monitoring and KPIs could be a way ofidentifying if aftertreatment systems have been
tampered with to reduce costs.

CO2 emissions are directly related to fuelconsumption. Fleet managers are prioritizing efficiency
savings, and this can be done through setting targets
and identifying good behavior.

Example of leading
solution:

Safety anddriverbehaviour

Fuel Costs

SOC alert withtemperature
consideration

Compliance andinspections

Cost control
and budget
adherence

Vehiclereplacementtargets
SOC ‘low’alert

MaintenanceManagement
and Downtime
Prevention11
11

Needs by Sector

Needs Analysis

FMS needs analysis: By industry vertical
Established need
Emerging need

Vehicle usage vertical

LeasedSub-vertical

Leasedcorporate
fleet

No needDescription / Example

12

Automated daily job dispatch
scheduling with live
Pre-scheduled ‘last mile’ routing management
Customer ETA notification andlive tracking links
On-the fly job dispatch todrivers
Dynamic Geo-Zones Alerts
Field operations, live dispatch & Tracking
workflow management
Real Time Geolocation
Time Stamped Monitoring
Reporting Base (position,
usage, fuel)Driver access management
Shared vehicle services
Billing & invoicing
Bookings & reservations
Total Engine Run Time
Acceleration History
Driver analytics
Driving Events
ECO driving sore
Average Speed Per Trip
Reporting Base (crash, fines)
Fleet TCO, fuel & fuel card
Fuel Consumption
management, insurance
Fuel Level
Vehicle status, position,
diagnostic
Technical Alarms
Tire Pressure
Asset health management,
Service, Maintenance & Repair Engine oil level
management
Maintenance Alerts
Maintenance Scheduling
Distance to Next Service
Odometer Value

RentalFixed,
staffed
depot

Taxi

Car pooling

Local service(enterprise)

Centrally
Brokered/ri
Centrally
Floating/zo P2P short coordinate
Open,
Centrally
Closed loop
de-hailing
Corporate
dispatchedned selfterm
d taxipublicly
dispatchedself-service(driver's
car poolinglarge
servicerentals (company's
brokeredSME
car)enterprisecar)Companycar
Traditional
Enterprise
schemesrental at
Carshareforairportemployees

ZipcarGetaround

Traditional
taxi sector

Uber

Uber Pool

Split

Emergency
plumbing
services

DynorodNondispatched

Public sector,
health & utility

Utilities

Electricity,
Construction
water,
company cable field
services

First
responder& field
healthworkers

Courier & postal

Parcelservices

Multi-leg
Blue lightwithand field
warehousin
workerg

Expressdelivery(Company
vehicle)Courier
services
includingfooddelivery(driver'svehicle)Postalservices

DHL

A to Bdelivery,
JustEat

US Postal
Service12

Fleet Sectors

Partner Selection

What types of fleet manager are using your vehicles in their business?
Which fleet
sectors?

Passenger car

Lease

RentalLCV

Candidate
FMS
partners?

Whichservices?

Employee

Brand, Scale,
Coverage?

Customergrowth?

Contract

Which fleet managers are using your vehicles?
•

Can you identify key sectors which are using your vehicles?

•

Are you dominating the company car sector or lease/rental in a particular region?

•

Is your LCV fleet particularly successful in a particular sector?

•

Data from your captive finance company or partner lease companies can be useful in determining
which fleet managers are using your vehicles in their businesses.

•

What’s the stacked ranking of business sectors using your vehicles, ranked by volume?

13
13

OEM Activities

Free2Move

Free2Move – Supporting mixed fleets on their own FMS platform
Overview

Free2Move’s strategy is to offer their branded FMS platform which is compatible
with most Stellantis vehicles (including cars) via factory-fitted connectivity.
Mixed fleets are supported by retrofit dongle. An API is also offered and Geotab
were recently named as a 3rd party partner.

Scenarios supported

Scenario
Scenario2
2

OEM Branded FMS

Scenario
Scenario3
3

Scenario
Scenario4
4

Vehicles supported

3 rd Party FMS

Named FMS Partners‘Connect box’ isavailable on mostcars and LCVs in thegroup’s range

A retrofit dongle isavailable for groupand competitor
vehiclesScenario
Scenario5
5

API
OBD

OBD
Other OEMs

14
14

Scenario1

Value Chain

Scenario1: Aftermarket FMS
This scenario is by far the most common in market today. Aftermarket solutions
dominate and are most highly penetrated in the LCV segment. The FMS provider
is responsible for all activities in the business value chain as well as the productvalue chain.
Business value chain
Customer care & retention
Accounts & invoicing
Cloud operations
Provisioning

Example providers

Aftermarket FMS
OEM

Product value chain
Enterprise management portal
In-vehicle enterprise management
Asset management portal
3rd party integration

Field Support
API

Field sales
Outbound sales
Marketing

15

Cloud
OTA

Product development (custom)

Network

Product development (core)

TCU

Product planning

Dongle15

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