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Get The Latest News And Stories In And Around Fleet Management

Our in-house editorial team works diligently to provide you with the most relevant topics and breaking news in the world of fleet management.
 

Transportation in the Books

02/26/2016 by Parth Raval

The death of Justice Antonin Scalia has brought new attention to the Supreme Court, the nine justices who interpret the nation’s law at the federal level. They make up one of the fundamental bodies of the United States government and are some of the nation’s top legal minds. It may feel like the dealings of this court are far removed from the day-in, day-out work of fleet managers and drivers. In reality, the Supreme Court’s rulings on landmark cases have directly affected how drivers and dispatchers work today.

Take, for example, Munn v. Illinois, an 1877 case that dealt with transportation charges. In this case, the Supreme Court ruled that a state is legally allowed to regulate how much a private industry charges if that private industry affects the public interest. The private industry in question, Munn and Scott, was a grain warehouse whose maximum rates for transportation were set by a third-party, the National Grange. The effects of this ruling can be felt directly in modern transportation. There are several regulations around freight costs that prevent companies from monopolizing the industry.

In view of the Supreme Court’s entire history, the response to Munn v. Illinois was fairly tame. On the other end of the spectrum is Lochner v. New York, an infamous case that kick-started the so-called Lochner Era. The Supreme Court ruled that individuals have a basic right to form contracts with employers. This seemingly benign ruling led to a period of judicial overstepping, in which the Supreme Court interfered with private business and, for all intents and purposes, created new laws rather than interpreting existing ones. However, Lochner v. New York established an important precedent that today allows drivers to sign contracts with carriers. Without Lochner v. New York, owner-operators would be unable to contract with multiple companies without federal interference.

Supreme Court justices are nominated by the president, confirmed by the Senate, and appointed for life. The American public cannot vote a justice into or out of office. In an election year, however, it is worth paying attention to the opinions of those running for office, for it may come to one of them to appoint Antonin Scalia’s replacement. A justice sympathetic to transportation may be influential for decades to come.

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A Computer that is Almost Human

02/15/2016 by Parth Raval

On January 27th, 2016, something remarkable happened in Google’s London office – a computer beat a human player at the game Go. One of the world’s oldest board games, Go is primarily played in East Asia, with over 40 million players worldwide. The rules are simple: two players take turns placing stones on a 19 x 19 grid, trying to cover more territory than the other. There are many strategies to capture and contain an opponent’s stones and gain an advantage.  This combination of simplicity and intricacy has made Go popular for over 2,500 years.

The fact that a computer was able to beat a human player at a game may not come as a surprise. After all, computers have been able to defeat humans in a range of games for years. In 1996, a computer beat Gary Kasparov, considered by many to be the greatest chess player of all time. Computers have successfully learned how to play Atari games just by reading the pixels on the screen. What does it matter if one more game is added to that list?

It matters because Go is one of the world’s most complex games – far more complex than chess. Computers learn how to play games by following patterns and predetermining outcomes. There are more possible Go games than there are atoms in the universe. Until now, this number was thought to be too big for a computer to handle. That was until Google’s AlphaGo program beat European Go champion Fan Hui, 5 games to 0. AlphaGo is programmed to learn using trial-and-error. It uses reinforcement learning, which takes human psychology principles and applies them to machines.

AlphaGo is a major advance in artificial intelligence. A computer with AlphaGo’s capabilities was thought to be at least ten years away. Though exciting, AlphaGo may seem to occupy a world far removed from that of fleet management.  The truth is that software that can learn complex tasks, as AlphaGo can, will be the foundation of transportation’s future. Drivers and dispatchers will work with vehicles that can perform many tasks of their own, including caravan driving and navigation. A major concern with current autonomous vehicle technology is that machines cannot replace a human’s instantaneous decision-making or intuition. It is likely that they never will – but they will get close. AlphaGo’s advanced abilities to predict human behavior may do much to close the gap between fleet managers and the future.

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Your ELD Questions Answered

01/29/2016 by Oswaldo Flores

This week, the product and marketing teams at Teletrac hosted a webinar on the ELD Final Rule, breaking down this rule into its components and helping carriers understand how they would be affected. With three panelists and an hour allotted, we unfortunately weren’t able to answer all questions submitted. Here are some of those questions, with answers provided by our team. The issues below are common sources of discussion when it comes to the ELD Final Rule and we hope this makes ELDs clearer for your organization.

What does engine synchronization mean for the purposes of electronic logging device (ELD) compliance?

Engine synchronization means the ELD can automatically record engine power status, vehicle motion, miles driven and engine hours. This helps verify the Hours of Service data that the ELD records.

Why must an electronic logging device (ELD) collect engine hour data?

Engine hours allow managers to cross-check the odometer data collected by the ELD. Having two points of reference for vehicle use ensures Hours of Service records are accurate.

Does the electronic logging device (ELD) rule require real-time tracking of commercial motor vehicle (CMVs) with ELDs?

The ELD Final Rule does not require real-time tracking of CMVs. When transmitting data to officials, ELDs limit location information to protect drivers’ privacy. However, carriers can use ELDs to track their vehicles in real time to enhance their business performance. Carriers can use this data as they wish, as long as they do not harass drivers or violate federal regulations.

Are Canada- and Mexico-domiciled drivers required to use electronic logging devices (ELDs) when they are operating in the United States?

Canada and Mexico-domiciled drivers are required to use ELDs when operating in the United States. They are not required to use ELDs if they fall under one of the exceptions of the ELD rule. A driver operating in more than one country can note this information within their ELD’s records.

Is there an exception to the requirement to use electronic logging devices (ELDs) for drivers who infrequently use records of duty status (RODS)?

There is an exception for drivers who use RODS infrequently. If a driver is not required to use RODS for more than 8 days in any 30-day periods, that driver is not required to use an ELD. This exception also applies to drivers who use time cards rather than RODS.

What is a “grandfathered” automatic onboard recording device (AOBRD)?

If an AOBRD was installed before December 16, 2015, it is considered “grandfathered.” In this scenario, carriers may continue using an AOBRD until December 16, 2019.

What must a driver do with unassigned driving time when he or she logs into the electronic logging device (ELD)?

Drivers must review all unassigned driving time when logging into the ELD. If the unassigned time belongs to the driver, the driver must add this time to his or her record. If the time does not belong to the driver, the driver must make an annotation in the ELD record to indicate this.

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Teletrac is working hard to make sure carriers get the most possible out of the ELD Final Rule. Stay on the lookout for future content that covers federal compliance and regulations. Our team is dedicated to providing clear, accurate, and useful information that helps carriers stay safe and make compliance an inherent part of their business. Keep an eye out for future articles and webinars that delve into this important topic.

 

 

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How to Manage Driver Transition to ELDs

01/22/2016 by Caroline Ailanthus

The federal government’s Final Rule concerning electronic logging devices (ELDs) has stirred up the transportation industry. Questions regarding compliance have inspired a great deal of concern for carriers. The process of becoming compliant can seem daunting to carriers. Luckily, compliance can become a lot easier with the right ELD provider.

ELDs come at varying costs, and are all able to track driver hours of service (HOS). Some ELDs go above and beyond, tracking fuel use, unsafe driving patterns, vehicle usage. Carriers should first determine what they need from an ELD before selecting a provider.

Once a carrier has selected an ELD provider, the next step is getting drivers on board. This process is usually perceived as the most difficult part of the transition. While it is true that ELDs represent a large change in how drivers work, drivers are quick to realize the benefits ELDs provide. These benefits include less paperwork, more profitable routes, and more rest time. Carriers can use a variety of tactics to ensure the transition to ELDs is as smooth as possible.

Transitioning to ELDs starts with a thorough understanding of what ELDs are. ELDs are, first and foremost, electronic versions of the paper logs that carriers have been using for years. They automatically record all Hours of Service (HOS) information that drivers need to record to remain compliant. This automation makes several day-to-day tasks much easier. Inspections are faster and simpler because all logs are electronically accessible. ELDs are often bundled together with various telematics services that further simplify tasks – services such as two-way communication dispatch or navigation.

The Final Rule only recently became law on December 11, 2015, yet many carriers have already invested in ELDs. These devices reduce paper usage and dramatically simplify management by providing real-time information on which drivers are available for work and which are coming up on a break. Alerts provide drivers and managers with warnings to avoid HOS violations. Bundled features, such as vehicle tracking and maintenance updates, carry their unique advantages.

That’s one less thing to worry about and a lot more options for running a successful fleet.

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In Their Own Words: Grocery Supply Company

01/15/2016 by Parth Raval

The ELD Final Rule has upended the transportation industry. This federal requirement to use electronic logging devices in lieu of paper logs to track driver Hours of Service has raised questions for managers and drivers alike. One of the biggest concerns carriers have, aside from price, is how to manage the transition from paper logs to ELDs. Teletrac spoke with Don Owen, Transportation Manager at Grocery Supply Company about this matter. Grocery Supply Company is based in Sulphur Springs, Texas and maintains 54 trucks that deliver across the Midwest. Owen has been using ELDs for almost ten years and is well-versed in discussing ELDs with drivers.

You’ve been using ELDs for about ten years – before that, your drivers used paper logs. How did you introduce ELDs to your drivers?

We discussed ELDs in our safety meetings. We made sure the drivers knew that this was going to be a benefit to them. ELDs were going to make their jobs easier from a paperwork standpoint; they wouldn’t have to worry about miscalculating their hours. They would be able to get home more often and get more rest. And we would be able to tell customers when deliveries would be made with greater accuracy.

Did drivers offer any points of resistance to ELDs when the devices were first introduced?

There are always a few who think ELDs are Big Brother looking over their shoulder. But we explained to them how we would be using the devices. We would use them to make sure drivers would be able to take their breaks without having to bump up their hours of service.  We would also use them to create routes that could be done legally and would generate greater profit for the company.

Can you explain the profit angle?

With ELDs, we’re able to look at the queue of deliveries we need to make and the Hours of Service status of our drivers. We’re able to move stops around based when customers want their deliveries and which drivers can make those stops. We can time our schedules better to get as many stops done without violating the Hours of Service. From a logistics standpoint, we can create a route that is efficient and can be done legally by any driver we have.

How has this changed how drivers work?

It’s improved day-to-day work. I can tell you, when I was a driver, I hated doing paper logs. I delivered to restaurants and you might to deliver to three or four places right in a row and never even touch your log. And when you’re ready to drive somewhere, you have to catch yourself up. The ELDs do all that recording for you. Once a driver goes on the ELD and they get used to it, they prefer using the computer over the paper logs. The ELD lets them drive and get the truck unloaded and focus on their job.

So to make the transition to ELDs as easy as possible, carriers should focus on the drivers?

Absolutely. And listen to what the drivers say. Let the drivers voice their opinions. And make it clear that this how the industry is going and every trucking company is moving in this direction. ELDs are here to stay.

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Owen is absolutely right. ELDs are here to stay and they are a great opportunity to improve business operations. They change how drivers and managers work – that’s why it’s essential to get all parties on the same page when introducing ELDs to a company. If the transition period is handled successfully, ELDs can be the best thing to happen to a business.

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The Central Piece of the Transportation Puzzle

01/08/2016 by Parth Raval

Private fleets are one of the most important pieces of the American transportation puzzle. They are the largest sector of the domestic trucking market, worth approximately $320 billion (Logistics Management). Private fleets transport a nearly endless variety of products, from roofing supplies to groceries to chairs, but they have one thing in common – they are owned by a company whose primary business is not transportation. Private fleets work to move their company’s products from point A to point B. Generally speaking, businesses manage a private fleet for three reasons: improved customer service, control of capacity and completion of company goals.

Customer service is crucial to private fleets. Their companies engage with the public in a capacity that goes outside transportation – Coca-Cola, Wal-Mart, and Kellogg all have private fleets that transport their goods around the country. Private fleet drivers are generally more experienced and better compensated than general transportation drivers because they are an extension of a larger brand. In fact, many companies cite improved customer service as the top benefit of a private fleet (Inbound Logistics).

Since they are part of a larger company, private fleets can also be used to meet specific company goals. Private fleets operate on different financial models, based on the needs of the company (National Private Fleet Council). They can also be used to help close gaps in the business, including increasing revenue and reducing churn. Mostly importantly, a company with a private fleet has complete control over capacity. They are able to precisely calculate how much product they are able to transport because they manage transportation in-house.

Lastly, private fleets differ for the importance they place on culture. Private fleet drivers are usually made to feel like part of the company for which they work, and stay with one carrier for longer than the nationwide average (Trucking Info). (With company branding prominent on their vehicles, they essentially drive billboards down the highway.

Because private fleets are critical to their company’s operations, maintenance of the fleet should be a company’s top priority. Telematics software that is designed for private fleets, including electronic logging devices, can help managers spot inefficiencies and turn their fleets into a well-tuned machine. It can be the difference between clearing the company’s goals for the year and starting from scratch on January 1.

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2015 in Review

12/30/2015 by Parth Raval

From electronic logbooks to driver retention, 2015 was all about the men and women who sit behind the wheel. We’ve summed up some of this year’s most important issues in transportation. They represent the direction the industry is taking, one that embraces technology, safety and efficient to drive a more demanding economy.

Electronic Logging Devices

After many miles of red tape, speed bumps and false starts, the electronic logging device (ELD) mandate finally passed both houses of Congress. This year’s requirement to record all hours of service (HOS) on electronic devices was undoubtedly the hottest topic of conversation in trucking. ELDs help fleets run more efficiently by helping companies understand the ramifications of running different routes. They also signal a change in culture for fleets still running paper logs – managers should ensure that drivers understand the benefits ELDs provide both the trucking and administrative sides of the business.

Truck Parking

Branching out of the ELD mandate is a constellation of changes in how fleet drivers work. One of the most pressing is truck parking. On paper logs, drivers could stretch their HOS while they look for a place to park and rest. ELDs eliminate the ability to stretch hours, requiring drivers and dispatchers to plan ahead for parking. Jason’s Law, passed in 2012, allocates $6 million to create more rest stops for truck drivers. While this is an important step in the right direction, there is still work to be done. The need for safe, easily accessible rest areas will be highlighted as more drivers are transitioned to ELDs.

The Economy Continues to Grow

In 2015, US consumers showed more confidence in the economy than in any other year since the end of the Great Recession (Hightower Agency). Consumer spending rose to 3.2% and layoffs were at the lowest level in decades (Marketwatch). While analysts project that the United States’ place as the world’s top economy will be challenged in the coming decades, there has been plenty of short-term progress to warrant optimism (U.S. News & World Report).

Driver Retention and Turnover

This improved economy is great news overall for the country but it does not solve the high driver turnover rate plaguing the transportation industry. There was some improvement – the 2015 driver turnover rate was 90%, down from 100% in 2014.  How companies address the ELD mandate will have a large effect on driver retention. If drivers are made aware of how ELDs improve their job performance, they will be inclined to remain with their carrier.  

Advances in Truck Technology

This year, self-driving vehicles moved further away from speculation and closer to reality. From Google’s Self-Driving Car Project to Daimler’s advances in self-driving trucks, the world of autonomous vehicles saw massive strides. Those who worried that drivers would be forced out of a job were reassured. Self-driving vehicles will require a driver with a commercial driver license sit behind the wheel. Fleets of commercial vehicles commanding the road are still years away, but jobs in transportation will increase because of them.

***

With a bevy of technology advances, transportation is one of the country’s most exciting industries. This year saw a fascinating meeting of old and new with the ELD mandate and self-driving vehicles. Change is inevitable – but change doesn’t have to mean culture is abandoned. Even as transportation figures out how to assimilate new platforms, it will keep the aspects that inspire the people who work in trucks, warehouses, and dispatch offices around the country.

Happy New Year!

 

 

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The Next 20 Years for Compliance

12/21/2015 by Parth Raval

Earlier this month, the federal government passed the long-awaited Final Rule concerning electronic logging devices (ELDs). This rule has been a point of discussion for years and its enforcement marks a watershed moment in transportation. As carriers look for the right ELD system for their business, an important question hovers in the background – what comes next?

The ELD mandate represents the important role technology plays in transportation. Today’s trucks are outfitted with aerodynamic frames, sophisticated braking systems, and now with electronic logs that record driver hours and predict safety behavior. The trend is clear; transportation will harness developments in diverse technological fields to best serve drivers, vehicles and customers. Today, that means ELDs. In 20 years’ time, that could mean self-driving vehicles, a possibility that already has the industry’s attention. Self-driving vehicles will come with a host of laws, regulations, and policies that carriers will have to understand. The compliance system that will come with self-driving vehicles will need to address remote operator fatigue, vehicle refueling, and maintenance. The California Department of Motor Vehicles has already proposed regulations for self-driving vehicles, including a provision that a licensed driver must ride at the wheel. As much as technology advances, it also cycles back on itself – ELDs are an adaptation of traditional paper logs. Self-driving compliance will likely incorporate many aspects of ELDs.

No matter what the future holds for compliance laws and technology, telematics will remain an important piece of the puzzle. Telematics used in tandem with an ELD creates a full picture of a fleet’s operations. Telematics will be crucial with self-driving fleets. These platforms will give carriers control over their vehicles as they operate themselves on the road, both with and without the help of a human passenger. Just as telematics providers have been able to accommodate the need for advances in driver log technology, they will be able to provide systems that help self-driving fleets remain compliant. 

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Holidays – A Logistics Problem

12/14/2015 by Parth Raval

The winter holiday season is a heavily conflicted time for Americans. On one hand, it’s a time for family, tradition, and reflection. On the other hand, it is a massive business undertaking that involves several different industries working in tandem. Total holiday retail sales for 2014 topped $616.1 billion, with $514.2 billion devoted to in-store sales (National Retail Federation). Those in-store sales don’t happen by themselves. Products bought off the shelves at big-box retailers have to first be transported to those retailers – that’s a big reason why the winter holiday season is one of the busiest times of the year for transportation (Logistics Management). Over 290,000,000 packages are delivered between Black Friday and Christmas Eve (Supply Chain 24/7). Behind the scenes of the holiday is a supply-chain orchestration that goes largely unnoticed by the public. December combines two pillars of American culture – adherence to tradition and a drive for commerce.

Interestingly, transportation encapsulates these pillars better than many industries. Long-haul trucking companies are the backbone of American commerce, bringing products to stores year-round. They are also the backbone of American tradition. Trucking has strong ties to Middle America – truck driving is the most common job in 29 states, most of them in the country’s interior, firmly settled with traditional American values (NPR). Traditional American values have strong connections to the winter holiday season. With debate continuing nationally surrounding the traditional and secular aspects of the season, trucking companies reside at the heart of the matter. They represent both sides of the argument, the push for tradition and the demand for business.

These questions do not have much bearing on the supply-chain and logistics problems that transportation companies wrestle with at this time of year. They do, however, reassert the centrality of trucking in America, both during the winter holidays and year-round. Every product bought during the holiday rush represents this tension just as much as does the trucker who spent three years in a row away from him family on Christmas so that he could make his deliveries on time (WWAY TV). It may be the most wonderful time of the year; it is also one of the most complex. 

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ELDs Are Now Law

12/10/2015 by Parth Raval

After months of anticipation, the FMCSA has announced that it will release its rule concerning ELD use on December 11, 2015. Companies will have two years to become compliant, or four years if they already use an electronic device to record driver hours. The time to comply is now - all carriers who are required to track their drivers’ hours are required to comply with this rule. These carriers can be further divided into two groups – those who currently use paper logs and those who use Automatic On-Board Recording Devices (AOBRDs.)

Paper logs have long been used to track drivers’ hours of service (HOS) in line with federal regulations. The ELD mandate is designed to create safer road conditions by allowing companies to closely track driver work hours and give drivers time to rest. Companies that use paper logs have two years to replace those logs with ELDs. Companies that use AOBRDs, on the other hand, have four years to comply with the mandate. AOBRDs are similar to ELDs in that they electronically record drivers’ HOS. The crucial difference is that ELDs are connected to the vehicle’s electronic control module and AOBRDs are not. This connection allows ELDs to validate HOS information with data collected from the vehicle’s computer.

Teletrac has closely followed the ELD mandate since the federal government announced it was rewriting the federal rule. Teletrac has always prioritized adherence to government regulations. When the FMCSA announced the change in the 34-hour restart rule, it required modifications in all electronic logging systems. Teletrac’s engineers were able to create a new, federally compliant system in 30 days. Many telematics providers still have not been able to adjust to that change in the rule. With this history of thorough and accurate software development, Teletrac will continue to be able to provide software that keeps companies compliant.

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What is an Engine Control Module?

11/18/2015 by Parth Raval

Buried in the definition of “electronic logging device (ELD)” is this phrase: “engine control module (ECM).” Yet another acronym that gets mentioned when the subject of federal compliance comes up, ECMs are the heart of modern vehicles. Simply put, they are computers that control electronic systems within the vehicles. They control how the engine runs, monitor vehicle performance, and issue fault codes when something goes wrong. They deploy the airbags upon impact, or hold an airbag back if an occupant’s weight is too low. They are at the center of modern vehicle operations. And they will soon be on every over-the-road carrier’s radar – ECMs are also at the center of the ELD mandate.

To understand why ECMs are central to the ELD mandate, it’s important to understand the wealth of information ECMs can provide businesses. Fleet management software lives and breathes by diagnostic information. Through a connection to the ECM, fleet managers can do much more than read fault codes. They can tell when a driver has applied the brakes too hard, signaling unsafe road conditions. They can see how much fuel their fleet has used sitting at traffic lights and jobsites. Tapping into an ECM breaks down a business into simple numbers. It provides the raw data needed to push a fleet forward.

In the varied history of federal compliance devices, ECMs only recently entered the conversation. AOBRDs, or Automatic On Board Recording Devices, do not have an integral connection to the vehicle. These devices are currently regulated by the federal government and do not have a built in method to validate the data that is entered. ELDs take care of that problem by connecting to the vehicle’s ECM. This connection enables the ELD to automatically record when the vehicle starts and stops, creating an accurate portrait of a driver’s work day. ELDs also provide a wealth of information regarding a vehicle’s fuel use, maintenance needs, regular and irregular usage, and safety performance. This pushes an ELD past its obvious use – tracking driver hours – into a device that can reside at the heart of a fleet’s operations, just as an ECM is the center of a vehicle’s operations. The right device can help a company run smarter, not harder.

 

 

 

 

 

 

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Can You Solve This Math Problem?

11/06/2015 by Parth Raval

At 6:30 AM, a customer in Los Angeles calls to confirm a pickup time. At 6:42 AM, a shipper in Palm Springs leaves a message regarding a delivery window. By 7:00 AM, customers in Santa Barbara, Bakersfield, Las Vegas, Phoenix, Portland and Seattle have all confirmed their loads for the next two weeks. Based on the hours of service schedule, the dispatcher has determined which driver can complete these jobs. The only question now is which order the cities should be visited in order to save the most amount of fuel, waste the least amount of time, and satisfy all customers’ requirements.

This type of problem is at the heart of what fleet management professionals do every day. It’s called the Traveling Salesman Problem and in its core form it looks deceptively simple. “What is the shortest possible route that connects a list of cities and returns to the original point?” It may come as a surprise that this is one of the hardest math problems in modern times. Experts at universities including Harvard, Oxford, Cambridge and Stanford have spent over 100 years trying to solve it. It is so challenging, in fact, that the Clay Mathematics Institute will award $1,000,000 to the person who discovers the solution.

It appears intuitive. Given a list of cities, one would only have to tally up the different trips that connect them and then figure out which trip is the shortest. The problem with this approach is that the number of possible trips dramatically increases with the number of cities. In the example above, there are 40,320 possible trips between the 8 cities given. Even if a computer could calculate one trip’s length every second, it would take over 11 hours to find the shortest possible trip. Mathematicians have had success finding the shortest route between 50, 100, 1,000 and even 50,000 cities. They have been able to find routes that are only 40% longer than the shortest possible route between any set of cities. But they have not been able to create an algorithm that finds the shortest possible route between any number of cities in the world. Such an algorithm would have implications that touch codebreaking, manufacturing, economics, biology – and, not least of all, fleet management.

A solution to the Traveling Salesman Problem would mean fleet managers would be able to quickly identify the shortest possible route for every one of their drivers, every time, no matter how many locations were on the list. Fuel costs would be slashed. Maintenance schedules would be relieved. It would be a much different world. In the real world, there are plenty of tools that help fleet managers reduce costs and time spent on the job as much as possible. Some of these tools may already be familiar and some are about to be mandated by the federal government. They help find the shortest possible route that is known to modern mathematics, reducing waste and expense along the way. They make the complex world of fleet management much simpler. They are readily available, trusted by many, and, fortunately, won’t cost anyone $1,000,000.

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