Issue dated - 5th July 2004

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Front Page > India Trends > Story Print this Page|  Email this page

On the road with AVL

Once a truck gets out on the road, anything can happen. To deal with the unexpected, Indian companies are deploying automated vehicle locator systems, says Chitra Padmanabhan

Rising awareness about the use of GIS and GPS coupled with the need to spruce up service levels is likely to propel the demand for AVL solutions, says SYED Nazir Razik

Fully loaded cash vans, deployed to load cash in ATMs, always face the risk of being robbed. However, forward-thinking banks such as ICICI Bank are using technology to counter this problem. The bank uses automated vehicle locator systems (AVL) on its vans to track the movement of the vehicles, and, if a van faces a robbery attempt or is found in a location where there is no branch, the administrator can remotely immobilise it. The report status generated by an AVL system provides the van’s speed and sends an SMS alert to the administrator if any of the vehicle’s doors are left open while on the move.

Serum Institute of India, the India’s largest exporter of vaccines is a big user of AVL. The company regularly uses refrigerated vans to transport serum from Pune to Bombay airport. It wanted to monitor the temperature in the van that has to be maintained at up to four degrees Celsius failing which the serum is likely to get spoilt.

AVL systems aren’t limited to tracking vehicle movement. They are also being used to counter pilferage. For instance, a leading oil company was suffering from shrinkage—the volume of oil in its containers reduced significantly by the time it reached journey’s end. With an AVL system deployed, the company regularly receives SMS alerts on oil levels in containers at various stages of the journey.

Finding the way

Uncertainty regarding goods in transit is a big factor in convincing businesses to fork out cash for AVL systems. Although every logistics environment has a clear workflow in place, when delays occur, they are usually due to factors that are beyond a manager’s control. Consider this. A logistics manager of a FMCG company dispatches a truck from Mumbai carrying five tons of soap to its Pune warehouse. En route the truck has an accident. The logistics manager realises something has gone wrong only when the client says that the vehicle has not reached. If an AVL system is onboard, the location of the vehicle can be pinpointed immediately and accurately.

And in the case of expensive stuff like oil or gas, the risk is higher. For example, Praxair, one of the biggest players in the Indian gas market, has a fleet of 110 tankers that are used for bulk distributing gas. The company has put in place a Logistics Management System (LMS) from Wipro. As a system integrator Wipro developed the LMS and integrated it with Praxair’s GPS based AVL system that helps the company keep track of where its fleet of vehicles is at any given point of time.

GIS + GPS = AVL

In a business where delivering goods on time is critical, AVL systems are being used to manage logistics requirements. Typically, AVL systems give a real-time view of the exact route of the vehicle in addition to dispatch status by using a combination of GIS (Geographic Information System) and GPS (Global Positioning System). A vehicle’s location can be determined and it can be rerouted if necessary to provide timely delivery to a nearby customer. Additionally AVL systems can help solve problems such as pilferage or trucks being held up due to non-payment of Octroi. For instance, Textan Chemicals received regular complaints from customers about delays in delivery. In spite of carrying out detailed enquiries with various departments including production and logistics the company could not find a solution. Finally, it decided to deploy a GIS/GPS based automated vehicle locator system which gave the company details of the time taken by a vehicle to move from one location to another and the route taken.

As the level of AVL system adoption grows, prices are likely to come down. As of now customers are willing to deploy these devices only in select vehicles, says Quentin Desouza

Telecom operators such as Reliance and Bharti have been quick to tap this opportunity as fleet operators can use the reach of the cellular network to monitor vehicle movement. Reliance recently launched its own AVL system in India, it is currently being used by Reliance Logistics. “There are close to 5,000 vehicles at Reliance Logistics and this product is currently being used by around 40 vehicles,” says a company spokesperson. Though the product is yet to be launched the company is likely to price it at Rs 12,000 with an additional service charge of Rs 500 per month. The service will be built around Reliance’s CDMA network. Leveraging on its vast GSM network, Bharti Broadband offers AVL services to fleet vehicles, public transportation systems, delivery trucks, courier service companies and car rental agencies to track vehicles around the clock.

“Every vehicle is fitted with a mobile radio receiver, a GPS receiver, modem and antenna, which connects to a base radio consisting of a PC and a GPS receiver and interface,” says Dheeraj Kumar who is head for overseas business, Bioenable Technologies. The GIS is integrated with the GPS, where the data, after being exported to a GIS can be viewed on a digital map of the area being traversed by the vehicle. The use of GIS helps in knowing the route taken by a vehicle.

For a logistics manager, a simple Web interface provides the vehicle’s route. “A user logging on to our website has a password that lets him track the vehicle online. Any company wanting to adopt this system is charged on a per vehicle basis including all the equipment fitted in the vehicle,” says Quentin Desouza who is the chief executive officer at Quantum Designs. The company has a roster of clients using its systems including ICICI Bank and the Serum Institute of India.

Still a maze

These are still early days for AVL in India. The primary reason for this is that GPS devices that are attached to vehicles are quite expensive. Since a typical AVL system is a combination of GIS, GPS and cellular technology, the growth of this market is directly dependent on development in related areas. “As the level of adoption grows, prices are likely to come down. As of now we see that customers are willing to deploy this device only in select vehicles,” says Desouza of Quantum Designs. Most companies typically charge approximately Rs 30,000 to 35,000 per vehicle.

Another big obstacle is the nature of Indian cellular networks. The telecom sector is divided into circles and there are different players for each network and this increases the complexity of data transmission from a moving vehicle. It also restricts the operational capabilities of a system when the vehicle moves from one telecom circle to another.

“Rising awareness about the use of GIS and GPS coupled with the need to spruce up service levels due to competition is likely to propel demand for AVL solutions,” says Syed Nazir Razik who is the director for South East Asia at Mecosoft Systems. With the entry of global players, competition in this sector has increased manifold giving an added thrust to technological initiatives. In this scenario, AVL is a technology that will have a profound impact on the core business of any logistics company.

Streamlining Disaster Management

The police can make good use of AVL systems. Today when a caller dials 100 for the police control room, the attendant notes down the complaint on paper and passes it on to the in-house wireless operator who in turn contacts the police jeep nearest to the scene of crime. The police control room is thrown into chaos when a major disaster happens as the attendant gets up to 50 calls from the same location. In such a scenario, the use of an AVL system can help streamline operations and dispel confusion. Rolta India has developed a system called CACAGS (Computer Assisted Call taking and GIS system), which uses telecommunication networks and GPS technology to improve the efficacy of a police daily operations room and mobile patrol.

When an AVL system is used by the cops, the control room consists of a computer terminal with a detailed digital map showing every by lane, building and landmark in the area. The telephone operator has a caller-ID phone with immediate access to address and map data that helps pinpoint the location of a reported incident. This location is entered either manually or through a drop-down menu, and details are automatically time-stamped and recorded in a central database and forwarded to the wireless operator at the AVL station. “The wireless operator can assign a police vehicle to attend to an incident using all the information collected by the person taking the call,” says A Jagdish, senior manager for geo engineering and tech marketing at Rolta India. The map provides a real-time display of the police vehicles and the location of all current incidents and is synchronised to the information present in the forms. Each police vehicle is represented by a user configurable icon and displayed on the digital map in its correct geographical position as determined by a GPS unit installed in the vehicle.

The dispatcher can analyse the gravity of the situation, identify and locate vehicles near the crime scene and direct them to it. The dispatcher can also identify police stations on the large-scale digital map and inform them about the crime scene by phone. Rolta India is in talks with several police departments across the country to implement AVL systems.

AVL makes inroads
Company AVL
ICICI Bank Monitors vans used for loading and unloading cash from ATMs.
Serum Institute of India Keeps track of temperature in its refrigerated vans and tracks their movement.
Textan Chemicals Curbs malpractices associated with delays in delivery.
Praxair Pinpoints location and movement of its fleet.

Emerging trends in AVL systems usage
Misuse of trucks Truck drivers sometimes pick up goods from a third party and make money by privately supplying said goods. This results in trucks getting stuck due to non-payment of duties. In such a case, the owner of the vehicle is at a loss regarding delays in dispatch. By using AVL, the owner of the truck can accurately determine a vehicle's location and take necessary action to curb such malpractices.
Checking the adulteration of goods Oil companies face the problem of adulteration in transit. This gets reflected through the reduction in weight and volume of oil when it is delivered. With an AVL system sensor in the tanker, the owner can check density and volume of the oil throughout the journey and also monitor the number of times the tanker halts en route.
Retrieving vehicles from rough terrain Many a time vehicles plying through desert areas or difficult terrain run the risk of breaking down and being abandoned. Once a vehicle gets lost it becomes very hard to track. AVL systems can help retrieve lost vehicles.

chitra@expresscomputeronline.com

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