Reducing Fleet Costs through Transportation Safety Lessons Learned Lynelle Bautista VP, Strategic Accounts Cartasite Inc Cell: (303)

2015: It’s all about reducing costs.

How do you reduce your biggest risks in today’s environment?

Those who work in the Permian Basin are 2.5 times more likely to die in a vehicle crash than the state average. In 2014: 424 people died in traffic accidents (+16% from 2013) 5,029 accidents overall in which someone was killed or seriously injured (+14% from 2013)

What is your Transportation Safety Program? Management champion / safety committee Goals / Metrics Risk Assessment / Driving JSA Vehicle Specifications Driver Record Review Policy on use of Phone / Radios / GPS Standards for New Driver Guideline for Fatigue Management Driver Training Inspect/Maintenance Program Foul Weather Travel Restrictions Journey Management Plans Project Transportation Plans Transportation Safety Specialists In-Vehicle Monitoring System

If you don’t have an IVMS system yet  Implement Journey Management basics  Begin planning  Understand & quantify your pain.  Collect MVI, mileage, idling data  Determine actual regulatory requirements  Identify customer and/ or insurance pressures

If you have an IVMS System Reduce Program CostsMaximize Value  Reduce fuel usage  Reduce crashes  Insurance discounts  Optimize costs of current program  Seek alternative solutions?

Maximizing Value of Your IVMS Is your program really changing behavior & reducing crashes? $24,000 – Non injury MVI $128,000 – MVI with minor injury $3.8 million – MVI with fatalityh higher MVI Rates

Case Studies & Lessons Learned 1.No IVMS Strategy 2.IVMS Plan but no ongoing attention 3.IVMS Plan with continual attention

Case Study 1 No IVMS Strategy “1-800 Bad Driver” program Communicated extreme events to supervisors Inconsistent communication to drivers No clear expectations

Lots of investment of time & resources No change in behavior Case Study 1 No IVMS Strategy

Case Study 2 Initial IVMS Plan, No Follow Up In 2012, distracted by growth. After 6 months of worsening behavior, leadership re- engaged. Company B, a major Oil & Gas Service Provider, provided good initial communication of a safety-focused program.

Case Study 2 Behavior can improve at any time.

Case Study 3 Solid IVMS Program with Continual Engagement Companies C & D, major Oil & Gas Operating Companies, provided good initial communication of a safety-focused program. Safety-focused plan Good initial communication Continual support & leadership

Company C Solid IVMS Program with Continual Engagement

Company C Solid IVMS Program with Continual Engagement

Continual Adjustments to Program Yields Continuous Improvements IVMS: Immediate Measurable Results Company D

IVMS: Immediate Measurable Results Reduction in Motor Vehicle Crash Rates 55% Reduction in on road crash rates Year 1 Continual reduction year over year over next (4) years Year 1+ Company D

What did Company C & D do to maximize the benefits from their IVMS solution?

 Develop an IVMS program  Focus on direct feedback & self-correction  Execute a Communication Plan  Align organization with program  Regularly view & adjust Maximizing IVMS Benefits

Feedback: CHANGING BEHAVIOR WEEKLY SCORECARDS AUDIBLE ALERTS REAL TIME NOTIFICATIONS TRIP REPORTS

 Optimize your current Transportation Safety Program  Optimize your IVMS system – reduce costs, maximize value  Prepare for the next cycle Now what? There is much to do

1123 Auraria Parkway, Suite 200 Denver, CO  CONTACT US Lynelle Bautista VP of Strategic Accounts