Est. 6 mins

Brian Filip, Chief Technology Officer and Head of Product at Idelic, recently led a Lightning Talk on Safety Management Systems: What are they? Who builds them? How should fleets approach evaluating them? We’ve recapped the session for you here.

About Brian

Before joining Idelic in 2021, Filip spent 15 years in executive roles within the insurance technology and transportation safety sectors across the U.S. and Europe. His deep experience in utilizing data and software for risk management has allowed him to contribute to safety from multiple perspectives, making him a trusted thought leader in the space.

The Evolution of Fleet Technology

For decades, the transportation industry has been dedicated to optimizing operations, focusing on areas like routing, dispatch, and preventative maintenance. The industry’s relentless pursuit of efficiency has evolved with time–from implementing basic log books and maps to later adopting sophisticated digital systems. Despite this technological shift, the focus has largely stayed on the truck and the load: how they’re maintained, where they go, and how they get there.

More recently, as operational improvements have plateaued, there’s been a growing recognition of the need to focus on the driver, in addition to the truck. Over the last couple of decades, we’ve started to see driver-focused technologies at the forefront of safety and profitability initiatives. As more and more solutions became available, fleets soon became overwhelmed with the amount of solutions and data sources available. Thus, the Driver Safety Management System (SMS) was born.

What is a Driver Safety Management System (SMS)?

A Driver SMS is a comprehensive, purpose-built platform designed to centralize driver safety management and ultimately improve driver performance. Unlike telematics, which has an important focus on asset management, a Driver SMS integrates various safety-related data sources and workflows into a unified system. This holistic approach provides a complete view of driver performance and risk and typically provides fleets with the following benefits:

1. Data Aggregation and Enhanced Visibility

A Driver SMS acts as a one-stop shop, pulling together data from various systems like telematics, cameras, FMCSA records, and HR databases. This consolidation gives safety managers a complete picture of each driver’s activity and performance, allowing for better monitoring and decision-making.

With all that valuable data in one place, advanced analytics tools can generate detailed reports and identify patterns. Safety leaders can benchmark performance, discover hidden trends, and make informed, data-driven decisions to better manage their program and safety outcomes.

2. Streamlined Documentation and Compliance

Compliance is crucial for a number of reasons, and a good SMS provides a reliable system of record. It stores essential documents like driver qualification (DQ) files, certifications, and inspection reports. Automated alerts notify you when documents are about to expire, helping you stay compliant with industry regulations without the constant manual check-ins.

Automating documentation can also take the stress out of audits. By ensuring that all records are up-to-date and easily accessible, you’ll breeze through audits or inspections with less hassle and more confidence.

3. Proactive Risk Identification and Intervention

A Driver SMS equipped with machine learning and predictive analytics tools can identify high-risk behaviors before they lead to incidents. This allows safety managers to intervene early and implement targeted measures to reduce potential risks, whether it’s through driver coaching or adjustments to training programs.

As for training, the best solutions go beyond generic videos by allowing for personalized interventions that address the specific needs of individual drivers. By offering tailored training and support, fleets can create a more effective safety program, reducing the likelihood of accidents and improving overall safety performance.

4. Driver Performance Management

Comprehensive Driver Profiles
With a Driver SMS, you can create detailed profiles for each driver, tracking their performance over time. This includes monitoring their adherence to safety protocols, participation in training sessions, and how they respond to interventions, giving safety leaders a clear view of each driver’s strengths and areas for improvement.

Recognition and Rewards
High-performing drivers deserve recognition, and the right system makes it easy to identify and reward them. By acknowledging excellence, you foster a positive safety culture within the fleet. Drivers feel motivated to maintain high standards, and the added benefit of recognition aids in retention, making drivers feel valued and appreciated.

“I would say that almost every fleet has an SMS in place today, even if that’s not what you call it. It’s the system (or combination of systems and processes) you’re using to connect all of the dots and run your safety program–even if that system is largely manual.”, says Filip.

Types of Driver SMS

There are several approaches to implementing a Driver SMS, each with its unique advantages and challenges. Below, we explore the various types and break down their pros and cons.

Manual

In a manual system, fleets rely on separate data sources, such as telematics, FMCSA portals, and accident logs, to be managed manually. Data is often combined using spreadsheets, with safety managers or analysts connecting the dots and generating reports.

Pros:

• Low initial cost with no need for additional software.
• Minimal change management as existing systems and processes are used.

Cons:

• Time-consuming and prone to errors, as data must be manually integrated and analyzed.
• Limited insights and scalability, as the system relies heavily on human oversight.
• Increased liability risk due to potential inaccuracies and the inability to fully leverage available safety tools.

Custom-Built

A custom-built solution is developed either in-house or through a third-party vendor, tailored to the specific needs and processes of the fleet. This solution can range from simple dashboards to complex systems integrating various data sources and automating workflows.

Pros:

• Fully customizable, aligning perfectly with the company’s unique culture and operational processes.
• Enhanced efficiency and accuracy, with automated data aggregation and reporting.
• Greater control over data and system updates, allowing for continuous improvement.

Cons:

• High upfront and ongoing costs, including development, maintenance, and updates.
• Potential for obsolescence if not regularly updated, with technology typically depreciating within five years.
• Limited ability to incorporate industry-wide data and best practices, as the system is built in isolation.

Third-Party Systems

Third-party Driver SMS platforms are developed by specialized companies with extensive industry knowledge. These platforms offer ready-made solutions that integrate best practices and industry benchmarks.

Pros:

• Cost-effective compared to custom-built solutions, with lower initial and maintenance costs.Incorporates a wealth of industry data, allowing for benchmarking and advanced analytics.
• Regular updates and innovations, keeping the system current with the latest safety practices and technologies.
• Liability benefits, as using industry-standard tools can demonstrate due diligence in safety management.

Cons:

• Limited customization options, which may not suit highly unique operational needs.
• Dependency on an external vendor, which requires managing an additional relationship within the company’s ecosystem.

Filip highlights, “There are so many varying approaches to an SMS, some of which prove to be more effective than others. At the end of the day, it really depends on your goals. The primary safety goal is accident reduction, but are you also looking to increase safety team efficiency, improve driver retention, or better protect yourself from litigation? A lot of systems out there will offer or prioritize certain things over others.”

Choosing the Right SMS for Your Fleet

Selecting the right solution requires careful consideration of several factors to ensure the system aligns with your fleet’s needs and goals. Here are our top tips and things to consider.

Clearly Define Goals and Problems

Set specific objectives, such as reducing accidents, improving compliance, and enhancing visibility. Consider future needs as well, anticipating what might be important in the next 2, 5, or 7 years. Avoid focusing solely on immediate issues; instead, choose a system that offers long-term benefits and scalability.

Get Key Stakeholders Involved From the Start

Engage all relevant stakeholders early in the process, including safety leaders, operations managers, compliance officers, HR, executive decision-makers, and IT personnel. This ensures that the chosen system meets all organizational requirements and helps prevent potential hurdles later on.

Assess Data Capabilities

Data is the foundation of an effective Driver SMS. Evaluate the system’s ability to integrate with existing telematics, camera systems, and compliance platforms. Consider the vendor’s data maturity, ensuring they offer strong protections, retention policies, and the capability to purge data as needed.

Evaluate Key Functionality

Look beyond surface-level features. Determine whether the system offers advanced capabilities like AI-driven predictive analytics, customizable intervention workflows, and flexible reporting tools. Ensure the system can be configured to meet your specific needs, such as adjusting escalation paths and creating tailored coaching plans.

Consider Scalability, Flexibility, and Innovation

Choose a system that can grow with your fleet, accommodating increases in data volume and new types of data. Ensure the vendor demonstrates a commitment to continuous innovation, with a proven track record of recent updates and a clear roadmap for future enhancements.

Examine Vendor Support and Services

A strong support system is crucial for successful implementation and ongoing use. Investigate the vendor’s onboarding process, customer support, training programs, and maintenance services. Look for a history of positive customer feedback and successful implementations.

Conducting an RFP Process

For fleets looking to adopt a new Driver SMS, we highly recommend conducting a Request for Proposal (RFP) process. An RFP helps you:

1. Clarify Your Needs

Document your specific requirements and objectives, which helps refine your vision and identify any overlooked components.

2. Explore the Market

See what’s available in the market, including capabilities you may not have considered. This exposure can broaden your perspective and inform your decision-making process.

3. Engage Internal Teams

Involving internal teams in the RFP process can provide valuable insights and ensure buy-in from all stakeholders.

Filip emphasizes, “I would recommend including your internal IT team when you’re conducting an RFP and considering building your solution in-house. Treat this option like any other and really get to the root of what they can deliver and how quickly.”

An RFP process is particularly beneficial for enterprise-level fleets, but even smaller fleets can adopt a similar research approach and evaluate potential solutions.

Conclusion

By following these steps and selecting the right Driver SMS for your organization, you can achieve significant improvements in driver safety and performance. Whether you opt for a manual system, a custom-built solution, or a third-party platform, the goal is to leverage the latest technologies and best practices to create a safer, more efficient fleet and ensure you’re protected.

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