Five Ways to Save with Fleet Telematics

Vehicle tracking is all the rage at the moment. Both commercial fleets and individual customers are taking up vehicle tracking systems for a variety of reasons from providing additional security to improvising scheduling. Motivating almost all these reasons however is the same bottom line: vehicle tracking can substantially reduce costs when intelligently implemented. Here we take an in depth look at five ways you can save by adopting vehicle tracking systems.

Increasing fuel efficiency

The biggest market impact on haulage companies and those operating in house vehicle fleets hasn’t been reduction in demand from the recession but instead has been a continuation of a feature of the pre-credit crunch rise in oil prices. With fuel costing doubling over the last decade haulage companies have seen their profits fall as customers are reluctant to costs passed on to them. Telematics can help drastically reduce fuel bills. Some have seen telematics devices, combined with informing drivers of their performance, reducing fuel use by as much as 20%. Fuel is often also saved through better scheduling, with telematics allowing drivers schedules to be automatically adjusted based on current location in order to make the most efficient use of the fleet.

Better workforce

While the implementation of telematics has proved unpopular in some firms in the past, today most workforces are willing to accept the devices installed in their vehicle without raising an eyelid. Once installed telematics devices can drastically improve the efficiency and performance of drivers. The devices often lead to a decline in claims for unnecessary overtime, and can also help improve drivers routes by ensuring they stick to the fastest route rather than their preferred roads. Drivers are also more cautious when they know a device is monitoring their driving, and firms using them across their fleets have reported drops of accidents as high as 30%. Drivers can benefit too: firms can incentivise good driving by offering bonuses, and compliance with working time directives and mandatory breaks are easier to monitor, ensuring that all drivers have sufficient rest during their shifts.

Less legal uncertainty

Ask any fleet manager what is their main worries and the chances are that one of the first things they’ll mention is compliance with the law. Fleets are increasingly being regulated by a combination of EU, national and even local laws. Drivers have maximum driving times, certain vehicles are banned from entering London and speed cameras are being installed everywhere. The risks of heavy fines for breaking the law, even accidentally, is always on the mind of those in charge of commercial fleets. Telematics can help. When it comes to speeding, not only do telematics devices discourage drivers from breaking the law, but they can also provide data to challenge unfair speeding tickets. The software regulating the fleet can also be used to ensure that unsuitable vehicles are never tasked to make deliveries where they are banned from entering, so that lorries that are too high for certain bridges are never routed under them and vehicles without mandatory safety equipment don’t enter London. Certain telematics devices also track which driver is in each vehicle, allowing tracking of working time directives to ensure there are no fines for overworking drivers.

Cheaper Insurance

Insurance is, like fuel, one of the biggest expenses for any commercial fleet. Many fleet insurers are now starting to insist on telematics devices being installed, and others will offer substantial discounts to firms that adopt them. Firms that can receive the largest savings are those who employ drivers who traditionally cost more to ensure, such as those with less experience or who are young. Savings can also be made by commercial fleets who drive less miles than most, as telematics allows them to monitor exactly how many miles are driven. Some policies are charged purely on the number of miles driven, so if your firm uses its commercial fleets substantially less than most you could even see your insurance premiums drop by half or more.

Fewer failed deliveries

Telematics systems are now being utilised to inform customers of the precise time they can expect a delivery. By using telematics devices alongside scheduling software, the telematics system can make accurate predictions about the expected time of arrival of each vehicle. This can be used to send a customer an time slot for their delivery on the day, ensuring that they are either available to receive delivery or can inform you otherwise. Firms using the technology report substantially lower failed deliveries, meaning that redelivery costs, as well as storage and collection costs are reduced. Customers also often prefer fleets that use this technology, and may choose to use you again simply because of the convenience this offers.

    Robert Prime

    Robert Prime launched in early 2013 and has over 10 years experience in the financial sector. He specialises in business startups and online marketing with a passion for new technology.

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