A Complete Guide to Maximizing ROI and Cutting Costs With Telematics
Fleet managers are consistently searching for ways to manage the costs of operating a fleet of vehicles while minimizing operating expenses and increasing profitability. It may appear a challenging goal to accomplish; however, there are many practical strategies that fleet managers can use.
The following are eight ways fleet managers can save money and maximize ROI.
1. Accountability of Drivers
Aggressive driving behavior can have a negative impact on operating costs related to safety. With telematics, fleet managers can monitor driving behaviors and habits. After pinpointing problematic areas, managers can coach and assist company drivers, ultimately lowering accident risks on the road.
2. Raw Data
Through telematics, fleet managers can use remote diagnostics to pull raw fault data and translate it into detailed instructions. Doing so allows fleet managers to understand faults quickly, as well as correctly prioritize repairs.
3. Reduce Repairs and Maintenance
Telematics is instrumental in helping companies reduce repair and maintenance costs. Poor driving habits can lead to unnecessary wear and tear on a vehicle, and increase repair costs. Real-time tools for managing drivers and providing in-cab alerts make telematics an excellent tool for mitigating the amount of wear and tear fleet vehicles incur.
4. Connecting With the Internet of Things (IoT)
By connecting telematics software to unique IoT beacons and sensors, it is possible to achieve an unparalleled level of expense transparency and visibility. The telematics platform serves as a communications hub for a vehicle and can relay useful data from cameras, collision warning systems, and tablets back to fleet managers. These sensors will show exact numbers regarding costs, assets, and workforce expenditures.
5. Monitoring the Productivity of Drivers
According to GEOTAB and market research, telematics efficiently reduces labor costs and increases workplace productivity. The technology can identify inefficient driving routes and reorient the routes to maximize customer stops, reducing mileage and ultimately increasing driver productivity.
6. Managing Fuel Costs
GEOTAB indicates that telematics plays a significant role in reducing company fuel costs. Partially due to telematics monitoring feature, managers can strategize the most efficient stops to drivers en route, eliminating backtracking, and directly lowering fuel costs. Things like unnecessary idling and aggressive braking can be noticed and improved with telematics.
7. Mobile Applications
Workflow and dispatch apps provide fleet managers with accurate data regarding departure and arrival updates, location tracking, navigation, proof of service capture, and error-free order processing.
Gamified apps encourage drivers to meet company goals and earn rewards based on productivity and safe driving habits. Companies can incentivize safety and productivity in a mutually beneficial manner.
8. The Use of Big Data
Big data that telematics provides is crucial for streamlining operations, optimizing the chain of supply, improving the bottom line, and enhancing the competitive position of a company. Big data is not only a great tool for improving performance but also essential to monitoring for mechanical failures in vehicles.
With the use of telematics, vehicle fleets now have access to crucial real-time data regarding issues such as fuel usage, location, engine status, driving behavior, speed, and mileage. Mirroring the way in which the smartphone opened the gateway to an entire ecosystem of useful apps, telematics is a gateway to a plethora of software integrations and technological add-ons.
These tools can are used to support innovation and measure company performance like never before. Companies like GEOTAB will be able to scale their technology according to the growing demands of vehicle fleets, soon to integrate both vehicle access control and driver/front-facing cameras.
For companies currently managing vehicle fleets, it’s safe to expect telematics will soon become a requirement to effectively and efficiently maintain vehicles. As telematics merges with the Internet of Things, the possibilities for this technology continue to surpass expectations.