Beyond simply tracking vehicles’ movements and locations, the best telematics systems provide a wealth of vehicle data and analytics that translate this raw data into actionable business intelligence
Despite signs of economic recovery, businesses are still feeling the pressure to cut costs wherever possible. For many of those businesses, the most obvious place to start is fleet operations. That’s completely understandable, given that fleets account for a significant chunk of business spending. Along with the cost of purchasing and maintaining vehicles, companies are seeing more of their pro ts consumed by fuel prices, more expensive equipment, risky driver behaviors, and expanding liability. It’s no wonder more companies are looking to reduce the operating costs and increase the efficiencies of their fleets. Cost reduction in fleet operations is a constant battle — one that requires constant vigilance and complete visibility. Only by seeing exactly where you’re spending — and losing — money, can you begin to keep more of it. This need for increased insight into fleet operations is driving more companies to invest in telematics systems. Beyond simply tracking vehicles’ movements and locations, the best telematics systems provide a wealth of vehicle data and analytics that translate this raw data into actionable business intelligence. Armed with increased intelligence, fleet operators have the visibility they need to identify and capture opportunities for increasing efficiencies and reducing costs. Today’s fleet operators need to stay competitive.
One of the largest and most apparent costs for fleets is the vehicles themselves. The estimated total cost of ownership for a light-duty vehicle runs between $5,000 and $8,000 per vehicle, per year. The larger your fleet, the greater the cost of ownership. For this reason, many companies are looking at reducing the size of their fleets. Removing just 10 light-duty vehicles can save upwards of $80,000 annually. Right-sizing your fleet — making sure you only have the vehicles you really need to get the job done — can result in significant costs savings for your operation. The challenge comes in knowing how many vehicles you can safely eliminate from your fleet while maximizing the utilization of the remaining vehicles. Remove too many vehicles, and you may fall short of customer demands. That’s where having the right telematics system in place becomes crucial. Your telematics system should automate the maintenance process and help you prioritize vehicle repairs based on active diagnostic faults and other in-depth engine-derived information. Look for a system that allows you to see exactly how many vehicles you need to maintain your service level agreements and customer satisfaction. The system should help you identify vehicles that are underutilized so you can either redirect them to customers with higher demand, or eliminate them from your fleet altogether. Your system should also provide dispatch with increased visibility, allowing them to identify the most efficient routes and improve vehicle utilization. This in turn enables you to do more with fewer vehicles and ultimately streamline your fleet.