Telematics
Telematics systems provide enormous fleet management benefits but they are expensive and surely the question is - are you getting value for money? This is not to question of the capability of the telematics systems but to ask, are you as a fleet manager fully utilising the functionality of the systems to get value for money for the business.
Telematics (tracking) cannot be limited to the tracing of the movement and location of a vehicle and / or driver. Although this is important, Telematics should be utilised to reduce operating costs, manage driver performance including safety and training, route planning, compliance and vehicle utilisation and productivity. There are of course enhanced vehicle security features.
Utilisation, productivity and trip reports are best measured using Telematics. Reducing the volumes of data to simple reports of usage; measuring time, Kms, locations and after hours usage, will facilitate analysis which will identify underutilised or incorrectly used vehicles. This facilitates the right sizing of your fleet. Route planning is a critical part of measuring and improving productivity. Reducing your fleet size or increasing utilisation will provide your best financial benefits.
Fuel, as your single largest element of operating expenditure, is well managed with Telematics systems. The easiest saving to understand are lengthy periods of idling, but speeding, harsh braking and excessive acceleration are contributors to poor fuel consumption. Telematics solutions may also help prevent fraudulent transactions by cross referencing with the location, date, time and Kms data of fleet fuel cards.
Maintenance costs can similarly be reduced by evaluating driver performance in terms of speeding, harsh braking and excessive acceleration. These measurable elements are now incorporated into integrated driver scoring systems. A number of factors are selected and weighted in importance to provide a single calculated score for driver performance. Engagement with the driver, training, incentives and the management of trends will deliver benefits.
Accident prevention and driver safety are critical components of corporate risk management responsibility. Telematics is an integral part of an accident review process where pre-accident tracking replays or in–vehicle camera footage provides vital evidence. The accident review process will not only benefit drivers and companies in terms of driver training, skills upgrade and reduced operating costs; it may ultimately reduce insurance costs. When the rule of thumb is that 20% of your fleet will be involved in an accident, the accident review process has a great potential to reduce costs.
The reduction of insurance costs is a recent focus of Telematics systems. By using Telematics to measure vehicle and / or driver performance (integrated scoring systems) a benchmark value is established of current performance. Insurers are now looking for an improvement in the performance score as a requirement of continued service (if scoring is poor) or the incentive for reduced insurance premiums.
The range of services being provided by Telematics systems and the service providers is extending daily. Typically services now include; activity scheduling such as servicing based on Kms or Hours, COF, vehicle relicensing and driver’s license renewals, in cab voice communication and bureau services.
The range of Telematics services and their sophistication are increasing, but they have little or no value if the exceptions reports, scoring systems, trend analysis and performance measurement systems are not used in daily fleet management activities. Fleet management today requires an ongoing focus on cost reduction and risk management. Telematics is a most valuable enabler.
Have a question?
Contact Nigel Webb - Latitude Fleet Services - nigelw@latitudefleet.co.za