Business Benefits of Fleet Management

Given the current economic climate and the competitive nature of the logistics industry, the use of a GPS tracking device for your fleet is very important for your company. It not only allows you to monitor your vehicles and drivers, but also provides you with different types of data, such as fuel consumption and poor driving habits, which allow your fleet managers to derive insights into operations and manage your fleet more effectively and efficiently.

According to Frost and Sullivan, a research company that studies the impact of technology on business, fleet management data can increase productivity by up to 15 percent. And reduce fuel expenditure by 20 – 25 percent. Other study findings include:

  • Reduction in the total kilometres by 5-10%
  • Increased utilization of the fleet by 15-20%
  • Reduction in idling time of vehicles by 20-30%

Furthermore, studies on electronic monitoring show that people are more productive when they know that they are being monitored.

Types of Data Derived from Fleet Management Systems

When operating a fleet of vehicles, it is important to have information about the location and performance of those vehicles in real-time, to be able to prevent or respond to any problems that may arise. Geotab’s fleet management solutions provides your fleet manager with the following information:

  • Real-time vehicle location information
  • Fleet performance information like fuel usage
  • Vehicle and engine data such as kilometres travelled and maintenance required
  • Employee driving habits such as idling and speeding

Fleet managers can then generate different types of data comparisons based on vehicle trips, enabling them to gain operational insight and identify areas where costs can be reduced and operations can be improved, while in the office.

How Businesses Benefit from Fleet Data

1. Locate Vehicles and Drivers

The most basic function of GPS vehicle tracking is to show you which vehicle is in motion and in which direction it is travelling. With this function you can ensure that your drivers are not running personal errands on company time.

2. Improved Fleet Utilization

By using a telematics device in combination with a third-party navigation device, such as the Garmin, fleet managers can provide drivers with optimized route information. As a result, drivers will be more productive in their work days.

3. Improved Driving Habits and Safety

Another feature of using a fleet management system is that it enables you to monitor your fleet’s idling times. Drivers often speed to compensate for time lost at a customer. According to Shell, studies have shown that speeding events and incident rates are greatly reduced by vehicle tracking.

4. Improved Customer Response Time

GPS vehicle tracking enables managers to efficiently dispatch fleets to meet the needs of customers. Using the MyGeotab software, fleet managers can easily locate vehicles closest to a customer and auto-dispatch them. Read more about our First Responder Solution.

5. Reduced Fuel Costs

Researchers estimate that idling from heavy-duty and light-duty vehicles wastes about 6 billion gallons of fuel annually. Fleet managers can reduce fuel costs by accessing detailed reports on fuel consumption and poor driving habits such as idling and speeding. The information can be used to advise drivers on how to drive more efficiently. Read more about ten ways to cut fuel costs.

6. Maintain Regular Fleet Maintenance Schedules

According to a study done by the AAA, 51% of drivers operating vehicles with a fleet management system, rely exclusively on the system to alert them when the vehicle needs servicing. Geotab enables drivers and fleet managers to ensure that their vehicles comply with proper maintenance schedules.

7. Theft Prevention

According to the annual crime statistics released by the South African Police Service, vehicle theft and hijacking costs South Africa more than R8 billion each year. In America, about $6 billion is lost to motor vehicle theft. GPS vehicle tracking devices give your fleet a significant advantage in the event that a vehicle is stolen. According to Arrive Alive (AA), the estimated recovery rate within the first 10 minutes of theft is 85%, if the device is fitted correctly.

Sources:

http://www.infrastructurene.ws/2017/05/29/three-ways-telematics-can-improve-driver-safety/

https://www.wheels24.co.za/News/sa-loses-more-than-r8-billion-to-vehicle-theft-and-hijacking-carjacking-still-a-major-concern-in-sa-reveals-saps-crime-stats-20180912

Author: The Geotab Africa Team

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