In fleet management, ignorance is not bliss; consequently, ignoring approaching fleeting challenges costs more than stated fleet spending. The cost of ignoring is the money lost when a fleet operator fails to implement significant business strategies that would increase operational efficiency.
The Cost of Ignorance (COI) can be defined as the additional operating costs incurred by fleets because of ineffective or non-use of telematics. To solve this, we must dispel the myth that telematics causes equipment damage or voids warranties. Fleet management nowadays means monitoring the total cost of ownership, minimizing operational costs, and increasing profitability. As a result, this article investigates the cost of ignoring and how Geotab Africa can help fleets.
Return on Investment (ROI) is a notion that most fleet managers know. However, what about the Cost of Ignorance (COI)? This refers to the negative consequences of ignoring fleet-related elements, which may result in unforeseen costs that eat away at the company’s bottom line. In other words, the cost of not investing in operational efficiency is money lost.
What is the outcome of COI? Consolidation, downsizing, and shrinking profit margins become unfortunate realities.
The Cost of Ignoring Services
According to Fleet News, 71% of fleet operators find it challenging to convince drivers to adhere to service intervals. As a result, problems go unaddressed, and warranties are put at risk. This may be due in part to the altered service intervals and the increasingly general nature of vehicle manuals. Higher than usual maintenance and repair charges are imminent from a missed service. Ultimately, resulting in reduced vehicle lifespan.
The Cost of Ignoring Vehicle Downtime
A costly deadweight is a commercial vehicle that falls short on business goals. Downtime for vehicles is unavoidable but extremely expensive if not anticipated. Vehicle downtime may be caused by scheduled maintenance or repairs. What does it cost to ignore vehicle downtime? The expenses are both outright and covert – one that can be accounted for and is rather significant is an obvious cost. These are uncomplicated and simple to recognize. They might cover things like maintenance costs.
A hidden cost, however, is more difficult to quantify. Consider a vehicle that needs maintenance and is unable to meet its daily job goals. The result is productivity that is below 100%, which has an impact on the overall turnover.
The Cost of Ignoring Administrative Burden in Fleet Management
Managing a fleet without telematics takes time. The management of all parts of a fleet becomes overwhelming for traditional, manual systems as the fleet grows. Failure to address administration overload can be costly and result in a backlog. Businesses can use telematics to focus on key business tasks while eliminating administrative burdens such as vehicle procurement, fuel and maintenance management, driver conduct, and routing. When manual systems are used, all of these become expensive.
Driving down the cost of ignorance with Geotab Africa
Advanced risk management report – Fleet managers may control driving habits to improve efficiency and safety with this Geotab Africa solution. Here, fleet managers can proactively address issues including excessive idling, harsh driving, and reverse driving. They may also get alerts when there is engine misuse or malfunction. By controlling overall driving performance, this reporting tool reduces the expense of ignoring fleet incidents.
Maintaining Vehicle Roadworthiness – To be on the road, every commercial vehicle must be in excellent condition. As a result, keeping a vehicle roadworthy is just as critical as all other areas of fleet management. A poorly maintained vehicle endangers a company’s interests. The maintenance solution from Geotab Africa maintains fleet health, arranges inspections, and promotes periodic maintenance.
Keeping drivers and other motorists safe – A critical purpose of fleet management is to ensure the safety of drivers and other road users. Geotab Africa employs vehicle tracking technologies and GPS software to give fleet managers a comprehensive overview of information on the vehicle’s actions, live location, and driving behavior. Fleet operators may now avoid vehicle wear and tear, insurance claims, fuel mismanagement, and fatalities.
Ensure fleet safety – Our sophisticated data-driven solution puts safety first. Our fleet safety dashboard data, personalized safety alerts, and advanced collision avoidance technologies help fleet managers better understand their drivers and driving habits, all while encouraging fleet safety.
In-vehicle coaching – Promote positive driving behaviors by providing drivers with in-vehicle instruction while driving. This Geotab Africa GO TALK Device will teach drivers to obey defined laws if they are not strapped up (seatbelt), driving over the speed limit, or entering forbidden zones. Here, you may give drivers rapid verbal instructions and receive instant feedback on how well they respond to those instructions.
Automation – Manual fleet management creates room for mistakes and reduces productivity. MyGeotab connects to all GO devices and offers thorough but logical fleet data so that business decisions can be made with confidence. This program keeps track of all aspects of a fleet, preventing fleet operators from ignoring anything.
Regardless of the state of the economy, modern fleet management puts fleet operators under intense pressure to reduce costs. And in aiding this, Geotab Africa offers clients cost-effective solutions and industry-leading data insights.
Fleet managers have countless opportunities to find innovative cost-cutting techniques with Geotab Africa.
Similar to our 3.7 million subscribers, you can take advantage of our market-leading solutions and move toward comprehensive fleet management.