cutting fleet costs

Fleet telematics allow managers to make data-driven decisions, taking the guesswork out of many of the big decisions they make every day. Through the use of fleet telematics, they can make their operations much more efficient while also better managing risk.

Putting telematics to use gives fleet managers an edge and allows them to make more informed business decisions. With real-time information on issues such as vehicle use, fuel consumption, route delivery times, weather, road conditions, engine performance and more, managers can make decisions with confidence, knowing they have the best information.

How Telematics Help Fleet Cut Costs, Improve Efficiency

Some of the most popular uses of telematics to reduce fleet costs include the following.

Assessing Fleet Costs

Before finding areas to reduce costs, businesses must first assess all the different current costs associated with operating the fleet. Data gathered from connected devices can help managers get an accurate assessment of what they spend each month.

Most businesses have two main cost centers: fixed and variable costs. Fixed costs include items such as lease payments, loan payments, fees and licenses. These costs usually remain the same. Variable costs include unexpected costs such as vehicle breakdowns, costs from crashes and collisions, fuel costs, and driver behaviors that can prove costly. Data can help managers get a better handle on costs, especially variable costs.

Fuel Efficiency

Fuel costs continue to increase, making this a priority issue for most fleet managers. Telematics systems can reduce fuel costs, including fuel cards that allow managers to control when and where fuel is purchased and track every transaction. 

Coaching Drivers

Nothing impacts fleet safety and success like driver performance. Drivers carry both the highest upside and biggest risk for fleets. Those who practice good behind-the-wheel habits make fleets much more efficient. But issues such as distracted driving and not following safety rules can lead to soaring costs for fleets. They also may result in a fleet not meeting government regulations for safety. 

By using data gathered through telematics systems, managers can create individualized training that addresses areas where drivers need improvement. This lowers the risk of injuries and expensive crashes. Some systems also provide real-time alerts to drivers that help them avoid or mitigate the cost of accidents.

Budgeting Support

Telematics systems produce millions of data points on every phase of an operation, allowing managers to make data-driven decisions when it comes to budget projections. With the wealth of data at hand, managers can make more accurate predictions about how much money a fleet will spend in any given week, month, quarter or fiscal year. This includes finely grained data on individual drivers, vehicles and routes.

Risk Management

Fleet risk management involves identifying areas of risk and building policies and strategies that minimize the chances of them happening. One of the biggest risk management issues with telematics is lowering the chance of crashes through better driver coaching and continuous tracking of vehicle performance, allowing managers to spot issues before they lead to costly and dangerous breakdowns. Success in these areas can also lead to lower insurance rates. 

Telematics leverages advanced tech tools, including software and connected devices, to help make fleets safer and more efficient. They are key tools for modern fleet managers who want to give their operation an edge in a competitive market.

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