Bird's eye view of motor way with telematics data monitoring vehicles

Creating a business case for introducing telematics

Whilst we know that telematics can offer fleets a great deal of benefits, it is worthwhile for fleet managers to craft a business case that outlines the potential return in investment.

In some scenarios, the prospect of saving on fuel won’t be enough to sway a business to incorporate telematics into their fleet. However, a strong business case that details the other advantages of telematics could be the way to persuade a boardroom.

Would your business benefit from telematics?

Before you consider proposing the introduction of telematics to you fleet, you should evaluate whether it is in the best interest of the business.

The upfront cost of telematics is often the reason some workplaces reject the idea. However, it is important to consider the long term benefits. When used to efficiently, businesses have the potential to achieve a 100% return on investment in their first few months of using telematics.

Even if business owners are made aware of the potential fuel savings and increased productivity, they are still cautious to opt into the use of telematics.

They may be worried that drivers would view its installation as a breach of their privacy. Maintaining a good relationship with drivers is a key part of fleet management, so this concern is shared by many.

When used correctly, however, telematics do not pose a threat to the drivers’ privacy. The technology helps to improve communication amongst the fleet. This saves time and boosts efficiency.

When building a business case in favour of telematics, expect any resistance to come in the form of the above concerns. Knowing the full benefits of telematics can help to remove any doubts your business may have.

How can telematics improve fleet management?

Birds eye view of road showing telematics connecting the vehicles

Reduced fuel costs

The benefit that is likely to appeal to many businesses is that you can reduce fuel costs. The 2016 RAC Telematics Report states that users were reducing their fuel use by up to 55%. By following the most efficient routing provided by the telematics, drivers are reducing their overall miles.

Fleet managers can see when their vehicles are frequently idling and make adjustments so this is avoided in future.

If drivers are consistently wasting fuel by speeding and aggressively breaking, the fleet manager will be notified and can take action accordingly.

Reduced maintenance costs

Telematics can warn fleet managers when there are mechanical issues in their vehicles. Getting these issues fixed early on reduces the risk of breakdowns in the future.

This reduces not only the maintenance cost, but unexpected downtime as well. The less time your vehicles spend being repaired, the more time they can spend on the road.

Reduced administrative costs

With the extensive data received through telematics, fleet managers can reduce time spent on admin. Accurate mileage reports mean filing taxes and expense reports is a painless task. With more time to spend on other aspects of fleet management, the business is saving money.

Improved customer service

Your business case should acknowledge the customer service benefits of telematics. Customers are able to stay informed about the location of their deliveries, and be given estimated time of arrival.

Seeing the business run smoothly and meeting deadlines is likely to improve customers’ impression of your services, making them more likely to return.

Increased driver safety

A benefit of being able to keep track of a driver’s location is that, in case of an accident, emergency services can be sent directly to them.

Feedback about a driver’s dangerous habits can also help them to improve their driving. This will greatly reduce the risk of accidents in the future. Fleet managers can use the data to train drivers to amend specific, dangerous habits they have developed.

A business case should always highlight the financial benefits

Hands on iPad with telematics graphics connecting a fleet of lorries and a plane

Remember that your business will need to understand how telematics can save them money. Fleet managers need to give a strong business case that gives a clear outline as to how this technology will keep spending down, despite the initial costs.

If your business remains unconvinced, remind them that their competitors will adopt the use of telematics. Get there first, and you’ll be able to reap the rewards.

For more information about what telematics can do for your fleet, get in touch with the team at Tele-Gence.

Tele-Gence helps to reduce costs across your fleet, as well as offering improved safety and security. It also integrates seamlessly with your fuel card account, further reducing administration time and costs.

Birds eye view of road showing telematics connecting the vehicles

Telematics for fleets: Debunking common black box myths

There are many add-ons to vehicles today that are designed to improve life for drivers. From heated windscreens to reversing cameras, we enjoy a more luxurious life on the road than our grandparents could have dreamt of.

One development that is coming ever more to the fore in our always-on, internet-connected society is telematics. Not only does this provide benefits for the casual driver, but the phenomenon could also be a real boon when it comes to fleet management too.

However, many businesses have a number of negative preconceptions about telematics. Let’s take a look at some of them and whether they might be unfounded.

What is telematics?

First: what exactly do we mean by telematics? The term itself is a compound derived from the Greek ‘tele’ (distant) and the information processing word ‘informatics’.

It was first used in a French government report in 1978 discussing the mass computerisation of society. Telematics refers to the transmission of information over long distances, but it generally now relates to vehicle technology in particular.

A telematics system is simply a piece of tech that fits within a crash-resistant box inside a vehicle. From there, it can receive wireless information, communicate with a server and display data, whether that is to drivers themselves or fleet managers.

With the advent of better connectivity and factors such as 5G, telematics is really taking off and many businesses are using it to better manage their fleet-based workforce.

Indeed, according to the recent Insurance Telematics Market report from ResearchAndMarkets.com, it is expected that the insurance telematics market alone will grow by 18.5 per cent per year between 2021 and 2026.

Myths and misconceptions

Despite this, many people remain suspicious of telematics. Let’s take a look at some common myths and try to debunk them.

1.   It’s too much like Big Brother

Contrary to popular belief, telematics won’t tell tales to the police and it can’t record your conversations. Your smartphone is actually far more invasive than any black box. Fleet drivers may understandably feel concerned about monitoring, but managers should reassure them that they are protected by company policies concerning privacy whenever they’re at work.

With this in mind, meetings to showcase and demonstrate new fleet telematics systems may be a great way of preventing any ‘Big Brother’ concerns. Even better, competitions using telematics data for merit points are likely to help persuade staff that this type of tech could really be the future.

2.   It will cost too much

There will of course be an upfront cost when it comes to installing telematics. However, as with most technology, it is becoming less expensive as it is more widely rolled out. In addition, although vehicles will be off the road while they are updated – and therefore not part of the fleet – installation time has fallen to less than an hour in most cases.

What’s more, telematics could actually save fleets money in the long term. Servers can send users monthly reports about the condition of every vehicle in a fleet, flagging up problems and preventing potential breakdowns.

They can also find petrol stations where fuel cards can be used for discounts; check vehicle locations to ensure drivers are within designated routes; and monitor fuel management to identify where economising could take place.

Other benefits include:

  • Automated pre-trip inspections
  • Regular expense reports to assist with tax compliance
  • Electronic distribution of tasks to prevent drivers needing to return to depots

According to the RAC, businesses could expect to save up to 15 per cent a year on fuel, wear and tear and accidents through using telematics.

An electronic display showing diagnostics being run on a car

3.   We’ve already got GPS and apps. As a small business, we don’t need telematics

Telematics is so much more than simply GPS tracking, as we’ve touched on above. Whether you’ve got two employees or hundreds, having dedicated technology to better understand and improve performance could be a real boost for compliance and your finances.

Consider also the following situations:

  • Telematics can call for help automatically if drivers are ever in a crash
  • Users have an SOS function to summon assistance themselves if there is an emergency other than an accident
  • Time-series data can be collected to keep freight in the optimum condition, e.g. ensuring cold food stays cold
  • Audible warnings can be issued for hazards such as upcoming roadworks
  • Telematics can connect with clients and customers to boost satisfaction by showing them expected delivery times and other data
  • Black boxes can be activated in the event of theft to track vehicles

All of this is far more than single apps can do – all in one place.

4.   It’s a distraction for drivers

Unlike smartphones and traditional sat nav devices, telematics can read and dictate things like messages and maps. Therefore, although they have more functionality, they don’t bother drivers as much with visual notifications. This could actually help to reduce stress and incentivise better driver behaviour.

Furthermore, since reports can flag up unwanted habits such as idling for too long and harsh cornering, fleet drivers may find themselves keen to concentrate more on the roads, not less.

5.   It’s data overload – we can’t cope

Telematics doesn’t necessarily require a lot of resources: it can be customised for particular alerts and reports to improve efficiency. That way, you can ensure you’re only getting the information you really need, when you want it.

Simply setting aside a little time every so often to monitor it should be enough – and it could even save time and money, not cost them.

As you can see, telematics is far more than glorified GPS. It has an ever-growing list of functions that could help fleet managers in all kinds of industries, whatever their size.

If you want to know more about how to incorporate this type of tech into your operations, just get in touch with Fuelcard Services today for expert advice.

Speedometer with 'telematics' written on it

Is telematics right for your fleet?

Since vehicle telematics was introduced, there has been a debate as to whether or not the technology has any benefit to fleets and if they should use it.

There are common objections to vehicle telematics, however, there are many businesses who believe there is no question that this technology should be used. The benefits experienced in their operations, like increased productivity and efficiency, as well as an overall reduction in costs, make the choice to use vehicle telematics an obvious one.

Big brother is watching you

This theory tends to be one of the larger concerns for businesses when debating whether or not to implement vehicle telematics. You might also believe that drivers will think it will be an invasion of their privacy or a sign of distrust from management. Many fleet managers have a close relationship with their drivers (some may even be former drivers themselves) and may not feel it is necessary, doing more harm than good.

However, it’s important to understand what the going to vehicle telematics is. It’s not to get employees into trouble or invade on their privacy; the goal is to improve your business.

Measuring driver performance is simply another way to help your fleet become more productive, safer on the roads, and increase your company’s bottom line. If a business isn’t evaluating employee performance, then it’s likely that the fleet isn’t at its optimum performance.

Budget concerns

Some fleet professionals are of the view that vehicle telematics is much too expensive and they don’t have room in their budget to implement this technology. If finding a solution is not a priority for an organization, then it might not seem important to have to take the hit on this cost.

While there is an upfront cost to a quality telematics solution, it’s just as important to consider the long-term benefits that this might present. Quality vehicle telematics software has the capability to deliver at least 500% return on investment when it is used to its fullest.

Through an increase in efficiency, fuel savings, decreased labour costs and theft, businesses have been achieved a 100% ROI in just a few months of rolling out telematics technology to their fleet. Vehicle telematics help businesses save money in a multitude of ways and it should not be considered an expense, rather a tool to reduce cost and increase the overall revenue.

It’s too much hassle

You may feel that there simply isn’t enough time to devote to managing the software or even adding to your daily routine. It might also seem like a significant inconvenience for your vehicles to have downtime while the devices are installed. These are legitimate concerns to have about adding more responsibility to your workload.

It is however, one thing to know where your drivers are, but it’s a different matter altogether to know what they’re doing. Are they speeding? Are they arriving on time? These are key issues that cannot be addressed without the assistance of vehicle telematics. At the end of the day, any hassle you might experience by implementing the technology is vastly outweighed by the benefits to your company’s efficiency and bottom line.

A barrage of data

Big data tends to be an issue of conflict for fleet professionals. On the one hand, they know it encompasses valuable information about their fleet. On the other, they don’t know what to do with all that data they have access to. Nobody wants to spend hours looking at information that is irrelevant to their responsibilities.

However, the issue isn’t too much data, it’s the data isn’t being filtered or presented in a way that makes sense, or even more frustratingly, it isn’t being filtered at all. If you consider your accounting department; they don’t need to view the same data as dispatch or maintenance, so what would they need access to that information for? Filtering relevant data to whoever needs it will allow your business to best use the information gathered and turn it into actionable intelligence. Giving people the information they need, when they need to see it, will help your business become more efficient, cut unnecessary costs and generate the best return on your investment.

When considering the merits of telematics and if it is right for your business, think about the challenges you face at the moment and your long-term business goals. Telematics can give you the information you need to overcome todays challenges and get your ready to be more profitable in the future. Remember that your competition will, if they haven’t already, implement telematics to their fleet operations, so don’t fall behind!

Tele-gence telematics offers improved safety for your drivers, security for your vehicles and reduces costs across your entire fleet. It’s a flexible, fully customisable system that can be completely tailored to the needs of your fleet. It’s easy to use and fully supported by our dedicated UK-based team. Contact the Tele-gence team today to find out more.

Digital image of hand turning down a dial with CO2 label

How telematics can help cut emissions

Keeping carbon emissions low should be a major priority for any fleet manager today. Firms that don’t manage this will spend more money and contribute to climate change. That’s not good for either your balance sheet or your business’ reputation.

As such, it’s vital you have a plan for tackling your fleet’s emissions. This is especially important for larger businesses with many vehicles, but smaller firms can also benefit. And one way in which any company can reduce its carbon footprint is by having a quality telematics solution.

The importance of cutting emissions

The UK’s transport industry is still a major source of greenhouse gases. According to government figures, the sector was responsible for 34 per cent of the UK’s carbon emissions in 2019. It also noted the “large majority” of this comes from road transport.

Therefore, the government has pledged to cut greenhouse gas emissions by 68 per cent by the end of the decade and be net carbon zero by 2050. However, this won’t be possible without greatly reducing vehicle emissions.

For businesses, cutting carbon emissions is a vital part of any corporate social responsibility (CSR) plan. Customers expect firms to take a proactive attitude to this area and increasingly factor environmental performance into their buying decisions. For instance, research by the Carbon Trust suggests two-thirds of people (66 per cent) feel more positive about companies that can demonstrate they are making efforts to reduce emissions.

Aside from this, lower emissions go hand in hand with reduced petrol and diesel costs. Cutting down on carbon dioxide naturally means using fuel more efficiently, which is also good for your bottom line.

There are a number of methods firms can use to help reduce their fleet’s emissions, such as adopting more fuel-efficient vehicles, or even switching to hybrid or full-electric power. But these solutions often require major investments. However, there is a way any business can cut its emissions without large-scale changes to its fleet, and that’s by adopting telematics.

How telematics works

Motorway with overlay of digital data

Telematics tools are increasingly popular among business fleet managers for a number of reasons, and making operations greener and more efficient is a key consideration.

They work by monitoring the performance and status of your vehicles in real-time, using a variety of different technologies. For instance, GPS tracking provides an accurate picture of where your cars and vans are at all times, as well as useful information such as its speed.

Meanwhile, sensors in the vehicle that connect to the central computer can record a range of detailed data. This can include diagnostics to alert you to any potential maintenance issues, but it can also monitor control inputs to build a picture of how your employees are driving.

These are all sent back to the business wirelessly and in real-time. This means fleet managers always have complete insight into where their vehicles are and how they’re being used.

You may even be able to compile accurate reports on miles per gallon and exhaust emissions, which can let you see the impact any steps will have.

Three ways telematics reduces your fleet’s emissions

With this information in hand, you can take a number of steps to reduce your fleet’s emissions. Here are three benefits you should be able to quickly see as a result of car telematics.

1.  Better route planning

It goes without saying that the fewer miles you drive, the less emissions you’ll release into the atmosphere. In this regard, a good telematics system can be highly valuable. When coupled with a smart routing system, this can spot any inefficiencies and suggest improvements.

For example, vehicles that have to stop and start a lot will create large amounts of emissions. Therefore, tailoring routes to minimise this can have a significant impact. Similarly, reducing the amount of backtracking vehicles have to do between stops not only makes operations more efficient, but also reduces carbon output.

2.  Reduced idling

Another effect of this data will be to reduce the amount of time vehicles spend idling. This is one of the biggest contributors to carbon emissions and air pollution. Indeed, it’s actually already an offence to leave a vehicle idling unnecessarily, with drivers liable for a £20 fixed penalty notice if they keep their engines running while parked on public roads.

Traffic jam on motorway with stationary cars

Telematics can help with this by helping drivers avoid traffic jams, roadworks and other occasions where drivers may be sitting stationary for long periods. However, it can also help alert you to drivers who are displaying poor practices.

For example, if an employee turns on the engine and leaves their car to warm up for ten minutes on a cold morning, you can see this and step in. The same is true if drivers are leaving engines running while they make deliveries or any short stops.

This can make a real difference. For instance, one Tele-gence customer, JJ Food Service, reported it had been able to reduce idling time by 70 per cent since adopting the technology, with this helping cut its carbon emissions by two per cent.

3.  Better driver behaviour

Changing driver behaviour isn’t limited to reducing idling, however. Vehicle telematics systems can also measure inputs such as throttle and brakes, how much a driver revs the engine and their steering actions. Hard accelerating and braking uses more fuel, which in turn means more emissions.

By keeping a close eye on this, you can spot who the worst offenders are for these poor driving techniques, then arrange education and training. With easy-to-use reporting tools, you can even create league tables that rate your employees’ performance.

At the same time, this data can be used to crack down on problems like speeding. As well as being a safety issue, higher speeds mean greater emissions, so there are several benefits to tackling this. With systems that can give real-time alerts if a driver is breaking speed limits, you can act quickly and stop bad habits forming.

None of this is possible without detailed telematics tools and effective reporting software. But with these solutions, you can track emissions in real-time and gain insight into exactly what impact your efforts are having. This can also prove useful when compiling CSR reports or otherwise demonstrating your commitment to going green.

If you want to know more about how telematics tools like Tele-gence can help reduce your carbon footprint and save you money, get in touch today!

Big 18 wheeler semi truck on highway with motion blur

Telematics & Black Box FAQs

Telematics vehicle tracking allows fleet management professionals to make the best use of vehicles and equipment in their fleet to improve safety, reduce business costs, improve efficiency and increase productivity. Now essential for many industries, from corporate fleets to transport and logistics, telematics technology has become a vital part of creating a safer, efficient fleet.

I have less than 5 vehicles in my fleet, do I really need to track my fleet?

Regardless of the size of your fleet, the benefits of using telematics are far too many and carry a lot of benefits for your company. With up-to-the-minute and accurate data on how your assets are being used and where they are at all times helps you to get the most out of your fleet and achieve greater fuel efficiency, no matter how many vehicles you have.

city and telematics network concept

How else can I use telematics in my business?

Telematics systems can be used for a variety of purposes, including equipment monitoring. Tracking when your assets are idle can also help you maximise usage, reduce equipment hoarding and drive down the costs of unnecessary assets that could otherwise be rented.

For construction, mining, oil, gas and other off-road equipment applications, understanding asset utilisation is important in measuring production and improving your business’ overall efficiency. Tracking your equipment can also give you real-time alerts if a machine is used out of work hours, helping to prevent unauthorised use, or even theft.

How will telematics affect customer satisfaction and fulfilling customer requests?

Fleet management software and telematics systems can organise daily workflow to help managers effectively respond to customer requests. It also allows you to view your drivers and vehicles in real-time to pinpoint locations and help dispatch the most ideal routes. When a customer calls for a last-minute job update, the dispatcher can accurately answer inquiries based on location within seconds, whether it’s to find out its current location, to find out an ETA or a last-minute, ad-hoc job and finding the best driver.

This software provides the tools you need to arrive on schedule, no matter the specialisation. It allows for more efficient journey route planning and ensuring maximum productivity. With a comprehensive solution providing complete visibility across your entire fleet, companies can be prepared and stay organised to meet demands while keeping costs low and exceeding your customers’ expectations.

Can it help pinpoint inefficiencies that create customer dissatisfaction?

By ensuring proactive management and addressing potential issues as they arise, you can ensure total satisfaction and a streamlined service for your customers. GPS tracking improves efficiency and productivity by allowing you to make real-time decisions about transporting customer goods.

Delivery routes can be monitored and analysed through telematics tracking to identify the ideal way of delivering your products and services. These routes can be changed as needed to suit both the driver and job. This can streamline processes and pinpoint inefficiencies that can then be quickly addressed.

Delivery van in the city

Can telematics tracking improve the safety of my drivers?

Fleet management solutions can provide essential performance data that identifies both strengths and weaknesses of your driver’s behaviour. Using GPS tracking to highlight behavioural risks means you can develop tailored training designed to address the most pressing issues. This performance data can be used to encourage and train your drivers to reinforce safety standards.

Performance data can also track important and needed changes in driver behaviours by measuring them against set safety standards. Telematics tracking makes it easy to identify whether drivers are maintaining a safe speed, braking or cornering harshly, or not following safe driving policies, allowing tailored and targeted training to address any potential gaps in their knowledge and behaviours. Improving individual driver safety can impact the entire fleet, leading to fewer incidents and an overall safer workforce.

Does telematics tracking make compliance easier?

Telematics enables businesses to align their processes with new policies and simplifies the procedures needed to adhere to complex compliance regulations through real-time data and alerts.

Streamlining your operations with telematics allows for better decision-making and scheduling, reducing the risk of compliance violations. It also translates driver wellbeing into easily understood and tracked data, outlining how they can improve their behaviour, manage fatigue and mitigate risk to become more safety compliant.

This in turn generates cost-saving benefits for the business due to lowered insurance premiums and fewer fines for safety violations.

Tele-Gence smart telematics

We all know what a simple tracking system does, but when you investigate the market you will find that not all telematics systems are born equal. Tele-Gence offers improved driver safety, vehicle security and reduces fleet costs. A remarkably flexible, fully customisable system totally tailored to your fleets requirements. Contact our team today to find out more.