Tag: tele-gence

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?

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

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.

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.

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.