July 1, 2020 Last updated July 1st, 2020 842 Reads share

3 Ways Telematics Can Save on Business Costs

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Running a fleet operation can come with a few hidden costs. It’s not always straightforward like some businesses. Fuel prices may rise, MoTs come due, a few tires need changing – and it can be a real hit to the wallet (especially when some of these are unexpected and unplanned). But there is something that can help and become a valuable asset to the business: a telematics system.

Driver Safety

One of the biggest benefits of telematics is that it can record driver behavior. This gives fleet managers a unique insight into the behaviors of their drivers. It can help in a range of areas:

  • Identify drivers who need extra training
  • Reveal why more fuel is being used than originally estimated
  • Reduce accidents
  • Less wear and tear
  • See why more miles are being clocked despite the route being planned.

Overall, fleet monitoring is a significant benefit to a business thanks to it being able to identify poor driving behaviors and therefore allowing you to take appropriate action. At the end of the day, with your livery on the vehicle, if one of your fleet and drivers are involved in an incident caused by dangerous driving – it could have serious consequences on your business.

Green Driving

Another benefit that comes with monitoring driver behavior is greener driving. By spotting poor driving techniques, such as harsh braking, acceleration, and speeding, you can nip it in the bud and have safe and greener drivers on the road. The Department for Transport revealed that a vehicle traveling at 80mph uses 10% more fuel than one driving at 70mph – so it can really benefit a business to have eco-conscious (and law-abiding) drivers.

Reduce Idling

Imagine being able to see when and where fuel is being wasted. With telematics, you will also be able to track the company’s idling time. Idling can cause a dent in your fuel costs and be a big factor impacting your green credentials. But as well as hitting the wallet which pays for the fuel, it can also have an impact on the price of the vehicle if and when you come to sell. The average rate of vehicle depreciation after three years is 35% – this dramatically increases if the vehicle has been exposed to excessive idling.

Improves Efficiency

A telematics system has the ability to give the best possible route for your vehicles. With this technology at your fingertips, it means you can plan and schedule the most efficient routes, reducing downtime and increasing productivity. As well as better route planning, you can also reroute a vehicle if they’re stuck in, or approaching, a traffic jam. Not only will this save you money, but ultimately, increase customer satisfaction.

While you will need to make an investment in the telematics system, the benefits far outweigh the cons and the technology brings with it many advantages to a business. It gives managers insight into their drivers’ worlds and how the business’s vehicles are being used and operated. Telematics can save time and money as well as increasing productivity and reducing vehicle downtime.

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Chloe Marchbank

Chloe Marchbank

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