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Facing the Crisis, Cut 5 Types of Your Company's Fleet Costs with Telematics!

PUBLISHED

May 22, 2020

READING TIME

Key Takeaways:

Telematics optimises fuel usage and labour costs through route efficiency.
Automatic monitoring of vehicle condition and driving behavior reduces maintenance and insurance costs.
Asset utilisation data analysis helps identify unproductive vehicles for reduction.

In an uncertain economic climate, business owners need to implement efficiency measures to survive as long as possible. Those of you who own a company with a fleet of vehicles or heavy equipment and drivers are advised to use a telematics system. With the help of telematics, you can reduce the following five types of fleet costs.

1. Fuel Costs

Telematics features that can help you lower fuel costs include idle detection (when the vehicle is idling for extended periods), a route planner (to select the most efficient route), and monitoring driving behaviours such as speeding. The added fuel monitoring feature also helps identify fuel theft and fraudulent fuel purchase claims. If you use Cartrack, fuel receipts can be automatically verified by the system.

2. Labour Costs

Vehicle telematics reduces labour costs by scheduling deliveries in the most efficient sequence and route to minimise driving time and overtime. Drivers who deliberately waste time to increase working hours can also be identified through vehicle activity monitoring. In addition, telematics systems also help reduce downtime, so you don't waste money paying employees during unproductive hours.

3. Maintenance Costs

Through a telematics platform, you can manage each vehicle's maintenance schedule, such as oil changes, tire checks, and regular servicing. Notifications can be automatically set based on mileage, date, and interval. The integrated telematics application also allows drivers on duty to submit vehicle inspection reports (DVIRs) with photos and descriptions if any issues are detected so they can be promptly addressed by the relevant team. These steps can prevent damage, extend vehicle life, and protect the company from further losses.

4. Insurance Costs

Companies with fleets of vehicles and drivers face greater risks that require insurance coverage. Risk is one factor that influences insurance premiums with certain service providers, so driving records and traffic ticket history can be taken into consideration. With fleet telematics, you can manage these risky driving behaviours. If drivers practice safe driving habits, the risk will decrease, potentially lowering insurance premiums.

5. Asset Cost

Reducing the number of assets will significantly lower your company's fleet costs, particularly operational costs. A telematics platform helps you make this decision by providing an accurate picture of vehicle usage. You can easily identify underperforming vehicles and estimate their value for sale or auction.

Use vehicle telematics today and start reducing your company's fleet costs! Cartrack is ready to help you make targeted efficiency decisions during this crisis. Contact us for a further consultation and get a FREE DEMO of how Cartrack works!