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To reduce high fleet operating costs, various efficiency and optimisation efforts need to be implemented. Increasing productivity, lowering costs, and reducing downtime are some of the most common ways to achieve this. On the other hand, driving safety—which is often overlooked—can actually play a major role in improving fleet cost efficiency. Below are the “costs” companies bear when they fail to ensure their drivers operate safely on the road.
1. Injury to Death of Driver
Driver injury or death can be a severe blow to a company. You not only lose an employee who must be replaced, but also time and money. There will be lost working hours, reassignment of duties, costs of recruiting and training a new driver, expensive employee medical claims, and additional compensation in the event of driver death or disability.
2. Vehicle Damage
The smallest risk of unsafe driving behaviour is that vehicles wear out or become damaged more quickly. This naturally increases company expenses due to more frequent repairs and earlier replacement of accessories or spare parts. The worst-case scenario is a major vehicle accident resulting in severe damage that cannot be repaired. In such cases, the company is forced to incur significant costs to replace the asset.
3. Loss of Cargo
You would certainly not want to assign a reckless driver to transport a cargo truck carrying high-value goods. The smallest risk may only involve damage to goods inside the cargo or delivery delays due to minor accidents and the need to transfer the cargo to another vehicle. The worst-case scenario is the loss of the commodities inside the cargo, which may be destroyed in an accident or even stolen by irresponsible parties during or after the incident.
4. Decrease in Reputation
Reckless driving behaviour or major accidents involving company vehicles can damage a company’s image. In addition to reducing customer satisfaction, any negative publicity can undermine public trust, leading to a decline in business performance and profitability.
5. Lawsuits
Unsafe driving behaviour carries the risk of legal claims that can result in significant losses for a company. These legal claims may include traffic fines for violations, as well as criminal charges and/or penalties for accidents that cause injuries, fatalities, or damage to vehicles and other buildings or property. This does not yet include compensation claims for victims and the resulting damages.
How can you ensure that your drivers’ behaviour is safe? One way is by using a GPS tracking system that can remotely monitor driver behaviour.
Cartrack’s GPS tracking-based fleet management system monitors several risky driving behaviour parameters such as speeding (where speed limits can be set by you), sharp cornering (which is especially dangerous for trailer trucks), harsh braking, and sudden acceleration.
You can receive alerts when these events occur, as well as generate automated reports related to driver safety. Contact us now and find out how Cartrack can improve driver safety for your drivers!
