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The Benefits of Telematics for Fleet Management

Posted by Union Leasing on November 1, 2018

Untitled design (52)Telematics is huge these days. Its ability to improve efficiency of operations and allow fleet managers to monitor logistics, route times, vehicle speeds, and driving behavior – all remotely – are just some of the benefits. Even further, telematics has the ability to produce invaluable information for monitoring idle times and associated fuel costs—as well as for isolating questionable driving practices. Another major benefit for fleets is telematics’ ability to automatically retrieve that coveted odometer information, which is crucial for accurate cost-per-mile calculations and maintenance forecasting.

When tapped into effectively, the benefits of telematics are countless for fleets. According to research, the global IoT fleet management market is expected to grow by almost $17 billion in the next seven years.

There are also some trends happening outside of fleet management that already have major impacts on the future and direction of global fleet management. For example, technologies will help vehicles have more direct access to a product, service, or information without having to travel from one place to another. This can already be seen across some companies that run fleets of vehicles, with the goal of increasing efficiency and reducing fuel costs. Remote communication between drivers via technologies like Skype means drivers are not obliged to travel distances (some of which can be quite far) in order to communicate with one another. This cost-effective solution is increasingly on the rise and is viewed as the “smart” method of conducting business.

Is telematics the right solution for my fleet?

Some companies are more likely to adopt telematics than others—and this largely depends on the type of industry. If the industry is service based and relies heavily on efficient logistics, then telematics is certainly best practice to help improve efficiency throughout this process. Other companies may have cost constraints, and so this may not be the best option for them.

To best understand if telematics is the right solution for you, we’ve outlined some key benefits below:
Reduction in Fuel Costs

As mentioned earlier, telematics can effectively monitor idle times and associated fuel costs, helping fleet managers reduce costs associated with their fleet.

Increased Efficiency & Productivity

Through telematics, fleet managers can access reports at any time (and from any connected device), which is beneficial since they won’t have to wait for drivers to self-report. Such factors really contribute to an increase in efficiency and productivity.

Improved Customer Service

For customers in the delivery business, for instance, telematics helps create alerts to their package status. In addition, when operating service vehicles, telematics helps managers dispatch the closest vehicle in the case of a service emergency.

Enhanced Driver Safety

Most importantly, telematics has the ability to ensure that drivers are staying safe on the road. Telematics data can help find safety risks, such as drivers who tend to speed or who don’t wear seatbelts. Managers can then flag these drivers to address and prevent these risks.

At Union Leasing, we have some clients who incorporate telematics for their fleet management, and some who don’t. For those who do, the benefits are definitely noticeable. The data metrics provided by telematics provides managers with constructive feedback so they can help their drivers improve their driving habits and boost the daily operations of the business.