Consultants in Logistics

Driving cost down through commercial fleet telematics

Last year was a tough year for fleet operators. Fleet managers faced the need to reduce costs along with the challenges arising from adverse delivery profile changes.

It therefore might not seem appropriate to consider an investment in fleet telematics, but for some businesses there is a compelling economic argument to do so. The inherent need for fleets to operate more cost effectively and focus upon customer service to maintain a competitive edge in current market conditions is creating a demand for telematic solutions. In addition fleet operators are being driven by customer demand for higher service and levels of information.

Benefits of Fleet Telematics

Telematic solutions enable information to be relayed between the vehicle and the fleet manager and can include:

  • Tracking vehicle location and tracing vehicle routes
  • Vehicle diagnostics and monitoring
  • Navigation
  • Routing and scheduling information
  • Vehicle and driver performance
  • Communication such as order fulfilment data, security and emergency assistance

With all of this real time information available to fleet managers it begins to change the whole approach to managing the fleet from one of reactive to proactive. Fleets can benefit in the following areas:

Driving style management

  • Fuel consumption
  • Targeted training

 

Reducing operational waste

  • Reducing mileage
  • Route and schedule changes
  • Staff planning

 

Customer service

  • Time window management
  • Product quality
  • Timely and accurate transactions
  • Navigation

 

Performance

  • Measurement and targeted improvement

 

Risk Management

  • Security and emergency assistance
  • Insurance costs

 

Selecting the right telematics solution partner is very important to ensure you get what you need to make a difference. Davies & Robson recommends a full assessment of requirement and the associated benefits is performed to establish a clear business case before approaching the market.

If this is done correctly an appropriate telematics solution can provide the fleet manager with the right tools to improve both fleet performance and customer service.  

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