If your business uses a large fleet of vehicles, you’re likely to have come across telematics, also known as vehicle tracking. The telematics industry is steadily growing, with a recent report stating that it will accelerate at a compound annual growth rate of over 7% by 2022. But what is vehicle tracking, and does it really benefit businesses? Here, we’ll look at exactly what is involved in tracking your fleet, how it can save money in the long run, and what businesses it’s best suited to.
Telematics simply tracks your vehicle
Vehicle tracking does just that—it tracks your vehicles. This includes keeping a tab on where the vehicle is via GPS, as well as offering the driver navigations. Some vehicle tracking systems, such as Movolytics, also keep track of your vehicles in motion, such as speed, fuel emissions, driver behaviour, and even distance travelled. The data collected is then fed back to managers to show how efficiently vehicles are being driven, and whether this could be improved.
Vehicle tracking can cut business costs
There are many benefits to vehicle tracking which could help your business save money and improve customer service. Fuel is one of the largest expenditures for any business that relies on a fleet, and the rising prices of diesel and petrol are not ideal for business owners. However, fleet tracking can be used to show how efficiently vehicles are being driven, and therefore whether fuel is being used as economically as possible. Driving habits such as speeding, harsh braking and acceleration, idling, and taking longer routes are all linked to bad driver behaviour and increased fuel usage. However, vehicle tracking logs these behaviours, so you and your drivers can see where you may be able to improve, whether this is by driving at slower speeds or avoiding harsh braking and accelerating.
Vehicle tracking softwares can also be used as navigational systems, offering live traffic updates to your drivers, while providing an alternative route. This allows drivers to avoid getting stuck in traffic, which eats up company time, and needlessly wastes fuel by increasing idle times. Vehicle tracking software can also track how long each vehicle has been on the move, keeping an eye on how much time each driver is spending on shift. This makes it easier for businesses to enforce breaks on drivers, reducing the chances of them being overworked and potentially getting sleepy behind the wheel. This in turn keeps the drivers safe, minimising the risks of crashes and ensures your drivers are alert.
Businesses that can benefit from vehicle tracking
Any business that requires a fleet of vehicles can benefit from a vehicle tracking system, from collection/delivery-based businesses to taxi services. These businesses rely on getting to customer destinations as quickly as possible, and being able to depend on a built-in navigation system with live traffic updates can massively help drivers get to their destinations faster. These vehicle tracking systems are especially useful for managers, who will be able to make sure that drivers are taking the quickest, most efficient routes they can. This improves customer service as customers are dropped to their destination as quickly as possible, and drivers are able to complete more jobs.
It’s not just business owners whose companies use vehicles who can benefit from telematics, insurance providers can use it too. If a customer files a claim on a telematics-equipped car, you’ll be able to see how fast they were driving, when, and where, allowing you to make an informed decision when processing the claim.
Whether you have a small or large fleet, telematics systems can help all drivers improve their driving skills, making them aware of any bad driving habits they may have developed over the years, such as idling or harsh braking. Vehicle tracking software can also help to improve communication and administration, while improving fuel efficiency and reducing overall fuel costs.