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Prime Mover Magazine


The benefits of fleet management technology remain largely untapped in transport: Teletrac Navman

Anyone working in the heavy vehicle sector will tell you the big issues are compliance, fatigue, driver retention and managing costs. Teletrac Navman, a global fleet management solution provider, released findings from its 2018 Australian Transport Telematics Benchmark Report that show these issues aren’t changing. Yet the results also highlight that those who currently use fleet and compliance management solutions have seen notable improvements in tackling these issues. What’s surprising is that many organisations are still not seizing the opportunity. Many businesses who rely on heavy vehicles and equipment have yet to see the true value of technology to improve safety and productivity.

The missing piece of the puzzle

The survey results show that fatigue management is the top concern for organisations (69 per cent), but there are a range of other challenges that complicate the day-to-day for a fleet manager. In particular, managing costs remains a hurdle, with payroll (63 per cent), fuel spend (43 per cent) and maintenance (34 per cent) listed as key concerns. Despite this, most organisations (62 per cent) plan to invest in increasing fleet size over the next year, due to growing industry demand. So how do you increase fleet size without increasing costs proportionally?

Businesses using telematics to generate actionable data say that it’s a useful way to manage these issues, with over a third finding it helps to meet compliance requirements. On top of this, organisations are using telematics to track use of vehicles and equipment (89 per cent), speed (67 per cent), distance (57 per cent), driver performance (34 per cent), idling (34 per cent) and fuel use (24 per cent), which help to reduce costs and identify inefficiencies.

Looking beyond track-and-trace technology

The benefits of big data are powerful and diverse. Businesses cite peace of mind (60 per cent), improved driver behaviour (39 per cent) and meeting compliance requirements (37 per cent) as the top benefits of using telematics based fleet management systems. And almost half of all respondents using telematics achieved a reduction in fuel costs, with nearly 10 per cent seeing fuel costs drop by 11 per cent or more.

“While it’s encouraging to see the benefits of telematics as evident from the data, many companies appear to use only a portion of its potential, decreasing their potential ROI”, Andrew Rossington, Vice President – Transport Solutions at Teletrac Navman said.

Armed with insights from telematics, organisations can build safer, more cost-efficient fleets, while addressing growing demand for drivers. For example, using data on driver behaviour provides the opportunity to recognise and reward staff for safe driving and improve habits on the road. While less than half of the organisations surveyed are currently rewarding drivers, those that do invest in rewards programs see improved customer service, better driver retention and fewer safety violations or accidents.

“We see the leaders leveraging complex data to drive real change around safety, cost, and business transformation”, said Rossington. “It’s up to both the industry and technology providers to demonstrate these benefits so that more businesses embrace this technology and make it the standard.”

The full report can be found at: 2018 Telematics Benchmark Report: Australian Transport Edition

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