Combatting rising costs through innovative telematics technology

By Peter Millichap, marketing director at ‎Teletrac Navman UK

There’s no denying the instrumental role technology now plays in the global business landscape. In fact, the technology industry in 2021 alone was forecast to reach $5 trillion.  

Despite this upward trajectory for the technology sector, it seems not all businesses are embracing the wide capabilities of technology. Recent research revealed offices across the UK often struggle with slow or old tech – losing an average of 46 minutes a day or 24 days a year.

In the face of the current cost of living and fuel crisis, now more than ever, its important businesses have the right technology in place and unlock its full potential.

In the transport sector, a sophisticated telematics solution can have a wide range of use cases which improve operational efficiencies and maintain or increase margins. 

With the global commercial telematics market set to be valued at $63,981.5 million by 2030, it’s clear many in the transport sector are seeing its true value.

So, in a time when protecting margins is a vital focus, how can transport managers unlock the power of technology to improve cost efficiencies across their operations?

Minimise fuel costs through telematics

Since the ongoing fuel crisis has seen costs soar for fleets across the UK, keeping an eye on the bottom line is more important than ever. With petrol hitting a new high of 189.33p a litre and diesel at 197.11p,  businesses should embrace telematics’ role in improving fuel management.

GPS tracking is a useful telematics tool that can help with fuel costs, as it helps transport managers understand when and how their vehicles are being operated. Speeding and other poor driving behaviours, such as harsh acceleration, can decrease fuel efficiency increasing costs.

Unauthorised vehicle use can also significantly increase fuel costs, but - with a GPS tracking system - transport managers can be alerted to unauthorised use via calendar templated and time-of-use restrictions.

What’s more, transport managers can also reduce fuel spend by ensuring drivers are taking the most direct routes to jobs.

Fleet management software, through its access to route planning and dispatching tools, can ensure that jobs are assigned to the nearest vehicle, that they are travelling on the most efficient routes and that fuel use is as economical as possible. 

Reduce maintenance costs

Operators should focus on cost-effective maintenance systems, instead of the costly process of replacing a vehicle.

For example, a computerised maintenance management system, that digitises vehicle and equipment maintenance scheduling, can create maintenance schedules using vehicle odometers and engine hours data.

By digitising the maintenance process and monitoring vehicle health, the lifetime of a fleet can be considerably increased, avoiding replacement costs and ultimately improving cost efficiencies.

Enhance productivity

By having a sophisticated workflow management system in place, transport managers can connect drivers in the field with those in the back office. This enables them to work smarter (saving both time and money) with two-way messaging, custom forms, and proof of delivery.

For example, sending live routing and road condition updates and proactively alerting customers of delays, is a keyway transport managers can unlock the power of technology to positively impact margin.  

Improve driver safety and behaviour

Transport managers can supercharge their cost efficiencies by improving driver safety and behaviour through embracing the role of AI telematics technology.

By providing an easy-to-use, accurate, and personalised solution powered by AI-learning, transport managers can approach driver safety and behaviour in a way that is tailored to each individual. This bespoke approach will in turn positively impact vehicle operating costs.  

Using AI technology to its full potential is definitely a smart move in the current climate - it is predicted that by 2025, companies that have adopted AI will be 10 times more efficient and have twice the market share of companies that have not.

Ultimately, for those transport managers who are keeping an eye on their margins due to the pressures of the fuel crisis, it is vital that they ensure their telematics provider is supporting them with all the right guidance on how exactly to use their technology to promote cost effective practices across their entire operation.