If you’re a business owner or operator in an industry that requires fleet vehicles, you’ve likely heard the term telematics used more frequently over the past few years. While it sounds like something from Star Trek, commercial auto fleet telematics is bringing the future of transportation into today’s world.
Just because commercial auto fleet telematics sounds technical and complicated doesn’t mean you need to shy away from learning about advances in this burgeoning field. Essentially, telematics systems use GPS and other monitoring technology to track information about each vehicle in a fleet. Here are a few of the biggest benefits companies can expect from using commercial auto fleet telematics systems.
Use Less Fuel
It’s no secret that fueling a fleet of vehicles can be an expensive undertaking. Even with gas prices currently at low levels, there’s no guarantee they will stay there. What if there was a way for you to use data and real-time inputs to reduce inefficiencies in the way your fleet uses fuel? That’s one of the major business hurdles being solved by telematics.
By using commercial auto fleet telematics, it’s possible to pinpoint what driving behaviors are needlessly wasting fuel, and then offer guidance to drivers to remedy the issue. Fleet managers could introduce incentive programs for meeting or exceeding company fuel usage standards—potentially saving your business heaps of cash in the long run.
Telematics is also helping businesses reduce their carbon footprints. In 2015, the transportation industry was responsible for 27 percent of greenhouse gas emissions from the economic sector in the United States. This makes sense, as transportation is an industry that requires massive amounts of energy usage. It doesn’t, however, mean that business owners should feel justification for using more fuel than necessary. Lowering the amount of fuel used is a win-win for business owners and the environment.
Can Lower Insurance Rates
While not all insurance companies have starting collaborating with telematics, some businesses have already seen discounts as high as 15 percent. This is because telematics is actually going to make fleet driving safer through continual evaluation. Through usage-based insurance (UBI) and pay-as-you-drive (PAYD) programs, commercial auto insurers will be able to assign rates that will more accurately reflect risk. Ultimately, leading to fewer accidents and lower rates, commercial auto fleet telematics will benefit businesses and insurers alike.
Know Who’s Doing Their Best When No One’s Watching
It’s one of the oldest conundrums of running a business: How can you tell who is and isn’t slacking off when you’re not around? Telematics can help with that.
Outfitting your fleet with a telematics systems will allow managers to keep track of minute data and details about every vehicle. As already stated, this can provide immediate monetary benefits to companies from a fuel consumption perspective. However, it also allows fleet managers to see information such as who’s taking an excessive amount of break time during the day. It’s now possible to know which of your employees are doing their best all the time, and who’s only trying when the boss is watching. This information can be invaluable to companies that are noticing inconsistencies with their workers.
It’s estimated that the telematics industry will grow to $22 billion by 2022. That should come as no surprise when you factor in the intrinsic value commercial auto fleet telematics can already provide to businesses. And the amount of data collected by telematics systems will only continue to grow, increasing the utility of this unique type of technology.