Automotive Fleet, October 2018

F or fleets of all types success is often measured primarily by the ability to increase efficiency while reducing costs Fleet professionals are expected to be savvy money managers who can unearth untapped savings Knowing how much a fleet costs is critical for budgeting but accurately measuring costs can sometimes feel more like guessing game than a scientific process Telematics solutions are changing that Fleet tracking technology makes it possible to extract accurate to the penny data about the total cost of ownership TCO of vehicles whether leased or owned Fleets are using tracking solutions to improve daily operations including scheduling and dispatch route optimization performance reporting and asset monitoring But it can also be used to give deeper insights into depreciation resale and even the exact moment a vehicle should be cycled out to optimize TCO Controlling the Variables Fleet technology can minimize the challenge of tracking and adjusting for both original cost and resale values to keep depreciation as low as possible Depreciation is typically the biggest fixed cost of owning a vehicle and is difficult to control in relation to TCO However there are other variable and measurable expenses that are in the fleets control and can help minimize TCO Fuel Behind depreciation fuel ranks as the second TELEMATICS TAKE THE GUESSWORK OUT OF TCO highest fleet expense Telematics can help control a fleets fuel spend by optimizing routing and monitoring fuel wasting driving behaviors such as harsh braking rapid acceleration and idling Driver behavior By allowing companies to identify and manage risky driver behavior McKinsey Company reports that tracking systems can reduce preventable accidents by 20 to 30 Maintenance Telematics can help monitor vehicle health and proactively schedule repairs avoiding costly downtime McKinsey Company notes that the use of predictive technologies can cut maintenance costs by 5 to 10 Resale A strong replacement policy demands active collection and analysis of data Telematics can be used to calculate data on maintenance and repair expenses for example to know if its more profitable to extend vehicle lifecycles or dispose of assets whose TCO exceeds budgetary guidelines Using telematics derived data as the analytical foundation along with other market data fleets can also determine the best moment to cycle its vehicles Telematics data can also be used to track optimization to help make informed decisions about fleet rightsizing Fleets can sell or reallocate unproductive assets before they have a negative impact on TCO Prescription for Success Data is no longer just descriptive informing businesses about what has happened the newest technologies are predictive advising you about what is likely to happen Taking it a step further many tracking solutions have a prescriptive capability telling you what you should do in an expected scenario It has never been easier for fleet professionals to make confident decisions related to TCO thanks to the accurate data available through fleet management tools About the Author Erin Cave is Vice President of Product Management at Verizon Connect TODAY EFFICIENCY AND COST SAVINGS ARE THE TWIN GOALS OF FLEET MANAGEMENT TELEMATICS CAN HELP ACHIEVE BOTH BY ERIN CAVE PHOTO ISTOCKPHOTO COM THEERAPONG28 CLEARLY CONNECTED SPONSORED BY Copyright 2018 Verizon Connect All rights reserved Verizon Connect and the Verizon Connect logo are registered trademarks of Verizon Connect in the U S and other countries