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5 ways to reduce fleet management costs
The biggest challenge fleets face is increasing costs. Learning ways to cut costs amid rising prices is essential to protecting...
Read moreThe continued increase in fleet technology adoption across industries underscores the need for organizations to keep up. They must make extra strides to meet customer demands, offset rising costs and protect themselves from accidents and their potential fallout, especially in the face of ongoing market unpredictability.
As with any new investment, deriving value from new technology is critical to achieving an improved bottom line. And, according to the 2024 Fleet Technology Trends Report, fleet tracking software is showing its worth - with 41% of GPS tracking users reporting a positive ROI in less than a year.
It’s clear that fleets that implement GPS fleet tracking technology don't have to wait long before realizing true value from their investment. By utilizing the key benefits of fleet tracking software, fleets can support their bottom line and enhance efficiency in a number of ways.
Using GPS tracking technology to help mitigate insurance and false claims costs
Unsafe driving can have a big impact on your fleet’s costs. Behaviors like harsh braking or speeding can lead to poor gas mileage and increased fuel costs, while unsafe driving can lead to accidents on the road, resulting in insurance increases and potential claims.
According to the most recent survey, as reported in the 2024 Fleet Technology Trends Report, 73% of fleets said video solutions helped improve driver safety. A fleet management solution can help you cultivate a safe driving culture by presenting proactive coaching opportunities individualized to each driver. Plus, with video telematics, you can protect your drivers and your company from false claims in the event of an accident.
False claims can be a costly situation. Over the last few years, video technology has advanced, giving new power to fleet managers to protect their drivers and fleets from false accident claims, exonerating drivers and reducing unnecessary expenses. Adding a video component to your GPS tracking solution helps you get the whole story using reliable video evidence alongside fleet data. That’s why 77% of fleets using in-cab video solutions say they improved protection from false claims.
Asset tracking solutions show their worth
Over the last three years, we have seen a consistent increase in the adoption of asset tracking solutions giving fleets the tools they need to protect their vital assets and resources. Managing the location of equipment and trailers is key to preventing the unforeseen costs of replacing stolen or misplaced assets.
By using discreet asset trackers, fleet managers can remotely locate and manage valuable items, as well as help law enforcement recover them in the event of an attempted theft. Asset tracking also helps fleet managers to reallocate underutilized equipment to the areas that need it most, cutting down on unnecessary equipment rental costs.
According to the 2024 Fleet Technology Trends Report, fleets utilizing asset tracking achieved improved equipment and trailer utilization, security and productivity. For fleets using asset tracking, 46% reported a positive ROI in less than a year after implementing the solution within their fleet management software.
Improving operational efficiency year over year
In 2023, organizations achieved more from their fleet management solution by improving operational efficiency, communication with customers and drivers, visibility into vehicle and driver locations, and more. In fact, 64% found a field service management solution extremely or very beneficial, and 41% reported seeing ROI in less than 1 year for those using field service management solutions.1
A field service or mobile workforce management solution offers fleets an automated way to manage and dispatch jobs and communicate with the field. This valuable technology is helping many organizations manage their fleet, reduce redundancies and achieve their goals.
Despite economic challenges, fleets are still seeing results when using telematics, and are even cutting costs in the face of inflation. Those dollars add up quickly when you realize the number of functions, tasks and processes that go into managing a fleet.
1https://www.verizonconnect.com/fleet-technology-trends-report/