The benefits of telematics during the labor shortage

Trucking is a vital component of the entire U.S. economy. In fact, the trucking supply chain moves almost 70% of domestic goods. The recent pandemic has only put a spotlight on this importance, as fleets have become even more vital to the continued delivery of life-saving goods and services.

However, a shortage of drivers has been putting strain on fleets and the overall supply-chain ecosystem for a number of years, and it’s predicted to continue. According to Automotive Fleet, “As the retirement of Baby Boomer truck drivers grows with each succeeding year, the American Trucking Associations (ATA) predicts a truck-driver shortage could reach as high as 175,000 by the year 2024.” In addition, the ATA predicts that over the next decade, the supply-chain industry as a whole will need about 1.1 million drivers.

Drivers aren’t the only staff members in short supply; as “the vehicle maintenance and repair industries are experiencing a skilled-labor shortage as Baby Boomer technicians retire in greater numbers than those replacing them.”¹ Additionally, other qualified fleet management professionals, such as managers and supervisors, are in demand across many industries. Data analysts able to analyze and execute on “the myriad data produced by fleet management information systems, telematics, vendors, and ECMs” are becoming increasingly critical for efficient supply-chain operations.

What does this all mean for you and your fleet? It means that you need a better way to extend your resources. Here’s how telematics can help.

How to leverage telematics to better utilize resources

In the case of an industrywide driver shortage, your existing fleet drivers have a lot more on their shoulders. Now more than ever, it’s crucial to streamline your operations and find new efficiencies to make your drivers’ jobs easier and more productive.

Telematics technology can help. From monitoring fuel expenses to helping determine the most efficient route from point A to point B, a fleet management platform can positively impact your bottom line. Here are some of the ways your organization can take your resources further with a telematics solution: 

• Improve asset utilization: Fleet tracking technology includes a number of dashboards that show operational efficiency and fleet utilization. They monitor a range of actionable metrics, including idle time and miles driven for each vehicle. This allows fleet managers to examine how individual vehicles are being driven and then balance capacity and vehicle utilization to reduce miles driven and wear and tear. It also helps fleet managers identify which vehicles are underutilized and could be assigned to additional jobs.
• Reduce direct labor costs: Those managing a mobile workforce may face the challenge of having little visibility into how teams are spending their time. Using GPS tracking, managers can see vehicle history for a specific day, including all trips taken, stops and idling events. It’s a simple way to see how efficient workers are with their time, and discover where opportunities exist for improvement to overall productivity. 
• Improve maintenance: Telematics can help you proactively stay on top of routine vehicle maintenance to prevent issues before they occur. Automatic updates notify you should an issue arise, giving you the best chance of keeping as many fleet vehicles in good condition and on the road as possible. This is particularly critical when there is a shortage of maintenance workers as well as drivers.

“With the live map, I'm able to oversee where all our vehicles are throughout the day. If I get a call and somebody needs work in a specific area, I can check that technician's availability and assign a job directly to a technician that’s in that area — which saves time.” –Andrea Vigil, founder, Allegiant Electric

Keeping costs low is of paramount importance

In today's industry landscape, keeping costs low is critical to organizations that rely on fleets. According to Mike Antich, Editor, Automotive Fleet, "Labor rates continue to increase, exacerbated by the ongoing labor shortage in our economy, especially in urban areas that have a high cost of living. In order to attract skilled technicians, vendors and suppliers have been increasing the labor rate in order to bring these people into their companies, and that increased labor rate is translating over to fleets, which is putting upward pressure on fleet maintenance costs."³

There is no single solution to solve an ongoing industry shortage of drivers and other skilled workers. But telematics can help organizations properly utilize their existing employees and vehicles while also helping to keep them safe on the road with proactive maintenance. As an added bonus, an efficient, data-driven organization can provide added incentive for new employees to come work for the company.

To find out more, visit verizonconnect.com or call 866.844.2235 to schedule a free live demo of Verizon Connect fleet management technology today.