Return on Investment Series: Proactively Manage Driver Behavior

Return on Investment Series: Proactively Manage Driver Behavior

Fleet Savings Summary

The Fleet Savings Summary Report highlights your fleets top five most valuable driver coaching opportunities by vehicle. These drivers can be interpreted as the fleets most costly drivers of spending, and therefore represent the best bang for your buck driver coaching opportunities. Driver behavior can be critical to the operations of your vehicles.

Proactive management is key. Aberdeen Group reports that top performing organizations are 96% more likely than their peers to utilize technology that alerts management, and the driver, of exceptions being made (i.e., speeding, harsh cornering, etc).

 

Conclusion

Today’s fleet managers are under extreme pressure to manage their fleet costs despite deteriorating economic conditions. These costs include the procurement and disposal of the vehicles, fixed and variable operating costs, labor costs, as well as collision and insurance claims.

Using telematics data, fleet managers can discover new cost savings opportunities across their entire fleet. By pursuing these savings opportunities, a fleet manager can reduce their COI, improve their fleets operating efficiency, and grow their bottom line. Conversely, managing a fleet without a telematics platform is likely to result in higher costs and poor visibility for improvement.

Telematics and the Fleet Savings Summary are valuable tools that fleet managers should use to better understand and proactively manage their vehicles and drivers, and ultimately run a more profitable fleet.

Click here to request more information.

 

 

 

 

Return on Investment Series: COI

Return on Investment Series: COI

Telematics & GPS Cost of Ignoring

Simply stated, the cost of ignoring is money left on the table. Cost of ignoring (COI) can be thought of as the amount of lost savings that result when a company fails to undertake a strategic business investment that would otherwise improve operational efficiency. For fleet managers it can be thought of as the incremental operating costs resulting from the improper use of telematics or lack thereof.

 

ROI v. COI

COI has the same strategic goals as ROI, however there are a few fundamental differences as seen in the table below. The primary difference is that COI is focused on minimizing operating costs, whereas ROI is focused on maximizing incremental revenue.

 

ROI v COI

 

 

Finding Savings

 

Each fleet is unique, and therefore each fleet can have drastically different cost structures. In our research, we found that two variables specifically impacted a fleets operating costs: vehicle class and vehicle mileage.

Here is an example: A long-haul Heavy-Duty (HD) fleet will have a very different cost per mile (CPM) breakdown than a low-mileage Light-Duty (LD) fleet. In general, the HD fleet will likely have larger proportional fuel expenses per mile, but the fleet will have larger collision and claims CPM.

Savings opportunities available to a specific fleet will change based on the fleets operating characteristics. This can make the opportunities difficult to identify and quantify.

In the next series, we will discuss using our Fleet Savings Summary Report to quantify the ROI & COI.

 

View previous Return on Investment Series post here.

Request more information here.

 

Four Benefits to the ELD Mandate

Four Benefits to the ELD Mandate

The ELD Mandate Can Improve Your Business

 

FMCSAs ELD Mandate provides an outstanding opportunity to simplify and streamline your handwritten recording process. Fleetistics electronic log systems automate the process. This reduces the time required to compile and maintain driver records. Automation means savings for your company. Let us take a look at the benefits of the Fleetistics ELD/eLog/Hours of Service system:

 

ELD Mandate Benefit 1Benefit #1 Elimination of handwritten log books. Fleetistics electronic log system replaces the handwritten log book with an easy-to-use mobile app run on an Android tablet or iOS iPad. Gone are the days of trying to decipher illegible log entries.

 

 


ELD Mandate Benefit 2Benefit #2 Simplified roadside compliance reporting. When roadside log inspection is required, drivers simply click a button to instantly display a fully compliant report. As changes occur to reporting requirements, our system incorporates those changes.

 

 

 

 

 


ELD Mandate Benefit 3Benefit #3 Real-time status for dispatchers. Dispatchers and other office-based personnel can obtain a drivers current status instantly.

 

 


ELD Mandate Benefit 4Benefit #4 Digital verification of logs. Never again will it be necessary to chase down a driver to obtain a signature to verify a log entry. Digital verification is provided through the tablet app.

 

 

 


The FMSCA ELD Mandate provides the perfect opportunity to automate the process of maintaining driver log information. Our system also automates compliance with the ELD rules. As changes occur to recordkeeping requirements, our system incorporates the changes to provide users with automatic compliance.

For a live demonstration of the Fleetistics ELD/eLog/Hours of Service system, contact your account manager today.

 

Return on Investment Series: Article 1

Return on Investment Series: Article 1

Telematics & GPS Return on Investment

return-on-investment

Return on investment (ROI) is a performance measure used to evaluate the efficiency of an investment, or to compare different investments. ROI measures the amount of return on an investment relative to the investment. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage.

The telematics industry has come a long way since the days of downloading data when a vehicle returns to home base and providing dots on a map. Today, telematics can provide fleet managers instant reports on location, vehicle driving behavior, maintenance alerts and so much more, thus providing a significant ROI.

 

 

5 Pillars of Fleet Management for Return on Investment

 

Safety – Speeding, harsh driving behavior, reverse, seatbelt, accident reduction
Productivity – Stop duration, dispatch, route efficiency, sales/service calls, timely service
Optimization – Proactive maintenance, odometer readings, vehicle health, fuel consumption
Compliance – Company policies, State/Federal laws, HOS
Expandability – Integrate with 3rd party software, power of the IOX, marketplace

Click here to request more information.