What is the Fleet Savings Summary Report?
The Fleet Savings Summary Report is a snapshot of existing versus potential savings for your fleet. These savings were determined through the use of proprietary driver scoring algorithms.
To calculate a fleet’s existing and potential telematics-related savings, a detailed breakdown of its operating costs are required. Geotab conducted a combination of primary and secondary North American market research to develop fleet-specific Cost-per-Mile (CpM) models, including sub-models for fixed vehicle related costs, variable vehicle related costs, and driver salary related costs. There are two major factors that impact the nature of fleet costs, vehicle class & vehicle mileage.
- Vehicle Class – The vehicle makeup of a fleet has a big impact on its operating costs. For example, Heavy-Duty (HD) trucks have a very different CpM breakdown than Medium-Duty (MD) and Light-Duty (LD) vehicles. The Fleet Savings Summary Report segregates CpM data into three classifications: HD, MD & LD.
- Vehicle Mileage – Just as vehicle class impacts CpM, vehicle mileage can have a large impact as well. This is true for two reasons:
- Fixed vehicle and driver costs will be spread over less total miles.
- Vehicles that drive fewer miles will likely spend a larger portion of their driving time on city roads rather than highways or freeways, which can increase the vehicle’s variable CpM.
In order to determine a fleet’s average mileage, the Fleet Savings Summary Report automatically calculates an average monthly mileage for the entire fleet, and multiplies it by 12 to get the estimated annual value.
In the next series we will discuss how we identify key opportunities for cost-savings.
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