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THE CASE FOR TELEMATICS

Encinas

ARE YOU USING YOUR TELEMATICS SYSTEM TO ITS FULL POTENTIAL?

Teletrac Navman, a global software-as-a-service provider leveraging location-based technology for GPS tracking solutions, announced findings from its “Telematics Benchmark Report: US Edition.” The survey features responses from more than 2,400 fleet professionals and found that while technology adoption is at an all-time high with 77 percent using telematics for vehicle tracking, most fleets are only scratching the surface of technology’s potential.

Survey says:

  • respondents ranked “peace of mind/knowing where vehicles are” as the top benefit from telematics (46 percent), followed by “more efficient routing and dispatching” at 32 percent;
  • several important telematics features showed marked decrease in use since 2017, such as monitoring speeding (down 18 percent since 2017) and harsh braking (down 12 percent);
  • 36 percent of respondents said fuel costs are their second largest expense, but only 29 percent reported using their telematics solution to monitor fuel usage;
  • 30 percent use telematics to track maintenance needs, down 10 percent from 2017.

GENERAL TAKEAWAY

ENCINAS: It’s no secret that adoption of technology can streamline business and give companies a competitive edge. That is why it’s so surprising that, despite more companies than ever before using telematics to track vehicles and hours of service (HOS), full usage of telematics’ features has declined. Most fleet owners are barely scratching the surface of telematics’ potential.

For example, we uncovered that 52 percent of survey respondents find rewarding driver performance improves retention, but 43 percent don’t use telematics to measure performance. This disconnect also transcends into operations, as well. Since the ELD mandate, companies have been so focused on compliance that operational excellence has taken a back seat. In just one year, use of telematics to monitor speeding has decreased 18 percent and use of it to track harsh braking is down 12 percent.

The technology alone isn’t enough; companies must use telematics’ full capabilities if they want to see improved ROI. 

DRIVER SHORTAGE

ENCINAS: The driver shortage in the US is becoming more serious, which is why we were happy to see 58 percent of companies are increasing driver pay, and 36 percent are improving benefits to recruit and retain new drivers. Transportation companies are pushing toward growth to continue to attract new, young talent and are looking to upgrade and invest in new equipment as a result. In fact, 41 percent plan to upgrade fleet equipment and 37 percent are planning to expand their fleets—up 13 percent from 2017. 

ELDs

Survey says:

  • 74 percent say that ELDs remain their top compliance concern in 2018;
  • while 64 percent of fleets are using ELDs to track HOS, 31 percent are still using paper logs even after the ELD Mandate went into effect;
  • 72 percent perceived benefits from ELDs with “less risk of compliance violations” at the top (28 percent), followed by “eliminating manual processes” (20 percent).

ENCINAS: Nine months after the ELD deadline, adoption has seemingly never been higher. However, we were surprised to see that despite the high adoption rate, the technology itself is not being used to its full potential. 

Our survey found that while 36 percent of fleet managers report fuel as their second largest expense, only 29 percent use telematics to monitor fuel usage, which could lead to reduced fuel costs. Even more shocking is the continued use of paper logs by nearly one-third of survey respondents. Unless businesses are using ELD technology to its full potential, they will miss out on cost-saving benefits, efficiency, and will lose their competitive edge.

SAFETY

Survey says:

  • When asked if fleets were currently using telematics to measure driver performance, 43 percent answered no;
  • 25 percent plan to invest in driver warning/alerting technologies and 9 percent in fatigue monitoring technologies;
  • 26 percent of those using telematics have seen reduced accidents as a result, and of those who benchmark and evaluate driver behavior, 57 percent say they reward drivers for good performance;
  • More than 50 percent of organizations said rewarding driver performance was directly responsible for reduced safety violations, and 52 percent say it improved driver retention.

ENCINAS: Telematics opens the door for fleets to gain total insight into safety analytics—what caused incidents, a way to track progress, and monitor driver behavior—and yet this remains a missed opportunity for numerous companies.

As our survey shows, 26 percent of fleets leveraging telematics for safety-related monitoring reported reduced incidents, and 57 percent saw the same when drivers were rewarded for good performance. The data from this survey further supports exactly how pairing telematics with driver alerts or fatigue monitoring and reward programs can improve safety and incentivize positive behavior.

If you’re spending the money on a telematics system, don’t you want to get the most bang for your buck? Explore all your options for optimizing the use of your telematics system and benefit from safer operations as well as watch your bottom line increase.

FOR MORE INFORMATION

Teletrac Navman is a software-as-a-service (SaaS) provider leveraging location-based technology and services for managing mobile assets. With specialized solutions that deliver greater visibility into real-time insights and analytics, Teletrac Navman helps companies make better business decisions that enhance productivity and profitability. Find out more and view the full report, visit www.teletracnavman.com


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