Seven ways telematics can create cost efficiencies for optimal fleet management


The last decade has seen a new era of connected fleets emerge, with telematics technology leading the charge and creating a whole new world of possibilities for businesses through data and insights that help fully optimise your fleet’s operations.

With an estimated 100 million telematics units in operation worldwide, businesses of all sizes are embracing the technology to help monitor, streamline and improve their fleet management systems and processes.

From managing a handful of vehicles to a large or mixed fleet, telematics enables businesses to enhance their entire operations with a continual improvement mind-set.

Want to learn more about how telematics can help you service and maintain a high-performing fleet?

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What does telematics do?

Telematics is not new in itself – it has been around for over 30 years. What is new though is its advanced functionality and the way it combines data to drive further business success.

These days, telematics goes well beyond merely tracking a vehicle’s whereabouts. Everything from fuel consumption, scheduling, driver and vehicle performance, speed to vehicle location, performance and maintenance schedules can be monitored on a central, cloud-based dashboard for you.

In effect, you get a bird’s-eye view of your entire fleet in such a way that helps you make critical business decisions with a continual improvement mindset. You can also respond to events as they happen.

NZ How EROAD keeps road speeds updated

Telematics helps drive a higher performing fleet and cost efficiencies

A key benefit of EROAD’s telematics platform is its ability to help businesses identify areas where further efficiencies – both cost-savings and performance enhancements - can be made to ensure your fleet’s achieving optimal productivity.

And while driving cost efficiencies are fundamental to good fleet management, a more productive fleet also means you can service your customers better - which can then translate to business growth and a better bottom line for your business.

Here’s 7 ways EROAD can create cost efficiencies in your business

 

1. EROAD monitors your fleet’s every move for more efficient, cost effective scheduling

EROAD’s GPS tracking and reporting gives you complete visibility of what your vehicles and assets are doing so you can:

  • Verify activity and routes, monitor stops made and time at customer sites
  • Identify the most efficient routes
  • Improve dispatch and provide accurate ETAs
  • Eliminate time wasted tracking down vehicles


Having the power and visibility to better allocate resources, optimise routes and plan schedules more accurately can help lower costs, such as fuel and labour, at the same time as lifting the bar when it comes to providing a high standard of customer service.

EROAD also provides businesses with the ability to geofence specific sites or areas so you have complete visibility of what your assets are doing on a specific site. This includes data on arrival times, time spent on site, distance driven and whether auxiliary equipment was used.

2. EROAD helps reduce your fleet’s fuel consumption

One of the biggest, and most quantifiable areas, EROAD can impact your fleet management is in reducing your company’s fuel bill.

Fuel is one of the largest ongoing costs for a fleet, in some cases comprising of up to 20% of total costs*, so ensuring it’s being used efficiently can generate huge savings for your business. 

Speed, excess idling, vehicle maintenance and route choices all have an impact on the total cost of your fleet’s fuel bill.

EROAD provides detailed insights into fuel consumption by vehicle and driver. It helps you understand your fleet’s fuel consumption patterns and identify areas or instances of unnecessary fuel use to help reduce overall fuel consumption.

An EROAD study* found that our customers improved their fuel efficiency by an average of 6% after just one year.

* EROAD Red Paper - ‘Take a fresh look at your fleet’s fuel usage to deliver big savings and sustainability’

It also simplifies fuel management by allowing you to compare fuel records against vehicle distance and location information and identify trends and exceptions across your fleet.

McConnell Dowell

"EROAD has impacted our business in a beneficial way. It has so far brought down our speed events from approximately 25,000 per month to 1200. It’s reduced our overall fuel bill by approximately 20%."

Simon Batchelor, 
Fleet & Procurement Manager, McConnell Dowell

3. EROAD helps save costs by monitoring speed and driving behaviour

Speed, harsh braking, cornering and acceleration all have a huge impact on your fuel and maintenance bills given vehicles use more power and fuel when driving harder or at higher speeds.

For instance, the power needed to travel at 90 km/hr is 20% less than the power required to travel at 100 km/hr. Research carried out by EROAD shows that reducing peak speeds by just 8 km/hr can save 10% to 15% in fuel consumption.*

Other studies have also shown aggressive driving can impact fuel efficiency by as much as 33% on open roads and up to 5% in built-up areas.**

* EROAD Red Paper - ‘Take a fresh look at your fleet’s fuel usage to deliver big savings and sustainability’
** https://fleetmanagement.unl.edu/general/fuelsavingtips.shtml

Organisations that pay consistent attention to EROAD’s driver behaviour analytics have 38% fewer speeding events than organisations that don’t view them at all.

EROAD’s driver management software nurtures safe driving practices and safer roads by encouraging positive behavioural change. In effect, it increases driver accountability, facilitates better driving choices at the same time as allowing you to reinforce and reward good driving habits.

Real-time feedback and alerts can bring costs down by saving on fuel, brakes, lowering maintenance costs and, ultimately, reducing the risk of accidents.

HRV

"We've seen a 100% reduction in speed events since installing EROAD – and zero notifiable incidents."

Brad Courtney, 
Fleet Manager, HRV

4. EROAD can help save costs by monitoring excess/unproductive idling

Idling is a leading factor in fuel waste. In fact, an EROAD study has found that, on average, 7% of customers’ fuel consumption is burned in non-productive vehicle idling.***

Non-productive idling can prove expensive. Reducing a small amount of idle time each day can have a massive impact on your fuel bill – which could add up to significant savings per year.

For a large truck travelling 100,000 km per year, the savings from reduced idling could be worth $3,000 per year***. Across a fleet of 50 vehicles, this can add up to significant annual savings.

*** EROAD Red Paper - ‘Take a fresh look at your fleet’s fuel usage to deliver big savings and sustainability’

EROAD can identify instances where fuel has been wasted through excessive or unnecessary idling.

 

5. EROAD can save costs by optimising routes

Improving routes by even a small percentage can make a big impact on reducing fuel usage and maintenance costs.

EROAD helps reduce travel time and fuel costs by helping you identify the most efficient (or direct) routes. Not only does this cut down on fuel consumption, but also other operating costs (i.e. wages), vehicle wear-and-tear as well as carbon emissions (and your fleet’s overall carbon footprint).

Foodstuffs North Island

"By being able to monitor idling using EROAD Idle reports, Foodstuffs was able to make fuel savings of 4% over less than four months.”"

Blair Inglis, 
Compliance/Fleet/OH&S Manager, Foodstuffs North Island

6. EROAD helps save on maintenance with regular scheduling

Well-maintained engines typically cost less to run. EROAD’s Service and Maintenance helps you identify  small problems before they become big, costly ones to keep your engines in top condition. It simplifies maintenance with automated service scheduling based on time lapsed, distance travelled or engine hours, plus it provides a full service history archive.

EROAD’s Inspect also allows your drivers to capture defects, pre and post-trip vehicle inspections, in real-time. EROAD Inspect lets you carry out - using either EROAD’s App on a mobile device or the in-vehicle Ehubo2 device to record any defects that need to be fixed or maintenance to be completed.

Any items that drivers report as failed or need attention then feed straight into the defect management portal to manage and monitor repairs. The Inspect portal is a fully auditable tool to help identify when faults were reported, when they are booked in for repair and when the repair was completed.

Not only does it make the process easier for your drivers to complete, and therefore more likely to be done properly, it can also serve as proof of your compliance with health and safety obligations.

 

7. EROAD helps reduce insurance costs

Insurance companies are consistently looking to telematics technology to provide customers with a more accurate insurance cost based on real driver behaviour. By installing EROAD in your vehicles, you can potentially reduce your insurance excess and premiums* by participating in targeted insurance programmes. For example, the NZI Safe Driving Rewards – Insurance excess waiver programme, helps support transport operators and their drivers to be safer on the roads. If you’re insured with NZI and are an EROAD customer, you can sign up to this programme for free.

With the programme, transport operators who demonstrate safe driving behaviour via the driving records captured on their EROAD system could be eligible to have their insurance excess waived if an accident happens. If your EROAD records show that your drivers are among the top 25% of safe drivers in New Zealand, your company could have its excess waived if a driving accident happens in the following month. Rankings are based on factors including harsh braking, rapid acceleration, and speeding events.

With the EROAD Leaderboard and the Safe Driving Rewards Programme, you can:

  • See how your company’s driving safety compares with others in the industry
  • Monitor and report on your drivers
  • Create awareness about safe driving with your drivers
  • Save your company money during an insurance claim

There is no charge to sign-up for the NZI Safe Driving Rewards – Insurance excess waiver programme, and there’s no need to wait for your insurance to renew. Registrations for this programme are open until 31 May 2022 and you may have your excess waived up until 31 May 2023.

*Not all insurance companies offer discounts

In addition, EROAD also offers anti-theft functionalities with its ETrack Wired, this product  provides the best solution for tracking and managing all of your powered assets and equipment. ETrack Wired complements our in-cab solution to provide visibility and management of all your assets, vehicles and auxiliary equipment on the same application: EROAD’s Depot.

ETrack Wired’s location reporting frequency is fine tuned to capture your assets’ operating behaviour and provide periodic updates when your assets are on the move between sites. It not only covers your primary assets but also gives full visibility and tracking of your auxiliary equipment usage.

As a result, your trucks, powered assets and equipment are better insured against theft, especially as these types of anti-theft tracking devices can pin-point the exact location of stolen vehicles and equipment.

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