Fleet Operators Tap into Technology to Increase ROI

Fleet Operators Tap into Technology to Increase ROI

Technology innovation is changing the way everyone does business and fleet managers are no exception as they try to increase ROI while satisfying customer expectations. Among the challenges they face are finding ways to reduce the time spent managing fleets, the lack of real-time communication with drivers, and rising fleet maintenance costs – which is where technology solutions step in to facilitate tracking drivers, cargo, vehicles, and other assets, in real-time.

Why Upgrade Fleet to Technology Solutions?

Maintaining a company’s fleet of vehicles can be costly, however, investing in technology solutions allows fleet operators and managers to derive critical data insights while offsetting the costs in multiple ways such as proper asset utilization, safety, driver acquisition, and many other factors.

According to a recent study by ABI Research, it is forecasted that 60% of companies will invest in technology solutions in 2020 to enhance their operations and gain positive outcomes through data-driven insights.

How Adopting Technology Helps Increase ROI

Autonomous Operation – Frequent turnover within the company and a shortage of long-haul fleet drivers are common. Due to these reasons, fleet operators are increasingly looking to adopt technology solutions such as autonomous operation software solutions. In conjunction with electrification, autonomous operation software can operate effectively under controlled environments such as shipping ports and airports. This helps in lowering operating costs which helps in increasing ROI.

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Asset Utilization – Asset utilization is a primary driver of operational costs. This figure averages to $1.74 per mile. Optimizing asset utilization is critical as it helps fleet operators figure out mechanisms on how to improve their bottom lines by making better use of their assets.

Fleet operators can increase ROI by cutting down operating costs, improving employee retention, spending less cost and employee time on repairs and damages. Predictive maintenance can be made use of to ensure assets are being utilized properly and effectively.

Predictive Insights – According to data published by the Automotive Fleet, over 20% of U.S fleet vehicles are prone to accidents and a majority of them were due to preventable driver behaviors. In an effort to curb dangerous driver behavior, driver scorecards were introduced and speeding, hard acceleration, and other illegal occurrences were made trackable. The helps fleet operators derive insights on asset maintenance and tracking which leads to reduced costs.

Benefits of Telematics – Fleet operators are increasingly moving towards Telematics technology solutions to gain insights on the various operations and maintenance involved in fleet management companies. These include inventory tracking, speed monitoring, GPS tracking, and device monitoring.

Being a combination of telecommunications and informatics, telematics can identify warning indicators and early signs of damage and failure. Necessary maintenance can save fleet management companies from unexpected, immediate, and unpleasant surprises. From locating a driver or a fleet to complete engine diagnostics, tracking fuel consumption of fleets, checking tire pressure sensors, and tracking inventory, telematics ensures immediate benefits to fleet operators to safeguard and maintain fleets efficiently.

Tracking Idle Time – Fleet operators can track fleet idle time and utilize the data to help reduce fuel usage and engine wear. By ensuring proper maintenance and monitoring, technology solutions such as telematics and predictive maintenance can reduce downtime and improve ROI significantly.

Additionally, oil life monitoring that is accessible via a vehicle diagnostic scan helps in keeping the fleet’s warranties intact. This is because the vehicles have oil life monitors built-in and mobile access that ensures routine maintenance is performed to further reduce any downtimes. This drives ROI for fleet management companies.

The Future of Fleet Management

Any innovation that helps fleet operators cut down on cost overheads and increase ROI is an investment for fleet management companies. Many fleets are transitioning into asset-light models for improved outcomes and increased ROIs. The ability to integrate technology for improved outcomes is essential, keeping a long-term perspective in mind. Next-generation transportation and logistics market intelligence, according to ABI Research, forecasts emerging trends in robotics, drones, ADAS/autonomy, and electrification technologies.

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