Controlling Hidden Fleet Management Costs

Companies that operate a fleet of vehicles expect to contend with high fuel bills, labor expenses, and ongoing maintenance and repair costs. However, hidden costs – such as stolen vehicles, false claims against drivers, and inefficient technologies – can easily cut into a company’s profits and make it difficult for fleet operators to stay within budget while delivering expected service levels.

These common fleet management challenges can be addressed with telematics systems that monitor vehicle location and performance 24 hours a day, seven days a week. These systems give fleet operators the data they need to rein in operational expenses while protecting their vehicles, their drivers, and their company’s bottom line. For example, monitoring fuel use, vehicle idle time and engine diagnostics enables companies to reduce fuel consumption, as well as maintenance and repair costs. And when managers know the precise location of vehicles at all times, they can schedule and route drivers more cost-effectively.

Verizon Networkfleet recently worked with a large trucking company that operates a fleet of over 200 trucks. Excessive fuel costs, expenses associated with several stolen vehicles, and unfounded damage claims against drivers were shrinking the company’s bottom line. Using a GPS tracking solution on all its trucks, the company now addresses these issues by monitoring the location and performance of every vehicle in its fleet – while they are on the road.

By tracking vehicle location, speed, idle time, and fuel usage, the company has devised and implemented strategies to reduce monthly fuel bills and prevent the theft of its trucks. These include setting targets to reduce speeding, idle time and other wasteful driving behaviors, and new guidelines to minimize unauthorized vehicle use. The GPS data also helped the firm defend several false claims against its drivers by proving the trucks were not located where the alleged damage occurred.

To win in highly competitive markets, fleet-dependent companies must develop strategies for controlling operational expenses – both hidden and overt – while delivering consistent service levels. A telematics solution can assist with this task by providing the vehicle performance data needed to devise effective cost-containment strategies.

Hear more about telematics for transportation from Verizon’s Connected Technology Tour Virtual Conference and Expo. To register visit http://ctt.vzwtechnologies.com/event/virtual.