Telematics Role In Improving Efficiency And Reducing Your Businesses Fuel Costs
Many companies spend a large percentage of money on fuel and other day to day costs that are often overlooked and accepted. An efficient business is a profitable business. Our devices are programmed to help you reduce spending and improve cash flow, helping your business maximise profits.
Recently our telematics devices were deployed to a major UK based household DIY and trade brand. Our devices were asked to monitor their fleet, that consisted of 170 small commercial vans and 700 company cars. The fleet had access to 170 delivery vehicles, distributing products across the UK and the proposed challenge was to analyse whether telematics could increase efficiency and reduce delivery costs for the van fleet. A trial was introduced for vehicles operating within a specific region where data would then be compared to detailed historic data collected by the company prior to telematics being introduced.
The solution was approached using our on-board plug in telematics devices that would monitor and improve driver styles/behaviour, with the result of reduced speeding incidents, improved efficiency and improved driving styles/behaviours being demonstrated by employees.
Data analysed was fed back directly to the drivers, with frequent liaison between fleet managers and store managers, who subsequently fed back the interpreted data to drivers.
The trial demonstrated an improvement in driver behaviour styles and highlighted just how important it is to feed back results to drivers, in order to reinforce statistics and messages. A vast reduction of monthly mileage occurred across this observed section of the fleet, combined with a significant increase in average MPG fuel efficiency, more than a 14% increase. It was also noted that speeding offences were significantly reduced.
Being part of a large scale multinational parent, this company supplied various materials to consumers and trades worldwide, but it was this company's UK operation that saw the introduction to telematics. The company was keen to focus on employee welfare and highlighted a responsible attitude to the effects working practices were having on the environment, combined with the goal of reducing fleet operating costs.
The company utilises a series of well established store locations as hubs for customers to collect their orders, or a hub in which deliveries can be distributed to for drop offs for customers. Telematics is viewed as a reduction tool for spending less on fuel and being able to demonstrate the huge savings, exceeding the cost of implementation would see the telematics technology rolled out to the entire fleet.
The Method And Solution
16 trial vehicles had on-board plug in telematics devices fitted directly into the vehicles diagnostic sockets, enabling the devices to feedback data to the telematics online management portal. A variety of monitoring reports were constructed, which included;
1. Driver Behaviour
Our telematics devices were set up to monitor driver behaviour across several major risk factors, those being:
Harsh acceleration events
Harsh braking events
Night driving monitoring
Urban driving monitoring
The listed factors were scored out of 100 and calculated in accordance with the perceived influence each factor had on the overall risk.
2. Speeding Events
Our devices incorporated automated speeding event reports to be scheduled for the company, with the purpose of highlighting events in which speeding exceeded a 10% threshold of the speed limit by all vehicles.
3. Location Based Alerts
Points of interest geofencing were added to the scenario, surrounding all branch locations with the intended purpose of alerting the company to vehicles entering premises that were not listed as their 'home' branch location. One major aspect this feature provided to the company, was an insight into the amount of time vehicles spent visiting other branches.
Fleet managers gave regular feedback of driver behaviour and speeding reports, producing an interesting pattern. It was visible that as soon as telematics devices were employed, an immediate change in speeding trends appeared.
During the first month of telematics operation, data showed the average MPG of the company across the fleet of vans to be 31.46 mpg. Towards the end of the third month, a drastic improvement was seen, averaging the fleet to 36.08 mpg, an improvement of 14.7%. Being based on the average monthly mileage of 2,090 and the fuel fuel price of £1.11 per litre, which was the relevant statistic at the time of the trial;
£42.89 saved per vehicle each month
£77,000 saved across the entire fleet throughout the year
Before the installation of telematics devices, the average mileage completed by a trial vehicle per month was 2,228. Following the installation of telematics, this mileage reduced down to 2,090 for the most recent month, equating to a reduction totalling 138 miles a vehicle. Using these statistics;
Average miles saved each month: 138
Average cost a mile: £0.14
Overall annual costs saved across monitored fleet: £34,000
Conclusion Drawn From Results
The successful increase in fuel efficiency, reduction of speeding offences and overall improvement demonstrated in driver behaviour saw our technology deployed amongst the delivery fleet containing 170 vehicles in 2016. The return on fuel savings the company benefited from alone, was a small fraction of the implementation costs required for telematics devices. The company managed insurance centrally, but a reduction in the associated risk towards the fleet should see this company section attribute for less of the complete insurance shell out, when it comes to renewing.