It’s a turbulent time for many Australian small businesses, particularly those managing commercial fleets.
Skyrocketing fuel costs and global instability, coupled with a growing skills gap, have placed substantial pressure on SMEs to turn to fleet management technology to improve productivity and drive operational efficiencies. It has the potential to save tens of thousands of dollars while boosting customer experience and satisfaction.
Looking at telematics beyond GPS tracking
Telematics involves the use of small hardware devices on vehicles to collect operations data in real time. It’s much more than just tracking a car using GPS. The tech can help companies to pinpoint precisely where their fleet is across the day, which can in turn assist with rerouting deliveries where necessary and quickly adapting to situations out of a business owner’s control, such as traffic and bad weather.
AI-backed video telematics with driver and road-facing cameras are reshaping safety and efficiency for fleets, serving as an unbiased witness, incomparable driver training tool and a gold mine of data for businesses who want to drive results and build resilience in a tumultuous market environment,
How Australian and New Zealand businesses can reduce costs using telematics technology
Australian and New Zealand fleets are beginning to see tangible results and material cost savings with video telematics, according to Verizon Connect’s Fleet Technology Trends Report Australia and New Zealand 2023.
Of the 300 Australian and New Zealand fleet managers, executives and other mobile-business professionals surveyed for the report, those who have implemented in-cab video solutions have reduced accident costs by 57 per cent and insurance costs by 44 per cent,
Verizon Connect’s analysis of its US customers reveals that organisations actively monitoring their KPIs via fleet telematics spend on average 18 minutes less idling and perform on average 0.94 more delivery stops due to route optimisation – a 20 per cent increase per day. The data also showed an average daily reduction of 27.5kms in distance travelled, equating to an 11 per cent drop in unproductive mileage per day.
Companies with a fleet of any size can harness the power of telematics to provide greater insights into usage and route patterns, which identify inefficiencies and save operating costs. This can offer a lifeline to small businesses struggling with lower profit margins to drive down the cost of running a fleet.
Extrapolating the US statistics, a company with a fleet of 10 vehicles could save US$2,574 per year thanks to idle fuel reductions. The same business can also reduce unproductive mileage by 17.2 per cent leading to a net savings of $13,200 annually. This means that an Australian business with a fleet of 10 vehicles could potentially save up to $16,000 per year.
The price of fuel has become a significant cost for Australian businesses, and global uncertainty means this is likely to remain difficult to forecast. According to ACA Research, 54 per cent of SMEs surveyed in September were very concerned about rising fuel costs.
The use of data tracking and analysis can assist by analysing drivers’ behaviour, purchasing options and potential maintenance, all contributing to optimising fuel use and costs. Actively monitoring speed, idling and routing can also contribute to reducing unnecessary fuel use.
Verizon Connect’s Fleet Technology Trends Report found that 78 per cent of ANZ companies surveyed, which encompass the construction, general freight, services and government industries, consider in-cab video “extremely” or “very beneficial”.
The benefits of telematics in managing volatility that businesses face due to turbulent times has been proven around the globe. But in Australia, it has yet to become a widely implemented best practice. Fleet technology can play a crucial role in helping Australian small businesses weather uncertainty by helping to drive efficiencies and best practices.
