Three-quarters of Australian companies with mobile workforces rated fuel reduction as their top priority, according to a new report commissioned by Fleetmatics, a Verizon company and a leading global provider of mobile workforce solutions for service-based businesses of all sizes delivered as software-as-a-service (SaaS).
Fleetmatics commissioned ACA Research to survey Australian fleet businesses on the key challenges they face in managing fleets of 5-50 vehicles, and how these are being tackled. Fuel and labour costs are the largest expenses for 69 per cent of businesses across the transport, construction and services and distribution industries, with personal use of company vehicles increasing fuel costs for 73 per cent of business.
Todd Ewing, director of product management at Fleetmatics, says managing driver behaviour to ensure each vehicle is being used as efficiently as possible is a pressing concern for fleet managers looking to reduce costs.
“With the financial year at an end, and a new one beginning, now is the time for fleet-based businesses to consider the commercial impact of driver behaviour and vehicle misuse on their bottom line,” Ewing says. “Fuel costs get out of hand very quickly if not monitored effectively. Fleet managers need to look for every opportunity to overcome fuel budget blowouts, which comes down to reducing staff misuse of company vehicles.”
On top of staff using fuel cards to fill their personal vehicles, 80 percent of fleet businesses in the distribution, construction, retail and hospitality industries say staff using company vehicles for personal travel and unnecessary idling are the biggest culprits diminishing their fleets’ productivity.
The survey findings reveal that although adopters of mobile workforce software still experience challenges, these are significantly diminishing.
For businesses who are currently using the software, less than half of them experience the challenge of staff idling vehicles unnecessarily. However, 60 per cent of those who haven’t adopted the technology face the challenge of excessive idling, which wastes fuel. Drivers practicing poor habits, such as speeding and harsh braking, are also burning fuel unnecessarily. This is an issue for 65 per cent of businesses who haven’t invested in mobile workforce software solutions.
Brendan Woods, President, Traffic Management Association of Australia, said, “These findings indicate that fleet managers can achieve greater visibility through data in order to drive profitability. The correct use of vehicle tracking technology is key to doing just that. With the ability to make informed decisions based on driver and vehicle performance, fleet managers are well positioned to improve safety, reduce costs and drive their business to the next level of efficiency.”
