– By Steve Nuttall –
In 2013 ACA Research looked at how corporate fleets (defined as having 20 or more vehicles) are at a relatively early stage of adopting telematics with only 15% of fleet managers using a telematics system. A further 10% said that they were not using a telematics system but indicated they had plans to do so in the next 12 months. So in 2014 we wanted to find out if this intent to implement became a reality?
Our latest research shows that the pace of adoption has materialised as we predicted. 26% of organisations with twenty or more vehicles in their fleet are now using telematics. In keeping with our previous research, it is the larger fleets that are leading the way.
Why are more fleets fitting telematics in their vehicles and what benefits do they enjoy? Increased vehicle utilisation and business capacity, job allocation and routing, timesheet reporting, accurate fuel monitoring, maintenance management, driver behaviour and idling are some of the key reasons. Ultimately, it’s about reducing costs and increasing bottom line profits for the business.
Telematics systems can facilitate everything from a “nearest vehicle search” to “in the moment” information on the current status of that car or van and whether it’s being used inappropriately.
Organisations can use this real time information to make decisions which help their operations run more smoothly and improve levels of customer service while ultimately enhancing overall productivity. These are key business benefits.
Our research shows the use of telematics in corporate fleets is becoming more sophisticated and that in addition to tracking the location vehicle, nearly a half of those using telematics systems are monitoring driver behaviour.
Analysing driver behaviour data, can help reduce fuel consumption, extend equipment life and reduce carbon emissions as a direct result of addressing poor driving habits. For some, that may sound like we are entering the world of Big Brother, but driver behaviour is a significant cost and telematics is a tool that can help fleet managers address the issue.
As organisations move through the telematics maturity curve, there will come a point where the fleet will reach a ‘plateau’ in terms of safety and cost management and systems will primarily be used to highlight exceptions. When this point is reached and systems are optimised, the focus is likely to shift towards data mining and predictive analytics.
We are conducting ongoing research about how corporate fleets and road freight transport operators are adopting and implementing telematics. In addition, we are helping to extract value and insight from the data that is being collected so that organisations can make better business decisions.
ACA Research is a full service market research consultancy with expertise in customised research and multi-client studies. We specialise in all aspects of the automotive industry, including passenger vehicles, heavy commercial vehicles, the aftermarket and automotive finance. For more information, please visit our website: http://www.acaresearch.com.au/