How to use telematics
TO CONTROL FLEET COSTS
FROST & SULLIVAN
THAT IMPLEMENT A
REDUCTIONS IN FUEL
COSTS BY UP TO
How to use telematics
TO CONTROL FLEET COSTS
Whether public or private, large or small, every
fleet can use help in controlling costs. That’s why
more and more fleet operators are turning to
telematics as an effective solution for managing
their fleets within limited budgets. When
properly implemented, GPS vehicle tracking
systems can generate positive results in many
areas, including employee productivity, driver
safety and more. But for most fleet managers,
what really stands out is telematics’ ability to
help lower operational expenses.
For example, according to research from Frost
& Sullivan LCV Telematics Market1, companies
that implement a telematics solution can achieve
reductions in fuel costs by up to 20-25%. This research also shows that companies can reduce
vehicle idle times by up to 20-30%, reduce total miles driven by up to 5-10%, and increase vehicle
utilization by 15-20%. These performance improvements help managers control costs by producing
efficiency and productivity gains throughout the fleet.
Depending on their goals, every company will achieve different types and amounts of cost savings
with a wireless fleet management system. However, most can realize measurable results in the
following cost-containment areas.
Fuel purchases represent one the biggest expenses for most fleets. GPS tracking can help you
control these costs in six different ways:
• Reduce idle time. Use near real-time alerts and summary reports to
understand your fleet’s idling patterns and take steps to improve them.
• Reduce speeding. Monitoring the speed of your vehicles at all times
provides the data you need to hold drivers accountable and, when
necessary, to coach them to adopt slower, safer driving habits.
• Prevent unauthorized vehicle use. You can reduce or eliminate unauthorized
use by automatically tracking the location of every vehicle in your fleet,
24x7. This includes verifying daily routes and vehicle stops, checking on
odd-hours movement, and monitoring other driver behaviors that may
indicate unauthorized personal use, such as fuel purchases at odd hours.
• Improve routing efficiency. A wireless vehicle tracking system lets you
plan routes more efficiently by understanding the location of your vehicles,
and using sophisticated mapping technologies to determine the closest
drivers and most efficient routes. Improving routing by even a small
percentage can make a big impact toward reducing fuel usage and costs.
• Leverage engine diagnostics. Well-maintained engines typically use less fuel. Automatic engine
diagnostic alerts provide advance warning of potential engine trouble, so you can fix small
problems before they become big ones and keep your engines in top condition.
• Verify fuel expenditures and reduce fraud. Some telematics systems offer national fuel card
programs to provide more control over fuel purchases. These come with reports that allow you to
verify the time, location and amount of all fuel transactions.
Telematics help control
costs by making it
easy to get the right
information to the
right people when and
where they need it.
SAVE UP TO
1 Custom Research from Frost & Sullivan LCV Telematics Market – November 2013.
In some cases, controlling labor costs can lead to diminished service quality. With GPS vehicle
tracking, you can control labor costs and improve service quality by managing your entire fleet more
efficiently. Telematics helps you achieve these goals by:
• Monitoring driver and vehicle performance 24x7
• Using speeding alerts, idle time reports, and other vehicle data to pinpoint
problem areas and create strategies for improvement
• Optimizing routing and vehicle utilization to reduce overtime and other
inefficient use of labor
• Using system data to enforce company policies and reward drivers for
developing more efficient driving habits
With GPS tracking, you can also reduce the amount of time drivers spend behind the wheel (by
driving fewer miles), reduce driver downtime by helping prevent vehicle breakdowns, and use trip
and fleet utilization reports to boost driver productivity. Your drivers can get more work done in the
same amount of time or less, helping to lower costs and improve customer satisfaction.
A wireless fleet tracking system provides the engine diagnostics data you need to develop the
discipline required to streamline the maintenance process and control costs. With telematics, you can:
• Eliminate paperwork via online vehicle service tracking and intuitive
maintenance management features
• Set proactive reminders for oils changes, tune-ups and other preventive
• Control repair costs and help extend the life of vehicles by automatically
tracking all service records, including maintenance performed, date of
completion, and the service technician
• Monitor automatic engine diagnostic alerts to identify minor problems
before they become major ones, helping reduce expensive roadside repairs
• Analyze comprehensive service reports to improve fleet health and lifecycle maintenance
Better maintenance also helps you reduce idle times, improve fuel efficiency, and more. You save time
and manage costs – including reduced overtime caused by unexpected breakdowns and repairs – while
operating your entire fleet more efficiently.
Driving fewer miles puts less wear and tear on tires and other vehicle parts, so they need to be
replaced less often. For example, telematics can help control costs associated with cracked
windshields and other types of damage that increase according to how much time a vehicle spends
on the road. To reduce total miles driven, telematics provides a diverse array of features and
functions that help you:
• Make better dispatching decisions by viewing near real-time maps of all
vehicle locations and their status
• Route the closest vehicles to the next job and provide point-to-point
• Review fleet utilization reports to monitor overall fleet mileage trends
and develop more efficient routes
• Use landmarks and geofences to help reduce unauthorized and off-hours
• Use jobs management and dispatch capabilities to schedule and organize job assignments more
With GPS tracking,
you can control labor
costs and improve
service quality by
managing your entire
fleet more efficiently
A wireless fleet
provides the engine
required to streamline
process and manage
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One cost reduction area associated with telematics that often gets overlooked is the potential
to lower fleet insurance premiums. By itself, using a fleet tracking system to monitor vehicle and
driver performance is not enough to impact your rates. However, when used as part of a fleet safety
program that includes using GPS tracking data to coach employees to drive more safely, telematics
can often contribute to lower insurance premiums.
The key is showing your insurance carrier that you are using the GPS tracking data to improve fleet
safety. For example, suppose monitoring your vehicles identifies speeding as a fleet-wide problem.
Unless you take corrective action to reduce or eliminate the speeding, it will not have an impact on
your premiums. Not all insurance companies offer discounts for utilizing vehicle tracking systems.
However, many will consider your telematics safety program when setting their premiums.
RISKY DRIVER BEHAVIOR
Accidents, traffic violations and other risky driver behaviors can also add to fleet operational costs.
GPS vehicle tracking can help reduce these events and their associated costs by providing more
visibility into what your drivers are doing while on the road.
For example, automatic speeding alerts notify you when speeding incidents
occur, so you can take immediate corrective action. You determine the
criteria for the alerts – such as speed thresholds, time of day, type of
vehicle, etc. – and the system automatically sends the alerts when a violation
occurs. To further support your efforts to modify driver behavior, system
reports provide “after the fact” data on all speed-related incidents. These
customizable reports allow you to organize the data by driver, vehicle,
location, number of violations, and more. With this information, you can discipline drivers who
continually violate company policies and create incentive programs to reward drivers who comply
Speeding isn’t the only driver behavior that increases the risk of accidents or injury. With a vehicle
tracking system, you can also monitor seat belt usage, hard braking, and hard acceleration to help
improve driver safety. And in those rare cases where drivers might be falsely accused of speeding
or reckless driving, you can defend against these claims by providing precise data on the vehicle’s
speed and location.
THE VERIZON NETWORKFLEET SOLUTION
In well-managed fleets, everyone takes responsibility for controlling costs – not just management.
Networkfleet makes it easy to get the right information to the right people when and where
they need it, allowing you to correct problem areas and identify opportunities for improvement
throughout your fleet. When implemented with a disciplined, focused approach, Networkfleet helps
you control costs, automate processes to avoid wasting time and money, and utilize your people and
your vehicles more effectively. The result is a leaner, more efficient fleet that can help improve your
business and your bottom line.
To learn more about how our GPS fleet management solution can help you control costs and utilize
your fleet resources more efficiently, visit networkfleet.com or contact us at 1.866.869.1353.
accidents and traffic
violations and their
by providing more
visibility into what
your drivers are doing
while on the road.
When used as part of a
proactive fleet safety
can often contribute
to lower insurance