Fleet Tracking ROI
Does fleeting tracking pay off? Find out.
In surveying fleet management professionals, we’ve noticed a general feeling that ROI has been overstated by vendors over the years, leading to skepticism around ROI and the actual value to be gained. ROI is a multi-layered phenomenon, and it’s realized when management teams pay attention to the data they receive from fleet tracking and telematics systems and use that data to drive material changes in the way they manage operations, as well as the methods used to manage their fleets and drivers.
ROI has been overstated by vendors over the years, leading to skepticism around ROI
The ROI you can get from fleet tracking is directly related to how you use it. And the more of its functions you use, the more benefits you will get. Fleet tracking solutions are widely used in many industries to help business owners and managers increase the control they have over operations by improving communications and visibility of activity of their workers in the field and behind the wheel.
For busines and organizations that have fleets and a mobile workforce, making the investment in a tracking solution can bring immediate and sizable savings and service enhancements. For those that have already deployed a fleet tracking solution, ensuring that it is being used to its fullest potential will unlock other areas of improvement, leading to additional gains in profitability as well as increased revenue.
In this report, we examine the many ways that fleet tracking can change how an organization operates and how those changes deliver ROI through cost cutting and incremental revenue generation.
Analyzing data from thousands of customers representing tens of thousands of vehicles, we have found that Azuga Fleet customers typically realize fuel savings of up to 15%, reductions in unauthorized vehicle use of 12%, and productivity increases of 10%. Our customers are savvy organizations in a wide variety of industries including transportation, pest control, commercial security, specialty contractors, construction, equipment rental and leasing, manufacturing, landscaping, distribution and many more.
While fleet tracking solutions have always provided GPS location capabilities that enable operational improvements, the leading solutions are able to drive much greater ROI by helping management see actual data on execution in the field, labor utilization, vehicle and asset utilization, risky driving behaviors, vehicle health and maintenance needs. In addition, tracking solutions have streamlined how data is captured in the field and managed in the office by incorporating elements of mobile resource management (mileage capture, timecards, forms) and adding capabilities to meet compliance requirements for hours of service and DVIR, OSHA, and industry specific mandates.
Azuga has identified five sources of ROI, which are typically unlocked over time as an organization more fully adopts a fleet tracking solution and gets better at using the report and data available to impact how it operates. We’ll examine each source and the efficiencies and gains that are most frequently achieved.
FLEET AND FIELD OPERATIONS
The lowest hanging fruit is usually in the area of fleet and field operations. Deploying a GPS tracking solution quickly helps an organization identify and curtail workforce behaviors that drive up costs and reduce revenue, including excessive driving, long breaks, and unauthorized vehicle use. As organizations optimize the capabilities for vehicle heath and maintenance, they see an additional bump in ROI through more timely preventive service and lower expenses from emergency repairs and rental/replacement costs.
Leverage the Power of Fleet Telematics to Improve Driver Safety
SAFETY AND INSURANCE/RISK REDUCTION
As your organization begins achieving the operational gains above, you’ll naturally begin to see an improvement in safety. Eliminating long routes and unnecessary miles on the road means less exposure to accident risk. By lowering your team’s speeds, see fewer violations, and possibly fewer accidents.
Organizations that get the best safety-related savings are those that utilize the driver scoring tools available in leading tracking systems. Driver scoring takes the complex data from the vehicle and turns it into an easy tool to use to stack rank workers based on their driving behaviors, identify those that need intervention, and provide accurate, objective information to use in coaching meetings.
Driver scores are also the basis for an easy-to-manage system of recognition and rewards. Research from several organizations , including Towers Watson, a leading HR and Risk Management Consultant, have shown that programs that reward workers for goals deliver higher worker engagement, which ultimately helps in achieving a stronger culture, higher performance, and lower turnover.
Effectively managed fleet tracking programs are also valued by insurance companies, which are particularly interested in management systems and practices that improve safety and reduce accidents and claims.
Fleets that can demonstrate the use of driver scores, routing and stop data, and reports that show control over distracted driving are typically successful in working with their insurance carrier on premium reductions and even shared investment in tracking system deployment and expansion.
Does fleeting tracking pay off? Find out.
New Ways to Save with Fleet Tracking
Azuga’s connected vehicle platform is being used in new ways to help customers save even more from the data that comes from their vehicles.
Savings on Maintenance: We use data from your vehicle and locations to uncover deals on maintenance services you need. You can save up to $100 per vehicle per year.
Savings on Fuel Tax: Some states are experimenting with using actual miles reported by their Azuga device to calculate the fuel tax they should be paying, and frequently earning fuel tax rebates.
FIELD AND MOBILE WORKFORCE PRODUCTIVITY
As organizations get larger, making sure all mobile and field-based team members are focused and on task becomes crucial to ensure that work is getting done as planned, customer expectations are being met, and operations go smoothly. Fleet tracking gives you time, date and location stamped activity reports that you can compare against time sheets to verify accuracy. And keeping workers out of the driver’s seat and on task helps you get more productive and billable work done.
OFFICE WORKFORCE PRODUCTIVITY
The challenges of managing a mobile or field-based workforce for office managers and administrators are numerous: Dispatching and juggling scheduling changes on the fly, maintaining a positive attitude while communicating with frazzled team members and irritated customers, collecting and deciphering paper forms. It all can add up to back-ups, inefficiencies, errors and stress.
As a tool that bridges the enormous gap that exists between the office and the field, fleet tracking is a remedy for these issues, helping to enhance the dispatch process, enabling intelligent re-assignments when delays crop up, and enabling proactive communications with customers about ETAs.
The ROI from office efficiencies often come from freeing up your team from repetitive tasks so they can focus on higher-value tasks that improve service and efficiency.
STRONGER CULTURE
Managing your workplace culture is a challenge with many facets. Fleet tracking gives you a powerful platform to drive a positive message about safety and performance. The data supplied on behaviors behind the wheel can be the basis for activities that are proven to drive higher job satisfaction:
- providing better and more objective feedback and training
- providing recognition and rewards for performance against objectives
- getting rid of routine, repetitive tasks
For businesses with fleet and field based workers, it can be tough to simultaneously push for productivity, while also working to keep violations and accidents down. Fleet tracking with driver scores and rewards helps you demonstrate your commitment to your team’s safety and lets you back that up by using performance-based rewards that get workers on board.
