10 REASONS WHY FLEET TELEMATICS IS SO IMPORTANT TO YOUR DELIVERY BUSINESS
Are you into a delivery business and you are worried about how to manage your fleet?
Do you want to know how the exchange of information from the hub to the fleet impacts your business?
Firstly, what is telematics?
When you search the term online, you are often met with convoluted definitions that may not make much sense at first.
But I will explain it to you in the simplest form possible.
Telematics technology collects data through the use of devices such as dash cams, electronic logging devices (also known as an ELD), GPS’s and more. It involves road safety sensors, electrical sensors, electrical and electronic instrumentation, wireless communication, GPS navigation system, safety communication techs and self-driving autos.
Driving a truck (also referred to as a lorry across the pond) can initially seem like a daunting job to undertake. The sheer size and weight of trucks make them one of the most dangerous vehicles to drive.
So, putting telematics into consideration is crucial if you want to set up a transportation company or improve your fleet business.
Below are some reasons you should use telematics technology.
1. Telematics is necessary for safety
Keeping your employees safe is a top priority and you can utilize telematics for this purpose if implemented correctly.
For fleet safety, they can monitor any unsafe practices of driving, unacceptable high speeds and any form of accidents.
This will also boost safe driving behaviour because your driver knows he is being monitored and his driving pattern can be recorded or pulled up from the database on a whim. Telematics also guarantee the safety of the cargo itself from both damage and thieves.
Damage to the cargo can be prevented when the data sent to you indicate any danger such as an increase in temperature, which can affect refrigerated cargo or ajar door, which can result in loss of cargo.
Additionally, law enforcement agencies can utilize the positioning system to retrace the footprint of the vehicles in case of theft, track and then recover the vehicle.
Telematics has aided car and road safety. It ensures the communication of safety tips and measures to the driver while driving. It will reduce the accident your business is exposed to on the road.
The safety sensors installed on the vehicles will not only communicate impending danger ahead but will also reduce the risk it poses. An example is the anti-locking brakes or deployment of the airbag in case of collision.
You can also get information about the vehicle components that need maintenance or service. This synchronizes with the environment (like the warehouse) that have installed ground electronics to control speed and other activities.
2. You might need the records
When it comes to training or giving feedback to your employees, past and recent data can be shown in order to improve this.
This will also help you to ensure that future employees are fully aware of safety practices.
Tracking your fleet and having the report sent back to management will help the overall efficiency of the business.
In addition, it saves video recordings of accidental damage or collisions just in case a claim arises. Indeed, you need capital for investing in fleet telematics but the benefit you will get from it will make the investment worthwhile. The use of telematics will definitely increase your productivity in the long run.
3. Telematics helps you to plan your route
Telematics systems (such as GPS) also determines the appropriate routes for your drivers to take. By mapping out routes, you can choose the most efficient route and your employees will not be at risk throughout the journey.
This allows you to know the behaviour of each driver and make decisions accordingly. Data may be collected in real time (in transit) or after the trip is done. Information like the maximum speed of the driver, average speed, detours (if any, and how long it was), gearing, breaks etc. can be collected and analyzed to know the performances of drivers.
The vehicle behaviour can be recorded and utilize for making specific statements. The driver’s behaviour is the peculiarity of a driver over different vehicles and condition. This helps to improve the driving habit of the driver and human resource management is crucial in business. Telematics allows you to ensure that all driver is performing at an optimal level. It helps you to know the efficiency of a driver over a specific route and period.
Even though monitoring their driving habits may initially be seen as watching everything your employee is doing (and perhaps you do not trust them in their roles), it is keeping them safe and the delivery goods from being damaged that is most important.
4. Monitoring the details
You can capture if your drivers are on their phones, if they are wearing their seatbelts (through sensors) and how they unload goods through the flow of information between the vehicle fleet and the central authority. The setup includes communication between the fleet (vehicles on the move), the hub (the dispatching office) and the database centre (server).
It bridges the gap between external data and business data. External data include maps, terrain, weather data, and traffic information among others. The use of these data for the planning and execution of your delivery business will definitely make it easier for you to perform better.
This will also help you to reduce any expenses spent on accidental damage and improve customer satisfaction in the long term. When you use telematics, you have a piece of good knowledge about your cargo and vehicle’s whereabouts. This transparency will allow your customers to trust you more.
With efficient monitoring, you can ensure that your customers are receiving an efficient service and pristine goods.
5. Telematics records your working hours
No one likes to feel fatigued or overworked.
Telematic systems such as an ELD allows employees to see their work hours, how many stops they have left to do and how long they have left of their shift.
This will directly boost employee morale and prevent them from falling asleep at the wheel.
Thousands of people are in accidents every year due to fatigue. Therefore, by implementing an electronic logging device, your employees will know when they should take breaks.
6. Emergency services
As telematics systems record data in real time, if a vehicular issue or collision should arise, it will help you recover by informing your accident helpline automatically.
If your truck is stolen, the GPS can also be used to track the location of the vehicle. This allows you to keep the police informed on time.
Effective use of telematics ensures that both cost and time are also saved. Quality time can be realized from the avoidance of delays, bad roads, and traffic. Time wasted on corrective measures could be gained when preventive measures are in place. Since time is literarily money in business, time saved is money saved.
Time-saving also means that delays in delivery will not or rarely happen because you have contingency plans. Telematics has taken into account the traffic on the road and the state of the vehicle. Time is also saved when less time is spent on predictions.
Read: Work smarter, not harder
7. Saves you extra costs
Reducing cost is the target of any business. The data gathered via telematics include mileage, fuel consumption and savings record, location and average speed among other information.
For a fleet (small or large) the reduction in operational cost will surely boost profits and fleet telematics makes provisions for that. The cost can be reduced on fuel consumption, scheduled and non-scheduled maintenances and downtimes.
8. Telematics helps you to achieve regular maintenance
You can keep track of your whole fleet and the maintenance of each vehicle is not left out. It tells you when to service a particular part of your vehicle such as a change of vehicle oil. Telematics keeps an account of how often you should maintain your vehicle. As you cover more grounds and the number of vehicles in your fleet increases, you will need to be more efficient because little inefficiency will be magnified.
9. Customer satisfaction
You know what we happen if your customers rate you 5 stars each time. Good business thrives well when the customers are satisfied with the service they have received. Telematics will bring you closer to satisfying your customer.
When you give information to clients, you have confidence in what you are saying because you know it is not just a wild guess but a fact. Even when you give estimates of arrival, you do so based on calculations.
10. Diversification and added knowledge
With telematics, you could diversify into a car sharing business. Car sharing is a service where the vehicle is rented out for a short time, which is only made possible because telematics provides a platform for the members tracking and fares quotes.
Another major importance is that it allows a client to monitor the location and status of the vehicle carrying their cargo in real time. Hence, Telematics makes it possible for control both at the business end and the customer end.
In conclusion, fleet telematics helps you to manage your fleet of ships, motor vehicles (bikes, cars, truck and trailer) for maintenance, financing, scheduling, drivers, safety and optimum utilization. The purpose is to ensure that the vehicles are operating efficiently and you are making your entitled profits.
I expect that you will start planning to use telematics after reading this article.
I hope you found enough reasons to start. Which of the important factors do you find most necessary?