Running a business is becoming more expensive than ever. But as anyone managing a fleet knows, the escalating fuel costs are biting deep. The right telematics solutions can help drive efficiency across the fleet and ultimately help push down those fuel costs.
Currently, fuel costs are the second most significant factor in the TCO of most fleet vehicles (with the depreciation of the asset being the largest). There was a reprieve in Australia earlier in 2022. Prices dropped back below $2.00/litre, but they are starting to creep upwards again:
For fleets that have a lot of vehicles on the road, clocking up hundreds, and thousands, of km, that blue line easing upwards has a meaningful effect on the business. By driving up the total cost of ownership of each vehicle.
Inflation and other pressures are likely to continue this trend in the medium term. Fleet managers should now proactively set their businesses up for maximum efficiency.
The best way to manage the costs is to ensure that the fleet is well maintained, travelling efficiently and on the most effective routes, and strategically deployed.
How telematics solutions help
Four areas are related to fuel consumption where telematics solutions help to reduce costs:
Reducing raw fuel consumption
This is the biggest one. An adequately deployed telematics solution will help drivers take better routes. Allow fleet managers to plan for minimal time on the road, and, through the training of the drivers, even help to minimise the amount of high fuel consumption actions that the driver takes while on the road. Research shows that drivers that shift from driving aggressively to more restrained driving habits improve their fuel economy by up to 37 per cent.
Fuel credit accuracy
In addition to saving on raw fuel costs, the accuracy of a good telematics solution allows the fleet manager to have accurate reporting for claiming fuel credits. In addition to ensuring that all compliance audits are smooth and efficient This accuracy helps avoid excess spending from lost credits.
Maintenance costs
Because the vehicle is better managed, drivers are monitored and instructed to make better use of breaks and turns. Scheduled maintenance checks are better compiled, and the overall cost of maintaining a vehicle declines. Better maintained vehicles that are wearing at a slower rate are also optimised for maximum efficiency with fuel consumption.
Minimising the impact of theft/unauthorised use
Surprisingly, the unauthorised use of vehicles is one of the biggest causes of fuel consumption. Because good telematics solutions have pinpoint accuracy and can quicken the recovery of a vehicle. It helps to minimise the loss of fuel in this way.
This article has just looked at the fuel savings that telematics solutions can drive. In practice, this is just one area where telematics can underpin better fleet management. Ultimately resulting in a better, more efficient, and more productive organisation.
For more information on the broad suite of benefits that come from telematics solutions, contact us today for more information.