There’s no denying that technology is changing business environments at a startling pace. If businesses are to remain competitive in the next decade, they must make investments in the digital transformation journey for the long-term. Fleet management, a sector that was once dominated by infrastructure and fleets, will witness radical changes in the upcoming years.
While disruptive technologies will change existing processes and systems, these changes bring a lot of benefits for all stakeholders in the company. Below we’ll go through 5 advantages that every fleet organization can gain by staying on top of fleet technology and trends.
1. Cut Operating Costs
One of the biggest benefits of fleet technology is the creation and effective use of data. Newer technologies like telematics and GPS tracking provide fleet managers with additional information that can help them make better-informed decisions. Overall, data and smarter decision-making can lead to a reduction in operating costs and more efficient operations.
For example, according to Fleet Auto News, fuel is considered the second largest expense for fleets and accounts for up to 33% of total expenditure.
With fleet management software, fleet managers can control fuel costs by alerting drivers of idle time, reducing out-of-route mileage, and detecting aggressive driving behaviors.
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2. Boost Profits
Besides reducing operating costs, fleet management software can also improve customer satisfaction and help your organization gain more clients.
In the transportation and logistics industry, customers often complain about late deliveries, the location of the vehicle, and even driver activities. With fleet management software, you can meet customers’ expectations by giving them accurate delivery times and vehicle activity. You can also provide real-time updates to your client and inform them of any changes.
According to an Aberdeen Research Whitepaper, 50% of best-in-class companies have the capability to track inventory and assets in real-time, thanks to optimized fleet management. Leveraging new innovative tools, such as data flows, IoT inventory management, and telematics, gave them an 18% higher customer retention rate and an annual customer satisfaction increase of 12%.
3. Stay Competitive
Unfortunately, staying on top of new technology trends is no longer just an option; it is now a necessity for businesses to remain competitive. Newer fleet technologies provide significant benefits, and successful early adopters will have a major competitive advantage against laggards in the industry.
While staying on top of fleet technology is vital for future growth, Shell’s Future of Fleet Report revealed that a knowledge gap in the industry stops 1 in 3 fleet managers from adopting new technologies. Organizations should equip fleet managers with helpful resources and additional training. For example, fleet companies can provide regular online skills training programs with fleet technology companies so managers can continually learn and upskill on how to use new innovative tools.
4. Improve Safety
According to a study conducted by Virginia Tech Transportation Institute’s National Surface Transportation Safety Center for Excellence on high-risk trucking companies, 6 out of 9 carriers reported that, after building a strong safety culture and adopting at least 1 new safety technology, carriers significantly improved safety performance outcomes. Safety technologies like video-based safety monitoring systems, blind-spot detection, and stability control systems reduced the number and severity of crashes and improved overall safety scores.
Matthew Camden, the project’s principal investigator and senior research associate for VTTI’s Center for Truck and Bus Safety, noted that “Overall, the carriers attributed their success not to one single fix solution, but rather the fact that they adopted a comprehensive approach to safety culture and practices within their companies, specifically the adoption of advanced safety technologies.”
5. Streamline Compliance
Ensuring fleet compliance can be tedious, time-consuming, and tricky, as keeping a record of inspections and servicing history using paper-forms is slow, inefficient, and often prone to human error.
For example, completing fleet inspections using paper can be difficult as drivers juggle pen and paper, while simultaneously examining assets. With electronic inspections, the driver can use their mobile device, which frees up the other hand to assess their assets. Once complete, the driver can immediately send the information to the managers, which eliminates communication lag time. By staying on top of fleet technology, managers and fleet operators can improve compliance when it comes to inspections and vehicle maintenance.
According to Katya Atanasova, the Vice President of Shell Fleet Solutions, “The pace of change in commercial fleets is accelerating rapidly, and the industry will look radically different within the next 20 years. Alternative fuels, data analytics, automation, and greater connectivity will require new business models, skills, and partnerships between fleet operators, manufacturers, energy and technology providers, and startups.”
That is why it’s vital for fleet owners and managers to keep up to date with emerging fleet technologies constantly. Fleet technologies help businesses stay competitive, as they reduce operating costs, boost profits, improve safety, and streamline compliance. If you want to gain a partner to help you stay on top of emerging fleet technology, learn more about our fleet managment solutions here.
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