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Our customers frequently report that the best way they realize results from their AVL (automatic vehicle location) solution is knowing what to do with all the data the solution provides. Webtech Wireless solutions contain extensive tools (such as score cards and reports), designed to show you how your fleet is operating.
Here are 5 ways to lower costs:
1. Re-allocate Resources
A GPS/AVL fleet management solution allows you to see where your vehicles are in real time. Knowing this enables you to allocate resources where they’re most needed. For example, Webtech Wireless’ Quadrant Manager uses the Find Nearest Vehicle feature, which also shows the best route to the desired location. This saves you in fuel costs and provides better service to your customers. Simply put, increased visibility into your mobile assets lowers your operating costs.
“Depending on the cost of fuel, distance traveled, and the size of your fleet, a 0.1 mpg improvement in fuel economy justifies the entire cost of a telematics deployment.”
2. Reduce Unnecessary Idling
A truck burns one gallon of fuel per hour of idling. Idling times are shown to range from 500 to more than 4,000 hours per year. How much idling is unnecessary in your fleet?
3. Improve Driver Behavior
Our customers tell us that, after unnecessary idling, driver behavior (speeding, fast accelerations, and harsh braking) wastes more fuel, thus driving up the costs of doing business. They find that improving driver behavior (i.e., training and motivation programs) is the best way to eliminate these wasteful practices.
Accidents are costly. The more serious the accident, the more time and attention management must give to deal with it. Vehicle repair costs can vary from $3,000 to $5,000 for a fender bender to $50,000 to $100,000 for a serious accident. Liability risk, human injury, and brand reputation all create significant risk for an organization.
“There are so many unknown losses from accidents. There is lack of productivity when we all have to turn our attention to managing an accident. All kinds of personnel wasting their time dealing with the accident and managing the consequences. The cost itself can be really bad. Trucks are down, customers are upset, and it is an amplification of a problem.”
The best way to manage this risk is to know what drivers are doing, where they are, and how fast they are going. The key is to stay focused on the long‐term accident rate, while providing ongoing feedback to drivers.
Webtech Wireless vehicle telemetry (telematics) solutions provide you with the data (such as Vehicle Diagnostics, Driver, and other reports) that you can use to pro-actively monitor driving and design solutions that will improve driving habits.
“A 22% reduction in fuel consumption can be achieved simply by reducing your speed…”
4. Eliminate Paper-based Reporting
Webtech Wireless’ Quadrant solution provides state-of-the-art Hours of Service (HOS) reporting that will save you thousands of dollars in errors, overtime, and even non-compliance fines.
Without an Electronic Logging Device (ELD) technology, formally known as an Electronic On-Board Recorder (EOBR) solution, the most common practice is for paperwork to be completed at the end of the day—almost always billed as overtime hours. Quadrant’s MDT device records HOS information automatically and reports it to head office in real time.
Steve Gaston, Information Services Manager at Sierra Pacific Industries, estimates that before their Quadrant implementation, drivers were spending over twenty minutes of overtime per day filling out paperwork. This time has been completely eliminated by their deployment of a complete Quadrant solution. Based on 225 drivers working 200 days/year, their savings in costs were over $300,000 per year.
5. Minimize Risk
Being able to pro-actively minimize risk also lowers operating costs. For example, fines for inaccurate fuel tax reporting can run into the hundreds of thousands of dollars. Companies take enormous risk with manual records. Once a fuel tax audit starts, it is almost impossible to predict how long and expensive the resulting audit will be for the company. This risk is removed once fuel tax reporting is automated.
Tim Vander Pol at Peninsula Truck Lines estimates that before their Quadrant deployment (combined with ProMiles), drivers were spending 15 minutes of driver time every day filling in fuel-tax paperwork. Accurate fuel-tax reporting saves money.
Implementing a telematics solution also saves money through fleet insurance premium reductions. Insurers value anything that minimizes risk and rewards companies that undertake telematics solutions. Also, after a qualifying period, further reductions are possible given calculations on fleet safety performance.