How Can Businesses Reduce Out of Office Vehicle Mileage?
What is Telematics?
The word telematics comes from combining the words telecommunications and informatics. So, in the broader sense, telematics can be regarded as any integrated use of telecommunications technology with information technology and communication.
Telematics is a pioneering way to track fleet assets as it provides the company with the ability to receive, send, and store data concerning fleet cars, such as fleet maintenance schedules and, of course, mileage, using telecommunication equipment.
However, besides allowing fleet managers to track all kinds of data related to the fleets they manage, telematics also helps them track the location of the fleet vehicle at specific times which can reveal potential abuse of vehicles. Right now, it is a widely used method to help optimize fleets of vehicles.
How to Use Telematics for Route Optimization
The miles driven by fleet employees is a large area for fleet savings. Reducing the miles a fleet vehicle travels per day even by a little can have significant savings. Telematics has route optimization capabilities that can not only help fleets save fuel but also eliminate personal use or unauthorized usage of the fleet. Cutting out unnecessary, out-of-route trips is a great way to reduce fuel costs, considering that a large part of your fuel bills may come from the out-of-office usage of take-home fleet vehicles. Plus, you increase the security and safety of your fleet, reduce operating expenses, and minimize labor costs from repairs and early maintenance.
Telematics & GPS Vehicle Tracking
Telematics and GPS have a lot in common. Despite what some people think, they are not competing systems. On the contrary, GPS is part of a telematics solution. In fact, it is the very heart of the system that collects real-time key data about the fleet vehicles' engine status, asset operation, and current location. To be honest, a GPS vehicle tracking unit connected to the fleet vehicle's electronics can monitor just about any vehicle metric. Then, a telematics solution takes that data and sends it to central computers through the cellular network. The data can be converted into usable information through an elaborate processing system before it can be accessed from any computer connected to the Internet.
However, for all this to work, it is paramount to have your employees' support. So, you may need to explain how their behavior can affect the company and why the new parameters have been put in place. Make sure they understand that whatever decisions you have made are for a reason. Studies have shown that one of the best ways to ensure you have your employees' support with your route optimization efforts is by providing incentives to the ones that manage to maintain the safest and most efficient records.
Overall, telematics solutions save the fleet quite a lot of money, allowing managers to run a more profitable fleet and improve business efficiency.
About The Author
Richard Howard brings nearly a decade of front-line sales experience at RAM, having supported businesses across diverse sectors with their fleet management and asset tracking needs.
Throughout his nine years with RAM, Richard has developed a comprehensive understanding of the operational challenges that trades and field service businesses face daily. His client-first approach focuses on matching the right technology solutions to real-world problems, helping fleet operators gain better visibility, control costs, and protect valuable assets.
When he's not helping businesses optimize their fleets, Richard is a passionate traveller who loves exploring new destinations, experiencing live music, and discovering great food wherever he goes.
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