Many Australian small businesses are experiencing turbulent times, particularly those that manage commercial fleets.
Due to rising fuel costs and global instability, SMEs have been under considerable pressure to employ fleet management technology to enhance productivity and optimise operations. Besides saving tens of thousands of dollars, benefits include improving customer satisfaction and experience.
Beyond GPS tracking, telematics has much more to offer.
The concept of telematics goes far beyond tracking a car with GPS. With telematics, vehicles are equipped with small hardware devices that collect real-time operations data. Using the technology, businesses can monitor the exact location of their fleet throughout the day, which can be used for rerouting deliveries as necessary and quickly adapting to situations beyond their control.
As a result of AI-powered video telematics that incorporates driver and roadside cameras, fleets are experiencing a rise in safety and efficiency. They serve as unbiased witnesses, a unique driver training tool and a goldmine of data for businesses seeking results and building resilience in turbulent times.
A Verizon Connect report on Fleet Technology Trends Australia and New Zealand 2023 reports that Australian and New Zealand fleets have noticed tangible results from video telematics.
The cost of accidents has been reduced by 57 per cent, and insurance costs have been reduced by 44 per cent based on a survey of 300 fleet managers, mobile businesses and executives.
With the help of fleet telematics, Verizon Connect analyses US customers’ KPIs and finds that companies are spending 18 minutes less idling and making 0.94 more delivery stops per day due to route optimisation, a 20 per cent increase. Additionally, the data showed an 11 per cent reduction in kilometres per day, equivalent to 27.5 km in the distance travelled on average daily.
The power of telematics allows businesses of all sizes to gain more insight into usage and route patterns, resulting in improved efficiency and lower operating costs. Those struggling with lower profit margins can benefit from this to lower fleet operating costs.
The report states that if a fleet of 10 vehicles were managed, a company could save US$2,574 annually. A net savings of $13,200 can also be achieved by reducing unproductive mileage by 17.2%. This would amount to up to $16,000 in annual savings for an Australian company with ten vehicles.
Global uncertainty means it is hard to forecast the price of fuel, which is becoming an increasingly high cost for Australian businesses. A study conducted by ACA Research in September found that 54% of SMEs were very concerned about rising fuel prices.
Tracking and analysing data can assist in optimising costs and fuel use by analysing drivers’ behaviour, purchasing options, and maintenance. Reducing fuel consumption by actively monitoring speed, idling, and routing is also possible.
There is a high level of positivity with regard to in-cab video, according to Verizon Connect’s Fleet Technology Trends Report, which surveyed companies from construction, general freight, services, and government.
There is plenty of evidence worldwide that telematics can be a powerful tool in managing the volatility business faces due to turbulent times. The practice is still largely unimplemented in Australia. Small Australian businesses can benefit from fleet technology by driving efficiencies and improving best practices to weather uncertainty.
