Loading...

Fleet Telematics – Is it worth a cup of coffee?

WE SHARE OUR BEST IDEAS IN OUR BLOG

Vehicle Telematics as a Service provided in the Cloud is having a dramatic effect on the total cost of ownership of vehicles by enabling telematics in fleets be they large or particularly if they are small <10. A market previously unable to access the benefits of Telematics for Fleet Management.

Vehicle Telematics as a Service provided in the Cloud is having a dramatic effect on the total cost of ownership of vehicles by enabling telematics in fleets be they large or particularly if they are small <10. A market previously unable to access the benefits of Telematics for Fleet Management.

Access to such systems has historically been a very high cost in hardware, software or communications charges. This is no longer the case and not restricted to the large fleet with deep pockets to invest in standalone or tailored single company solutions. Trying to recall the costs of just a decade ago is like trying to keep track of how rapidly storage jumped from MB to GB to now TB in the same period. But as an example for just GPS tracking the most basic of telematic services, was in the vicinity of $15 a day in 2005 just for the communications. Today simple GPS tracking for vehicles can go as low as $1 per business day for the software and communications plus the cost of devices. The cost of a device depends on quality of a tracker if you dont want more than a 2005 style service which many providers still only offer today. If you want to jump forward ahead of your competition and not just track then cost is more, BUT not that much more!

Total Cost of ownership by example may vary between $6500 and $12,000 a year for a light duty trade vehicle. Potentially far more. But using those numbers the total saving that can be anticipated if you have the right data to manage the use of the vehicle and driver better is up to 15% of the TCO according to recent studies internationally and using the latest technologies. So a benefit between $1000 and $1,800 a year per vehcile depending on your fleet. For something like a 5-year leased vehicle the per year cost to put a quality system in place and hit all the benefits is expected to be around 3% of your TCO per annum per annum per vehicle, ie an incremental cost per vehicle. That’s typically less than half a cup of coffee a day per vehicle to get the best from your investment build a more efficient business. These ROI can be far higher where the route management is critical in your business. For more information on detailed benefits follow this link http://drivetechaustralia.com.au/#connectedcarforfleets

Leave a Comment