Small and Medium Business Case Studies on Telematics ROI
In this post, we describe two case studies that illustrate how small and medium businesses are using telematics to save money and increase productivity.
Engine data, driver behaviour, and Big Data are still new concepts — except for those companies who are already using telematics and want to get more Return on Investment (ROI) from their fleet.
Small and Medium Business Case Studies
In general, key performance indicators (KPIs) for small and medium fleets in Spain are typically the same as in other markets. Fleets focus on fuel consumption to detect fuel theft. HR departments look at speeding events, driver seat belt usage, and driver behaviour to reduce risk and increase safety and security.
However, every fleet is different and will have their own specific goals. Let’s look at the following two examples of how two different businesses use telematics:
Case Study 1: Food Production Company Saves Money on Mileage
Challenge: Company Abc is in food production and uses multiple contractors to transport their products. The contractors are paid by mileage, and drive their own trucks. The mileage is paid for trips from the factory door to the farm, and the mileage inside the factory facility is not included in the calculation.
Solution: A starter solution with a custom daily report to highlight the mileage of each truck. This report shows the mileage inside the factory perimeter as well, so the customer can measure exact savings in mileage – adding up to hundreds of kilometers saved per day! The higher level plans were not necessary at this time but, if they wish to expand their solution to include driver behaviour and fuel consumption details, it’s easy to do so.
Case Study 2: Company Verifies Accuracy of Vehicle Testing with Telematics
Challenge: Company Xyz has a small fleet of hybrids and is engaged in testing vehicles. Their main goal is to measure driving behaviour and compare fuel usage versus electrical usage. The company also needs to verify the accuracy of the data for speeding and other harsh driving events.
Solution: A custom dashboard report to allow the customer to easily view the percentage of fuel consumption versus electrical usage. The high quality of data we provide gives the customer confidence that all their testing measurements are accurate.
These examples demonstrate how important it is for your telematics solution to be flexible. A platform that is user-friendly is also essential for maximizing the telematics value for the customer.
Tips to Selecting the Best Telematics Solution for Your Business
Ask Questions Now to Avoid Problems Later
There are a ton of telematics providers that promise great functionality at very low prices. In our experience, we’ve seen far too many of these providers suddenly vanish, leaving their customers with useless hardware installed in their vehicles.
In many of these unfortunate cases, customers were attracted by pricing or an enticing sales pitch. When looking at different suppliers, they never asked some key questions such as:
How stable is this company’s technology?
How much revenue do they spend on developing future technologies and services?
What measures does the company take to protect personal data?
What security do they deliver on the device and cloud sides?
And most importantly:
What value will this solution bring to my business?
Can this solution be scaled regionally and globally?
These questions may seem obvious. I saw many small businesses implement telematics without considering these crucial topics, only to discover later on that the technology did in fact not always fit their needs.
Top Features to Have in a Telematics Solution
Some of our customers were already using a telematics solution prior to switching over to us, so they ask directly for specific improvements that their previous fleet solution did not offer.
Examples of key added value features:
Reliability and Service Availability
Good Customer Support
Easy Report Customization
Wide Engine Parameters
Source:Small to Medium Business Case Studies by: Antonio Venutelli, Solutions Engineer at Geotabhttps://www.geotab.com/blog/small-and-medium-business/