Want to impress your leadership team? Of course you do. How do you do it? Show them how strong the ROI of connecting your fleet can be! In this post we’re giving you a few examples from our customers who realized significant ROI after implementing a fleet monitoring solution.
Fleet performance is arguably the area where you’ll gain the most substantial ROI because telematics solutions provide the critical information needed to improve overall fleet performance. Without a telematics solution, you have no visibility into the productivity of your fleet.
Once you fully automate the tracking of your vehicles with a telematics solution, you’ll get a benchmark and then start tracking areas for improvement. Our customers have all seen realizable results since deploying fleet management systems. For example, a longtime customer of BSM, a Geotab Company, used 15% fewer trucks to haul the same volume after they implemented the solution.
A typical truck burns one gallon of fuel per hour of idling. The national range of idle time for fleets is 500 to 4,000 hours annually per vehicle. Let’s stay on the conservative end of that range, and assume each truck in your fleet of 20 idles 500 hours every year. The national average cost per gallon of diesel is sitting just over three dollars, so your 20 trucks are costing you $30,000 each year just for sitting idle.
Nearly every BSM customer sees an immediate drop in idle time after they implement telematics for their fleet since they can now optimize routes and maximize vehicle efficiency. Now is an excellent time to discuss the human factor. Fuel savings of 10, 20, even 25% are possible by modifying how drivers handle idling, speeding, and their behaviors behind the wheel. Making drivers aware of these benefits, providing the necessary training, and ongoing feedback will allow you to realize the most significant ROI.
Managing a large fleet of vehicles and drivers requires taking on a lot of risks. Telematics solutions will help you manage and lower your organization's susceptibility to these risks by providing key insights into productivity, reputation, routes, maintenance, and performance. Oh, and did we mention saving you a lot of money in the process?
Let’s look at the everyday risk you take on when your drivers take to the road. The insurance premiums and expenses associated with accidents when they occur add up. The more serious the accident, the more time and attention required 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, so BSM Technologies provides monitoring solutions via our telematics suite so you can reduce the likelihood of a driver opening him or herself to these risks.
The Tip of the Iceberg
This post merely scratches the surface of the savings your organization can realize once you implement a BSM telematics solution. Call or email us so we can dive deeper into mapping out specific cost savings and efficiency gain for your company.
And for a deeper dive into the comparison between ROI and COI and how they’re used to measure the benefits of telematics for your organization, check out this post.