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Cost savings can be made with the help of a GPS tracking solution

By Verizon Connect Team February 1, 2023

Cost saving is always key for any businesses because reducing a company’s overall spending directly impacts the bottom-line. In today’s climate it is difficult to keep businesses competitive with volatile of fuel prices, changes in the global and local market, and daily challenges.

In this case, saving costs for your company requires small actions that all add up. Significant savings can be made by improving efficiency and leveraging strategic areas that can help make a difference in fuel consumption, vehicle maintenance, routing, smart scheduling, as well as dispatching, to list a few areas.

The last Fleet Technology Trends Report Survey conducted for Verizon Connect by ABI Research reported that more than 300 industry professionals in Australia and New Zealand highlighted the added value fleet businesses are achieving by investing in fleet tracking technology to cost saving. 

In fact, these professionals explained the most important daily challenges they face and how fleet technology helped them to reduce costs in areas such as fuel consumption, labour cost and vehicle maintenance.

Let’s dive into the top 5 challenges that fleet managers encounter in their daily operations: 

According to our survey, 71% of businesses in Australia and 69% in New Zealand said that increased costs was one of the biggest business challenges (extremely or very impactful) followed by fuel (64% in Australia and 68% in New Zealand), labour costs (64% in Australia) and meeting customers’ expectations (59%) in New Zealand. 

Discover the top 10 challenges that fleet managers and business owners face on a daily basis download the Fleet Technology Trends Report for Australia and New Zealand.

Benefits of Fleet technologies with cost savings

Across all industries, GPS tracking users decreased fuel costs by an average of 12%. Users also saw an average reduction of 16% in accident costs and a reduction in overall labour costs of 15%.

Also, all industries reduced their vehicle maintenance costs by 14% which is a potential benefit of GPS fleet tracking technology.

How fleet technologies can help achieve these cost savings?

Fuel cost reduction: Have a clear and detailed overview of the fuel consumption of all your vehicles for parameters like fuel used, distance traveled, harsh driving events, speeding events, idling. Discover if poor fuel efficiency is costing you or help identify vehicles experiencing fuel efficiency issues. Efficiency is displayed as an overall positive or negative cost based on estimated fuel consumption and mileage attained and you can take action to boost fuel efficiency in your company’s culture. 

Accident cost reduction: Fleet management technologies like video telematics can help you see what is happening on the road. Receive an alert in the event of harsh driving, and access to the video footage to protect your drivers and business from false claims and reduce expenses associated with accidents. 

Labour cost reduction: Manage your team’s time more efficiently with better route planning to avoid driving extra kilometres and traffic jams, so you have more time to meet your customer’s needs instead. You can also monitor how operations are developing in near-real time and get an insight into various data points, such as time spent with customers, unnecessary stops made, route departures, or excessive downtime, among others. All this helps to ensure that operations are running as smoothly as possible, giving your team more time to accomplish daily planned tasks. 

Vehicle maintenance cost reduction: Boosting a vehicle maintenance program with the combined help of fleet management, vehicle data and known maintenance needs can reduce vehicle maintenance costs. You can also receive alerts regarding vehicle issues and regular vehicle check-ups are easier thanks to detailed records.

To learn more about how your peers view and value GPS fleet tracking technology, download the full 2023 Fleet Technology Trends Report for Australia and New Zealand.

Find out how our platform gives you the visibility you need to get more done.

Verizon Connect Team

The telematics industry is moving at a fast pace. With new developments, use cases and feature sets emerging every day, it can be challenging to make the right decision for your fleet business. Verizon Connect Staff is conceptualized to be a partner for your business and help you make smart choices based on useful content.

Tags: Cost Control

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