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How to Reduce Your Expenses
As a fleet owner, your day-to-day costs can quickly add up. What you don’t know is there are further hidden, expensive...
Read moreThe service industry is rapidly growing within the Australian economy. According to the Australian Bureau of Statistics, “Service industries drive strength in gross value added” (1). In fact, services “account for about 80% of Australia’s domestic production, both in gross and value-added terms” (2).
According to the OECD, “real GDP growth is projected to slow from 1.9% in 2023 to 1.4% in 2024 before recovering and rising to 2.1% in 2025”. Also, “Inflation will moderate, aided by abating global inflationary pressures, though inflation of some services components is anticipated to remain elevated throughout 2024” (3).
In this sense, the Reserve Bank of Australia explained that “growth in the Australian economy is expected to remain below trend over 2023 and 2024 as cost-of-living pressures and higher interest rates continue to weigh on demand” (4).
The current economic climate is also expected to continue facing difficulties this year. Companies in the service sector should focus on establishing a strong foundation and critically reviewing their operational efficiency, performance, cost-effectiveness, sustainability, and fleet emissions. Additionally, they should prioritise developing a strategy that centres around customer satisfaction to enhance their overall performance.
The good news is that advanced telematics technology can help transform businesses in the service industry to work smarter.
Let’s dive into what the future of the service industry looks like:
1. Using smart data to reduce fleet costs
Everyday responsibilities often prevent fleet managers from having the time to assess the performance of their vehicle fleet. If they were to use sophisticated fleet management technology, they would be able to obtain both a comprehensive and detailed view of the areas where operational costs could be reduced.
A good starting point for any company is to have a detailed overview of its operating costs. This includes knowing the fleet’s total fuel usage and the specific fuel consumption for each vehicle, the cost per operation, and identifying hidden costs that not only increase fuel consumption but also put the safety of equipment and vehicles at risk.
Factors such as excessive speeding, prolonged vehicle idling, insufficient vehicle maintenance, and suboptimal route planning could be diminishing the profitability of the business and unnecessarily increasing operational costs.
Regularly analysing operational efficiency is essential for businesses to enhance cost-effectiveness, strengthen their competitive edge and increase profitability.
In fact, companies in the service industry that have implemented telematics have managed to achieve reductions in fuel costs (24%), accident costs (28%), labour costs (23%), vehicle maintenance costs (19%), and insurance costs (22%).
Download the new and discover how GPS tracking technologies are shaping the service industry.
2. Promoting a customer centric culture is
A customer centric culture is a game changer for the service industry. That’s why it’s necessary to provide accurate ETAs (estimated time of arrival) to build trust with customers . By sharing meaningful information with customers, they become more engaged in the process, gaining insights and exerting a degree of control over the scheduled operation and service.
This extra level of trust can help promote customer retention and loyalty, which is key.
According to our latest Fleet Technology Trends survey, after implementing telematics technology.
Download the new Advanced Fleet Management for the Services Industry 2024 and discover how GPS tracking technologies are improving the day-to-day operations of companies in the service industry.
3. Reinforcing team safety at the core of the business
Safety must be prioritised as a fundamental pillar. Promoting a safe environment where workers can carry out their activities in safe conditions is essential.
For businesses that rely on vehicle use, factors like ensuring that vehicles are well-maintained, selecting safe routes, and effectively planning the workday are crucial to keeping the equipment in safe working condition.
Advanced telematics can help you in all these areas, which is a great way to prioritise the safety of your team and enables you to improve safety measures in a comprehensive way.
In fact, the latest Fleet Technology Trends survey in Australia
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Sources:
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(1-2)Australian economy grew 0.2 per cent in the September Quarter | Australian Bureau of Statistics (abs.gov.au)
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(3)https://www.oecd-ilibrary.org/sites/9789264303911-4-en/index.html?itemId=/content/component/9789264303911-4-en#:~:text=As%20in%20other%20industrialised%20economies,added%20terms%20(Figure%201.1).