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Fleet Management Trends: Fleets Trust Technology to Build Resilient Businesses

By Verizon Connect December 7, 2020

The data is in: The Fleet Technology Trends Reports from the last three years show that commercial fleets continue to leverage telematics technology to build resilience and improve their business performance. These yearly surveys, conducted for Verizon Connect by Bobit Business Media, found that there are proven benefits across multiple key performance indicators (KPIs) for fleet operators that implement GPS fleet tracking technology. As an added bonus, fleets that invest in GPS fleet tracking technology don't have to wait long before realizing true value from their investment.

The report, based on surveys completed by more than 1,200 U.S. fleet managers, executives and other fleet management industry stakeholders, provides detailed insights into the value companies are achieving from their fleet technology investments. Key data points from the reports indicate benefits for commercial fleets such as productivity gains, streamlined ELD compliance, enhanced customer service and a reduction in operational costs.

Below, we’ve recapped the last three years of data and examined the definitive benefits for those who have embraced fleet management software.

The key takeaways from 2018-2020

In 2020

  • Adoption of fleet technology increased by 8%
  • 32% of businesses achieved a positive ROI in less than a year
  • In-cab video emerges as one of the most popular new technologies
  • Customer service improved by 54% because of fleet tracking

 In 2019

  • GPS fleet tracking usage was up 8.5% YoY
  • Users of GPS tracking technology reported a positive ROI in less than a year
  • An average of 8% drop in fuel cost was reported by the users of fleet tracking technology
  • 89% of fleet professionals said “ease of use” was their top deciding factor when choosing a GPS fleet tracking provider

In 2018

  • 97% of users considered their fleet tracking solution beneficial, with 74% calling it “extremely” or “very” beneficial
  • Across a variety of industries, GPS fleet management helps lower accident costs 16-30%, fuel costs 7-20% and labor costs 9-25%
  • 52% of respondents reported improved customer service and 49% reported improved productivity after implementing GPS fleet tracking

Use the data from the latest Fleet Technology Trends Report to make purposeful decisions for your fleet business. Download the 2021 report.

The industry continues to see significant adoption of GPS tracking technology

The data from the last three years clearly shows the continued widespread adoption of GPS fleet tracking technology. From 2018 to 2019, nearly two-thirds (64%) of respondents were using a GPS fleet tracking solution in their organization—an increase of 8.5%. Overall, 72% of all 2020 respondents currently use GPS fleet tracking software.

While enterprise and medium-sized fleets lead the way in adoption rates, small fleets have increased their rate of adoption by an impressive 12% from 2019-2020. This signals an upward trend on the value that businesses of all sizes place on GPS fleet tracking technology.

Here is a breakdown of the usage trends by fleet size:

 GPS fleet tracking users are reaping the benefits year over year

The right technology can give fleet-based organizations a serious competitive edge in the post-2020 landscape—and those survey respondents who have embraced GPS tracking are already recognizing its host of benefits. 80% considered it "extremely" or "very" beneficial in 2019—up from 74% in 2018. In 2020, a whopping 96% of fleets using GPS fleet tracking software found it beneficial.

Given the wide-reaching benefits GPS tracking systems can provide to fleet-dependent organizations, it’s encouraging to see so many companies embracing technology that can streamline costs and operations by:

  • Fleet vehicle tracking in the field in near real-time
  • Improving worker productivity
  • Encouraging safe driving
  • Providing dashboards, reports and alerts that allow operators to:
    • Track driver behavior like speeding, idling and harsh driving

A positive return on GPS fleet tracking investment can be achieved quickly

Almost half of survey respondents reported that once they had implemented a new telematics solution, it did not take long for them to realize a positive return on their technology investment. In fact, these companies are realizing positive ROI, and greater operational efficiency faster than ever.

In 2019, 22% of respondents reported positive ROI in less than three months, up 37.5% from 2018. In 2020, 45% of respondents said that they’ve achieved positive ROI in 11 months or less, up 18.4% from 2019. In 2020, across the board, the majority of those surveyed reported that they saw:

  • Increased improvements in critical areas such as customer service, productivity and routing, as compared to 2019
  • Decreases in fuel consumption, accidents and labor costs, which held steady at last year's percentages

Here's a breakdown of how quickly companies in a variety of industries were able to realize a positive ROI in 2020:

Keeping operating costs low is important

In a time of economic and regulatory uncertainty, keeping costs in check is vital for fleets. In fact, in the most recent survey, 44% of fleets rated increasing costs as a top challenge to daily fleet operations.

In each of the three Fleet Technology Trends Reports, we see significant cost savings results reported. Here is a breakdown of the data:

  • In 2018, many organizations were already seeing significant cost savings from integrated fleet technology: GPS fleet management helps lower accident costs 16-30%, fuel costs 7-20% and labor costs 9-25%.
  • In 2019, across a variety of industries, 36% of companies said they lowered their fuel costs as a result of implementing fleet tracking. 22% reported lower accident costs, and 13% said that technology has helped them reduce labor costs. 
  • In 2020, GPS tracking users across all industries decreased fuel costs by an average of 8%. Users also saw an average decrease of 11% in accident costs, and a decrease in overall labor costs of 10%.

Users of fleet tracking technology have realized remarkable benefits and improved profitability for their business, especially in these more challenging times. These undeniable cost savings are critical for fleets as we head into 2021 and face the new obstacles that the industrial and economic landscape might bring.

Verizon Connect

Verizon Connect Staff represents a team of professionals passionate about everything telematics. Get to hear about the latest trends, product features and industry best practices from the desk of Verizon Connect Staff.

Tags: Data & Analytics, Team Management

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