Great managers look for ways to improve their operation while finding ways to cut unnecessary costs. Managers that fail to implement effective technology could pay a high price, we also highlighted other very common mistakes managers make that you should avoid.

While Telematics has been accepted in our industry as something worth investing in, how much on average cost savings can happen when you implement a telematics system in your fleet? To get that answer it is important to clearly define telematics and its origin.

What is Telematics? And Where does the term come from?

Telematics is a translation of the French word télématique which was first coined in a 1978 report to the French government on the computerization of society. It referred to the transfer of information over telecommunications and was a merging of the French words télécommunications (“telecommunications”) and informatique (“computing science”). (learn more)

That transferring of information between the vehicle and computer/tablet happens instantaneously nowadays, that’s data in real-time coming in and being displayed to managers. It goes beyond merely GPS tracking, there’s information from every aspect of a vehicle. Having full visibility is what makes telematics systems worth having.

But how much average cost savings can you expect with telematics?

Lower Labor Costs

Fleets that do not utilize telematic data to improve productivity spend nearly 12% more on labor costs. A good telematics system will show a full productivity analysis of all of your employees and will display if they are spending their working time appropriately based on vehicle usage.

Telematics can provide managers the ability to see if maybe they are overstaffed and if the team can be optimized to get things done faster and more productively with fewer workers.

Lower Fuel Consumption Costs

Without using GPS or engine usage data to determine optimal routes or efficient production times, operations can spend up to 40% more on fuel consumption costs. Telematics can detect when vehicles are idle for too long and it can be shut down remotely to avoid wasting fuel.

Lower Associated Accident Costs

Regarding accidents, fleets that do not enforce safety checklists or monitor for impacts and sharp turns can expect to spend 21.1% more on associated accident costs. To see how many of these accidents can be avoided, we have highlighted 8 tips to decrease operator injuries in the workplace, and one of the biggest costs is not adhering to OSHA’s guidelines.

While it can be difficult to track and enforce your fleet’s safety procedures, telematics devices do most of the work for you by monitoring reckless operators that need to go through training again, can send alerts for when operators license is expiring and protect operators from using vehicles that could be dangerous by enforcing a safety checklist to be completed before handling any vehicle.

Telematics systems are what you make of the data it provides. Already have a telematics system in place, but you are not experiencing these results? Check out 5 reasons your telematics systems isn’t working for you!

If you are interested in learning more about Access’ telematics systems, check out one of our customer’s success stories utilizing our devices.

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Access is proud to offer telematics that works exactly how we promise for a price that makes sense.