WTF - Why Telematics Fails - Vtec Solutions - TomTom Vehicle Telematics

WTF*

*Why Telematics Fails

You may wasting time and money!

You purchased a “tracking” system at a considerable cost.  That system provides various data that your business could use to be more efficient but what did you do?  You didn’t use it!  The usual excuses/reasons for this are:

  • We don’t have the resource to look at the data.
  • The Transport Manager is a busy person.
  • Its not my job to do this.
  • We have only scratched the surface and know it can provide more.

Telematics can play a significant role in improving fleet productivity.  However, merely investing in telematics is no guarantee of achieving results.  However, there is too much evidence of frustration that investment in telematics has not led to budgeted improvements.

Telematics investment delivers only the potential for improved fleet performance.  Don’t waste your time and money if you are not going to use the data to improve your fleet performance and ultimately your business results.  What return on investment do you think you got from the last system you purchased?

Leadership

Lack of Vision and you only use telematics as a dot on the map!

What is the primary function of your telematics system?  Or if you are looking to purchase telematics what do you plan to use it for?

  • Speeding?
  • Harsh Braking?
  • Harsh Steering?
  • Fuel Consumption?
  • CO2 emissions?
  • More efficient routing?
  • Reducing maintenance costs?

The honest answer is normally – “we use it as a dot on the map to see where our vehicles are!”

Do you really want to spend potentially thousands on a telematics system just to see the position of your vehicle?  How will that get you a return on investment?

Insurance

Should you be surprised as you have ignored the data!

Which Insurance Cycle do you prefer?

  • Better driving behaviour vs Poor Driving Behaviour
  • Less speeding vs Endemic speeding
  • Small number of accidents vs Increasing accident count
  • Low/No insurance claims vs High Claims
  • Reduced Insurance Premium vs Significant increase in Insurance Premiums

This is not rocket science!  A leading insurer said, “We are actively looking at our clients to manage Road Risk.  The more responsible clients have strategies in place to manage driver behaviour which has a positive effect on Insurance Premiums.”

Telematics can play a significant role in improving fleet productivity.  However, merely investing in telematics is no guarantee of achieving results.  However, there is too much evidence of frustration that investment in telematics has not led to budgeted improvements.

Telematics investment delivers only the potential for improved fleet performance.  Don’t waste your time and money if you are not going to use the data to improve your fleet performance and ultimately your business results.  What return on investment do you think you got from the last system you purchased?

Strategise!

You don’t have a fleet strategy

How do you measure the fleet performance on key areas such as:

  • Capacity
  • Utilisation
  • Optimisation
  • Automation
  • Digitisation
  • Integration

What can be done to streamline the business to make it more competitive, cost efficient?

Personal Liability

You are unaware of Director Responsibilities

Are you aware of the guidelines for Health & Safety offences and Corporate Manslaughter cases?

Why is this important?

  • Prescriptive approach
  • Criteria for establishing scale of ‘fault’ is stricter & better defined
  • Upper limits of fines dramatically increased
  • Scale of fines directly linked to turnover
  • Custodial sentences more likely & more severe

Aggravating factors are:

  • Failure to adopt recognised industry standards
  • ‘on notice’
  • Profit before safety

As a consequence fines now range from £10,000 up to £4 million.

Penalties against individuals range from 50% of weekly salary to 18 months custodial sentence.

Risk Register

Part of the FLEETiQ process at Vtec Solutions is to identify areas that are a weakness in each business.  This is initially done by creating a Risk Register as shown below which highlights the areas which need immediate attention.

Vtec Fleet Productivity Roadmap Risk Register

Risk Probability
(P = 1-9)
Impact
(I = 1-9)
Score
(P x I)
Purchase cheapest system available 9 9 81
Don’t utilise telematics properly 9 9 81
Ignore the driver behaviour data from telematics 9 8 72
Used only as a “dot on the map” 9 7 63
Don’t use to benefit insurance costs 9 7 63
Insufficient and ineffective delegation 7 7 49
Failure to change (systems/behaviours/processes) 7 6 42
Failure to work with Drivers to lower costs 7 6 42
Insufficient clarity of Key Performance Objectives 6 7 42
Insufficient engagement from significant stakeholders 6 6 36

The last risk above is “Insufficient engagement from significant stakeholders” which completely changes if meaningful data can be provided to achieve set objectives.

Automation

Let the cloud take the slack!

The technology that is available to manage a fleet of vehicles and their drivers is developing faster than most people realise.

Some of your competitors may already be using these technologies. Your competitors may already be using digitisation and automations to reduce their costs and improve their customer service.

Good enough is no longer sufficient!

In an era of exponential technology growth are you driving change or being driven by change?

We now live in a world where everything can be connected and intelligent.

Case Studies

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Let Us Help You Save Money

Use our online calculator for a real-life estimate of how much you could save

Our online calculator takes into account all of the operational and running costs for your fleet and provides you with a personalised estimate of exactly how much money can be saved after implementing our telematics systems.

FLEETiQ

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