Why mobility data is gold to reduce your fleet management cost.
Connected vehicle data helps fleets where it matters the most - lowering operating costs. How? Through mobility data you will be able to reduce fuel use, save on maintenance as well as improve the company productivity through optimising performance.
It all starts behind the wheel
Bad driving behaviour not only increases the risk of accidents, but it also increases costs. Aggressive driving means high speeds, high revs and quick acceleration, burning through fuel, increasing spend - and leads to a shorter lifespan of engine components.
It’s no surprise that drivers are more likely to be involved in an accident, and when you consider the cost of an accident can be up to 36 times higher than the cost of a basic repair – driving style is a number one concern for fleet operators as it impacts a number of areas.
Driving Behaviour Tracking
Accidents, traffic violations and other poor driver behaviour can also add to your operational costs. Speeding and harsh acceleration and braking increase the engine’s wear and tear, leading to a higher frequency of maintenance work and a rise in associated costs. ABAX driving behaviour uses complex algorithms that provide a driver score between 0-100, allowing both drivers and fleet managers to review and identify areas that require improvement.
The mobility data will trigger automatic alerts for incidents such as speeding on the live map, allowing immediate action to be taken. Drivers’ behaviour reports will be a great base to coach and guide employees. By introducing a driver policy within the company, you can communicate the driver behaviour expectations to the entire fleet, and potentially produce substantial savings by reducing the risk and cost of accidents.
Fewer accidents and injuries = lower costs
Aggressive driving and speeding alone accounted for 29% of all fatal accidents in 2020 according to NHTSA. There were several factors that were found to contribute to an overall rise in aggressive driving: traffic, running late, anonymity and disrespect for the law. Speeding alone can be both fatal for safety and your budget.
An increase in average speed of 1 km/h typically results in a 3% higher risk of a collision involving injury, with a 4-5% increase for collisions resulting in death.
Save fuel with data-driven fuel management
When it comes to reducing fuel costs associated with driver behaviour, data is gold. A driver’s impact on fuel efficiency can be as much as almost 20% - this number is based on data gathered from the ABAX customer base. Behaviour such as hard acceleration, idling, inconsistent speeds, and hard braking are bad driver habits that can be corrected with driver training and/or education. By tracking driving behaviour, fleet management systems can identify the key areas that are contributing to inflated fuel costs and inefficiencies, for example:
Cut idling time
Reducing idle time not only lowers the waste of fuel, but it will also have a positive impact on costs and CO2 emissions, as well as decreasing engine wear and tear. By connecting all vehicles, the data and idling reports can help track idling time and change old patterns.
Reducing speed
Speeding consumes more fuel, but harsh braking also impacts gas consumption. Drivers that are heavy on both the accelerator and brakes have a higher fuel consumption than more moderate drivers. The vehicle data will be a great base for coaching drivers to start driving safer.
Keeping vehicles well maintained
Engines that are well maintained typically use less fuel. The use of mobility data will help maintain the overall health of the vehicles while keeping an eye out for any potential problems developing. A quick and efficient example of preventive maintenance could be tyre pressure checks on a weekly basis.
Under-inflated tires can increase fuel consumption by as much as 15%.
Decrease energy consumption on your EVs
As electric vehicles are becoming more common the cost of charging is increasing. By combining EV data with machine learning and AI, data can be turned into actionable insights in reports. Mobility data from your EVs will help determine driver behaviour, traffic patterns, routes, and driver intent, thus helping with planning the perfect timing and places for recharging the vehicle to boost efficiency. Finding the best locations for EV charging stations to maximise ROI requires mobility intelligence.
Preventative Maintenance
Maintaining a healthy fleet is an extremely cost-effective fleet management method. Proactive, preventative maintenance is a very effective way to avoid unexpected breakdowns and prolong the life span of vehicles, presenting an opportunity to reduce fleet costs, especially the unexcepted ones.
A preventative maintenance plan and schedule ensure your assets are well-maintained by staying on top of regular servicing, oil changes and part replacement. Embedded vehicle data can help you plan ahead with up-to-date data including miles travelled, residual time for inspection and more. Better maintenance reduces downtime, improves fuel efficiency, lowers overtime caused by unexpected breakdowns and repairs, and more.
Nevertheless, unexpected breakdowns and unplanned maintenance happen. Every time a vehicle breaks down, it’s money down the drain, especially at the roadside. With embedded vehicle data, in-vehicle management systems can monitor real-time alerts to identify minor problems before they become major ones, helping reduce expensive roadside repairs.
Maintaining your fleet of vehicles has a positive impact on depreciation, which accounts for as much as 40% of the total cost of running a company vehicle. Find out more on how vehicle, tool and machine tracking could save your business money.
Decrease insurance cost through improved driving behaviour
ABAX has great collaboration and partnerships with Zego and Tryg that will provide a user-based insurance pricing model. The decreased price is not only based on the actual mileage driven and vehicle usage, but also the driving behaviour score. Skilled and moderate drivers will be awarded a decreased insurance premium.
Sources:
https://www.nhtsa.gov/risky-driving/speeding
https://www.who.int/news-room/fact-sheets/detail/road-traffic-injuries