Home / Insight / Using Telematics Data for Fleet Budgeting

Using Telematics Data for Fleet Budgeting

End of the year is the time for budgeting. Generating of a budget for fleet operations is a daunting challenge for each company. The reason is clear. There are numerous factors that need to be considered, they are interlinked in such a way that makes it almost impossible to predict every type of expense.

In the following article, I will spell out the major factors affecting the fleet operational costs. I will also describe how this difficult task became very easy and straight forward with Eagle-i.

The major factors in making the right budget are as follow:

  1. Fuel Cost: varies according to the total number of assets, utilization of each asset, distance traveled by each asset, type of asset (Light/Heavy), load and the way asset is driven (harsh driving and over-speeding drastically increase the fuel consumption).
  2. Renewal Cost: such as document renewals, vehicle insurance, vehicle registration, driver license, driver official papers (Iqama, insurance etc..).
  3. Maintenance Cost: including periodic service and fixing. Preventive maintenances are usually projectable. Some of the maintenances are time-based (e.g. Engine General Inspection). But most of the maintenances are distance or utilization based (e.g. Oil Change @ every 5000KM).  It is hard to project such costs as it is dependent on many factors like distance traveled and the way vehicle was driven (harsh braking, harsh acceleration, over-speeding drastically reduce the asset performance and life, creating a need of more frequent workshop visits and parts replacements).
  4. There are unforeseen expenses that may incur for example road accidents. So keeping a log of accidents helps to evaluate a cushion in the budget for unforeseen expenses.

The key to effortless budgeting is close monitoring of fleet operation, and logging the expenses accordingly. On the same foundation, Eagle-I has developed its Service/Renewal Module, which let the fleet owner enter invoices (fuel, renewals, and maintenance), it also provides an overview of total expenses incurred for a single asset, multiple assets and whole fleet – each month and for last 12 months.

Here one may ask how Eagle-I Service/Renewal module is different from any off-the-shelf fleet maintenance software. The answer is simple but the results are enormous. Eagle-I incorporates the telematics data (asset utilization, driving behavior, distance traveled etc) with the operational expenses, offering its users a cost-benefit analysis on single click, for whole fleet operation over a period of one year.

 

Read also (on blog.dms-ksa.com):

Preventive maintenance: A new trend in Fleet Maintenance

 

Following is a brief on the Eagle-I’s unique and powerful budgeting tool:

 

The module is divided into different tabs:

 

  1. Overview
  2. Maintenance Logs
  3. Renewal Logs
  4. Accident Logs
  5. Service Schedules
Digital Myth Solution

About Ayesha Amjad

Check Also

Why calculating COI is important?

Why calculating COI is important?

In our previous article, we have explained the difference between the cost of ignorance (COI) …

Processing...
Thank you! Your subscription has been confirmed. You'll hear from us soon.
ErrorHere