Telematics, when implemented and used properly, can cause transformational effects in your organization. Organizations that have integrated the telematics, not only reports its cost-effectiveness but the positive reduction in risk and increased productivity.
The cost of telematics has pertained to the hardware, the installation of this hardware, the monthly subscription fee and the use of the data platform. As well as, the price per vehicle depends on the fleet size, the contract duration, the type of device and the functionalities offered by the platform. Some fleets are using telematics with subscription charges as low as Sar15 with basic services while others are subscribed to the whole fleet management functionalities with higher charges. Though it might seem prohibitive to the user “A” subscribed to the basic fleet functionality but there are plenty of ways telematics is improving the bottom line of an organization.
The Return on Investment (ROI) of telematics is difficult to define as a number. Some benefits can be yielded at once such as a reduction in fuel consumption or better insurance premiums while others result from the unhappening incidents. No matter, in either case, telematics data can identify, it’s the fleet manager who needs to take measures.
Return on Investment (ROI) for telematics can be manifested in three ways:
- ROI in Concept: this is the high-level look relying on industry data from sources. These sources provide a sense of expected ROI outcomes by unveiling the data from across the industry.
- ROI Calculator: This calculator uses the fleet’s available data to estimate the possible cost-saving scenarios in the current situation.
- ROI in Practice: This method of ROI is available when an organization outlays a portion of the fund for the implementation of telematics. This will provide real-time data to help an organization in concentrating the core business challenges to be solved. For instance, while utilizing the telematics data, fleet managers can make a policy to reduce the idling time or utilization of assets can be improved. This may take several months for reviewing the data and analyzing if telematics helped in solving the stated problem or any secondary benefits that may have occurred. Considering a scenario where a fleet manager cuts the idling time, he will realize that it has also reduced the maintenance cost along with the lowered fuel cost.
Implementation of telematics is not about collecting and analyzing data but it revolves around the determination of baseline, setting your targets, picking your tools and acting upon the results.