Embracing Telematics: Answer To All Your Vehicle Depreciation Problems
Embracing Telematics: Answer To All Your Vehicle Depreciation Problems –
When sciences join, miracles happen, and telematics is one great example of that. Simply put, telematics is an interdisciplinary field that combines the best of telecommunications and informatics.
Telematics makes navigation easier, and more importantly, efficient. With its help, you will never have to worry about taking a wrong turn, ever. For the general public, a wrong turn may cause only a little bit of inconvenience. But for a transportation company, it is a matter of retaining or losing a customer.
Along with saving time, telematics does one more thing – it saves money, primarily in fuel costs and to be precise, by reducing fuel consumption by 15%. When considering the entire fleet, such a reduction in fuel consumption can contribute to more considerable savings.
How Telematics Can Influence Vehicle Depreciation?
It is common knowledge that telematics makes fleet management more organized and, more importantly, foreseeable. This means fleet managers can nearly predict where a fleet vehicle will be, at any given time, and precisely estimate and communicate the delivery and pick-up time of consignments.
You may wonder, what is fleet management, and what does it have to do with telematics? Fleet management is all about overseeing the performance and utilization of all fleet vehicles, and ultimately increasing their productivity. Such an arduous task is simplified with the help of a fleet management software, in which telematics plays a crucial role.
Along with the many other benefits telematics bring in, it ensures the safety of the drivers and goods and, subsequently, the value of each fleet vehicle. This ensures that each fleet vehicle endures more miles, with the least depreciation.
Here’s how embracing telematics in fleet management can significantly reduce vehicle depreciation.
It Promotes Optimal Speed –
Speeding frequently beyond the limits will consume more fuel and slowly kill the efficiency of a vehicle. Luckily, with the help of telematics, even a minute window of speeding can be tracked and warned.
As you can monitor each vehicle’s real-time status, drivers will be less likely to speed as they will be well aware of the consequences they will have to face by doing so. Also, it is common knowledge that speeding is one of the biggest reasons for accidents.
By promoting optimal speed, vehicles will consume lesser fuel and are less likely to get into accidents, which in turn reduces the depreciation value. A vehicle devoid of accidents is always seen as a well maintained one.
It Encourages Healthy Driving Habits –
Just like speeding, every other erratic driving habit like harsh braking and cornering will also have a negative effect on a vehicle’s fuel consumption and, ultimately, the engine’s lifespan.
As a smooth and efficient engine is a deciding factor for a vehicle’s resale value, such instances of improper driving must be eliminated. A fleet management system backed with telematics will help you monitor fleet drivers’ driving habits.
By doing so, you can easily distinguish between the good drivers and the bad ones and take immediate action to ensure the vehicle’s safety. Without telematics, it would be nearly impossible to track and monitor the driving habits of your fleet drivers.
It Places Lesser Toll On Odometers –
Generally speaking, the lesser the number of miles on the odometer, the more value the vehicle will hold. This is because there will be lesser wears and tears on the engine and mechanical parts, as compared to vehicles that were driven for longer distances.
Now, if you are wondering how telematics can reduce the number of miles of each vehicle, the answer is simple—it makes fleet management more efficient, and that too in two ways.
Firstly, telematics can optimize the routes, which can help drivers always stay on track and on the best roads possible. This will significantly reduce the number of miles traveled by knocking off the uncertainties of choosing a route.
Secondly, telematics can help fleet managers find idle or returning vehicles and improve their productivity. This means that if a vehicle, returning from a delivery, is near the pick-up point of a new consignment, it will be assigned with the new task, eliminating the need for another vehicle to travel all the way.
For trucks traveling thousands of miles per year, such minor optimizations can add up to their longevity. This will also reduce the exhaustion of drivers and, in turn, help retain them, as the shortage in drivers is something that the transportation industry is currently concerned about.
It Reduces The Chances Of Accidents –
With the help of fleet tracking software, 42% of fleets saw fewer accidents. As telematics gives fleet managers the ability to monitor driving habits and vehicle status, the probabilities of instances leading to accidents are significantly reduced.
As an accident can depreciate the value of a vehicle by 10-25% at minimum, transportation companies can save repair costs and maintain the value of their fleet vehicles.
It Monitors The Vehicle For Timely Maintenance –
With lots of tasks and vehicles to manage and monitor, fleet managers will have a hard time recollecting each vehicle’s precise maintenance dates. Luckily, with the help of fleet management software, managers can easily track each vehicle’s number of miles and see whether they are in need of maintenance.
Regularly scheduled maintenance will exponentially reduce the depreciation of a fleet vehicle. It will also eliminate the need for those expensive repairs, which are primarily caused by neglected maintenances in the first place.
By improving the safety of the driver and vehicles, and at the same time, keeping the entire fleet management more organized, embracing telematics can help managers and invariably help companies to save huge in repairs.
Almost every navigation or GPS systems that you encounter will have a pinch of telematics in it. If you’re excited to know more about how telematics can improve the performance of your commercial trucks and trailers, read more telematics on Samsara.com.
Even though depreciation of a vehicle is almost inevitable, you can outrun and reduce its effects by maintaining your fleet vehicles in their peak conditions, and telematics lets you do that. Fortunately, implementing telematics is as simple as having a fleet management system in place.