Telematics has undoubtedly become one of the most important vehicular technologies used within fleet management and safety solutions. Before introducing any new feature to your organization, however, it’s imperative that you analyze the proposed ROI.
The great news is that telematics platforms like Vestige can be implemented at a far smaller expense than you might expect while the ROI can manifest as savings on insurance, fuel, and vehicle repairs. Still, knowing how to document the ROI will be essential for confirming the financial returns. This quick guide will provide the answers you need.
#1: Analyze the current performance levels
It is impossible to accurately determine how much of an impact a newly integrated technology has had on the business if you fail to document the baseline before its introduction. Crucially, you will need to make a record of the challenges currently faced by the business, as well as the overheads currently incurred.
Once fleet management and telematics have been introduced, you can track all relevant data to confirm that the new tools have made a positive change. Up to 41% of owners are unaware of the results achieved by fleet management and telematics. This is why.
#2: Know the direct and indirect financial costs
When looking at the ROI of the telematics features, it is natural that the costs will play a fundamental role. Using a platform that offers value for money and can be tailored to your needs is vital. However, the process of reporting financial savings should look beyond direct issues like fuel to consider time savings and the benefits of automation and smooth tasks.
Telematics will ultimately improve productivity, which will open the door to increased revenue opportunities. When combined with the savings linked to engine idling, tire pressure, and route planning, you should see a significant ROI.
#3: Determine your metrics
Having already established the challenges faced by your current methods, you will naturally look to find a telematics platform that aligns with the company’s requirements. If your fleet goals relate to safety, you’ll look at accident rates and insurance claims. For fuel spend, you’ll want to consider MPG levels and monthly fuel overheads.
Whatever the objective might be, killing downtime will be vital as it costs you an average of over $600 per vehicle per day. When your data tracking tools are built to monitor the most important metrics, the results will be telling.
#4: Know your objectives
The metrics you choose will feed into the objectives that you’ve set. Once again, though, it’s best to focus your attention on just a small number of Key Performance Indicators as this enables you to drive home the value of the telematics software and equipment. If nothing else, it will subsequently leave you with far clearer data for future executive meetings.
KPIs could include both immediate benefits and sustained results. When looking at KPIs, it is also worth pinpointing specific targets such as using route rerouting to reduce the mileage completed by your drivers. Optimized performance is the ongoing aim.
#5. Record and track data
Knowing what you want your telematics and fleet management systems to achieve is one thing. But confirming that they have delivered the intended results is another altogether. The great news is that advanced tools like Vestige can be programmed to automate the data tracking process and present the findings in a clear way.
Dashboards can plot all relevant data for your KPIs and most important metrics. Better still, the real-time monitoring enables you to see poor driving practices or gain alerts of issues that need attention – as well as notifications for pleasing developments.
#6. Record the processes
Technology can achieve incredible things for your business, and telematics is the perfect example. However, it is only possible when it integrates with human efforts. Communicating your key metrics and key performance indicators both verbally and in writing will be necessary. To complete this step, though, you must also establish clear processes.
How often will you review the KPIs? How will data be tracked? How will you reward drivers who perform well? What is the company’s action plan when individual or collective performance levels are below the intended level? These answers will be vital.
#7. Ensure that the information is shared and understood
While project managers or fleet managers will naturally look at the available data on a regular basis, it is important to share the information regularly too. From drivers to senior execs, everyone in the company should feel comfortable with the telematics systems. Besides, seeing the benefits it brings for themselves will lead to greater enthusiasm for it.
In many ways, this is the most significant step towards proving the ROI. When the entire team can see the value of the telematics tools, vindicating your decision to introduce them becomes a far simpler task.
#8. Encourage feedback
When the results measure favorably against the baseline that you recorded, the implementation of telematics will be seen as a success. For the best results, though, you must continue to inspire improvements over the years to come. A feedback loop that covers data, improvements, and ROI will serve you well.
Get this right, and your telematics will continue to drive progress despite increased challenges in the supply chain and delivery management landscapes.
To learn more or book a full demonstration of how Vestige can help your business, get in touch today.