What Does Telematics Have To Do With Payment?

GPS + Improved Productivity = Cost Savings that support an effective fleet management solution. That’s the business case for the recent partnership between GPS fleet-management company Geotab and telematics company Enterprise Fleet Management. But how will combining forces help fleet managers control spend?

It’s not exactly a news flash that enterprise customers want the most efficient and safest fleets. But Enterprise Fleet Management is banking on the fact that partnering with Geotab will give fleet managers the necessary visibility into how their fleets are operating so that they can make adjustments as necessary to ensure they are as efficient as possible. So says Maria Sotra, Geotab marketing manager, in an email to PYMNTS.com.

Indeed, the deal with Geotab will enable customers to improve their dispatching, driver ID checks, and their ability to integrate with their existing fleet management software, Enterprise said in a statement.

Four-pillar approach

Geotab’s GPS fleet technology is designed to help organizations achieve savings through four essential “pillars:” productivity, fleet optimization, driver safety and regulatory compliance, Sotra said.

Productivity obtained through Geotab’s service rests mainly around simple GPS, dots-on-a map functionality. Essentially, fleet managers want to know “where are my drivers now?” and “where were my drivers?” at specific points in time, Sotra tells PYMNTS.com.

While this pillar doesn’t provide a huge direct savings opportunity, there are indirect benefits, Sotra said. For example, managers can ensure drivers are at their customer locations. From there, ensuring driver productivity results in better use of time during the workday and enhanced customer satisfaction levels (on-time deliveries, etc.)

The fleet-optimization pillar of Geotab’s technology is where fleet managers start to achieve more significant savings, Sotra said. For example, with the Geotab GPS software, organizations can track their fuel consumption, engine idling, whether a driver was speeding, and overall mileage.

“With less fuel consumed, not only does it reduce the amount spent on fuel, but also there is an environmental and green/sustainable aspect, as less CO2 is emitted into the atmosphere as a result of the reduction in fuel consumed,” she said in an email.

Additionally, Geotab technology will assist fleet managers in detecting engine issues and in creating better trip planning with route optimization. With more effective dispatching, fleets can reduce the number of miles driven, Sotra explained. Therefore, companies consume less fuel, and they also reduces vehicle wear and tear over time.

In terms of driver safety, Geotab contends that, through its software, fleet managers can create rules that would then inform drivers immediately when breaking any rules, or when they might be about to break one. For example, a fleet manager can set the in-vehicle GO device buzzer to alert the driver if they are driving over a certain speed, idling for longer than 20 seconds, or if they harshly accelerate, Sotra said.

“The technology allows for in-vehicle, proactive, driver coaching in real time to break bad driving habits,” she said. “But also the technology allows for fleet managers to easily see which drivers are the most dangerous on the road, etc.”

The fourth pillar of fleet management that Geotab’s technology aids fleet management in is regulatory compliance. The pillar does not apply to all fleet managers, as regulatory compliance mainly refers to those operating heavy trucks, and they have hours-of-service requirements set by the Federal Motor Carrier Safety Administration Sotra said.

Part of Geotab’s GPS technology includes an hours-of-service tracker. As explained by Geotab’s website, HOS regulations help keep fatigued drivers off the road by placing limits on when and how long drivers should be behind the wheel.

“This reduces crashes, injuries, and fatalities related to operating commercial motor vehicles,” the company notes on its website. “Failure to comply can result in heavy fines, loss of license, or a fleet being stripped of its operating authority.”

Overall fleet benefits

With strong and comprehensive telematics technology, fleet managers can get a better handle on their costs and overall spend level, according to Geotab. Most fleet managers are under enormous pressure by their senior leadership to reduce their costs and expenditures. However, senior leadership is not always ‘in-tune’ to the needs of the fleet, Sotra tells PYMNTS.com

“In a time when fuel costs are increasing, along with general parts – such as tires – fleet managers need to choose a technology that does more than simply track drivers,” she said. “Hence, fleet managers must always ‘prove the business case for telematics technology.’”