In the fleet business, efficiency is key. Of course, that is true for most every type of business, but in fleet operations, particularly, there is a proportionate improvement in costs and profits as vehicles become more technologically advanced—whether that’s greater fuel efficiency, better engine performance or improved electronics systems.
Increased access to better data is heralding a new age for fleets in terms of greater business efficiency. One such data point comes from fuel cards issued to drivers.
These cards allow fleets to monitor their fuel expenses more accurately and in a timelier fashion, and that contributes to maintaining their costs of doing business, says Bernie Kavanagh, senior vice president and general manager of North America large fleet and strategic relationships at WEX (www.wexinc.com), a global leader in corporate payments solutions.
“In terms of reducing maintenance expenditures, fuel cards allow fleets to gather more accurate odometer readings on a more frequent basis,” Kavanagh says. “If there is currently no mechanism in place to obtain an odometer reading other than depending on someone to self-report it or waiting for a maintenance incident to occur, fleets may get only two to four readings a year. Whereas with the fuel card transactions, an odometer reading will be provided between five to seven times per month based on usage.”
Moreover, he adds that a direct result of more current mileage data is that instead of estimating when vehicles need routine maintenance – or scheduling it based on arbitrary time lines, such as planning an oil change every three months – fleets can more precisely schedule repairs, service and maintenance.
Costs
Better vehicle maintenance is cost efficient for many reasons, Kavanagh explains.
“First, there’s no spending on unnecessary maintenance, which can happen when services are scheduled based on arbitrary guidelines,” he says. “Second, and more importantly, when vehicles are maintained appropriately, there are fewer crisis situations that have to be met with triage-type services that are invariably more costly.”
Some fuel cards rely on driver input, he says, because the driver must enter the odometer reading so human error can impact data accuracy in the short term. Over the long term, corrections are made and mileage will be reconciled, but for even more accurate data at all points of the vehicle’s life, telematics is a smart option. Integrated into the vehicle’s electronics system, telematics provides authentic, accurate data at the operator’s command.
“Not only does a telematics system provide better data on things like the odometer reading, but it also provides crucial information that can’t be gathered in many ways,” Kavanagh says. “Factors like erratic driving, harsh accelerating and/or braking can all be known and monitored through telematics.”
Maintenance can be performed much more efficiently with the wealth of data provided to fleets via a telematics system, adds Kavanagh.
