Telemetry: how does the system drive cost reduction in fleets?

The challenges faced by companies dealing with fleet management are diverse, but one of the most significant is, without a doubt, the high operational cost. From vehicles, maintenance, fuel, possible defective parts and traffic fines.

These factors can have a considerable impact on the monthly financial statement, especially when management is unable to identify and reduce unnecessary expenses.

Therefore, many companies are investing in modernization and exploring new solutions to optimize productivity and reduce costs, covering the entire operation. And, without a doubt, the technology that has stood out in this scenario is vehicle telemetry.

Do you want to know more about how this system works and how it can be the key to reducing costs? Be sure to follow our article.

How important is monitoring in fleet management?

Fleet monitoring is a crucial activity for the efficient functioning of a company. In the end, Logistics and the various sectors linked to the fleet are directly impacted by this control.

For the same reasons, it is essential to keep an eye on issues such as the use of company vehicles to avoid possible losses.

As well as controlling fuel consumption and driving and speed indicators, they are essential for maintaining the company's financial health. And to make this task easier, um telemetry system becomes an indispensable ally.

With the implementation of this technology, there is a significant saving of time and energy, as tasks that were previously manual are now automated, allowing the team to focus on strategic aspects of the business.

This change in approach results in global improvements in the company's results. One strategic planning results Effective means a stronger position in the market, with the application of practices that optimize customer service.

At the end of the day, customer feedback is crucial to success and profitability. Satisfied customers mean an increase in demand for the services provided, and excellence in fulfilling promises made makes customers choose the company again.

Suggested reading: All about telemetry: what it is, how it works and what the benefits are for fleet management

How does a telemetry system work?

In short, a telemetry system for fleet management uses monitoring devices installed in vehicles to collect and transmit data about their performance and location. Here's a more detailed explanation:

• Monitoring Devices: are installed in each vehicle and are responsible for collecting various data, such as speed, mileage, fuel consumption, driving patterns, among others.
• Data transmission: The devices transmit the collected data to a control center, usually through wireless communication networks, such as cellular networks or satellites.
• Data storage and processing: In this monitoring center, incoming data is stored and processed by specialized software, which can analyze the data to identify patterns, predict needs and even detect potential problems before they become serious.
• User interface: Fleet managers have access to a management platform that allows them to view and interpret the data collected, which can include interactive maps showing the current location of each vehicle, detailed reports on each driver's performance, maintenance alerts and much more.
• Informed decision making: Based on the insights provided by the telemetry system, it is possible to make decisions to optimize fleet management performance as a whole.

But speaking specifically about the company's costs, follow below the points that will benefit most from vehicle telemetry, positively impacting the business economy.

Suggested reading: Telemetry promotes savings of R$5,7 million in Mosaic fleet management

Why does a telemetry system encourage cost reduction?

The impact of using a telemetry system extends across several sectors of the company, mainly the financial sector, as they result in more cost savings, especially on the fleet, which is the operational core of an enterprise that relies on vehicles to carry out its activities. work.

Check out the main benefits of this technology below:

Driver performance

The behavior of drivers has a very large impact on the quality of service and the company's productivity. After all, processes only occur because they are behind the wheel.

Knowing this, the importance of closely monitoring the work of these professionals is evident, in order to maintain always high levels of quality and efficiency, with the lowest possible costs.

As the control that a telemetry system promotes is a powerful ally at these times, it is possible to organize in a systemic and practical way:

• Which drivers are on the road
• What is the stipulated route?
• If they are following the planned path
• How long will it take
• How much fuel is needed
• What are the current conditions of streets and roads?
• If the driver is driving at excessive speed

Having this data at hand, the manager can effectively monitor the driver's performance during operations, in addition to being able to make the best decisions in case a problem occurs along the way.

Suggested reading: Performance evaluation of drivers and productivity indicators in fleet management

Route optimization

A good manager knows the extent of the influence of routes on his company's costs.

Journeys that pass through roads in poor condition, for example, deteriorate the car in the long term. And depending on how bad they are, they can instantly cause damage to the vehicle, such as a flat tire, or be the reason for accidents on the road.

In addition to fleet maintenance costs, non-optimized routes, with excessively long journeys, use more fuel. As a result, This further consumes the company's resources.

The telemetry system allows you to work on optimizing the route, planning the journey so that it is quick, avoiding congested or poorly paved roads as much as possible.

Meanwhile, the manager can track the car to access details of the vehicle's position in relation to the route, as well as information such as the speed of the car and much more.

Thanks to these functions, all these benefits are easily perceived in everyday work and the impact of this control on the company's finances can be felt quickly.

Suggested reading: We are Experts: the importance of telemetry to optimize fleet management

Increased security with a telemetry system

Safety is a topic that always needs to be taken into consideration by a fleet manager. We give Golfleet We take this matter very seriously and, therefore, we could not fail to highlight how important vehicle telemetry is to offer greater safety for your team.

Many companies have their budgets compromised due to vehicle theft. With constant management, the professional will be able to monitor the routes and, in the event of theft, have features to recover it, such as real-time monitoring and blocking the car immediately, progressively or securely. 

It is safer both for the driver himself, who can be helped if something happens, and for the company, which can take care of its employees and the integrity of its equipment and physical assets.

Suggested reading: Traffic safety: importance of safe driving culture in fleet management

Improved posture in the face of unforeseen events

Unforeseen events happen, this is normal and part of any service. Obviously, we try to avoid them as much as possible, but when this is not possible, the company needs to know how to behave so that it does not cause losses to customers or the fleet, depending on the situation.

Every company aims for growth. In the case of companies with their own fleet, business expansion is generally accompanied by an increase, The bigger it is, the more attention it requires.

The telemetry system allows much greater control over them, and as the information is constantly updated, the company's response to any problem is much faster, because the manager has first-hand data and can make agile and strategic decisions. 

And the saying often applies in this field: time is money. A lot of money. Therefore, control helps management to more quickly resolve difficulties that may arise.

Suggested reading: Accident with a company vehicle: what are the company's duties and the employee's responsibilities?

Team performance

Technology is increasingly developing to help us in our daily lives, both in our private and professional lives.

In this sense, the solutions available on the market today are very diverse and different from what many thought years ago, this does not necessarily mean that the machine replaces the man.

The reality we see in companies is intelligent software facilitating previously bureaucratic processes and eliminating manual services so that the team can use their time and energy in the strategic field.

As a result, it is much simpler to improve the service offered by companies and boost their growth, helping to reduce costs in the most different sectors of the business. 

This is also the reality of companies that rely on fleets of vehicles to carry out their work, which have a significant reduction in expenses thanks to the optimization of team work and the cutting of bureaucratic processes. 

An issue that takes a lot of time and resources from the team responsible for management, mainly administrative and financial.

In other words, having the right technology at your side helps fleet managers make more accurate decisions, directly resulting in reduced operational costs.

Speak to one of our experts to schedule your demo and discover all the benefits of using Golfleet Telemetry in practice. But if you need to delve even deeper into the subject, check out the complete and free material: