Why Fleet Management Can Drive Up Your Fleets Profits?

Image: goodyear.com
Image: goodyear.com

Whether your fleet consists of ten vehicles or 1 000 plus, it always boils down to the cost of maintenance, fuel and cost-efficient routes

In the day-to-day operations of your company’s fleet, maintenance is easy to overlook. It’s far too simple to neglect oil changes, brake system maintenance, and other important checks and maintenance tasks. Yet if you are not properly maintaining your vehicles, your company productivity is suffering.

According to the Bureau of Labor Statistics 40 percent of fatal workplace injuries occur because of transportation incidents. While driver behavior accounts for some of these problems, faulty vehicles can also be a cause. When vehicles are not maintained, they are mobile time bombs. Brakes that fail, steering systems that malfunction and engines that stall can all lead to catastrophe.

SA is currently facing an increase in road traffic accidents, and advanced technology is needed in order to monitor and manage this reality in an advanced manner especially within the fleet sector.

Fleet management is important to creating an efficient transportation process. The benefits to tracking a fleet of moving assets is the room that exists for optimization. Technology like GPS trackers, radio frequency identification tags, and sensors are used to monitor vehicles and check the fleet movement and fuel usage.

According to the Berg Insight Report, there has been an increase in the number of active fleet management systems deployed in commercial vehicle fleets in South Africa, estimated at 1.1million in Q4 2016.

Growing at a compound annual growth rate (CAGR) of 12.6 percent, this number is expected to reach 1.9 million by 2021.

In spite of the country’s weak economic performance, Berg Insight is of the opinion that the market for fleet management in South Africa is in a growth period which will continue in the years to come.

The South African fleet telematics market is far ahead of the rest of the continent in terms of adoption, whereas Sub-Saharan Africa is the least developed region if excluding South Africa.

Commenting on this, Stephen Smith, TrenTyre Operations Director says “ In a service industry, such as the fleet management, we need to be sure that our service keeps pace with not only the technological advances being made, but also that we deliver our service in a manner which demonstrates innovation. Market needs are constantly evolving, and in a market where ‘customer remains king’, we believe that such investments are able to contribute to local economic growth and sustainability in an invaluable way.”

Fleet management in particular is closely related to many forms of business efficiency, such as customer service efficiency, financial efficiency, and logistical efficiency – all of which are essential to business owners. Therefore, fleet managers have a great deal of responsibility to improve a business’s performance.

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