Data and analytics add up to thousands of cost savings

 

Data and analytics add up to thousands of cost savings

Source: FleetAnswers Cost mitigation is a constant concern for the modern fleet manager. Finding ways to lower costs is a primary concern as fleets move forward in an age of higher fuel and maintenance costs. In a survey published in Trucking Info, fleet managers reported a high cost savings when using data analysis.

In the report, which surveyed over 800 transportation executives with large fleets, respondents indicated they saw significant cost reduction by using data and analytics. A full quarter found that they saved $4,000 per truck, while 30 percent indicated a $1,000 per truck annual savings. In fleets with 100 or more trucks, this is a significant amount of money.

Of course, in order to see these savings, fleets have to use data and analytics. The report showed that 61 percent of those managers surveyed used analytics at least weekly. This was a significant change, as five years ago 81 percent had no analytics strategy.

Today's analytics can track most aspects of the fleet, from the location of the vehicle to its performance, which can indicate maintenance needs, and fuel trends. With this data, fleets can improve vehicle performance, create better maintenance schedules an monitor fuel use to eliminate wasted fuel.

Of the data tracked, the biggest savings were found in managing fuel. Over 27 percent of fleets used the data to track fuel usage and limit wasted fuel, while a smaller number, 19 percent, tracked service and maintenance schedules or driver behavior improvements.

The survey also asked how many managers expected data and analytics to play a role in their decision making process in the future. A majority, 87 percent, indicated they felt it would be a key factor in managing the performance of the fleet and the cost of fuel to run a fleet.

Surveys like this show the value of big data in the trucking industry. When companies are able to leverage that data and maximize their use of technology in their vehicles and vehicle tracking systems, they experience monetary rewards through reduced costs, and those costs extend beyond fuel costs alone.

The survey also shows how fleet management software has developed in recent years. In the past, even just five years ago, the main priority was using fleet tracking to plan routes and minimize customer wait times by sending the closest vehicle to a service call or delivery route. Now, the system has evolved into a data-heavy option that tracks major data points, so companies can make their fleets well-running, efficient machines and maximize the use of the assets those fleets contain. If using that data effectively can add up to $4,000 in savings per truck per year, it is definitely something worth considering.

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