Telematics Equipment Manufacturer Claims

 

Telematics Equipment Manufacturer Claims

 

I am writing on behalf of FleetAnswers member, jlarson, who wrote:

"I am interested to learn more about manufacturer claims with regards to cost savings. There appears to be a disagreement within the industry with some end users not achieving the cost savings anticipated or claimed by telematics equipment vendors. Is this your experience? Please share experiences, thoughts or information. Thank you"

Anonymous (not verified)
Anonymous's picture

 

We have used GPS technology on our equipment since 2004. We were an early adopter. We did not have to justify or complete an ROI analysis for the purchase, as this was a request from our General Manager. However, we did look at some of the claims that GPS providers offered. In light of that, here are a few observations:
A) Our vehicle maintenance costs went up initially (first 12-18 months), as we found those who were accustomed to doing a lot of sitting, once GPS was installed, began driving more, as to appear busy. I cannot speak to productivity level as we don't measure that in fleet.
B) For the actual cost of equipment and on-going service costs, I don't know that we ever saw that level of savings in our organization through direct costs.
C) If you look at "potential costs/savings" then we probably see an ROI, as we have used GPS to recover stolen vehicles, prove a vehicle was not in a location where complaints were received, prove driver's are not speeding, etc. So perhaps one could say we had an ROI through cost avoidance.

We continue to use GPS, as we recognize it as a valuable management tool, among many tools, that allow for the better management of our resources...people.

Hope that helps.

Anonymous (not verified)
Anonymous's picture

 

I'm replying on behalf of FleetAnswers member, jlarson, who wrote:

"Yes it does, thanks very much, particularly the avoided cost perspective, useful insight!"