Telematics technology is changing road transport efficiency and safety, leading to significant advancements in fleet management.
“Clear trends show fleet managers actively monitoring vehicle-route deviations from optimal routes,” explains Mark Forbes, General Manager of Fleet Intelligence and Traffic Services at Netstar. “By monitoring driver route preferences, fleet managers can identify high-risk areas and adjust driver behaviour, thus reducing risk.”
These advancements in road transportation enable fleet managers to reduce insurance premiums.
Beyond cost savings, telematics technology enhances driver efficiency, giving fleet managers a competitive edge. “Telematics devices and smart software platforms allow operators to configure various measures to assist fleet management,” Forbes explains.
Some examples include:
- Tracking the vehicle’s location and speed, enabling accurate estimated arrival times using real-time traffic data
- Real-time vehicle tracking for identifying illegal vehicle usage with immediate violation notifications
- Predicting vehicle or trailer wear and tear to schedule timely maintenance
- Identifying, monitoring, and measuring fuel-economy risks, highlighting behaviours like harsh braking, cornering, and acceleration
Forbes adds, “Telematics devices with smart feedback provide audible and visual safety violation alerts, promoting responsible and safer driving for the driver’s well-being and the safety of others on the road.”
Challenges in road transport
The South African road transport and logistics sector faces many challenges, including uninsured vehicles, which pose significant liability risks for goods owners and other road users. Basil Steyn, an insurance industry specialist at A2Z Insurance Administrators, notes, “South Africa has some of the lowest rates of vehicle insurance, even in the commercial sector, where consequences can be even more severe.”
Steyn highlights that even insured fleet managers often lack sufficient control over their fleets, resulting in excessive mileage per vehicle and driver fatigue due to remuneration based on distance or weight transported.
The role of the adviser
In South Africa, crime and inadequate road conditions contribute to risks for road users. To mitigate potential insurance policy voiding, consulting a qualified adviser is crucial.
Fleet managers must also proactively plan routes, account for changing road conditions, and analyse management system data for quick decision-making.
Steyn concludes that effective fleet management technology is essential for safe and efficient transportation.
Industry collaboration
Forbes emphasises the need for transportation companies and insurers to collaborate, given their shared interest in reducing risk. He states, “Transporters’ reputational damage and insurer losses should drive both parties to work together to offer cost-effective and safe fleet management solutions.”
Visibility and cost reduction
Forbes also points out that transportation companies investing in telematics gain visibility into their operating costs. “Once you have visibility on a vehicle’s movement and behaviour, and focus on driver behavior, operational costs typically decrease.”
Managing crashes
Dealing with crash scenes is undesirable, but telematics systems can simplify investigations. Forbes notes, “Telematics devices offer 360-degree motion monitoring and real-time GPS tracking, providing detailed data on incidents before, during, and after, aiding investigators in analysing what happened.”
Deon O’Neil, GM of Motor Dealer Sales at Netstar, highlights how telematics data and analytics help finance and insurance managers provide proactive services, reducing fleet incidents by up to 80%.
Predictive maintenance
Telematics data also supports predictive maintenance, reducing costs and improving efficiency. O’Neil cites UPS as a successful example of using telematics data to anticipate maintenance needs and prevent breakdowns.
O’Neil emphasises that analysing vehicle performance data enables fleet managers to anticipate maintenance needs, reduce downtime, and enhance efficiency, leading to higher customer satisfaction and competitiveness in the road transport industry.
Benefits of predictive maintenance for large fleets:
- Reduces maintenance costs by 40%.
- Cuts vehicle breakdowns by 50%.
- Enhances overall vehicle uptime and productivity dramatically.
A greener road ahead
Forbes believes that by combining real-time telematics data with a vehicle’s controller area network (CAN bus) data, fleet managers gain insights into driver behaviour, fuel economy, and maintenance needs. This aligns with the United Nations’ Sustainable Development Agenda 2030, improving overall vehicle efficiency and safety.
Telematics devices like GPS sensors and accelerometers are revolutionising daily fleet management, providing valuable data on vehicle location, estimated arrival times, and real-time tracking. This data enhances customer service and compliance, reducing the risk of penalties and fines.
This proactive approach to risk management benefits both fleet management teams and their insurance providers, resulting in reduced accidents, lower insurance premiums, and increased productivity.
