The cost of running a fleet has grown exponentially as crime, fuel, vehicle maintenance and tolls add zeros to the bills.
According to the Road Freight Association, truck hijackings increased 10% in 2014 compared to 2013, with 1 200 hijackings costing the industry an estimated R12 billion. At a recent fleet management roundtable, David Molapo, head of Standard Bank Fleet Management, stated that some companies operating fleets in Gauteng saw their toll bills increase by 30% in 2014. The average fuel cost per transaction for the bank’s fleet customers increased from R515 in January 2010 to R890 in April 2014. Vehicle maintenance adds more weight to monthly operating costs. Statistics have shown that the average maintenance bill today stands at around R3 600, an increase of 26% compared to 2010. Carbon tax legislation is scheduled to go live in 2016, which will see an additional R120 per tonne of carbon dioxide emissions added to the bill. Planning, foresight and precise management is thus crucial, as is a rich technology investment capable of streamlining efficiencies. Drivers can be taught to minimise fuel usage, avoid excessive idling and manage their consumption for instant results.“We have seen our clients’ driver incidents reduced by 36% and vehicle efficiency improved by 35%, with less maintenance as the vehicle is being driven better,” says Michael van Wyngaardt, Executive for Tracker Business.
Technology and planning ensure that routes are mapped out in advance, delays prepared for and fraud reduced. There are a number of solutions that mitigate fuel purchasing fraud and toll fraud, monitor shipment status and location and document driver behaviour. These can be implemented at cost in the short term, but have long-term benefits. According to van Wyngaardt, the return on investment in most cases ranges between four and eight months. Fleet owners can no longer ignore the fact that drivers and driver behaviours need to be controlled if they are to manage their fleet costs effectively. Using technology to manage drivers can minimise accidents, especially those caused by negligence or fatigue. Tailored telematics offer robust solutions to the challenges faced by business. Many of these can be controlled from a remote operations centre or mobile device, making them easy to manage and swift to respond to emergency situations. It is, however, vital that any solution be assessed and installed in accordance with long-term strategic goals of an organisation. Doing so will allow scaling up or down with the fleet in accordance with changing business parameters.
