What does increasing fleet performance mean?
Increasing accuracy and speed are usually at the top of the #businesswins to-do list, but they often feel like opposing goals. As a human, when you do things faster – they can become more slapdash. Data is the antidote to that, removing much of the guesswork, assumptions, and manual errors from the equation while speeding up decision-making.
Here are five use cases of how data can be used to improve fleet performance:
- Mapping services: Dynamic maps can be updated in real-time with information beyond accidents, delays, road closures and maintenance. New information like the state of the road from friction data, accurate fuel consumption and available parking at the destination can be used to optimise the best routes for transport and delivery networks, changing on the fly as necessary.
- Safety systems: Connected vehicles can communicate with road sensors, traffic information and third-party systems that offer insight into weather or potential hazards, and make the driving experience a whole lot safer. Additional information, including current tires air pressure and maintenance alerts further improve road safety.
- Fleet management: Fleet owners can stay on top of powerful metrics about their vehicles, including fraud or misuse when vehicles go off-route, and planning and alerts for when scheduled or unscheduled maintenance should take place. Managing fleet inventory and availability as well as implementing predictive metrics for vehicles state and fuel/power consumption also help managing fleets better.
- Smarter decision making: No more guesswork for big decisions. If you’re a fleet, a municipality or even an OEM – use data to work out which vehicle parts, makes, models or even business strategy is giving you better ROI. Use this actionable information for implementing change. Data can show you which vehicles are making you money, and which aren’t.
- Remote diagnostics: With vehicle data, you don’t need to take a vehicle to the shop to find out what’s wrong. Vehicle health data can be shared with OEMs, employers, individuals and fleet managers so that you’re two steps ahead of any issues, from breakdowns to poor consumption.
How does vehicle data translate into cost savings?Increasing performance is awesome, but the #1 question you’re going to get from the executives is… “And how much is this going to cost me?” According to McKinsey – connected vehicle data is estimated to cut an average of $180 in cost savings per year per vehicle in 2030. Here are five ways how connected vehicle data is actually going to save money off your bottom line.
- Reduced logistics and complexity: Connected vehicle data is delivered “over the air”, that means no aftermarket hardware (i.e. dongles or black boxes), as well as no installation or maintenance of hardware is needed. This translates into no vehicle downtime and no loss of vehicle-generated income. In addition to the direct and easy access to the data, connected vehicle data is application-ready – sanitized, normalized and harmonized – so it can be easily integrated into legacy and best of breed fleet management tools to quickly deliver valuable insights
- A productivity boost: Less time manually looking for information, and an easier journey for drivers can’t help but translate to dollars and cents. Some businesses have experienced a $45 per month per vehicle saving from reduced fuel costs and less idling alone. For heavy use vehicles, this goes up to more than $76 per day.
- No surprise maintenance issues: Plan ahead and spot trends and challenges ahead of time, understanding for example which vehicles are likely to be out of use due to maintenance requirements, or how many charging stations you’re going to need. Accurately predicting maintenance costs and managing inventory can cut costs significantly. Unexpected delays always cost more than being two steps ahead.
- Less waste: Let’s think about a simple issue like idling. This can cost fleet owners up to $12,000 each year per truck, and increase maintenance costs by an additional $2,000 for each vehicle, severely reducing its lifespan at the same time. Data means you can cut straight to the source of this challenge, eliminating idling and saving some serious zeroes.
- Direct revenues: The opportunities are also endless for direct revenues from your end users\ through connected vehicle data. Upsell opportunities like premium servicing if you’re the dealership, infotainment and media offers if you’re the OEM, and even third-party services such as restaurant bookings alongside parking, car insurance, valet services and more. A connected vehicle infrastructure makes all of this possible for the first time.
Where does Otonomo Come into the Picture?
At Otonomo, we provide a wide range of data for use cases from mapping and location planning to fleet management, dealerships, smart-cities, remote diagnostics and more. We aggregate information from connected vehicles, trips data, hazard data, connected infrastructure and even third-party datasets such as weather or traffic.
Using this information, we provide the partnership and support that you need so that you can boost the time to market for your data-driven business roadmap at the same time as enhancing productivity and reducing costs.
It all starts with data! Want to hear more? call with one of our data experts. Let’s make it happen!