Fleet management solutions – such as GPS tracking software, advanced vehicle logistics tools, and analytics platforms – are designed to improve the efficiency and safety of fleet operations. Fleet owners and operators use these solutions to lower fuel and insurance costs, optimize vehicle routes, monitor driver performance, and streamline maintenance and servicing.
As this technology becomes standard in the transportation space, there is now growing pressure for companies to extract more value and create new sources of competitive advantage using IoT-enabled smart fleets while continuing to achieve business goals and reducing the total cost of fleet ownership (TCO).
Related: IoT Business Models and Applications
Benefits of Smart Fleet Technology
Transportation data can be used to achieve a host of business benefits.
Logistically, smart fleet data can ensure that the right parts and tools are available in the right place at the right time, lower inventory costs, lower fuel consumption, improve forecasting, and better fleet and workforce planning to more accurately meet demand and enhance vehicle and worker utilization rates (and potentially reduce fleet sizes as well).
IoT-enabled fleet data can improve driver safety by improving reliability, identifying risky or erratic driving patterns, and reducing preventable accidents.
Related: Mobile Connectivity for the Modern Ride Service
Transportation data can also be used to better manage seasonal variations and spikes in demand, and to prepare drivers and fleets for changes in weather or traffic in real-time to provide customers and other stakeholders with accurate updates regarding freight or vehicle arrival times.
This is a diverse range of needs that many of today’s top fleet management solutions are designed to meet, and on-board diagnostics (OBD), on-board computing (OBC), and IoT/smart sensors can be used for so much more. Depending on where you are in terms of IoT maturity, there are many degrees of growth and improvement to which you can guide your organization.
Related: Connected Fleet Guidebook
Evaluating Your Smart Fleet Maturity
Where is your organization when it comes to Smart Fleet Maturity? We can define five broad stages that organizations may find themselves in with regards to the deployment of telematics, OBC, and IoT/smart sensor technologies.
Which category best describes your business?
Disconnected fleets are those that do not use IoT devices or sensors in any capacity and are therefore deprived of data-driven insights of all kinds. Such fleets typically employ multiple yet disconnected data sources, low data quality due to the use of manual data capturing, high operational costs, and low vehicle and driver safety awareness.
Next, we have organizations that have deployed a pilot program to establish the ROI and/or proof of concept of telematics solutions within a given context. Business leaders understand the benefits of using telematics but may struggle with deployment, business-wide integration, change management, conflict resolution, or stakeholder buy-in.
The next stage of the maturity model includes organizations that have invested in and use telematics and IoT to track vehicles, drivers, and general operations. The organization has a basic grasp of how telematics work and the potential it has for transformative change, but is still not yet fully realizing the potential and cost savings that IoT can deliver.
Category 4 includes organizations in which IoT devices and telematics solutions are a standard and embedded part of the way the business runs. The business operates mature and advanced telematics capabilities with dedicated resources that drive user adoption and empower decision-making. These decisions lead to continual optimization and employees across all or multiple levels of the organization regularly engage with IoT technology.
Finally, we have organizations that enjoy insight-driven transformation. Fleet sensors and telematics data work seamlessly with external systems, processes, and data sources. Decisions are made in real-time, the financial and operational benefits of fleet IoT are evident, and IoT data fuels further enhancements in technology and value-added improvements in management. In the disconnected state, fleets use manual communications without real-time tracking, tracing, or visibility. The connected state is when tracking and tracing capabilities are added and the organization can quickly detect delays, breakdowns, or non-compliance and can act on the system’s real-time data. In the integrated (and most mature) state, IoT solutions are used along with other technologies and data sources to predict events and enable real-time dynamic decision-making. The goal of your organization should be to work towards Category 5.
In the integrated (and most mature) state, IoT solutions are used along with other technologies and data sources to predict events and enable real-time dynamic decision-making.
No matter where your organization is in smart fleet maturity, there are measured steps you can take to move towards a more connected fleet and begin realizing the cost-savings and benefits that this technology can offer your business.
When selecting a vendor to help you launch a smart fleet management solution, it is important to choose a partner that provides the experience, expertise, and support you will need to make your program a success. As an industry-leading managed IoT solution provider, Kajeet is eager to learn more about your fleet management needs. Contact us today at https://www.kajeet.net/contact-us/.