On average, a total of six percent of all fuel charges made to businesses in the UK are fraudulent, according to data from the Department of Transport. That’s a huge amount, especially if you’re a small to medium business. The problem that most firms face is actually proving that their employees are taking an extra mile or two here and there and then confronting them with the evidence.
Thanks to telematics-based GPS management systems, this is an issue of the past. The technology, which can be accessed through a smartphone and more recently through the cloud, enables fleet managers to track vehicles, uncovering their driving routes and the amount of time spent on the job. Through this, it is easy to pick out fraudulent expense claims, with the proof to go with it. So if an employee takes a business journey and embarks on a long detour halfway through it for non-work purposes, it can easily be spotted and will be rejected as part of their fuel expenses.
What other ways can telematics reduce fleet costs?
Insurance
One area that doesn’t get enough attention is the potential for telematics to lower insurance premiums. When used in conjunction with a drivers’ safety programme that uses GPS tracking data to instruct staff how they can drive more safely, the introduction of telematics can result in reduced insurance premiums.
You’ll have to prove that you’re using the technology to improve driver safety, however. So, if you have a fleet that has an overall problem with speeding, you’ll have to demonstrate that you have taken corrective action to eliminate the problem before your insurance provider is likely to consider reducing your premiums.
Maintenance
Telematics also provides under the bonnet diagnostics data which enables businesses to control costs and streamline maintenance. You can:
* Set reminders to change oil, in addition to other maintenance actions.
* Check on engine diagnostics to identify marginal problems before they turn into expensive larger ones, while lowering the possibilities of roadside repairs.
* Track all service records, which includes the name of the technician used and date and type of maintenance required. This helps control repair costs and will in addition prolong the life of the vehicles.
Fuel usage
Fuel is one of the biggest expenses for businesses, and GPS tracking systems are able to control the costs of fuel consumption in a number of ways.
* Improving journey efficiency. A tracking system allows your employees to plan their journeys more efficiently, finding the quickest route and thereby lowering fuel costs.
* Reducing speeding. You can monitor the speed of your fleet 24/7, ensuring that your employees slow down. Not only does reducing your speed ensure safer driving habits, it also reduces the amount of fuel you use.
Businesses that implement this form of technology are able to reduce their fuel costs by an average of 20-25%. Add this to the possible savings made on insurance premiums, maintenance costs and fuel fraud and a wireless fleet management system really does pay its way in cost reductions.
