ARCHIVE FOR THE ‘fleet-technology’ CATEGORY

Sergio Barata, General Manager EMEA, Telogis looks at the ever evolving nature of the professional driver

The life of a professional driver has changed dramatically over the last few years.

Gone are the days of being cast off in virtual isolation on the road. Instead, drivers are now part of a hyper-connected organisation joined up by tech, and this is allowing managers and a network of drivers to be linked in totally new ways.

One man and his truck has turned into one man, his truck and his digital network. Almost every piece of driver activity can now be turned into data in real time and then optimised for the operation’s benefit.

It’s saving vehicle-based businesses millions of pounds and completely changing how a driver operates in the cab.

But this hasn’t happened overnight. What are the steps that have got us here? And how does it affect the job role today? Here we look at the milestones that have changed the concept of a lone driver and how the driving experience has been turned on its head.

Telematics rolls into town

The first major development that connected drivers was the advent of basic telematics. It allowed managers to see where their drivers went, the miles they covered, and the fuel they spent. For the first time, drivers were now sent on jobs knowing that bits of information about their driving would be fed back to their managers.

Drivers responded by paying greater attention to the management of their vehicles, communicating with head office via traditional telephone systems to find the quickest route to get the job done.

Software hits the cab

The next step came when operators began demanding intelligent software which could provide greater insights through data aggregation and analytics.

With software-based services, managers were able to measure variables such as harsh braking, speeding and fuel consumption, with information collated and stored in the cloud for remote management. Relative to the size of each taskforce, the output was business critical data.

Enter MEM

‘Mobile Enterprise Management’ software, or MEM, connects each member of the workforce more closely than was previously thought possible. In a fleet context, it allows vehicles and drivers to communicate and interact with data in real time, gaining insights from other parts of the network which can be applied to their own vehicle.

This information, sourced from thousands of lone drivers across the network, can also be fed into other separate parts of an organisation’s network.

Whether it’s a small commercial operation or a sprawling international supply chain, mobile and the cloud can connect an entire organisation from the front line to the back end, helping businesses optimise their operations and drive ROI.

The Lone Driver 2.0

It is in this context therefore, that we are able to establish a new profile for the lone driver, combining traditional expertise with the new role as an enabler within the wider data ecosystem of an organisation

Drivers are a no longer a remote asset once they leave the conventional four walls of the enterprise.

They are now an extension of that enterprise, creating a constant stream of data and interactions which are fed back to their organisation’s operations team via a cloud-based platform, ensuring all aspects of the network are optimised.

The data driver

This means that in the modern era, lone drivers are more important than ever before.

They are responsible for creating a vast amount of this data, whether that be through logging their commercial hours, carrying out their Driver-Vehicle Inspection Report or simply driving their vehicle, generating performance data.

The future?

As technological innovation continues apace, the adoption of autonomous vehicles looks likely to represent the next major change in field operations, with some critics citing this development as the beginning of the end for drivers.

On the contrary, drivers have demonstrated their ability to adapt to technological change on many occasions already, and their longevity won’t end here. With their increased importance in the data ecosystem, the profile of the lone driver may yet change. But they will still be important as ever.

 

---

 

Be social and share this feature

 

International retailer Tesco, which has more than 6,900 stores globally and employs nearly half a million people, is deploying Journey Management and Trailer Tracking from transport management solutions provider Microlise on 940 trailers in Hungary, Slovakia, Poland and the Czech Republic.

Journey Management is a telematics product that provides the insight and visibility to debrief drivers by exception against route and schedule adherence to reduce mileage run.

It will also help the Tesco team to monitor the status of trips against schedule in real-time, as they unfold, and enable improvements through "planned vs actual" route comparison. Ultimately it will help Tesco to minimise mileage, increase efficiency and reduce environmental impact and costs.

The Microlise Trailer Tracking module allows trailers to be monitored without the need for them to be connected to a tractor unit and ensures that the location and identity of each trailer unit is accounted for at all times.

With location and activity reports, as well as unauthorised movement notification, Microlise Trailer Tracking will help the team with their proactive management of the trailer fleet. Round the clock visibility will enable the transport team to take action to keep assets safe and utilisation high.

The news marks an expansion of Tesco’s Microlise deployment following its initial adoption of the technology in 2015 in the UK and Ireland when it went live across 19 depots.

 

“Being able to track journeys and identify how the routes we have scheduled are unfolding, compared with how we planned them, is fundamental to our adoption of Microlise in central Europe,” said John Steventon, Primary Operations Manager Europe, Tesco. “The technology will enable us to understand how to improve our logistics efficiency and ultimately provide the best service for our customers, whilst keeping our assets safe.”

The new project in Central Europe is part of a reorganisation programme within Tesco to centralise the way journeys are planned. Microlise Journey Management and Trailer Tracking fully integrates with the Ortec planning optimisation software in place.

“Working with a true industry-leader on this project reaffirms that we have a world-beating product. It’s great to see our transport and logistics solution being used effectively and providing value on a large-scale to optimise the Tesco fleet operation,” said Nadeem Raza, Chief Executive Officer, Microlise.

Alongside the Journey Management and Trailer Tracking deployment, Tesco’s sub-contractors in Central Europe will also be using the pay-as-you-go Microlise SmartPOD Proof of Delivery solution, downloadable free from the Google Play Store.

 

---

 

Be social and share this story

At its annual business conference, Telogis, A Verizon Company, announced that it is partnering with John Deere to enable construction companies to derive key data and insights from their connected John Deere equipment to help drive cost savings, efficiency and productivity.

Through this alliance, Telogis and John Deere will enable existing and future mutual customers to leverage John Deere construction equipment's built-in connectivity. Customers will benefit from access to a richer data set that will help to eliminate manual data entry and generate deeper insights into customers' operations.

Customers also benefit from the ability to connect back into JD Link™ to order parts and service or contact local John Deere dealers for questions, appointments and equipment troubleshooting. They will also receive more accurate equipment maintenance records that can help lead to better uptime and lower total cost of ownership.

Customers can also take advantage of the Telogis Mobile Resource Management (MRM) software platform's comprehensive feature set, such as jobsite utilisation alerting and reporting that features engine hours, whether equipment is being fully utilised, fuel consumption and details on diagnostic codes. Customers' cost structures are also optimised by leveraging the John Deere telematics devices that come built into the equipment from the factory or installed aftermarket at an authorised dealer.

 

"Telogis' successful track record working with both off highway and on highway customers gave us great confidence that this is the right strategic relationship to bring these mission-critical technologies and services to our customers," said Jena Holtberg-Benge, Director Worksight Solutions at John Deere.

"By working in tandem with Telogis, we're giving businesses the ability to run their entire mobile equipment business on one comprehensive software platform with one login for all their vehicles and equipment – whether it's John Deere or a mixed fleet."

"Equipment – not just vehicles – represent an enormous investment for mobile businesses, and it's more important than ever to ensure that equipment is running safely, and that it's out there earning money and delivering value and ROI every day," said Jeff Cohen, Vice President, Asset and Security Solutions at Telogis, A Verizon Company.

"By understanding how the equipment is being used, how many hours it's running and where there are opportunities to maximise uptime and utilisation, customers can identify opportunities to drive cost and time savings, plus productivity and efficiency in every aspect of their mobile businesses."

The offering will be available to organisations of any size through connected John Deere equipment or through authorised dealers through the end of 2016, and each new piece of equipment will have access to both JDLink and Telogis.

 

---

 

be social and share this feature

Nearly two-third (60 per cent) of van drivers believe they are made a scapegoat for perceived poor driving standards on UK roads, new research has revealed.

According to a study¹ by TomTom Telematics, fewer than one in ten van drivers (nine per cent) have been involved in a road traffic collision in the last 12 months.

In addition, more than half (54 per cent) have their driving performance monitored by their employer and more than a third (34 per cent) receive driver training.

The findings challenge the views of British motorists revealed in a study earlier this year, in which van drivers finished bottom of the list when it came to which road users are considered the safest or most careful.

“The traditional ‘white van man’ stereotype may no longer be a fair one with a great deal having been achieved over recent years to help raise driving standards among LCV operators,” said Jeremy Gould, VP Sales Europe, TomTom Telematics.

“Developments in telematics technology, such as our advanced WEBFLEET fleet management solution, have enabled drivers and managers to work more closely, empowering them with actionable insights and performance feedback for continuous driving improvement.”

 

Gould’s view is supported by Freight Transport Association (FTA) Head of Vans, Mark Cartwright, who added: “Van drivers are often unfairly maligned and, in some quarters, continue to shoulder an undeserved reputation. Initiatives such as the FTA Van Excellence scheme have been embraced by the industry, demonstrating its commitment to improving standards and increasing best practice awareness.”

According to the research, truck drivers were considered the safest road users², with a third of van drivers (33 per cent) voting them top. Thirty-three per cent meanwhile considered cyclists to be the least safe³.

More than half (59 per cent) believed in-cab technology solutions that provide audible and visual alerts offer the best approach to improving driving standards, followed closely by 49 per cent that voted for driver training courses.

 

---

 

¹ The research was conducted by TomTom Telematics among 100 LCV drivers. In order to qualify for the research, respondents had to be mobile workers operating as part of a company van fleet.

Driver tables

²Road users that van drivers consider the safest (selected from the following finite list):

1. Truck drivers 33%
2. Van drivers 26%
3. Motorcyclists 18%
4. Car drivers 13%
5. Bus and coach drivers 7%
6. Cyclists 3%

³Road users that van drivers consider the least safe (selected from the following finite list):

1. Cyclists 33%
2. Motorcyclists 21%
3. Car drivers 20%
4. Truck drivers 13%
5. Bus and coach drivers 12%
6. Van drivers 1%

 

---

 

Be social and share this story

Nissan Europe and Telogis, a Verizon company, have partnered to offer next-generation connected vehicle technologies and services to Nissan commercial customers in Europe.

The new NissanConnect Fleet powered by Telogis offering will connect customers’ vehicles, people and the work that is being done, helping to make drivers safer, providing higher levels of service, while improving sustainability and operational efficiency.

The time has come for Nissan commercial customers to benefit from the visibility and operational intelligence they gain by connecting their business,” said Philippe Guerin-Boutaud, Corporate Vice President, Global LCV Business Unit, Nissan Motor Co., Ltd. “From empowering workers on the road and in the field to help them be safer and more efficient, to optimising daily delivery routes, NissanConnect Fleet will have a transformational effect on the way Nissan customers do business.”

Whether you’re a fleet manager or a small business owner, our role is to help you choose a vehicle that suits your specific business needs. From a one van fleet, to multiple vehicles, our highly trained Local Fleet Specialists will work out the most practical and affordable solution for your business.

 

The introduction of the new NissanConnect Fleet service marks an important step in advancing Nissan’s connected services offering across Europe, and also forms part of the brand’s Intelligent Mobility strategy that is guiding Nissan’s product and technology development to create a safer and more sustainable future.[/quote]The introduction of the new NissanConnect Fleet service marks an important step in advancing Nissan’s connected services offering across Europe, and also forms part of the brand’s Intelligent Mobility strategy that is guiding Nissan’s product and technology development to create a safer and more sustainable future.

 

Utilising hardware that has been factory-fitted or installed by a certified Nissan dealer, NissanConnect Fleet connects the vehicle to Telogis’ Mobile Resource Management (MRM) software platform. This platform receives and analyses proprietary Nissan data from each vehicle including driver and vehicle performance history, and turns it into actionable information to help companies of all sizes make more informed business decisions.

“Customers will experience near-immediate return on investment by utilising the built-in connection in their Nissan vehicles,” said Kevin Moore, Vice President, Global OEM Automotive Sales at Telogis. “Telogis delivers mission-critical applications that enable Nissan commercial customers in Europe to connect, optimise and automate their operations, improve the lives of their drivers and provide a higher level of service to their own customers.”

Many of the world’s largest and most well-known commercial fleets connect their vehicles, assets, people, customers and the work that’s being done outside the four walls of their business through the Telogis MRM platform. Once connected, Telogis software will optimise and automate work and processes to drive safety, productivity, efficiency and sustainability in businesses of all sizes.

The NissanConnect Fleet powered by Telogis offering will be available in Europe this autumn supporting the following initial vehicles (with more to come):

 

• All crossover range Qashqai, X-Trail and Juke
• Medium-compact car Pulsar
• New Navara One Ton Pick-up
• NV200 light commercial vehicles (LCV)
• NT400 Cabstar medium-duty vehicles
• Nissan electric vehicles (EVs) - LEAF and e-NV200[/unordered_list] 

Whether it’s supporting fleet managers or a small business owners, Nissan is committed to finding solutions that will help drive forward its customers’ businesses.

 

---

 

Be social and share this feature

In a thought provoking and perhaps slightly controversial article, Sergio Barata, General Manager EMEA at Telogis, explains why the telematics industry as we know it is on the way out.

With the prevalence of smartphones and the power now available within these devices, traditional telematics has become all but redundant he writes...

As the tech that enables the exchange of information between fleet vehicles and a central manager, telematics has been billed as a game changer for any business that uses a fleet.

But while awareness of its benefits has increased significantly recently, telematics is not revolutionary: this data and the means to understand it has been available for over a decade.

As more and more businesses wake up to the benefits of telematics there is a new kid on the block; Mobile Enterprise Management (MEM) threatens to blow traditional telematics out of the water.

Traditional telematics is archaic

Whether it’s on a truck driving through the remotest parts of Scotland or a delivery van in Cornwall, telematics data is typically created using GPS units with on-board computers.

The hardware uses cellular networks to transfer real-time data to central offices which is interpreted for effective fleet management. The data covers everything from location, movement, status and behaviour of a vehicle or fleet of vehicles to how a driver is operating them.

[quote float="left"]Whether it’s on a truck driving through the remotest parts of Scotland or a delivery van in Cornwall, telematics data is typically created using GPS units with on-board computers.

This information allows managers to get a birds-eye view of an entire field operation, checking the overall health, profitability and productivity of the fleet, whilst ensuring the workforce is operating the vehicle as intended. The headline benefits include vast fuel savings through route optimisation and increased driver and vehicle safety.

 

This is of significant benefit to any fleet-based business, but there is so much more to a mobile workforce than simply understanding the location and speed of a van or truck and what the driver does inside it.

This is because fleet managers, and those in the field now have the power to understand the mobility of an entire workforce.

Forget telematics. It’s about MEM.

Almost everyone now has a smartphone in their pocket. Deloitte puts the figure at 76% of Brits. This means that devices, workers and assets are now mobile and connected in an extremely powerful way – a far cry from the simple GPS link that old telematics hardware uses.

Added to this, more and more organisations are becoming experienced at using technologies such as Cloud and Big Data to harness insights from this mobility.

Research from Adapt claims that almost 90 percent of UK organisations now use cloud services, while the Government claims 12 per cent of companies are analysing their data. These two technologies, plus the power and mobility of the smartphone are giving unparalleled insight into operations.

[quote float="right"]Research from Adapt claims that almost 90 percent of UK organisations now use cloud services, while the Government claims 12 per cent of companies are analysing their data.

This is where MEM comes in.

 

MEM is the tech that allows all constituents of a fleet to communicate and interact with data and gain insight from it in real time.

From sprawling international supply chains to small commercial fleets, by using mobile and the Cloud to connect an organisation from the front line to the back end - and all the individuals involved between - businesses can totally optimise their operations.

This includes traditional telematics information, but also planning, navigation, routing and compliance data, and an unprecedented understanding about use of assets like cranes, plants or trailers.

And because this tech is smartphone based, iOS and Android capabilities open up possibilities for businesses even further. Think about the way consumers interact with their smartphones – an app can be created, simply, to solve almost any demand within a fleet operation.

One example is gamification products are being developed to get drivers to compete on fuel efficient driving, encourage better driving safety and fuel efficiency.

MEM can help businesses become dramatically more efficient, smarter and safer in a way that simple telematics can’t achieve.

The future

Organisations are under immense pressure to improve cost efficiency while also evolving the way they work to keep up with rapidly changing customer and employee demands.

Telematics can help bring down operating costs and is the first step in using tech to help transform a business. But to be able to stay at the cutting edge by totally optimising all parts of a mobile organisation, fleet-based businesses must forget telematics, think bigger and embrace full mobility with MEM.

 

---

 

Be social and share this feature

Arden Wood Shavings, an animal beddings specialist, has renewed its fleet compliance and security systems contract with TruTac and sees improved vehicle safety ahead as TruChecks, the mobile driver inspection app, is added to the suite.

Arden has over 30 years’ experience of supplying wood shavings and sawdust bedding for a wide range of applications, including the poultry and equestrian sectors, dairy farming and for miscellaneous industrial businesses. Today, the company is one of the largest suppliers of its kind in the UK.

“With such an extensive product range and customers throughout the country,” explains Transport Manager Lee Parker, “our vehicle fleet is relied upon to deliver on-time while remaining efficient, safe and 100% compliant. To this end, TruTac’s unique software systems work in unison to enable close management and control of our transport assets and personnel.”

Available on Android, Apple and Windows operating systems, the app features a configurable check list which is easily used by the driver

Accordingly, TruChecks allows drivers to complete daily vehicle inspections quickly, accurately and without the need for manual form-filling. Available on Android, Apple and Windows operating systems, the app features a configurable check list which is easily used by the driver and automatically emailed to the office for data storage or remedial action if required.

 

“Thereafter,” adds Lee, “the checklists can be easily referenced for workshop maintenance and inspections at a later date. Really, it couldn’t be simpler.”

TruChecks also features enhanced graphics with easy-to-manage functions and the device captures all of the information required by VOSA inspectors.

Arden also use TruTac’s TruControl and TruTime systems. These provide automated digital tachograph analysis and fail-safe clocking of all drivers and employees. Data and reports for attendance and drivers’ hours are all web-based, and can be accessed via any internet connected device. All TruTac systems have user defined security access with encrypted passwords, automated reports and seamless integration to reduce administration.

“Basically,” concludes Lee, “the TruTac package allows us to keep tabs on each one of our 20 drivers and vehicles without the need to push paper and with very little margin for human error. As a former driver myself, I know what it used to be like. Now we can cover hours, analyse tacho information, debrief drivers and monitor infringements at the click of a button. That saves time, keeps us legal and above all, keeps our delivery fleet on the move!”

 

---

 

Be social and share this story

Driver behaviour has become a key focus for many field service organisations but what are the key reasons for companies paying more attention to how their engineers are performing when on the road?

In fact the benefits of focussing on this particular aspect of field service operations are numerous, although often health and safety compliance is the primary driver with other benefits only being realised later as a byproduct of implementing a driver improvement strategy.

As Paul Foster, Director of Solutions Engineering for Telogis explains;

“There are two main aspects to driver improvement projects. One is compliance and showing that your able to keep your workplace safe.“

“At the end of the day your providing them with a tool to do the job and what you need to do as an employer is prove that your not doing that irresponsibly.”

“Safety is paramount but that can then have all sorts of knock on effects not least around costs,” he adds.

“The big thing is design for safety, but that will have its impact on costs.”

“If your engineers are driving safely then they will be driving within limits and that means that fuel consumption and vehicle maintenance on items such as tyres, brakes and general wear and tear will be reduced. In turn that means vehicles are easier to maintain and over a large fleet that is going to be very beneficial.”

 

“It also means that in operational terms you stand a better chance of having your assets available for work more of the time so it’s a win, win really.”

This is a sentiment echoed by Jeremy Gould, VP Sales Europe, TomTom Telematics.

“The management of driving behaviour for field service companies can not only enable the improvement of the business bottom line by helping to cut fuel usage, it can also help protect driver safety, the environment and a business’ brand image,” Gould comments.

“From a financial perspective, fuel costs account for a significant proportion of the total cost of ownership (TCO) of field service vehicles and, aside from vehicle choice, one of the single biggest factors affecting fuel consumption is driving style,” he explains.

Stuart Kerr, Senior Vice President, Global Enterprise Business, Fleetmatics also highlights economic benefits as a major factor for embarking on a driver improvement program.

“The economics of improving driver behaviour are staggering,” he states.

“With ROI’s of 400% to 700% the financial returns are immediate and significant. Firms assume their drivers are following the plan and order of the days activities. The reality is that every day your drivers head off into the fog and you are left with a sea of assumptions. These turn out to be false but without telematics you do not know what you are missing,” he continues.

Of course the advancement of driver improvement programmes is heavily linked to the rapid evolution of telematics technology.

 

As Kerr comments “Cutting edge telematics solutions, offer an exceptional view of field tech behaviour.

You can spend serious capital ensuring you have the optimised plan for your technician’s day but if it is not followed well or if the driving is erratic and unoptimised, a great amount of those savings will fall by the wayside.”

“Over and over we see our clients using the simple fact that ‘the truck is the truth’ to ensure that they have good data on how long jobs really take and how better to optimise the schedule going forward.”

“That often results in managers seeing a 15% jump on technician productivity and drops directly to the bottom line,” Kerr adds.

“The advance of technology is allowing us to step away from the direct management of driver behaviour,” Foster adds.

“We can now introduce systems that allow us to create self management, so if you can give a driver feedback about his behaviour without having to call him into the office every-time something has gone wrong and allow a driver to correct himself based on results that are relative to his peer group, then you’re saving cost in terms of both time and money - but it’s also a more effective way of doing things because your no longer relying on somebody’s judgement on driver behaviour and safety, your using a system that is going to plan the landscape and judge everybody by the same measure.”

“Whether you agree or not with what those measures there is no argument because everybody is held against the same standards.”

This is a view shared by Jonathan Dolby, Head of Marketing, Microlise “Technology is fundamental in improving driver standards. Telematics in particular allows organisations to measure the standards of their drivers, but subsequently empower those drivers to improve their own performance by helping them to identify any areas of weakness, for example the recording of too many harsh braking incidents which could relate to a lack of anticipation,” he comments.

 

“Not only does telematics help measure initial performance, but it allows organisations to measure improvements in standards over time, understanding return on investment from any training perhaps.”

“Furthermore, telematics helps maintain improvements over the long-term - any drivers slipping back into bad habits can be identified and mentored.”

“Advancements in technology that monitors driver behaviour and provides feedback to both drivers and managers have continued apace over recent years,” agrees Gould.

“New technology is providing businesses with the tools to make a real impact in this area by helping them to work with their drivers to improve standards.”

“Telematics technology can draw upon a wide range of actionable data, taking live information directly from vehicles to profile individual drivers or entire fleets.”

“Driver behaviour tools are of course an offshoot of telematics technology really, and we’ve seen the basic hardware become a lot cheaper, the services that go around that have become a lot cheaper and therefore more affordable to small and medium sized businesses. That means that adoption rates can go up,” Foster explains.

“There is more and more standardisation around the way data is being recorded so that we can standardise how the technology works - which again makes it cheaper to install and maintain and also the advent of connected cars on the production means aftermarket installations are going to become a thing of the past and that means we can just bolt services onto connected car movement.”

 

“With the improvements we are seeing in the technology we are not just looking at things like idle behaviour or speed but better and better hardware is giving us better insight into what harsh braking is or harsh acceleration or harsh cornering and so on. We can begin to look through more of the different aspects of driver behaviour as the hardware improves.”

Indeed the solutions today are becoming ever more advanced. “The technology available now is able to provide businesses with a complete approach to driver improvement. Pre-trip, it provides motorists with best practice advice on how to drive safely and fuel-efficiently. Direct feedback and driving advice can be offered during the trip to actively coach the driver, through technology such as our OptiDrive 360,” adds Gould.

“This technology has helped slashed fuel consumption by 10% for ventilation product manufacturer EnviroVent and by 11% for gas distribution giant SGN.

Developments in driver behaviour improvement technologies have helped revolutionise the performance and safety of mobile workforces in recent years and this trend shows few signs of abating,” he expands.

“Five year’s ago it was tough to view info on a map in real time,” explains Kerr.

 

“Now we can not only know the drivers behaviour, but we can view it in the context of the overall business. How many stops did he make today that were actual work orders? What portion of his day was spent on work orders versus other activity?”

“Firms can use modern telematics to also determine who is driving safely and who is heading towards an expensive accident. Being able to truly identify dangerous drivers and improve overall safety is a monumental shift forward.”

“Lastly, the world has gone mobile. Truly advanced telematics vendors have fully fledged, rich and robust mobile apps that run on both IOS and Android.

These provide info at the fingertips for managers and can be even be very useful to give to the drivers themselves so they can see first hand the results of the choices they make while driving.”

 

---

 

Be social and share this feature

Only one in ten companies (11 per cent) take total cost of ownership (TCO) into account when procuring vehicles, according to latest research.

Purchase price or lease cost ranked as the biggest consideration, selected by 64 per cent of companies, with vehicle reliability a priority for just a third (33 per cent), the study by fleet management specialist Fleet Operations revealed.

“Given the number of businesses that we talk to about the importance of using TCO, these findings were very surprising and suggest many companies may be incurring unnecessary fleet costs,” said Ross Jackson, CEO of Fleet Operations.

 

Although headline prices must be taken into account, TCO offers the most complete and meaningful evaluation for selecting fleet vehicles.[/quote] “Although headline prices must be taken into account, TCO offers the most complete and meaningful evaluation for selecting fleet vehicles. This calculation includes not only leasing and purchasing costs but all real-life costs over the period vehicles are retained – from depreciation, fuel, insurance and maintenance to interest, tax and employers NI.”

 

Almost half of the companies surveyed (46 per cent) said they were unaware of the correct formula for calculating TCO.

The study also found that more than a quarter (26 per cent) of companies have seen lease costs rise in the past 12 months. In spite of this revelation, more than a third (38 per cent) of those that lease vehicles do so using a solitary supplier.

“Lease costs can have a considerable influence on TCO but rising prices can be mitigated through competitive, multi-supplier, procurement practices,” Jackson added.

“Eye-catching deals on specific makes and models can lure companies, but a preferred sole supplier is unlikely to offer the best deals for all vehicles. Significant savings can be realised by searching the market for the best price on every vehicle. Although this can prove labour-intensive, it can be cost-effectively outsourced to a fleet management specialist.”

---

Be social and share this story