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The 7 Problems with Vehicle Tracking
Stewart Adams Business Development Manager
Contents Introduction They all appear to be cost prohibitive Vehicle Tracking is seen as intrusive Quantifying the return on investment The contract period was cumbersome System reliability of all of the components Too difficult to integrate into back office systems Too Many Third Parties Involved 3 3 3 4 4 5 6 6
Introduction Having been involved with Vehicle Tracking over the years and observed the many installations it is clear that there are 7 major barriers that have been encountered when looking at implementing the application. The 7 problems that needed addressing are: 1. 2. 3. 4. 5. 6. They all appear to be Cost Prohibitive Vehicle Tracking is seen as intrusive Quantifying the Return on Investment The contract period was cumbersome System Reliability of all the components Too difficult to integrate into back office systems to get the best use of the information 7. Too many third parties involved
They all appear to be cost prohibitive The size of fleet determines the cost of the application on a month by month basis. To understand why the cost looks prohibitive several aspects of the application needs to understood. The installation company carries a great deal of cost up front which eases the initial up front cost and they carry this for nearly 40% of the contract life thus ensuring that the system works. With a good Service Level Agreement (SLA) you are secure in the knowledge that you have plenty of time to ensure the system is operating effectively. Assuming a fleet of 70 vehicles the cost of £25 per vehicle per month looked, on face value, very expensive. However, with no up-front equipment cost, no installation costs, warranty and free support for the life time of the contract, this initial cost looks a lot more attractive and easy to understand provided a good SLA allows you to send it back if it does not perform. If you then factor in the benefits against tax of product/service leasing, the cost of £25 per month per vehicle looks a small price indeed!
Vehicle Tracking is seen as intrusive The initial thought with Vehicle Tracking was that the drivers would see the system as intrusive - Big Brother if you will. When we sat down with the drivers, they soon began
to see the positive side of the system. When it was explained that the ability to track where they are would increase productivity by increasing the amount of jobs that could be booked each day, their driving style would improve; their idling time could be identified and this enabled them to share in understanding how we needed to save money and how they could be of help in doing this. The system monitors business and private mileage, which had a positive effect on the amount of tax paid by the driver, another benefit which they readily recognised. One important factor in driver buy in on these systems is competition and incentives. Most systems can produce very effective reports on driver behavior from which you can produce driver league tables. Incentivising the drivers to be top of the league promotes good driver behavior and speeds up the ROI process. This helps turn what can often be seen as a negative situation into a positive one.
Quantifying the return on investment When building the ROI case, there is always some difficulty in calculating the tangible benefits of the system. On deeper inspection and thinking about the change in drivers’ behaviour and how easy it was to highlight areas, through the reporting tools, that required improvement the light at the end of the tunnel was appearing. Very quickly, it became apparent that significant savings could be made in fuel consumption, vehicle wear and tear and insurance premiums. The savings that were available...