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Telematics has the potential to be one of the most important innovations in logistics since the advent of the barcode, but how can you be sure to maximise its promise? We are all now becoming familiar with the term telematics, ‘a computerised system that has the capability to connect a vehicle to a growing list of services’, all at a cost to the operator! Allegedly these services will improve a vehicle fleets operating performance…but will it? Generally telematics providers claim to improve one of four characteristics: 1. Communications between driver and base (and customer) 2. Safety and security 3. Vehicle diagnostics 4. Traffic information There is a lot of speculation and debate about what services customers want to access in their vehicles. Whilst this search for the Holy Grail continues, and providers continue to add more and more functionality to their products, one has to ask “Are we losing sight of the basic intention?” Operational cost reduction. The monthly fees for telematics usage need to ‘add up’. No company deploying such technology can afford to do so without seeing a return on that investment. Telematics is gaining ground in distribution as an enabling technology and is being considered (rightly so) as a means to collect undisputable operational data. The objective is clearly to use this information to refine behaviours and ultimately reduce operating costs. Regrettably the problem being faced by many companies is how to translate all this vehicle and trip data into genuine cost saving activities and actions that can be translated into valid everyday operational adjustments, all focused towards bottom line P&L cost savings. Thankfully, unlike the search for the Holy Grail, this problem can be solved by Key3 Partners. As a service to our industry, telematics is in its infancy, but be sure it is here to stay. The challenge for both providers and Users alike is, as ever, the profitability equation. |
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