Wednesday, 2 March 2011

Long Distance Love - How Vehicle Tracking Can Care For Your Bottom Line

Keeping fleet costs down is more essential than ever in the current economic climate - especially for small and medium-sized companies that are running their businesses on ultra-tight margins. Every penny saved helps the bottom line.

Telematics and vehicle tracking can play an absolutely vital role in keeping transport costs under control. And, as we've discovered, they often highlight savings that would not have otherwise occurred to fleet managers.

We saw a recent example of this when a large service company conducted a detailed analysis of their van fleet's activities.

The company, which transports industrial equipment across the length and breadth of the UK, were using iBox technology's hugely popular 'Trac-mate' device. 'Trac-mate' allows fleet managers not just to efficiently track and analyse vehicle movements 'live', but to produce detailed, printed reports as well.

During a review of the travel patterns of one van driver, the fleet management team noticed that he was making a round trip of exactly 400 miles between Stafford and Weymouth in Dorset three times a week.

When they asked the driver to explain the trips, he revealed he was travelling 200 miles each way to see his girlfriend. The driver wasn't actually breaking any rules. Private use of vehicles was allowed - and declared to the tax man.

This, however, was another story. The driver was racking up no less than 1,200 miles each week - and costing the company a small fortune in fuel.

As a result, the company revised their private mileage rules so that employees were only allowed to use vehicle's for 100 miles of private mileage per week.

The story had a happy ending for both sides. The path of true love still ran smoothly and the driver carried on visiting his girlfriend, using his own vehicle or taking advantage of his private mileage quota when on deliveries in the southwest of England.

And the company were able to shave thousands of pounds off their weekly fuel bill. All thanks to their telematics.

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