Fleetmatics Introduces FleetBeat Report, an Industry First, Revealing Fleet Benchmarking Data and the Economic Impact of Commercial Fleet Telematics
$2.2 billion in annual fuel cost savings achievable based on 12.6% adoption rate of telematics solutions by U.S. and Canadian commercial vehicles; savings represents opportunity for significant financial gain by small businesses
DUBLIN and BOSTON, April 23, 2014 /PRNewswire/ -- Fleetmatics Group PLC (NYSE: FLTX), a leading global provider of mobile workforce solutions for small and mid-sized businesses delivered as software-as-a-service (SaaS), today issued the first edition of its FleetBeat Report, a deep dive analysis of tens of billions of data points extracted from thousands of commercial fleets over a five year timespan. The industry first report outlines the economic impact of telematics adoption by commercial fleets, and provides key benchmarks for fleet operators, as well as quantifiable benefits of business intelligence-driven fleet management.
"The financial and environmental benefits outlined in FleetBeat are profound," said Jim Travers, Fleetmatics CEO and Chairman of the Board. "Saving $2.2 billion annually on fuel costs means putting a huge amount of money back into the tens-of-thousands of businesses using commercial telematics. That can mean more spending, more jobs, and more overall stability. The report shows there is a real opportunity for organizations of all sizes to boost their bottom line and promote significant growth through the adoption of fleet management solutions. On a larger scale, this drives economic improvement across the business landscape."
As outlined in FleetBeat, 12.6% of all commercial vehicles in the U.S. and Canada currently have telematics units on board to aid optimization. Noting that percentage, the total estimated economic impact of commercial fleet telematics – assuming everyone using this type of technology had the same results as Fleetmatics' optimized customers – breaks down as follows:
Decrease in fuel consumption (gallons per year): 573 million
Total fuel savings: $2.2 billion
Decrease in CO2 emissions (tons per year): 5 million
Decrease in payroll hours per year: 1.3 billion
Total cost savings due to decrease in payroll hours: $34.9 billion
Fleet Productivity and Utilization Trends In addition to the total economic impact findings, FleetBeat features a section on Fleet Productivity and Utilization Trends. This examines data on service call and delivery performance, as well as reporting on service radius benchmarks for 12 fleet-driven vertical industries like electrical, landscaping and plumbing. Notably, in regard to service calls per day, across industries studied, the study showed that Fleetmatics customers experienced a greater than 13% increase in stops after implementing the fleet management solution. The report also showed that fleet utilization increased by 15%, when comparing the count of active unique vehicles in users' fleets. This number shows that fleets optimized by fleet management software are able to increase the number of service vehicles that service the business' customers.
Cost Efficiencies Reporting FleetBeat also digs into Cost Efficiencies reporting, taking a deep dive examination of payroll and fuel savings derived from having an optimized fleet. In regard to payroll, the report showed the standard workday for optimized fleets decreases 20% on average, from 10.6 hours to 8.5 hours, across verticals studies.
Regarding fuel savings, the FleetBeat study concludes that when engine idle and engine driving savings are combined, the estimated average savings is $45 per vehicle per month, which equates to a total estimated cost savings of $540 per vehicle per year. The savings almost double amongst fleets that have focused idling elimination programs in place. Fuel savings represent one of many avenues by which significant savings can be achieved with the use of commercial telematics. When you add this to the savings derived from reduced payroll hours, increased fleet productivity and utilization, and minimized harsh driving and idling - for example - the monetary savings can far exceed $45 per vehicle.
Idling Trends in Review Finally, the report looks at seasonal, regional and vertical idling trends, enabling fleet owners to gauge whether their team is spending too much time idling. On average across verticals studied, a 12% decrease in idling minutes (per vehicle per day) was achieved by crews that utilize fleet management technology. FleetBeat brings to light that, though it may not be top of mind, idling is one of the largest contributors to wasted fuel and, therefore, fruitless fuel costs.
"FleetBeat represents the first time that this level of detail and real world analysis has been presented regarding the broad economic and environmental impact of telematics adoption by commercial fleets," said Peter Mitchell, CTO for Fleetmatics. "With the fleet management market expected to grow from $10.91 billion in 2013 to $30.45 billion by 2018, we hope the report will serve as a resource to show business owners the immense impact this technology can have on their bottom line."
About Fleetmatics Group PLC Fleetmatics Group PLC is a leading global provider of mobile workforce solutions for service-based businesses of all sizes delivered as software-as-a-service (SaaS). Our solutions enable businesses to meet the challenges associated with managing local fleets, and improve the productivity of their mobile workforces, by extracting actionable business intelligence from real-time and historical vehicle and driver behavioral data.
Fleetmatics Group's intuitive, cost-effective Web-based solutions provide fleet operators with visibility into vehicle location, fuel usage, speed and mileage, and other insights into their mobile workforce, enabling them to reduce operating and capital costs, as well as increase revenue. An integrated, full-featured mobile workforce management product provides additional efficiencies related to job management by empowering the field worker and speeding the job completion process - quote through payment. Fleetmatics serves approximately 22,000 customers, with over 445,000 subscribed vehicles worldwide.