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'Prohibitive cost' of telematics discourages one-in-two fleets

Date: 23 January 2013   |   Author: Rachel Burgess

The primary reason for firms failing to operate fleet management and telematics systems is prohibitive costs, according to Businesscar's first survey in association with TomTom.

Businesscar.co.uk readers were asked what their main reason was for not operating such a system: half of voters said the investment was cost-prohibitive, while over a quarter (28%) said they did not consider the technology appropriate for car fleets.

Meanwhile, 11% have concerns over driver resistance and the same amount do not feel they have the resources to operate and benefit from the technology.

"Although half of car fleet operators regard telematics as cost-prohibitive, returns on investment can be realised in as little as three months," said TomTom Business Solutions director Giles Margerison.

"Companies can make thousands of pounds of annual savings in fuel alone. By promoting more efficient driving styles - combined with smarter route planning - operators can make significant impacts on their bottom line, increasing mpg and driving down fuel costs.

"Independent research recently discovered Zenith Hygiene Group, operating a mixed fleet that includes 56 company cars, has reduced fuel bills by £222,660 a year by using TomTom fleet management to monitor assets and improve driver performance.

"Another success story has been coffee company Matthew Algie, which has seen an impressive 20% increase in the number of sales, training and engineer calls made since introducing fleet management technology.

Margerison added: "While more than a quarter of businesses consider the technology inappropriate for car fleets, the reality is that fleet management systems enable companies to reduce costs, while boosting efficiency, regardless of the type of vehicles they're operating."

Visit the Businesscar.co.uk homepage to have your say on fuel costs and telematics in the latest poll.

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