Telematics Report Finds Transportation’s Digital Transformation Still a Distant Reality

September 16, 2019 9:04 pm Published by Leave your thoughts

Teletrac Navman, a global software-as-a-service provider that leverages location-based technology for GPS tracking solutions, announced findings from its Third Annual Telematics Benchmark Report: U.S. Edition.

The survey, which examined best practices, trends and current issues influencing U.S. transportation organizations, found that although more fleets use technology than ever before (86% use telematics), most organizations lack a data-driven approach to running their businesses. Only 23% use big-data analytics to guide strategic decision-making, while 36% still rely on manual processes to forecast hiring needs.

This echoes another major survey theme indicating that despite demonstrated telematics’ benefits – 55% saw reduced fuel costs – it continues to be grossly underutilized. On average, companies only use three (of 12 most common) telematics features to measure general-vehicle status metrics like vehicle and equipment location (74%), hours of service (66%) and speed (61%), while far fewer measure metrics that could positively impact their bottom line, such as idling (37%) and fuel usage (30%).

Other key insights from the survey include:

Adoption of electronic logging devices (ELDs) is consistent with 2018, despite the rapidly approaching AOBRD transition deadline.

  • While 66% of survey respondents use ELDs to track hours of service (HOS), 24% admitted to still using paper logs despite it being law not to and 19% are using AOBRDS.
  • ELDs continue to be fleets’ top compliance concern (58%), but the percentage is down significantly from 2018 (74%).
  • Nearly a third (29%) report there is no driver concern around ELDs.

Telematics’ impact on incident reduction is up, due to increased driver-performance insight.

  • Forty-two percent have seen fewer safety incidents since using telematics to monitor driver behavior.
  • More than a quarter cite driver monitoring (32%), speed prevention (26%) and preventing driver fatigue/exhaustion (30%) as top telematics-related safety benefits.
  • Twenty-eight percent implement driver warning/alerting technology to further boost driver safety.
  • Fifty-seven percent reward safe driving, with the biggest benefit of this practice being reduced safety incidents and violations (58%).

Talent retention is a major business priority amid the continued driver shortage.

  • The top business challenge fleets face is finding, developing and retaining talent (30%).
  • Three of the top five driver-retention tactics are monetarily linked: increasing pay (47%), driver-appreciation programs (33%) and performance-based bonuses (30%).
  • Fifty-eight percent plan to increase drivers and equipment operators in the next year.

“This year’s survey results reveal there’s a big difference between being a tech-compliant organization and a tech-driven one,” said Sid Nair, senior director of transport and compliance, Teletrac Navman. “Putting ELDs in vehicles is not a silver bullet and, ultimately, won’t help fleets solve their business challenges as the transportation and logistics industry becomes ever more competitive. Using data effectively is the key to making your fleet work smarter, not harder, but managers can only reap these benefits if they look beyond using technology strictly for compliance and commit to using data to inform important business decisions – ones that can boost productivity and minimize expenses. That’s the true meaning of digital transformation.”


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This post was written by Telematics Talk Staff

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