April/May 2008

Vehicle tracking is now used in more than a quarter of vehicle fleets in the UK. Uptake is greatest among commercial vehicle fleets (30 per cent) and fleet operators with more than 100 vehicles (31 per cent). Penetration is particularly high in the utilities (86 per cent), logistics and road transport (40 per cent) and service management (38 per cent).

These are among findings of a survey conducted by telematics and tracking specialist Digicore.

Among users of tracking systems, benefits mentioned include increased productivity (54 per cent) reduced costs (44 per cent) and enhanced fleet performance (46 per cent). Other benefits mentioned include reductions in overtime claims (54 per cent), insurance premiums (46.3 per cent), fuel usage (43.9 per cent), communications costs (37 per cent) and administration (37 per cent).

Where there were fuel and overtime savings, these averaged out at 12 per cent and 13 per cent respectively.

 

The survey found that among companies using telematics, three quarters thought the technology was adding value to their business; but among non-users, only 48 per cent thought it could benefit their business, and only 44 per cent believed it could offer return on investment.

The survey found a direct correlation between use of vehicle tracking and fleet size. Eighteen per cent of businesses with up to 100 vehicles use tracking, but in larger fleets the figure jumps to 31 per cent.

Twice as many commercial vehicle fleet operators as car and van operators use telematics technology (16 per cent).

Most existing users (85 per cent) seem relatively happy with their current telematics supplier, and tend to value strong supplier relationships. Where there are problems, they often involve inflexible technology, costly solutions that don't provide return on investment, and telecommunication and equipment failures.

However, among non-users, 35 per cent believe the reputation of the telematics industry is not particularly positive, and feel there is a culture of overselling in the market. There were also doubts about the financial status of some suppliers and the robustness of the technology.

Despite the growing range of solutions for tracking trailers, motorbikes and plant, these featured little in the survey returns, suggesting perhaps that tracking has not penetrated as far into these markets yet as elsewhere.

The survey report is based on feedback from 150 professionals in transport and field service. Digicore has published the key findings in the form of a convenient four-page A4 leaflet, which you can obtain free from the company. Contact them on www.digicore.co.uk