FLEETDRIVE
What results are you likely to achieve in further engaging in data and technology ?
We have numerous examples where data has been used to improve driver behaviour and in turn resulted in a $ 3 million saving in the first 12 months . The sustained costs never exceeded $ 50 k pa . Without data and telematics , we would not have able to prove the root cause and fix the problem .
A more likely result is the average Fleet of sales reps will see a drop in incidents of around 50 % as a result .
What are some common areas overlooked by Fleet Managers ?
Many Fleet Managers can make the mistake of brushing over incidents and isolating them as ‘ At Fault ’ and ‘ Not at Fault ’. By defining incidents as ‘ avoidable ’ and unavoidable ’ you will get a truthful ( mathematically correct ) outcome . For example , when a driver hits wildlife , it is more likely to be an avoidable event .
We suggest you start with this ; How many avoidable ( any event where your driver has hit something which includes wildlife ) incidents are you having for every 1 million km of exposure ? This number needs to be under 6 to be acceptable , ideally under 2 .
Then you establish the average cost per incident ( this will vary from self-insured and insured companies ). Then , if a commercially driven
organisation , what is the ratio of cost to sales and how do these incidents impact GP ? This will vary from 16:1 up to 50:1 .
In other words , for every dollar spent on a car , you need to make at least 16 times the cost of the incident to recoup GP ( or in low profit / high turnover businesses , multiply the cost of the crash by 50 ). A simple $ 2500 repair will require an additional $ 40,000 in turn over to get back on track . Feel for those in rural businesses where a $ 2500 crash will need an additional $ 125,000 in turnover .
Any final thoughts ?
Motor vehicles have never been so interesting with Electric Vehicles coming on strong and amazing new technology for safety colliding in development , it will see big changes ahead for Fleet Managers , exciting times indeed . It certainly is proving to bring big changes to our business and how we partner with our clients in the future .
ISSUE 30 AUGUST 2021 / WWW . AFMA . ORG . AU 19