CVT offers a clear business case and ROI for fleet operators

CVT offers a clear business case and ROI for fleet operators

The report – Commercial Vehicle Telematics is a Powerful Management Tool with a Clear Business Case and ROI for Fleet Operators – says that the promise of multiple benefits offered by CVT is encouraging uptake of such systems, particularly during the current economic downturn.

Transportation and logistics companies, as well as commercial fleets in other industries, face increasing fuel costs and shrinking revenues. Investment in commercial vehicle telematics helps fleets to boost productivity while decreasing costs, making them more competitive and improving customer service.

For instance, the benefits of a basic black box with track and trace features include real-time tracking of vehicles and drivers, as well as improved route planning. An on-board computer with a FMS offers even more, including additional data gathered from the vehicles and as a large set of back-office management tools. An on-board computer with user interface offers all these benefits as well as in-vehicle user interface.

Most telematics systems are based on digital map data, and the map's level of detail and accuracy has a certain potential to accelerate the ROI that fleet operators can gain from telematics. However, different customer groups (e.g. utilities and taxi services among others) have different needs for their map data. By integrating more advanced map data for specific customers, telematics suppliers can leverage certain growth opportunities.

"A strong case for the ROI will be a strong driver for telematics in heavy trucks and light commercial vehicles," say Frost & Sullivan's analysts. "Fleet operators should understand that ROI is progressive over time, first providing direct cost savings and then evolving to revenue increase from customer satisfaction and retention."

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