Telematics: Making a business case

Many companies are not convinced that they need telematics. Others can see the benefits but either can’t afford it or do not have the resource to act on the data. Some face opposition from drivers, unions or their board. Sarah Tooze challenged telematics suppliers to answer the critics.

Case file: Arval

“Telematics doesn’t currently suit our perk-based fleet”, Tracey Scarr, fleet and road safety manager at Arval

The problem

Arval has trialled telematics but Tracey Scarr believes it doesn’t fit with Arval’s perk-based fleet profile.

Many of the 260 company car drivers are doing mainly private journeys. There are no vans on the fleet.

“Suppliers will say that we should still introduce telematics from a safety point of view,” she says.

“I don’t disagree, and it’s not something that we would rule out, but I would say that we have a comprehensive safety programme that delivers savings and change in safety culture.

“Our Drive4Life programme, which is compulsory for all company car drivers and employees that drive on business, includes online risk assessments, workshops, e-learning and on-the-road driver training.

"Our year-long safety campaign consistently reinforces safety messages.”

The responses

TomTom Business Solutions says: Even if the vehicles within this particular company car fleet are only being utilised for private use, by drawing upon real measured mileage from vehicles to plan maintenance intervals, significant returns on investment can be realised.

Costly repair bills can be avoided, the residual value of vehicles can be maximised and the impact on the environment minimised.

Research from the Centre for Climate and Energy Solutions shows the energy efficiency of vehicles can be improved by as much as 10% by ensuring fleets are well-maintained and that driver performance is optimised.
 

Masternaut says: Telematics provides the real-life data that significantly enhances risk management programmes.

It can provide alerts on speed or distances driven without a break, for example.

This is something that traditional training and online assessments can’t touch. Telematics will also streamline the process for expense claiming.

There are two paybacks here: reduction in admin time checking business versus private claims and validating this for HMRC. It can also be more convenient for the driver.