Demand is soaring for Northgate Vehicle Hire’s telematics technology as businesses aim to cut costs.

Almost 5,000 light commercial vehicles on hire to fleet customers from the van rental specialist are currently equipped with its Vehicle Monitoring system and the figure is growing.

Demand for Vehicle Monitoring has been fuelled by a free three-month trial of the system being available if companies opt to rent a vehicle under Northgate’s Norflex scheme.

Since starting the trial, orders for nearly 900 units have been received.

The firm says most companies that have tried the scheme have found it so beneficial for operating efficiencies and cost control that they have both extended use of the service to 12 months and taken more units to fit in their remaining fleets of vans.

Vehicle Monitoring allows vehicles to be tracked by satellite while they are out on the road, helping companies make drivers safer and cut costs in a range of areas.

Industry data suggests that the benefits include:

  • Fuel savings of up to 20%.
  • 15% saving on overtime claims due to improved driver records, which also aids compliance with analysis of working hours.
  • Productivity increases of up to 15% due to improved journey scheduling and drivers travelling directly to their destination every time.
  • Insurance premium savings of up to 30% with drivers involved in fewer crashes as a consequence of knowing their journeys are being recorded.
  • Compilation of driver and vehicle audit in accordance with health and safety-related at-work legislation. 

Case study: vehicle monitoring

London-based BEW Electrical Distributors has equipped 22 of its vans with Vehicle Monitoring.

The company says vehicle efficiency is vital when catering for the demands of contractors.

Management control and improved productivity are the key benefits of Vehicle Monitoring, as well as ensuring that BEW employees are driving responsibly while they are on the roads, according to commercial control manager Mick Jackson.

He said: “The main thing we are interested in is logistics: being able to make the best use of each vehicle.

"Vehicle Monitoring enables us to analyse how each vehicle and driver is performing. It means the vehicles are used fairly and efficiently, which is good for our business and for our employees.

“In one branch where we were using two vehicles we soon realised that one vehicle was doing 80% of the work and the other just 20%.

"Because we had that information we could analyse the situation and get the problem sorted out.”