Telematics has become increasingly important to the transportation industry. In fact, the technology is no longer a nice-to-have – it’s a must for U.S. commercial motor carriers and drivers, who are required by law to use Electronic Logging Devices (ELDs) by December 31, 2019. Plus, a Transport Canada ELD mandate for commercial drivers goes into effect in June 2021.
Two obvious benefits of using ELDs are reducing administrative paperwork and ensuring compliance with Hours of Service regulations. But carriers and fleet owners are discovering even more ways to capitalize on their investment. They’re leveraging ELD solutions to create considerable new value in key areas including:
- Fuel Economy
- Safety and Security
- Vehicle Maintenance
- Customer Experience
Here are examples of how organizations are generating ROI from their ELD initiatives.
Fuel isthe single largest operating cost for most carriers. With telematics-driven efforts, overall fuel consumption can be reduced by 25%. This not only significantly impacts a company’s bottom line, it can help meet carbon-footprint reduction goals. ELDs lower fuel usage by identifying and correcting drivers with hard acceleration, speeding and excessive idling. Improving these behaviors can reduce fuel costs by as much as 37% for the driver. Safety / Security
ELDs can monitor and help correct unsafe driving behaviors that cause accidents, which can be costly in dollars and human lives. Research shows a well-run telematics safety program can result in:
- 45% fewer accidents
- a 75% reduction in speeding,
- up to 90% improvement in seat-belt usage
- an 80% reduction in aggressive driving
Telematics programs designed to reduce aggressive driving not only prevent accidents – they reduce wear and tear on vehicles, cutting maintenance and repair costs by 14%. ELDs also enable predictive maintenance programs that forecast vehicle failures before they happen. The result? Up to 75% fewer equipment breakdowns and significant cost savings. Customer Experience
With real-time visibility provided by ELDs, customers and other stakeholders have visibility into the current location of shipments and a more precise, up-to-date ETA. Pro-active alerts and dynamic delivery windows help customers better plan their day and improve overall satisfaction with the delivery experience. Detention / Utilization
Data provided by the ELD platform can be shared with shippers and consignees to help them see the impact of their actions on performance and cost. It can help prove that drivers arrived on time and show exactly how long it took before they were able to leave. ELD data also helps increase driver and vehicle utilization because route planners have more precise information about actual times for different routes, times of day and customers. Dispute Reduction
Disputes can be reduced and quickly resolved using ELD data to provide an electronic proof-of-delivery (POD) solution. ELD data confirms the specific date and time a vehicle was at a customer’s property and can include geotagged photos of delivery at the site, as well as a signature of receipt for proof of delivery. Analytics
ELDs provide a wealth of valuable information, including precise location histories and granular vehicle data. This is truly big data that can’t be easily handled by spreadsheets. The range of analytics possible is only limited by imagination and resources. Ultimately, investments in analytics can bring substantial improvements to your organization’s performance, utilization, safety, and profitability. Typical expected benefits include a 10+% reduction in operating costs and 20+% increase in profit. Use Cases and Value Drivers
While many carriers and fleet owners initially focused their ELD initiatives strictly on regulatory compliance, they’ve come to recognize significant opportunities to realize additional value.
You can find more ways companies are leveraging ELD investments for expanded returns, along with details on use cases in our complimentary white paper series Telematics-Driven Transformation:
- Part 1 of 3: Best Practices for ELD Mandates
- Part 2 of 3: Use Cases for Driving Value from ELD Mandates
- Part 3 of 3: Selecting the Right Solution
Download the white paper series: