Telematics vs. Traditional Methods for Fleet Benchmarking
Explore how telematics transforms fleet benchmarking by providing real-time insights that enhance efficiency and safety over traditional methods.
Telematics offers real-time insights, while traditional methods rely on historical data. If you're managing a fleet, telematics can track driver behaviour, fuel efficiency, and maintenance needs in real-time. This helps reduce costs, improve safety, and optimise operations. Traditional methods, though simpler and cheaper upfront, often miss critical details and rely on averages. Here's a quick comparison to help you decide:
Quick Comparison
| Feature | Telematics | Traditional Methods |
|---|---|---|
| Data Type | Real-time and detailed | Historical and general |
| Metrics Tracked | Driver behaviour, fuel, maintenance | Fuel, maintenance, asset usage |
| Cost | Higher upfront, long-term savings | Lower upfront, fewer cost savings |
| Ease of Use | Requires tech setup and training | Simple and familiar |
| Insights | Predictive maintenance, safety analysis | Industry averages, less specific |
| ROI | Often within a year | Limited due to reactive approach |
Telematics is ideal for improving efficiency and safety, while traditional methods suit smaller fleets or limited budgets. For most modern fleets, a mix of both can provide the best results.
How fleets are leveraging telematics to improve their bottom line
How Telematics-Based Benchmarking Works
Telematics has reshaped fleet management by combining GPS, sensors, and diagnostics into an integrated, data-driven system. Unlike older methods that rely on historical averages, telematics offers continuous, real-time insights into fleet performance across multiple areas.
Real-Time Data Collection and Monitoring
Telematics devices installed in vehicles act as data hubs, gathering and transmitting information through various channels. These devices include GPS trackers, engine interfaces, accelerometers, and SIM cards, capturing a wide range of data such as location, speed, fuel usage, maintenance needs, and driver behaviour throughout each journey.
This data is stored on the vehicle and sent via cellular networks to secure servers, where it can be visualised immediately. With this real-time access, fleet managers can respond quickly to incidents, adjust routes, or address performance issues without waiting for end-of-day reports.
Beyond basic location tracking, telematics systems monitor engine diagnostics, input/output interfaces, and even the usage of specialised equipment in vocational fleets. For businesses seeking detailed insights, this level of monitoring forms the basis for benchmarking performance against internal goals and industry standards. The constant flow of data also supports advanced analytics and predictive insights.
Data Analytics and Predictive Insights
What sets telematics apart from basic tracking systems is its ability to analyse both historical and real-time data. These analytics reveal patterns that help identify maintenance needs, inefficiencies in routes, and potential safety risks.
"Telematics provides a view of the data around how the fleet performs and allows for quick changes when problems are found."
– Carl Breczinski, Product Manager for Controls and Digital Solutions at Thermo King
One standout feature is predictive maintenance. By continuously monitoring engine diagnostics, telematics can alert managers to potential mechanical problems before they escalate into costly repairs or breakdowns.
Telematics also sheds light on driver behaviour. By analysing trends like harsh braking, rapid acceleration, or speeding, fleet managers can address safety concerns and improve performance. Research from Cambridge Mobile Telematics highlights that telematics programmes can cut distracted driving time by 20%, reduce hard braking incidents by 9%, and lower speeding time by 27%. These improvements feed directly into benchmarks for safety, fuel efficiency, and vehicle wear, helping fleets operate more effectively.
Performance Metrics Available
Telematics systems provide detailed metrics that influence safety, maintenance, and operational benchmarks.
For instance, vehicle performance data includes fuel efficiency tracking, engine health monitoring, and maintenance schedules based on actual usage rather than fixed intervals. Telematics also simplifies compliance tasks, such as automating International Fuel Tax Association (IFTA) reporting, which reduces errors and saves time.
"While many fleets have realised the benefits of location tracking, the most successful telematics deployments are those that go beyond GPS."
– Neel Sheth, Director of Product Management at Samsara
Some advanced systems integrate smart cameras, adding video context to driving events. This feature enhances driver coaching and aids in accident analysis. Additionally, telematics can track the engagement of vehicle switches and sensors, offering insights into the use of specialised equipment - something traditional methods often miss.
Take GRS Fleet Telematics as an example. This platform combines real-time tracking, geofencing alerts, driver behaviour analysis, and a 91% vehicle recovery rate. By consolidating these metrics into actionable insights, fleet managers can pinpoint areas for improvement and track progress against benchmarks.
The growing importance of telematics is reflected in the market's expansion. Valued at £39.6 billion in 2018, the global automotive telematics market is projected to reach £251.8 billion by 2026. This rapid growth underscores how businesses increasingly rely on comprehensive data collection and analysis to stay competitive in fleet operations.
How Traditional Fleet Benchmarking Methods Work
Traditional fleet benchmarking methods have long been the go-to approach for evaluating fleet performance. While they are straightforward and widely used, they now face challenges when compared to the capabilities of modern telematics systems. Before the advent of telematics, fleet managers relied on manual data collection and industry standards to measure performance.
Industry Standards and Averages
The cornerstone of traditional benchmarking lies in comparing a fleet's performance to industry averages and competitor data. Metrics like fuel consumption, maintenance expenses, asset downtime, and vehicle utilisation rates are collected and then measured against sector-wide benchmarks.
Fleet managers would identify relevant benchmarks and adjust the data to fit their specific operational context. This meant accounting for factors like fleet size, vehicle types, and regional variables. For instance, the trucking industry’s £11.2 billion investment in highway safety improvements in 2022 - a 40% rise since 2015 - highlights how industry standards drive collective progress.
However, this broad approach lacks the granularity provided by telematics, which offers real-time, operation-specific insights.
Straightforward and Familiar
One of the main advantages of traditional benchmarking is its simplicity. These methods don’t require advanced technology or specialised training, making them an attractive choice for smaller businesses or those with limited technical resources.
Many fleet managers still rely on manual data entry and spreadsheets - 40.28% of organisations use these methods today. This approach feels familiar and transparent; managers can easily verify calculations, trace data sources, and clearly communicate results to stakeholders without needing to interpret complex algorithms.
But while this simplicity makes traditional methods accessible, it also limits their ability to provide timely, actionable insights.
The Drawbacks of Limited Data
Despite their ease of use, traditional methods come with notable shortcomings. Their reliance on historical data means insights are often delayed and may not reflect current operational realities. These methods tend to focus on basic metrics like fuel use and maintenance schedules, overlooking critical factors such as driver behaviour and vehicle performance.
This lack of detail can leave fleet managers with a generalised view of their operations. For example, industry averages may not expose specific inefficiencies or problems unique to a particular fleet, making it harder to craft targeted improvement strategies.
To illustrate these limitations, consider the current fleet demographics: vehicles have a median age of 6.3 years, with an average of 7 years across nearly one million assets. Additionally, 89.67% of fleets still prefer direct ownership over leasing or renting. These figures highlight the constraints of traditional benchmarking in addressing the nuances of modern fleet operations.
These limitations underscore the growing appeal of telematics-based solutions, which offer more precise and dynamic insights for fleet management.
Telematics vs Traditional Benchmarking: Direct Comparison
This section dives into how telematics stacks up against traditional benchmarking methods, focusing on key performance metrics and financial efficiency. For UK fleet operations, the differences between the two approaches are stark, especially when considering their practical impact.
Key Metrics Comparison
The standout difference lies in data accuracy and detail. Telematics offers real-time data collection and monitoring, providing a much clearer picture of fleet performance compared to traditional methods, which rely on industry standards and averages. This difference is particularly noticeable in areas like fuel consumption.
Traditional benchmarking often fails to capture the specifics of an individual fleet’s operations, relying instead on broad industry comparisons. While traditional methods only provide averages, telematics pinpoints inefficiencies unique to each fleet.
Telematics also tracks a wider range of metrics. It can monitor driver behaviour, such as speeding, harsh braking, aggressive acceleration, and failure to wear seat belts. Traditional methods simply can’t offer this level of behavioural insight, leaving fleet managers with an incomplete understanding of operations.
However, telematics isn’t without its challenges. Poor data quality can lead to inaccuracies, such as incorrect mileage or mapping errors. A practical solution is curve-based logging, which reduces data volume by 30% while maintaining quality.
Telematics also shines in safety management. It has been shown to reduce crash rates by up to 50% and cut accidents by 20%. Traditional methods, which lack real-time feedback, cannot achieve similar safety improvements.
Overhead Requirements: Traditional methods demand less technical expertise, but telematics - despite automating many processes - requires advanced data management skills.
Cost-Benefit Analysis
When it comes to finances, telematics offers clear long-term advantages, even if the upfront costs are higher. UK fleets have reported annual savings of £75,000 to £100,000 thanks to telematics-driven route planning and fuel optimisation.
These savings come from telematics’ ability to identify and address specific inefficiencies. For example, it can reduce fuel costs by about 30% by highlighting wasteful driving habits. Additionally, better route planning and improved driver behaviour typically cut fuel expenses by 10% to 15%.
Maintenance costs also benefit significantly. In 2023, Fleet News reported a 30% reduction in unplanned repairs for UK companies using telematics for maintenance management. Predictive maintenance features can lower vehicle downtime by up to 25%. A study by Transport for London in 2023 found that telematics reduced journey times by 15% across their operational fleet.
More than 55% of fleets see a positive return on investment (ROI) within a year, making the initial investment easier to justify.
Telematics costs can vary widely. Cellular tracking systems typically cost around £700 for hardware, with an additional £35 per month for data services. However, there are budget-friendly options, such as GRS Fleet Telematics, which offers systems starting at £7.99 per month - making advanced tracking accessible even to smaller fleets.
In contrast, traditional methods may seem cheaper upfront, relying on basic tools and industry benchmark subscriptions. However, they lack the predictive capabilities of telematics, which help avoid costly breakdowns and inefficiencies. The hidden costs of reactive decisions - like emergency repairs, fuel waste, and missed optimisation opportunities - often outweigh the initial savings of sticking with traditional methods. Telematics also simplifies compliance with DVSA regulations by automating record-keeping, reducing administrative work for fleet managers.
While traditional methods might work for very small fleets or those with limited resources, telematics delivers far greater long-term value for most UK fleet operations. Beyond improving performance metrics, telematics offers significant financial benefits, making it the smarter choice for modern fleet management in the UK.
Building Your Fleet Benchmarking Strategy
Crafting an effective fleet benchmarking strategy involves blending real-time telematics insights with traditional industry data. This combination provides a well-rounded view of your operations, helping you stay competitive. Below, we’ll explore how to establish meaningful KPIs, involve drivers in the process, and merge these two data sources for maximum impact.
Setting Clear KPIs
The backbone of any benchmarking strategy is selecting the right key performance indicators (KPIs). These metrics act as a guide, steering decisions that improve fleet performance. Without clear goals, even the most detailed telematics data can feel overwhelming.
Start by aligning your KPIs with your business goals. Whether it’s improving efficiency, boosting productivity, or cutting costs, focus on metrics that directly influence these outcomes. Examples include fuel consumption, maintenance costs, incident rates, and driver behaviour indicators.
| KPI Category | Examples of KPIs |
|---|---|
| Efficiency KPIs | Fleet Utilisation, Cost Per Mile, Fuel Efficiency, Total Cost of Ownership (TCO) |
| Fleet Maintenance KPIs | Preventive Maintenance Compliance, Average Vehicle Downtime, Repair Costs, Vehicle Part Inventories |
| Driver Behaviour KPIs | Safety Incidents Rate, Driver Productivity, Harsh Braking, Speeding, Road Safety Compliance |
Focusing on the right metrics can drive real results. Take FoodCo, a regional food delivery company, for example. By analysing telematics data, they discovered that their Type A vehicles were 24% less fuel-efficient than comparable fleets. The culprit? Aggressive driving, which also led to a 300% increase in erratic driving incidents when compared to benchmarks. By implementing a targeted driver management programme, they projected annual savings of around £800,000.
Driver habits matter - inefficient driving can lead to up to 35% more fuel consumption than efficient practices. This makes driver behaviour KPIs a critical focus for any fleet manager.
Getting Drivers Involved
To make benchmarking truly effective, drivers need to be part of the process. Engaged drivers are more likely to embrace changes that improve performance.
Start with transparency. Share KPI progress regularly so drivers understand how their actions influence the company’s goals. Daily telematics scorecards, for instance, can help drivers track and improve their performance.
Gamification is another powerful tool. UK fleets have seen impressive results: gamified systems can increase employee engagement by 60%, with 90% of employees reporting improved productivity and 95% expressing satisfaction with the approach. Fleets using gamified coaching programmes have reported reductions in speeding (21%), distracted driving (59%), and collision risk (49%).
The waste industry offers a great example of driver engagement in action. By working with a respected enterprise trucking organisation, companies introduced training exercises, such as practising backing manoeuvres in controlled environments. This led to significant reductions in unsafe driving behaviours, crash rates, and driver turnover, while also improving onboarding and workforce commitment.
Effective engagement strategies include offering coaching for behaviour improvement, providing immediate feedback, recognising high performers, and rewarding consistent excellence. Considering that turnover rates in trucking can exceed 91%, these efforts can lead to major savings in recruitment and training costs.
Using Both Methods Together
Once you’ve set KPIs and engaged your drivers, it’s time to merge telematics and traditional benchmarking. Together, these methods offer a complete picture of your fleet’s performance. Telematics provides detailed, real-time data on areas like fuel use, route efficiency, and driving habits, while traditional benchmarking places this data in the broader context of industry standards.
Start by establishing a baseline using telematics data. Then, compare it with industry benchmarks to identify areas for improvement. For example, if your telematics data shows an average fuel consumption of 8.5 litres per 100km but industry benchmarks suggest 7.2 litres per 100km, you’ve identified a clear target.
This integration requires ongoing monitoring and adjustments. Set benchmarks from both data sources, implement targeted interventions, and share regular performance updates with your drivers.
Partnering with a reliable telematics provider, such as GRS Fleet Telematics, can ensure the data you’re using is accurate and actionable. By treating telematics and traditional benchmarking as complementary tools, you can set realistic goals, track progress effectively, and make meaningful improvements across your fleet.
Conclusion: The Future of Fleet Benchmarking
Fleet benchmarking is undergoing a transformation, driven by the rise of telematics and its ability to enable smarter, data-driven operations. The vehicle telematics market is projected to hit £134.8 billion by 2032, growing at an annual rate of 8.9% from 2024 to 2032. This growth highlights how UK fleet managers increasingly recognise the edge real-time data provides over older methods.
However, many UK fleets are still not making the most of telematics. For instance, only 27% of UK fleet organisations use their telematics solutions daily, and just 50% actively assess and benchmark driver performance. Even more surprisingly, less than one-third offer incentives for improved driving, and only 20% track vehicle maintenance data. These gaps present a huge opportunity for forward-thinking fleet managers to unlock untapped potential through a more integrated benchmarking strategy.
The key lies in combining real-time data with tried-and-tested industry practices. Steve Thomas, managing director of Ctrack, puts it succinctly:
"Understanding how you're doing in regard to productivity, costs, driver performance, route efficiency etc. will all make you more empowered to make better decisions about the future of your fleet."
The financial benefits are hard to ignore. Fleets that adopt targeted management strategies can cut operating costs by up to 15%, while telematics-driven improvements in driving habits can lead to fuel savings of 10–15%. Real-world examples back this up: in 2023, Interstate Batteries reduced maintenance costs by 10%, and United Utilities saved £10,700.
Looking ahead, the integration of predictive analytics, AI-powered platforms, and vehicle-to-everything (V2X) communication could drive even greater efficiency. But technology alone isn’t enough. A well-thought-out strategy is vital. Paul Hollick, chair of the Association of Fleet Professionals, emphasises the need for constant review in such a fast-changing industry.
For UK fleet managers, the way forward is clear: embrace telematics while retaining the insights that traditional benchmarking offers. Focus on measuring what truly matters, set clear KPIs, and remember the advice of Nick Jones, strategic relationships manager at Novuna Vehicle Solutions:
"If you can't measure it, then you can't manage it either."
The future will belong to fleets that strike the right balance between real-time data and proven practices. It’s not about replacing one approach with the other but about integrating them quickly and effectively to maintain an edge in an increasingly competitive market. Now is the time to act - combine both methods and secure your place ahead of the curve.
FAQs
What are the main advantages of using telematics over traditional methods for fleet benchmarking?
Telematics brings a modern edge to fleet benchmarking, offering real-time insights into vehicle location, driver habits, and overall performance. This immediacy allows fleet managers to make faster, more precise decisions. In contrast, older methods relying on manual reporting and historical data often lead to slower reactions and less reliable analysis.
With telematics, fleets can fine-tune routes, cut down on idling, and boost fuel efficiency, all of which contribute to reduced operational expenses. On top of that, these systems promote safety and compliance by keeping tabs on driver behaviour and vehicle health. This makes telematics a far superior and more efficient tool for managing fleets compared to traditional, outdated methods.
How does telematics improve driver behaviour and help reduce fleet costs?
Telematics plays a key role in shaping safer driver habits by offering real-time data on driving behaviours, including speed, braking, and fuel consumption. By pinpointing risky actions like harsh braking or speeding, fleet managers can address these issues and promote safer driving practices. This proactive approach not only enhances road safety but also helps reduce the chances of accidents.
Beyond safety, telematics is a powerful tool for cutting operational costs. It enables smarter route planning, optimises fuel usage, and ensures timely vehicle maintenance. These features help businesses cut down on fuel costs, minimise wear and tear on vehicles, and boost overall efficiency. The outcome? A fleet that’s not only safer but also more cost-efficient.
Can telematics and traditional methods be combined for better fleet management?
Yes, telematics can work hand-in-hand with traditional benchmarking methods to improve fleet management. While telematics offers real-time insights into vehicle performance, driver habits, and operational efficiency, traditional methods typically rely on historical data and manual processes. Combining the two creates a more dynamic and forward-thinking management approach.
This integration allows fleet managers to enhance safety, cut costs through predictive maintenance, and optimise routes more effectively. Together, these tools provide a complete picture of fleet operations, enabling businesses to use resources wisely and make smarter, long-term decisions.