News
The possibilities of fleet management have developed significantly in recent years. The latest telematics has transformed fleet management from a cost-intensive necessity to a strategic focus that can create considerable added value for companies.
In the past, fleet management in companies was often associated with numerous challenges. For example, a study by Deloitte showed that the fixed allocation of a car to an employee leads to unnecessarily large and inefficient fleets. These in turn are used for less than one hour per day on average, thus reducing the efficiency of the fleet. In addition, the complexity of managing vehicle lifecycles – from purchase to disposal – leads to poorly planned maintenance and expensive replacement costs. While this risk can be partially mitigated by investing in full-service offerings, it also increases the overall cost of the fleet.
Modern technologies have revolutionised fleet management, making the work of fleet managers easier. Two developments are driving the transformation: the use of telematics data to optimise fleet efficiency and the introduction of corporate car sharing, where employees share vehicles for business and private purposes. Both developments increase the utilisation and cost efficiency of fleets.
Telematics combines telecommunications and IT to collect, transmit and analyse vehicle data in real time. This data-driven approach enables fleet managers to identify optimisation opportunities and make data-driven decisions. This leads to improved efficiency, reduced costs and lower emissions. Modern telematics solutions can support fleet managers in many ways:
Tracking and analysing: Telematics can track the status of vehicles in real time to ensure that vehicles are being used efficiently and responsibly. In addition, usage patterns can be recognised to enable reduced fuel consumption and more appropriate vehicle allocation in the fleet. In the event of an accident, vehicle data can also help to clarify incidents quickly.
Preventive maintenance: The telematics solution can send notifications of potential vehicle problems to fleet managers before they become critical. For example, monitoring check engine lights can help plan timely maintenance, avoid downtime and save on expensive repairs. This can also extend the life of the vehicle.
Electrification of the fleet: The data collected enables well-founded strategic decisions to be made about the composition of the vehicle fleet. They provide valuable insights into which combustion vehicles can be replaced by suitable electric vehicles. In this way, telematics supports fleet managers in the transition to EV fleets.
CO2 reporting: The solution makes it possible to track and reduce the fleet’s CO2 emissions. This helps to meet strict legal requirements and corporate targets for net-zero emissions. Despite the many benefits, data protection concerns pose a significant challenge for fleet managers. External providers can help here as neutral intermediaries by anonymising the data and preparing it in compliance with data protection regulations. This facilitates the acceptance and successful use of telematics solutions.
The second decisive development that makes fleet management a strategic value driver for companies is corporate car sharing. By sharing company vehicles for business and private use, companies can maximise utilisation and generate additional revenue. With modern, user-friendly car sharing integration, the fleet can even be transformed from a cost centre into a potential profit centre. In this context, corporate car sharing offers several advantages:
Maximising vehicle utilisation: In traditional fleets, vehicles often remain unused for long periods. Corporate car sharing increases utilisation by making vehicles available for private use even during rest periods. Companies that use such models can often increase vehicle utilisation by around 40%.
Increased revenue through private use: The ability to use company vehicles for private purposes creates a new source of revenue through user fees. This revenue can not only cover operating costs, but also help fleet managers turn company fleets into potential profit centres. On average, companies can expect additional revenue of around CHF 700 to CHF 1000 per month.
Less bureaucracy thanks to automated billing: Modern fleet management solutions automate billing and seamlessly separate business and private use. This improves transparency in accounting and reduces the administrative burden.
Reducing the need for private vehicles: Corporate car sharing reduces the need for personal vehicles, especially in cities with parking and congestion problems. A Swiss company recently introduced a fleet of 20 shared electric cars for business and private use. This encouraged a culture of shared mobility and resulted in 23% of users selling their private car or cancelling a purchase plan.
Building a green profit centre: Car sharing supports the transition to greener fleets by optimising vehicle usage, reducing the total number of vehicles needed and encouraging the use of electric vehicles.
Companies that implement these modern strategies are well-equipped to transform fleet management from a traditional cost centre into a dynamic profit centre that delivers both financial and environmental benefits.
Get in touch with our fleet management specialists for a free consultation to find out how telematics and sharing technologies can maximise the profitability and efficiency of your fleet.
