How IoT is Rocking the Boat and Revolutionizing Fleet Management

There is potential for UBI to help improve vehicle safety and security because when drivers know they are being monitored they are likely to pay closer attention
By using IoT capabilities, fleets can gain simple and comprehensive data services as well as fleet automation capabilities. By integrating devices and secure, centralized gateways, they can simplify deployment, logistics, management operations, and device diagnostics. This real-time data leads to actionable intelligence that helps fleet managers make informed decisions around fleet utilization.

Telematics also represents a tool to improve both security and safety of the driving experience, but also a way to reduce and optimize costs that will ensure the quality of service and performance. Insurance telematics will enable end users to effectively mitigate one of their largest costs beyond fuel; the cost of accidents. In addition, fleet managers can invest in developing service modelling based on telematics to reduce the operating costs and pursue a strategy of sustainability. Fleet vehicle maintenance is also easier with telematics, as it provides a more efficient and precise planning of vehicle service deadlines, as well as quicker intervention when a technical problem is detected. By streamlining processes and controlling costs during the fleet life-cycle it is possible to directly impact the sustainability of a business.

Looking beyond the vehicles, IoT services will also help to connect disparate elements of the transportation system, for instance traffic signals and parking spots. The parking lots and garages of the future will no longer just sit idle. They will reduce congestion and carbon emissions by providing data about available parking spaces.

Customizing insurance coverage

IoT also creates new opportunities for insurers. Today, we see that major insurance companies are interested in customizing policies through the collection of data related to how the vehicle is being used. This gives them the opportunity to better price risk, decrease accidents, fraud, and even traffic congestion. Through IoT services, there is a possibility for usage-based insurance (UBI), which uses IoT technology to capture detailed data from in-car services. By using data around driving behavior or mileage, instead of just claim history or demographics, insurers can tailor products and services to individual drivers.

Managing a fleet of drivers is often complicated and the reality is that accidents do happen. However, there is potential for UBI to help improve vehicle safety and security because when drivers know they are being monitored they are likely to pay close attention to their driving patterns and skills, leading to a reduction in accidents. For example, this approach allows insurers to provide qualitative feedback to the driver on this driver behavior and the aggregated data can be made available to the customer in a transparent way using a secure access web portal where indicators (KPIs) summarize driving style and behavior. The platform can provide statistics on speed, acceleration and braking, road types, and provide recommendations on how to improve driving to obtain a lower risk rating.

Overcoming IoT barriers within the fleet

Ultimately, the potential and opportunity of IoT within the transportation ecosystem, and specifically for fleet management, is dependent on overcoming a few barriers, despite many benefits. There’s no denying that being monitored constantly will cause resentment among drivers, so the cultural implications should certainly be a consideration. In addition, the economics of a new solution is always considered. The purchases of fleet management solutions can be delayed by lengthy vehicle replacement cycles, and the business case for investment may be weakened or deferred by sporadic economic slowdowns or temporary drops in fuel costs. Lastly, integration is crucial in order to see the full benefit. Yet, integration with supply chain systems, e-commerce, HR systems, ERP and business process across the business can be quite disruptive.

Despite the hurdles ahead, the path toward greater IoT adoption within the transportation and fleet management space is a path worth traveling. IoT will open up new possibilities and opportunity to create safer roads, waterways and more efficient travel. Fleet management has never been more ready for change and increased IoT is here to make it a reality.


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