According to Telefonica, the Latin American market is evolving from security-focused telematics to optimization-focused telematics.
It points out that fleet management is crucial to reduce fleet operational costs and improve company revenue thanks to productivity improvement. And it points to areas such as cost reduction through fuel reduction, fewer accidents and minimizing idling time among others.
Because managers have more information about how their drivers are using vehicles, Telefonica says, abuses and misuses that deeply impacts operational costs can be eradicated. In fuel reduction alone, companies average 15–25% savings.
Telefonica also says that good fleet management means that vehicle routes can be optimized and more customers visited with the same vehicles, increasing as a side effect customer satisfaction. Fleet drivers are less prone to overusing their vehicles when properly managed so productivity soars as well.
Finally, and by way of explanation of why this message – widely accepted and understood in the mature markets of the world – is being transmitted now, Telefonica say that the fleet management market is growing strongly – not only in the Latin American market, also in Europe and the US – but due to the Latin American market still being very young the growth rate remains stronger than the rest.