Australian fleet managers embrace tech to combat rising costs

The latest survey from Verizon Connect, The 2024 Fleet Technology Trends Report, reveals the escalating adoption of technology by fleet managers in Australia. The trend has emerged as a strategic response to growing operation, fuel, and labour costs. The survey, encompassing 197 Australia-based fleet managers, indicates that amid economic uncertainty, innovative solutions are being sought to enhance business resilience and efficiency, and crucially, to minimise costs.

The survey highlights that 72% of respondents have employed GPS fleet tracking software in 2023. This has led to a multitude of benefits, most notably, a substantial reduction in costs was experienced across the board. Fuel costs were cut by 15%, accident-related expenses dropped by 18%, labour expenses were down by 16%, vehicle maintenance saw a reduction of 16%, and insurance costs decreased by 18%. A majority of users have reported a positive return on investment within a year.

It was also observed that smart technologies, including smart video, have had a beneficial impact on driver safety, as reported by 72% of survey respondents. This improvement has led to enhanced protection against fraudulent claims, with 69% of the respondents acknowledging the advantage.

However, the survey indicated significant challenges facing the transition to Battery Electric Vehicles (BEVs) in the Australian fleet market. More than half of the respondents disclosed that their fleets did not include any BEVs, indicating the hurdles Australian fleet market is yet to overcome for a complete EV transition.

Reflecting on survey findings, Luciano Fuentes, APAC Senior Associate Director for Sales at Verizon Connect, underscored the significance of business resilience. He mentioned, "Building a resilient business is more important now than ever before. The report highlights the value fleet businesses are achieving by investing in fleet tracking technology as they navigate the complex, competitive business environment - both in Australia and on a global scale."

The survey was conducted to gain a deeper understanding of the adoption of GPS fleet tracking systems and other associated technologies in the Australian market. Economic slowdown, inflation, and the prospect of a recession have led to an uncertain business environment. In response, fleet managers are resorting to new technologies to enhance their resilience, boost efficiency, and crucially, cut down fleet costs.

Beyond just cost reduction, respondents have also reported improvements in customer service, regulatory compliance, routing and overall productivity from the adoption of GPS fleet tracking software. As companies race to achieve maximum efficiency, 62% of businesses regard asset tracking as "extremely beneficial" or "very beneficial" — an attestation of the technological advancement within the industry.

AI-backed video telematics, with driver-facing and road-facing cameras, are reshaping safety and efficiency for fleets. Such technologies are seen as an unbiased witness, an unparalleled driver training tool and a valuable source of data. As a result of the adoption of these technologies, fleets have benefitted from improved protection from false accident claims and better driver safety.