Telematics makes sense in terms of ROI

During recession, one of the main concerns of fleet managers is Return on Investment (ROI) in telematics. For Alexander Merkel, Area Fleet and Travel Manager at the Church of Jesus Christ of Latter-day Saints, investing in telematics is far from a concern.

Telematics is becoming more accessible and cheaper thanks to the increasing number of suppliers and technological developments. At this point, a fleet manager shouldn’t worry, Merkel says, because telematics always results in savings, even in times of crisis.

“Telematics systems have an ROI that is documented and easy to see. Fleet managers can obtain a clear view of their investment.” Says Merkel.

Applying tools to calculate ROI according to specific preferences is also a win for both small and large fleets, explains Merkel: “There’s no question that this approach makes sense for fleets. For larger fleets, diligent calculations would take the savings even higher.”

Which strategy to use in 2023?

According to Merkel, the strategy to achieve expected ROI in telematics is simple. “Apply a regular review to see how savings can be generated. One engine that is repaired or vehicle maintenance done on time will save more money than the cost of the telematics system. If you then combine the system with one of the other useful tools, it’s always a win.”

What if fleet managers encounter unexpected expenses impacting their ROI?

"The system supports the ROI since it indicates how the changed parameters can be addressed. If the fuel prices spike, a simple review of idling time will immediately influence Fleet managers to increase savings.”