Over the years, the automobile industry has expanded and has now reached a point where it has been facing inflation and supply challenges. Amidst this difficult time, cost-cutting remains a top priority for fleet managers. But the question here is how they efficiently reduce costs by ensuring that the fleet operations continue to run smoothly.
To answer this question, first understand that fuel expenses contribute to 40% of the fleet budget. And by focusing on reducing these expenses fleet managers can contribute towards money savings. AI can act as a saviour here. Automating fleet data collection, can help fleet management software identify driver behaviour patterns, monitor fuel prices and offer recommendations to reduce costs.
This is just a trailer, we’ll know more about the role of AI in cutting fleet costs through this article.
What do fleet management costs cover?
Before we dive deeper to know how AI can help reduce fleet costs. Let’s understand some factors that managers consider in fleet management to analyse where the cost-cutting can be cut. Being a complex task, fleet management includes the process of optimizing the utilization of resources including; drivers, vehicles and fuel.
Thus the major factors to consider in GPS fleet management include;
- How many vehicles are required?
- How often will they be repaired or the parts will change?
- Which routes should be used for deliveries?
- How to minimize the risk of accidents?
- When to replace them for safety and highest resale value?
- How to enhance operational visibility?
Top six ways in which AI can help in cost-cutting
Coming to the point, here are the six ways in which AI can offer a helping hand to fleet managers in reducing business costs.
- Combining Telematics and IOT with AI
Generally, GPS tracking & Telematics and IOT are used for collecting real-time data from vehicles and drivers. However, have you ever wondered what would happen if these technologies and AI work as a team? For starters, fleet managers will receive valuable insights into several areas of fleet management such as driver behaviour, fuel efficiency and vehicle health.
- Predictive Maintenance
Regular maintenance is one of the important aspects of running fleets. This is exactly where AI shines in as a reliable solution. How? AI algorithms can analyze vehicle data in real time, spotting irregularities and patterns. This helps them predict the maintenance requirements of the vehicles, allowing fleet managers to engage in better resource allocation which ultimately reduces cost.
- Automating risk assessment and claims processes
Risk Management is one of the smartest strategies to avoid unexpected breakdowns of vehicles. AI helps in analyzing historical data and utilizing machine learning algorithms that allow fleet managers to predict the likelihood of accidents.
Besides this, AI technology can help streamline the insurance claims process and automate the tasks involved such as claim handling, and fraud detection.
- Driver Behavior Monitoring
Closely monitoring the harmful driver behaviour patterns can help in offering proper feedback to drivers. AI makes this super easy. By tracking patterns such as idling, overspeeding, harsh braking and cornering, fleet managers can ensure that no driver is engaging in activities leading to higher fuel consumption which ultimately leads to higher fuel costs.
- Optimized Routing and Fuel Efficiency
Going a little overboard in terms of route optimization and enhanced fuel economy, AI-powered fleet management systems can take historical data and factors such as weather forecasts and traffic conditions into consideration. After analyzing these factors, it suggests the most efficient routes.
This further prevents the drivers from taking unnecessary routes leading to extra fuel consumption. Thus, moving a bit closer towards fuel savings.
- Regulatory Compliance
In fleet management, compliance is not an option; it’s a responsibility. AI can help fleet managers fulfil this responsibility. How? It ensures that drivers comply with the rules related to hours of service, wearing seatbelts, regular vehicle inspections and more. Thus, reducing the risk of penalties that can burn a hole in your pocket.
Wrapping it up!
To sum up, AI is rapidly becoming a game-changer for fleet managers looking to cut costs. By allowing them the room for predictive maintenance, optimizing routes, ensuring compliance, monitoring driver behaviour and preventing road accidents, AI empowers fleet managers to make calculated decisions leading to significant savings.
As technology continues to leap forward, the role of AI in fleet management will only enhance. This enhancement would make fleet operations smooth and take a lot of responsibility from fleet managers’ shoulders.
