With assets growing, and a desire for improved safety levels becoming a priority, it’s interesting that the active, growing, aware, and already profitable Materials Handling Equipment (MHE) Industry, has not fully embraced technology standards found in other profitable fields. Telematics and its resulting data have a strong place in the MHE world, so why aren’t more companies adopting it?
Telematics has many benefits from improved safety, reduced labor costs, improved customer service, increased productivity, improved fuel costs, and the reduction in operating expenses. All of this is due to the technology and communication that happens between an object and a computer, which provides real-time data and allows for immediate (or subsequent) data analysis. A Harvard Business Review study shows that companies who use data driven decision-making show a 5% increase in productivity and a 6% higher profit than their less data driven counter parts.
Let’s look at two reports, displayed visually. The first one, as seen here, focuses on what telematics suppliers believe are the reservations of fleet companies.
The second report, as seen here, focuses on responses from various fleet companies as to why they haven’t adopted telematics and what they think the benefits would be if/when they do.
What we can draw from these two reports is that there’s some incongruence between what telematics suppliers believe are the issues for non-adoption and what the reported reasons fleet companies state as barriers to adoption. We see that many companies are looking for ways to save fuel, improve driver behavior and safety, lower maintenance costs, and utilize accurate tracking. With the wealth of information backing the benefits of embracing technology, and specifically telematics solutions, we will see if the current 20% of fleet management telematics users in North America will grow to at least 40% in the coming years, which would indicate a critical mass and expedite adoption rates.