The Financial Times published an article
about how telematics is transforming Fleet Management. Fifteen years ago, telematics was introduced mainly to monitor the location of vehicles and the length of their journeys. People were initially sceptical and distrusting of this new technology, but a 2015 survey conducted by LeasePlan concluded that telematics is becoming increasingly accepted. This could be due to the increasing benefits provided by the technology to organisations that use them. These include:
- The ability to analyse routes and timings of journeys leading to saving time and money
- Monitoring driver behaviour leading to fuel consumption and accident reduction
- Reduced insurance premiums
- Ease for businesses to record millage – as now recommended by HMRC
Telematics can be an asset to smaller organisations as well as those with large fleets; SME’s are taking note of all the advantages that can potentially lead to a cost neutral system. The most recent advantage stems from the latest clarification of the HMRC regulations
- a business must now keep business mileage records for commercial vehicles. This is something that telematics has been supporting digitally for some time. But in our experience, this has left a worrying number of businesses that do not keep accurate records, or in some cases no records at all, at serious risk of trouble with the HMRC.
In short, telematics is a cost cutting solution to several problems. A solution, which in most cases is effectively free. For more information on telematics, see the FT video.
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