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As anyone involved in delivery work knows, managing costs can be tough. Every month, bills come in which have often increased since the last month. Insurance premiums, for example, have risen significantly over the past couple of years, with many people involved in delivery work experiencing a 30% increase. That is why it is so important to stay up-to-date with new and innovative ways to keep costs as low as possible - without compromising on service or quality. Thankfully we live in an age where technology is developing at an exponential rate, and there are many systems available that can be implemented to help companies run more efficiently. Technology is not only used to make accounting and marketing easier, but can also be used to monitor the performance of staff. This way, the manager of the business can have a better idea of what is happening in every aspect of their operation. Telematics Using telematics to track delivery work drivers means that managers have a greater insight into driver performance. They can monitor whether speed limits are adhered to, whether drivers are accelerating and braking in a controlled and sensible manner, and how long (as well as how far) each journey was. On top of this the manager can immediately identify which driver is driving which vehicle. How Does This Save Money? Insurance companies often offer cash back to businesses employing telematics because they are proving that, through the use of their telematics system, they have more control over the conduct of their delivery workers. Alternatively, insurers may offer discounted premiums to businesses using a telematics system as it functions as a form of risk management. Some insurance companies centre their premiums on a whole host of standards that concern driver performance, and some employ a “pay-as-you-drive” method instead. If businesses are seen to improve overall performance, every year they will see renegotiation of premiums and targets. Key Data Provided By Telematics In-vehicle monitoring quickly provides information to managers concerning driving performance. The technology sends information about harsh braking, acceleration, the way a driver changes lanes and the speeds they travel. In turn, managers of fleets can act on the information and implement risk policies that aim to minimise the associated costs. So far, although the idea is sound, evidence regarding the effect of telematics on claims by fleets is lacking. Insurance companies are therefore taking an active role in understanding how telematics can be used to effectively reduce the cost of premiums as well as minimise risk exposure for delivery work businesses. The basic monitoring of driver performance remains the most proficient way of reducing risk as it allows managers and insurers the opportunity to see what is happening and deal with it immediately in a training situation. Norman Dulwich is a Correspondent for Haulage Exchange, the leading online trade network for the road transport industry. Connecting logistics professionals across the UK and Europe through their website, Haulage Exchange provides services for matching delivery work with available drivers. Over 4,000 transport exchange businesses are networked together through their website, trading jobs and capacity in a safe 'wholesale' environment.
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