June 2009 - Fleet demand for Northgate's telematics solution soars as companies look to cut costs
Corporate demand for Northgate Vehicle Hire's cutting-edge telematics technology that helps businesses to cut costs is soaring.
More than 4,500 light commercial vehicles on hire to fleet customers from Britain's largest rental company are currently equipped with its Vehicle Monitoring system and the figure is growing daily.
Demand for Vehicle Monitoring has been fuelled by a free three-month Vehicle Monitoring trial being available if companies opt to rent a vehicle on Northgate's NORFLEX scheme.
Most companies that have taken advantage of the scheme have found the technology so beneficial in aiding operating efficiencies and cost control that they have both extended use of the service to 12-months and taken more units to fit in their remaining fleet of vans.
Vehicle Monitoring allows vehicles to be tracked by satellite while they are out on the road with the promise of helping companies make drivers safer on the road and cut costs in a range of areas.
Industry data suggests that the benefits include:
- A 15% saving on overtime claims due to improved driver records which also aids compliance with analysis of working hours
- Productivity increases of up to 15% due to improved journey scheduling and drivers travelling directly to their destination first time every time
- Insurance premium savings of up to 30% with drivers involved in fewer crashes as a consequence of knowing their journeys are being recorded
- The compilation of a thorough driver and vehicle audit in accordance with health and safety related at-work driving legislation
A further benefit is improved customer relations as accurate response times and delivery and call scheduling can be achieved with the office in direct contact with the vehicle's driver.
London-based BEW Electrical Distributors, one of the largest independent distributors of electrical wholesale products in the country, has so far equipped 22 of its vans with Vehicle Monitoring.
The company says that vehicle efficiency is vital when catering for the demands of contractors who have deadlines to meet.
Management control and improved productivity are the key benefits of Vehicle Monitoring, according to commercial control manager Mick Jackson, as well as ensuring that BEW employees are driving responsibly while they are on the roads.
He said: "The main thing we are interested in is logistics: being able to make the very best use of each vehicle. Vehicle Monitoring has meant that we can analyse how each vehicle and driver is performing. Using Vehicle Monitoring means that the vehicles are used fairly and efficiently which is good for our business and for our employees.
"In one particular branch where we were using two vehicles we soon realised that one vehicle was doing 80% of the work and the other just 20%. Because we had that information in black and white we could analyse the situation and get the problem sorted out."
The use of Vehicle Monitoring has also aided proof of the delivery of goods to customers. Mr Jackson said: "If and when a customer has claimed either a non-delivery or a promised delivery before 9am was missed we can prove we were there. He can then look to his own workforce as to why the job was not completed on time, rather than look to us for some sort of compensation."
Phil Moorhouse, managing director of Northgate Vehicle Hire, which operates a fleet of more than 65,000 vehicles from around 75 locations, said: "The economic slowdown has prompted an increasing number of fleet decision-makers and company directors to focus on cost control. Our Vehicle Monitoring technology enables businesses to slash bills and improve business efficiency to the benefit of customers.
"Interest in Vehicle Monitoring has been phenomenal in recent months and an ever increasing number of businesses are reaping the benefits of our investment in the technology."
Vehicle Monitoring from Northgate uses the latest satellite technology to track the movements of a vehicle by picking up signals from a tiny transmitter and receiver box it is carrying.
Information is then relayed via the internet to any desktop PC with internet access, where it can be viewed in easy to understand reports by managers using a secure password system.
As the system is internet-based, vehicle information is always available from any web-enabled PC. Despite its hi-tech origins, users who have a basic knowledge of using a PC to access the internet can easily make use of the system. Training support is provided by Northgate as part of the service.
