Connected trucks: How fleets can gain a competitive advantage by using data to make better informed decisions and reduce costs
The adoption and integration of data-driven technologies for heavy-duty vehicles is transforming fleet operations. Many leading businesses are already tapping into data and the insights it can provide to give themselves a competitive edge. So, how have they made this possible? By harnessing the data generated by connected trucks, fleet operators have been able to make decisions based on better information – helping them to unlock operational efficiencies and reduce costs. From route planning to driver behaviour, data aggregation and analysis is helping fleets to optimise their performance and create a positive impact on their bottom line.
By 2028, it is expected that more than 35 million trucks worldwide will be connected due to the increasing use of telematics and Internet of Things (IoT) devices – along with other digital technologies1 used by commercial fleets. Fleet operators are anticipating that connected truck technology will optimise their operations through factors such as fuel efficiency, predictive maintenance and driver wages (which, together, contribute 60% of a fleet’s total cost of operations).1 By ensuring visibility and oversight of their vehicles and drivers through telematics, fleets can also improve driver safety.
The route to cost savings
As cost remains a top priority, identifying easy steps to generate savings becomes even more important. One such step is leveraging GPS tracking in connected trucks to optimise route planning. With more streamlined routes, drivers spend fewer unnecessary hours on the road while stopping less. Given that driver costs are one of the main expenses for most fleets, this can help to significantly reduce labour costs.2
By reducing driving hours, route management subsequently lowers fuel consumption too – often another significant expense for fleets. In fact, one European study found that 59% of fleets in the general freight industry, with GPS tracking in place, have managed to reduce fuel consumption.2 All of which makes it unsurprising to see that 84% realised a positive return on investment within just 12 months or less after integrating such a solution into their fleet operation.2
Greater visibility and service quality
Connected trucks allow for greater visibility with access to data about driving style and decisions. Fleet tracking technology’s ability to monitor driver behaviour – such as excessive idling, harsh braking or unnecessary acceleration – can help fleet managers to implement bespoke driver training programmes.
Fleet tracking can also protect the driver and business by helping to ensure drivers do not unintentionally veer away from their daily objectives, such as a designated route, ensuring service quality and efficiency. This works in much the same way as a fleet card works in preventing unnecessary or unauthorised spending.
Unplanned downtime and maintenance can be costly. As fleet connectivity grows, fleet managers can use predictive maintenance to highlight issues before they become serious. When used together with solutions such as telematics, this type of maintenance can further help to drive performance and reduce operational costs.
Technology to improve driver safety
For the driver, increased fleet monitoring can have a significant impact on safety – from simple data collection around their driving habits to the more advanced capabilities of video telematics. Indeed, the latter has been shown to significantly reduce vehicle accidents, lowering the likelihood of injury-resulting crashes by as much as 35% and fatal incidents by 20%.3 This is largely because of how these enhanced insights allow managers to adopt a more proactive and preventative approach to tasks such as driver scheduling.
And while driver safety is undoubtedly the number one priority for all fleets, accidents can have significant financial ramifications too. Between July and September 2023, 78% of commercial motor brokers saw an increase in complex losses and 91% had seen claims costs rise.4
The endless possibilities of data
With so many data points available, knowing what to do with them or how to merge them with existing systems can seem complex and time-consuming. Thankfully, there are a growing number of platforms that can assume more of this responsibility, allowing fleet managers to remain focused on higher-priority operational tasks.
When it comes to data integration, the possibilities are almost limitless. From weather or road conditions to traffic reports, component health and fleet makeup, fleet tracking technology can quickly become a highly valuable co-pilot for drivers and managers alike. Adapting routes based on live information in this way has become standard practice. However, the rapid advancement in areas such as AI and the automation of vehicles means the commercial road transport sector is arguably only at the beginning of its digital transformation.
How lubricants can make a difference
The data collected from connected trucks through digital technologies such as telematics can allow fleets to measure and optimise the performance and reliability of their vehicles. This then enables them to make evidence-based decisions about elements such as maintenance (after all, the vehicles themselves sit at the heart of a fleet’s operations). And lubrication is a big part of this performance equation.
From the engine to the transmission, to the axle, lubrication has a direct impact on performance, efficiency, and reliability. Which is why using a consistent lubricant across a fleet can give an important benchmark of performance data over time, removing areas of variation from the inner workings of the trucks. What is more, when paired with the right data-led oil condition monitoring programmes, lubricants can act as an early warning system for vehicle health, helping to identify potential issues before they arise.
Using tech the right way
The benefit of connected trucks and fleet tracking technology is clear. With integrated data and insights, fleet operators can make better informed decisions based on evidence and reduce their total cost of operations (TCO) at the same time. Importantly, this technology has also been designed to help drivers remain safe during their day-to-day activities.
Bringing together safety, security, efficiency and productivity, these connected solutions should be viewed more as co-pilots rather than a controlling force – just as AI tools are increasingly being used to support workers in other areas of society. By taking a people-first approach, the clear business benefits – from reduced costs to enhanced efficiency – will naturally follow, bringing rewards that can propel the commercial road transport sector towards a brighter future.
Learn more about how innovative lubricant technology can enhance fleet performance, efficiency and reliability with Shell Lubricants for Fleet.
Disclaimers
1 Mordor Intelligence. “Connected truck market size & share analysis – growth trends & forecasts (2024 – 2029).” 2024.
2 Verizon Connect. “2024 Fleet Technology Trends Europe.” 2024.
3 AXA Insurance. “Environmental risk bulletin: Telematics and fleet safety.” 2020.
4 FleetNews. “Increased claims costs reported by commercial motor sector.” 2023.
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