The 3G Shutdown Is Coming – Is Your Fleet Prepared or in the Dark?
New Zealand heavily relies on its fleet of heavy-vehicles to transport goods and people providing services. So excellent fleet management professionals, supported by responsible drivers, forward-thinking business owners and fleet management software, can make a real impact on their business and the nation’s economic productivity.
Now in its third year, Teletrac Navman’s annual Telematics Benchmark Report examines best practices, trends and current issues influencing fleet management in New Zealand across a range of industries. A variety of fleet management and operations professionals participated in the survey, bringing expertise from transport, construction, retail, manufacturing and other industries. Two-thirds of respondents had between 1 – 24 vehicles in the company fleet, which means that responses are heavily influenced by small-medium sized fleets.
Spotlight on people
Results from the survey show a stronger focus on talent in 2019. This will come as no surprise for business owners – experienced and skilled staff are worth their weight in gold.
Around one third of businesses choose finding, retaining, and developing talent as one of their top investments for 2019. A quarter cite talent as one of their top challenges. Two in five respondents plan to increase their drivers – this was the largest staff role needed.
Driver monitoring has increased year-on-year. A majority of companies are monitoring driving (68%), and three in 10 businesses reward safe drivers. This is likely driven by health and safety compliance, the increasing use of fleet management software, and the wider benefits of improving driver behaviours such as reductions in fuel use, vehicle damage, road incidents and injuries.
Less than half are experiencing driver shortages (44%). Pay increases are a top talent lure in times of need. Businesses are also looking at flexible work arrangements and developing training programmes to address shortages for drivers. When demand spikes, it is solved by taking on outsourced workers.
The top five recruitment methods are:
51% use online job boards
39% use print media/ trade publications
39% use referrals
36% use social networking
31% use corporate website
The top investment areas to meet business goals are improving the customer experience (43% selected) and finding, retaining, and developing talent (32% selected).
Payroll was again the largest expense in 2019, according to half of all respondents, however, it dropped 16% from 2018. This can be largely attributed to the rise in people identifying fuel as one of their top expenses, jumping 13% to 37% this year.
How can businesses reduce payroll without reducing wages?
Regular and manually performed administration activities can be largely reduced through technology such as fleet management software and an electronic RUC system.
Over-time, you can reduce the requirement for contractors all while staff are able to maximise their working hours by minimising administration and reallocating the hours saved to more productive and strategic activities.
Manual admin that can be greatly reduced through a fleet management system include:
- Calling drivers for their whereabouts
- Checking and recording odometers by eye
- Managing maintenance on excel spreadsheets
- Filling out timesheets or job sheets after-the-fact
- Checking kms travelled for invoicing
- Updating RUC licenses and filling out and submitting RUC rebate claim forms
Spotlight on vehicles
Just over half of respondents have plans to increase the business fleet size over the next year. This is primarily to replace older equipment or meet increased demand for services.
Fleets will be increased in these ways:
71% will buy new vehicles
29% will buy used vehicles
22% will lease vehicles
Following payroll (56%) and fuel (37%), equipment/vehicle maintenance (31%) is cited as one of the largest expense areas for businesses. With a lot of investment made in the vehicles and their ongoing costs, it’s no surprise that half of those that install fleet tracking say that knowing the vehicle location for peace of mind is a top benefit.
The 2019 Teletrac Navman Telematics Benchmark Report features insights on technology, security, telematics, compliance and driver safety. Get your copy below.