Driving sustainability with IoT and telematics
ESG (Environmental, Social and Governance) and sustainability is now firmly on the agenda of every company across the globe and while once considered a ‘tick-box’ exercise, it is now increasingly being seen as an effective way to increase profitability. A recent survey of global CEOs showed 45 percent of CEO’s agree ESG programs improve financial performance and they also recognise its role in securing talent, attracting loyal customers and raising capital. In addition, 72 percent believe stakeholder scrutiny on ESG will continue to accelerate, so it’s true to say that ESG is now integral to long-term success.
However, it is also important to recognise the impact the current economic situation is having, with 50 percent of CEOs planning to pause or revaluate ESG efforts and 34 percent having already done so. Businesses are now looking for efficiencies in all areas of business and in these times, it is important to look for solutions that reduce costs while improving operational performance.
“IoT, in general, and fleet telematics, in particular, are examples of solutions where this is the case. Telematics refers to using a combination of telecommunications and information processing technologies to control and monitor vehicles and other remote objects using data collected from onboard devices. It allows organizations to track the location and performance of their assets in real-time and lends itself perfectly to improving sustainability by enhancing the efficiency of specific business processes. And when IoT and telematics are used in corporate transport fleets, they help reduce fuel consumption; optimise routes and improve fleet maintenance”, says Aliaksandr Kuushynau, Head of Wialon at Gurtam.
Telematics is now a vital business tool providing visibility and detailed insights into every aspect of fleet operations, and next generation IoT technology, linked to 5G networks, improves efficiency even further with devices having the ability to automatically power up and down.
Driving for sustainability
Drivers who use the roads erratically by accelerating and braking too quickly, exceeding the speed limit and taking corners too sharply will all use more fuel than drivers who operate their vehicle in a more uniform manner. Equally, drivers who leave their engines running when stationary waste fuel and unnecessary idling can also contribute significantly to the volume of fuel used and CO2 emissions. Telematics can be used to monitor all these situations and ensure fleet managers have the data to implement effective remedial actions.
The IoT project of the year award, which is now in its third year, recognizes innovative IoT solutions and the tangible benefits they deliver for businesses. Along with fuel cost optimization applications, there was also a clear trend this year for projects that monitored driver behavior, and one winner, an international energy company, implemented a telematics solution that reduced harsh driving incidents by 85% and decreased speeding violation cases by 90%.
Preventing fuel thefts
Controlling fuel costs and reducing fuel consumption can often be as simple as preventing fuel theft. Without fuel monitoring technology, unscrupulous drivers would find it easy to steal fuel — especially when they are working in remote areas.
IoT technology can identify drivers who are physically taking fuel for personal use but they will also identify drivers who are overestimating fuel consumption. One of Wialon customers, a national leader in the timber industry, identified fuel savings of around 40% And on the first day they implemented a telematics solution, the company detected a 50% discrepancy between actual and declared fuel consumption quantities.
Route optimization
While GPS tracking has developed significantly from simply identifying vehicle location, knowing where vehicles are, and the routes they have taken is still vitally important. And when used with route planning applications, this tracking data means routes can be optimized for all necessary criteria such as distance or expected arrival time. It ultimately speeds up deliveries and one winner in the IoT project of the year, a leading provider of cold chain IoT solutions, was able to achieve a 4% reduction in delivery times using route management tools.
Fleet maintenance
Implementing a telematics solution for fleet maintenance enables companies to reduce vehicle downtime by taking a more strategic and planned approach to maintenance. The data provided can be analyzed at a granular level so, for example, fleet managers can objectively assess the performance of replacement parts down to a particular model or brand. In addition, many maintenance activities can be automated and it is possible to accurately track costs so any vehicles unexpectedly draining maintenance budgets can be identified and remedies implemented.
Telematics can also help fleet managers recognize when engine and vehicle performance is affecting fuel economy. For example, tire maintenance is a common culprit of fuel waste. Every one PSI below a tire’s recommended pressure drops fuel efficiency by 0.2 percent. Sensors can alert businesses if a vehicle’s tires are not at optimal pressures to ensure they are correctly inflated and ensure vehicles are operating as efficiently as possible.
“IoT will help many industries improve efficiencies, and in the case of transport and logistics — 5G linked with IoT will cut energy use. Devices will have the ability to power up and shut down on their own, and sensors in transportation networks and beyond, will monitor and analyze their energy needs and consumption in real time and automatically optimize energy use. Access to advanced tracking solutions, improved data speed and lower energy usage, are important factors when logistics and fleet managers are considering an upgrade of legacy GPS equipment. There are also benefits for the workforce and telematics can monitor driver behavior and improve their wellbeing by ensuring they take proper rests”, says Aliaksandr Kuushynau, Head of Wialon at Gurtam.
Conclusion
Telematics can provide the solution for making fleets as efficient as possible by reducing fuel consumption; optimizing routes and improving fleet maintenance. And companies who deploy IoT are set to be even more efficient while improving driver well-being. It shows once again the role of technology in solving the most pressing issues we face, and how implementing an IoT and telematics solution can be good for people, the planet and profitability.
Author: Aliaksandr Kuushynau, Head of Wialon at Gurtam
