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26 Mar 20

Case Study Zoetis: cutting fleet management costs through telematics

When managing a vehicle fleet, finding new ways to control TCO (total cost of ownership) is an ongoing task for any fleet manager and one of the main ways to control cost is to implement telematics in your fleet, according to global fleet manager Paula Diniz Oliveira.

In this case study, Global Fleet takes a look at what Ms. Oliveira is doing for her fleet in this respect. Based out of New Jersey, she manages approximately 3,000 vehicles throughout the world for animal pharmaceuticals company Zoetis.

Ms. Oliveira is also the regional facilities manager for the company in Latin America, covering the 12 largest markets in the region. 

Name

Paula Diniz Oliveira

Job Position

Global Head of Fleet

Company

Zoetis

Number of Employees

10,600

Number of Vehicles

3,000

Countries of Operation

More than 43 countries located in US/Canada, Latin America, EMEA and APAC


According to the fleet manager, her objective is to make sure the Zoetis fleet is in tip top shape in terms of functionality, safety and innovation.

The company’s fleet needs to perform properly so that its field force can achieve its goals. In terms of safety, Zoetis needs to be responsible and this means establishing and implementing an effective program to make sure its drivers around the world return home safely at the end of each day.

For innovation, tracking and controlling fleet operational costs through innovative tools is key and one example is the implementation of telematics the company has achieved in some countries. “We have seen great results in reducing costs and accidents, something that can be extended to other potential markets,” Ms. Oliveira told Global Fleet.

Fuel Expense Control

When it comes to fleet management, one of the largest expenses is fuel and managing it is very challenging as its price differs significantly around the world. For instance, while the average price of petrol worldwide is US$0.99 (est. 23 March 2020), the price in Ecuador is US$0.49 and in Italy it is US$1.59.

“To efficiently manage fuel and the overall cost of operating our fleet, having a fuel management system is crucial and I find that telematics is one of the best tools," says Ms. Oliveira. 

However, KPIs need to be well defined first. When this is achieved, you will know what to track through your telematics system, and then you will be able to gain many benefits in safety as well as cost savings, according to the fleet manager.

“As for Zoetis, we have achieved more than 15% fuel savings with the telematics project we have implemented in different countries, not to mention the reduction of accidents and traffic violations,” explained the executive.

In the US and Canada, the company’s fleet is very well served by advanced tracking solutions, providers and technologies. However, there are still some countries where implementing telematics is a bit of a challenge.

Unfortunately, in some Latin American countries, there is a lack of fuel management providers who can really offer effective tools to manage this expense. Among the most challenging countries are Peru, Ecuador and Costa Rica, the fleet manager said.

Authored by: Daniel Bland