How to achieve fleet efficiency in Latin America

The economic conditions of many companies in Latin America today have changed in face of the “New Normal” so reshaping your fleet strategy to be more efficient is more important than ever before, one of the main topics discussed at Fleet LatAm Conference 2021 this week.

Among the challenges today, according to speakers and attendees at the event, are being stuck with idled fleet and having the wrong type of vehicles in the first place. As such, procurement managers need to master the art of sourcing and fleet managers need to know the best mobility options for their employees.

This is done by establishing the right KPIs and developing clear guidelines within your fleet policies, much of which can be accomplished through data collection and proactive action plans aimed at fleet optimization.

This means acquiring data through telematics for both vehicles and drivers and then leveraging this data to create management policies aimed at more efficient processes.

Among the factors that can be better controlled with telematics are vehicle usage, productivity, and security, as well as driver safety and behaviour, the latter which can be coupled with training and incentives.

For instance, international farming company Syngenta is improving efficiency and safety in its fleet through its Camino Seguro (safe path) program. It is an internal driver evaluation program which features a monthly safety score based on behaviour requirements.

It monitors speeding and seatbelt infractions and their fines, as well as bad habits such as night driving at high speeds, using the cell phone while driving or drinking behind the wheel.

While safe drivers are able to redeem prizes, unsafe drivers are first given a formal warning, then one-on-one talks, and finally a bad evaluation on their annual performance upon the third strike.

Telematics, your keys to efficiency

As mentioned, telematics can be used to monitor a slew of things, including fuel usage, tire pressure, odometer readings, worn out vehicle parts, route efficiency, traffic ticket incidents, toll booth payments, GPS location, bad driving habits, and others.

During their presentation at the event, Geotab Partner Account Managers Diego Vidrio and Jose Valdes stated examples such as “fuel savings by controlling speeding, insurance savings by reducing accidents, legal savings by reducing traffic tickets, and repair savings through proper preventative maintenance.

Diego Vidrio and Jose Valdes (Geotab) (source: handouts)

Telematics is also a key tool in helping to manage your electrified fleet, according to Targa Telematics International Sales Head Jad Tabet, citing examples such as “battery monitoring, charging optimization and charging station management.

Video telematics is on the rise, according to Fernando Ferreira who is Channel Sales Director in Latin America for video telematics firm Lytx. "Live stream video allows fleet managers to monitor vehicles, drivers, and cargo, enabling them to get the full-rounded visibility they need accross their fleet."

One misunderstanding, however, with telematics is when you compare expectations to reality, according to Danone Global Senior Procurement Manager Yuliya Lapenkova (pictured on top).

“Getting the data is just the first step. Some people think that all issues are solved after this is done but it is not. You need insight on top of the data and only after this is done will you get the results you want,” Ms. Lapenkova said.

“Technology is not enough to fix all human behavioural problems,” Executive Speaker for Instituto PARAR and Golsat CTO Sérgio Jábali said, adding that education is key. 

Last but not least, Geraldine Priya who is Team Lead for New Mobility for international consultancy firm Frost & Sullivan pointed out a few trends that are set to improve operational efficiency for fleet managers in the coming years.

“Already improving efficiency for some is the implementation of an electrified fleet and this should start bringing benefits to a larger number of companies within the next three years,” Ms. Priya said. 

Finally, advanced connected vehicles and innovative MaaS solutions are expected to be improving operational efficiency in 3-7 years and autonomous vehicles in 7-10 years-time

Read more about the 2021 Fleet LatAm Conference

Image: Yuliya Lapenkova, Global Senior Procurement Manager, Danone