European firms seeking driver & order services for fleet management systems, finds Frost & Sullivan

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The research firm’s new customer research study on ‘2012 European Fleet Managers' Willingness to Pay for FMS’ found that such systems have an established presence in France, Germany, UK, Italy and Benelux, with 70% of the 155 decision-makers and key influencers surveyed claiming familiarity with them – 37% are already using a fleet management system and 33% are testing it.

In general, fleet owners display a positive attitude toward such systems, and 35% of respondents in consider it an absolute necessity. Large fleets are keener to adopt these solutions than small and medium fleets, clearly indicating a lack of awareness on the benefits offered by fleet management systems among the latter.

The research also revealed that fleet managers are satisfied with the fleet management systems currently offered. In fact, productivity and fleet security – two of the top three criteria used during purchase – exceed expectations. On the other hand, fleet managers are dissatisfied with the savings made on insurance premiums and the lack of new services.

‘Presently, vehicle management as well as fleet security and control are the most widely-used services in Europe,’ said Frost & Sullivan customer research consultant Agnieszka Wolf. ‘However, offering driver and order management services will help fleet management systems vendors retain existing customers as 35% of respondents are looking to buy these solutions in the next 36 months.’

Key points of interest (POI) in navigation systems include gas stations, repair stations, and speed restrictions. Respondents working in medium commercial vehicle (MCV) fleets were keen on all POI with particular interest in truck parking slots, road gradients, and restaurants.

Interestingly, respondents indicated that they would prefer dealing with one supplier per solution. Two out of three also said that they would choose brands offering prognostic technologies, which help predict the impending failure of a commercial vehicle.

No clear overall preference for a particular fleet management systems vendor type was seen, although significant vendor preferences exist according to solution and country. While respondents in Germany, Italy and UK are more aware of systems from truck original equipment manufacturers (OEMs), only Germany and UK favour truck OEMs for all solutions. Fleet managers in Italy, France and Benelux favour specialised third-party or logistics and supply chain providers. Among specialised fleet management system providers, TomTom and Transics received the highest ratings.

‘The survey reveals that the key decision maker for fleet management systems purchase in fleets is top management,’ said Wolf. ‘However, driver and trade unions appear to influence decisions in Italy and Benelux, especially in the case of large fleets with more than 100 vehicles.’

In terms of payment, general willingness to spend on fleet telematics services is low. Fleet owners in France are most willing to pay for these services whereas those from Benelux are least inclined. Readiness to pay is also higher in MCV and heavy commercial vehicle fleets than light vehicle fleets. Profit-sharing business models too are gaining acceptance, particularly in France. In Benelux, the market is quite polarised and there is no clear penchant for profit sharing.

The 2012 European Fleet Managers' Willingness to Pay for FMS study is part of the Automotive & Transportation Growth Partnership Service programme. The study covers the attitude of fleet managers toward fleet management systems, current investments in fleet telematics, customer satisfaction with different services, their willingness to pay for fleet management systems, brand perception, and key performance indicators used by fleet managers when selecting vendors.

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.

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