A new study that shows the prevailing trends impacting fleet operations and how businesses are planning to tackle them in 2023 is now out from Teletrac Navman.

Many operators have looked to overcome rising fuel costs with driver behaviour programmes and EV transition plans

The fleet management software specialist surveyed more than 1,800 global fleet operators for its new research and the findings reveal that rising fuel costs (39%), disruption due to the impact of Covid-19 (32%) and supply chain pressure (31%) are the top challenges they currently face.

But the research also shows how rising costs are reshaping the fleet sector and driving change.

“The last 12 months have created new complexities for fleets, but fuel cost rises are the number one concern for operators globally,” said Alain Samaha, president and CEO of Teletrac Navman. “As the cost per gallon of fuel spiked throughout last year, many operators looked to overcome the rising costs with driver behaviour programmes and EV transition plans.”

Such conversion to alternative fuels is however proving a key challenge, cited by 23% of respondents and driven by a lack of EV supply, alongside charging infrastructure and purchase price concerns. A third (32%) of respondents said alternative fuel conversion is one of their largest areas of expense (second to purchasing new vehicles).

“With supply chain issues continuing to impact EV vehicle availability and cost, some fleets are struggling to start the transition and are having to find ways to safely extend vehicle life through preventative maintenance and more conscientious use on the road,” said Mayank Sharma, head of global product management & UX.

Despite this, 30% of fleets are planning to transition to alternative fuels in the next 12 months.

Technology investments

The research also shows that businesses are looking at how they can integrate new technologies to improve customer service and sustain competitive advantage.

Nearly half (48%) of operators are planning to integrate technologies to expand their offerings while 39% will use technology to aid compliance (39%). Improving customer experience (39%) and recruiting and retaining drivers (31%) were also high on the list of planned investment for the next 12 months.

In terms of emerging technologies, fleets are focusing on implementing more digital workflows (39%) and video telematics (38%), as they seek to increase efficiency and manage the top three fleet business costs (fuel, payroll, and maintenance).

Telematics is now a staple for operators; nearly all (98%) respondents said they were using either a sourced or manufacturer-provided telematics solution across their fleet. While vehicle tracking (43%) was understandably the number one reason for utilising telematics, managing driver performance (33%) was the next priority, followed by using it for proof of service/job completion (32%), and of course monitoring fuel usage (30%) in tough economic conditions.

The data also shows 89% of those surveyed used telematics to benchmark behaviour, with 91% also seeing a reduction in accidents and 24% implementing new driver behaviour to help navigate the high fuel costs. And with 31% of global fleets concerned about increasing wage demands in a cost-of-living crisis, 37% are using benchmarking to provide performance-based bonuses in a bid to retain drivers.

“Driver performance benchmarking is a great method of inspiring drivers to perform better and safer on the road,” added Mayank Sharma. “And with the growth in mobile applications it has never been easier for drivers to see how they are performing against targets and peers. In fact, 40% of our respondents say that implementing telematics has helped to build a safe driving culture within their organisations.”

For more details on the survey, visit here.