Historically, fleets could predict next steps in fleet management based on where they’ve been. Unfortunately, the pandemic and ensuing supply chain issues have diminished any predictability for the future of fleet management in 2022.
In 2022, tools such as artificial intelligence and predictive analytics will be fully integrated into the fabric of vehicle fleets and businesses, offering organizations entirely new ways to optimize driver performance, fuel consumption, safety, and more.
With opportunity comes challenge, and fleet management is no exception. This post will break down the trends, challenges, and opportunities that fleet managers will face over the next five years.
Commercial fleets are a strong example of industries being transformed by new technology. Artificial intelligence has permeated nearly every facet of our personal and professional lives—yet, only recently has it been implemented within commercial fleets in significant and meaningful ways.
A handful of companies are exploring how AI can be used to enhance today’s vehicle tracking solutions.
Some service providers have already combined adaptive algorithms with their own hardware to collect data from vehicles. Others are using predictive analytics in driverless cars for precise navigation and cruise control.
Tesla’s autopilot feature is a great example of how AI is already enhancing vehicle safety.
Construction, landscaping, and utility companies all rely significantly on commercial fleets. As such, fleet managers are often at the mercy of road conditions, operating skills and driver safety.
Lane departure sensors, seat belt sensors, and backup cameras, for example, are already standard in consumer vehicles, but not in fleets.
Even a minor mishap can have far-reaching effects for your company and those around you. Many current fleets are missing common features that could save lives and increase profits.
For these reasons, safety technologies have the potential to improve fleet management efficiency in 2022.
Companies that do not update their safety strategy and practices may see an increase in accidents, insurance premiums, and driver retention.
Soaring Fuel Prices
A combination of soaring fuel prices, heavy payloads and inefficient vehicle maintenance can all contribute to massive fuel expenses for fleets.
While fuel costs will continue to rise, fleets are adopting more efficient technologies that can produce data sets around vehicle health, regular maintenance schedules, driving behaviour and payload weight restrictions, all of which can help save companies money in the short and long-term.
Alternative Fuels Will Increase in Popularity
The demand for alternative fuels increased 5.2% to 5.6% from 2018 – 2019 and shows no sign of abating. With rising fuel prices year over year, consumers are looking for less expensive ways to fuel their vehicles.
Biomethane has become a popular choice due to its low cost compared to fossil fuels and comparable energy content.
Governments continue to offer subsidies as an incentive for people to use alternative fuels to lower CO2 emissions while maintaining consumer choice.
High Maintenance Costs
Due to supply chain challenges in 2020 and 2021, component costs skyrocketed, and this trend isn’t projected to change any time soon.
Coupled with the pandemic’s effect on workshops, this means that maintenance expenses will continue to rise in 2022.
Over the past few years, automobiles have gotten more complex, requiring highly trained, specialized mechanics to service them.
Maintenance providers, like many others in the industry, are scrambling to make up for the losses they suffered because of the pandemic, but inflation, a lack of qualified technicians, and a rise in demand indicate this will be an uphill battle.
Product and Part Availability
Product and part availability was a major issue for fleets in 2020 and 2021. The pandemic disrupted nearly every industry’s supply chain, causing shortages and exorbitant prices.
As such, fleets were unable to purchase the assets they required. In 2022 and beyond, many fleets are expected to catch up on replacing aging, inefficient vehicles.
Supply Chain Interruptions
When it comes to fleet management in 2022, fleets will face an ongoing disruption in supply chain.
Consumers and fleets have seen first-hand how the microchip shortage has affected the automotive industry, the rising costs of materials, and the closure of major transportation routes.
Everyone in the business world is feeling the repercussions. In the face of uncontrollable external factors, fleet managers can increase operational efficiency by focusing on what they can control.
For example, using technology to improve route assignment and eliminate time-consuming manual processes can keep fleets ahead of supply chain issues before they become full-scale problems.
Business leaders have more flexibility to respond to shifting conditions when less is left to chance.
The Bottom Line for Fleet Management in 2022
The next five years will see a shakeup inside most commercial fleets as technology enables them to better manage people, assets, and information. If you’re a fleet manager, it pays to understand how these trends might shape day-to-day activities.
A lot of executives are focused on how automation, such as that provided by telematics and AI, can make their organization leaner, more productive and more efficient.
Whether you’re looking to retrofit your existing vehicles with a telematics solution, or simply want to know more about how telematics can improve fleet management, contact you Zenduit consultant for a free consultation. We’re here to help you.