Show Your CEO EOBRs = Profitable TruckingFebruary 23, 2012
If you’re a savvy fleet manager, you already know that electronic onboard recorders (EOBRs) are the best thing for your company. But, if your CEO isn’t the tech-savvy sort, how do you convince him or her—and other members of your company’s executive team?
Profitability—it’s all about the numbers
One way is by sharing quantifiable data, such as these numbers from an Aberdeen Group study showing that companies using onboard technology increased:
• Vehicle utilization by 13%
• Regulatory compliance by 25.8%
• Driver compliance by 27.9%
They also cut:
• Operating costs by 10.4%
• Vehicle downtime by 15.4%
EOBR success stories
Success stories are another way to show your company’s leaders that EOBRs make for a profitable trucking business. Here are just a few of the positive results the fleet managers who use our solutions have been able to report to their company executives:
• Increased fuel economy by 7.8% increase, reduced preventable accidents by 75% and cut administration costs by $100,000 (a large intermodal trucking company)
• Increased fuel economy from 4.8 miles per gallon to nearly 6.4, and paid for its fleet management software system in just 14 months (a nationwide food distributor)
• Saved $4.4 million on fuel each year (a 240-truck pet-food service company)
• Cut idle time from 20-30% to just 3% and saved more than 30,000 gallons of fuel in one year (a wholesale distributor serving approximately 2,000 convenience stores)
Realizing ROI with EOBRs
If your CEO is like most others, he’s going to ask about return on investment (ROI). Thankfully, it doesn’t have to take long to recoup the cost of an EOBR system. Fuel savings alone (from less spending and reduced idle time) made it possible for one fleet manager we support to pay for his company’s system in just one year. Needless to say, his CEO was pleased with the ROI he was able to deliver.
And Xata Turnpike, which the Federal Motor Carrier Safety Administration (FMCSA) has repeatedly cited as the most cost-effective compliance device for electronic driver logs, can deliver an impressive ROI even more quickly.
To help convince your CEO and other executives that an EOBR is right for your company, check out our ROI calculator. This simple, online tool allows you to enter information about your fleet, including current fuel prices, MPG and your fleet optimization goals. It then provides instant feedback on how quickly you can recover a return on your EOBR investment.
And what CEO isn’t going to appreciate hearing about that?