5 Ways to Make ELDs a Savings Opportunity

The Electronic Logging Device (ELD) Final Rule passed in December of last year has stirred dispute in the transportation industry. Whether fleet businesses and drivers appreciate the use of ELDs or not, they will be required to discontinue paper logs and adopt the new Hours of Service (HOS) technology by December 2017.

Some fleet businesses have adopted early in order to give their drivers and staff enough time to train with the new equipment, and avoid last minute searches for ELD providers.   

Some ELD systems are very basic and offer simple compliance with the law.  Other solutions offer telematics systems that provide more comprehensive information about fleet businesses including driver behavior data and asset tracking. This information is critical for companies as it pinpoints inefficiencies, allowing fleet managers to quickly make changes and plan new strategies.   

ELDs that incorporate telematics solutions provide benefits beyond simple HOS compliance. They are translating into savings for businesses from the road, back to the office:   

1. Through the transmission of real-time data, fleet managers are able to identify and pinpoint drivers with the best performance. This provides an opportunity for managers to create rewarding incentives and recognition programs for drivers with high safety ratings. Positive feedback circulating in the company drives the morale of staff both on and off the road, making good drivers better at their job.
2. The valuable data that ELDs collect can also be used to a driver’s advantage during accidents on the road. The “he-said, she-said” scenario is now able to be verified through telematics solution with event replay. This protects the driver and the company as it can verify claims, and prevent costly liability issues.
3. Insurance costs have always been a major expense for trucking companies. With the conversion to ELD technology, companies may experience a reduction in premiums. The real savings, however, will be seen over the long-term—in the form of significantly reduced claims and losses. 
4. The structured nature of an ELD system, characterized by reporting and scheduling, is resulting in better driving habits. This, in turn, impacts a company’s bottom line through lower vehicle maintenance costs and fuel consumption. According to the FMCSA, companies who have converted to ELD systems are experiencing savings of up to 35% per year in fuel costs.
5. Many companies who have adopted ELDs, are already reporting a reduction in accidents. This is an encouraging indication of things to come, as safety remains a top priority. Improved safety, and less accidents, has the added benefit of higher production and profits for fleet businesses.

ELDs will be here over the long-term. From all indications, early adopters who are taking advantage of ELD technology are staying ahead of the curve, and experiencing the return.

Click here to learn more about Teletrac Navman's FMCSA registered ELD solution.