Why local fleet management is flourishing

Fleet management has become a booming market in South Africa. EMILY NEWTON explains why.

According to a new report by MarketsandMarkets, the Commercial Vehicle Telematics Market is set to experience rapid growth, projected to surge from US$5.2 billion in 2023 to US$10.3 billion by 2028, at a compound annual growth rate (CAGR) of 14.3% during the forecast period.

South Africa will not be bereft of this growth, largely thanks to the many benefits of fleet management.

Tech facilitates Vehicle Condition Reports

Vehicle condition inspections are necessary to give people all the information they need to make decisions about fleet repairs, rentals, or purchases. However, these have historically been time-consuming, manual tasks. Things are starting to change, though, thanks to Ravin AI. This Israel and UK-based company recently entered the South African market after launching in New Zealand and Australia.

The company’s approach uses deep learning and computer vision to create comprehensive, 360-degree vehicle reports. The most advantageous part is that the technology does so in mere minutes via existing smartphones or CCTV cameras. Thoughtfully developed fleet management systems are user-friendly and adaptable to diverse environments. Ravin AI meets these conditions because its offerings also support needs such as port monitoring and insurance claim-related checks.

Ravin AI’s solution also supports driver safety and proactive discussions about dangerous habits, and can identify the specific vehicle operators involved in damage-causing incidents. Supervisors then have the data needed to take decisive action and coach the person involved or engage in disciplinary action to limit the hazardous behaviour. 

Some South African entities are also trying to localise vehicle repair needs that they historically outsourced. For example, the Gauteng Department of Roads and Transport recently launched a panel-beating workshopso qualified persons in South Africa can handle more vehicle repairs locally. This approach should nurture local skills while lowering costs. Solutions such as Ravin AI could further improve the situation by making it easier for everyone involved to verify which repairs must happen on particular vehicles.

Connections Raise Visibility

Due to the growing market for fleet management in South Africa, many leaders are interested in tech products that help them strengthen their businesses and meet client needs. Internet of Things (IoT) sensors provide the necessary connectivity to keep people informed about fleets all over the country, or even the world.

India-based LocoNav is a startup that addresses the fleet management connectivity needed in an increasing number of markets. Statistics suggest developing countries in Africa, the Middle East, Latin America, and Asia collectively have more than 250 million commercial vehicles on the road: a figure that has shown 10% year-over-year growth.

Nevertheless, many vehicle owners need easier access to technologies that could give them valuable insights and raise efficiency. The team behind LocoNav is trying to provide just that. The company’s technology centres on connectivity and sensors. Its fleet management systems have 12 features, including document management, geofencing, and maintenance data.

The technology also extends to an artificial intelligence-powered safety assistant that can store historical incident footage, provide real-time data, and activate in-vehicle audible alerts.

Once fleet managers gain access to dependable, timely information, they can make smarter decisions, even when faced with aspects out of their control, such as bad weather, heavy traffic, or accidents. Connected sensors can also warn leaders about problems they may otherwise have missed, such as urgent repair needed on specific vehicles.

Telematics Tools Enhance Resource Tracking

The more fleet managers know about their vehicles’ fuel consumption, maintenance requirements, and other needs, the easier it becomes for them to create effective budgets. Vehicle telematics solutions enable the tracking of individual vehicles or entire fleets to determine resource usage.

Wialon is one company capitalising on fleet management in South Africa, having recently expanded to the country. As of mid-2023, the platform showed insights for 34,000 South African vehicles and other assets – some of the 3.6 million currently tracked by Wialon’s technology.

Fleet management tools can help people track resource-related trends, showing how much a particular operator’s aggressive driving habits lead to unnecessary fuel usage. However, some leaders are also relying on the data and connectivity to prevent resource-related problems caused by theft.

Such was the case with a South African company that used Wialon’s technology to create a fuel management and theft-deterrent tool for a client. An existing problem caused $15,700 in monthly losses from criminals stealing resources. The client also discussed difficulties in tracking off-site company activities or monitoring its various construction sites.

Those involved determined that the best solution was to equip all fleet vehicles with GPS trackers, fuel-level sensors, cameras, and radio frequency devices for backup data collection. The Wialon mobile app also helped the client keep track of statistics from anywhere. Once implemented, this all-encompassing approach saved 4,500 litres of fuel per month.

Connectivity options to support South African fleet management can also help decision-makers increase the security of the vehicle itself, thereby reducing or eliminating theft, especially since real-time tracking significantly increases the likelihood of recovering stolen property. 

Tools for Progress

Before high-tech and connected fleet management products were so widely available in South Africa and elsewhere, many leaders used unreliable recordkeeping methods, such as spreadsheets, or solely manual options. While low-cost, these approaches are also highly error-prone.

Now is the time for company leaders to strongly consider digitalising their processes, and specialised products make this easier. For example, GoMetro is a South African company that helps fleet managers oversee transitions to electric vehicles. The company has a cloud-based platform that gathers data from multiple sources and shows the likely outcomes of taking this approach with a fleet.

Many people naturally dislike change, which can greatly slow company progress. However, when leaders have easy access to digital records, trends, and other resources, they feel more confident about adding new processes or technologies to their fleet operations.

A Bright Future for SA Fleet Management

These examples and many others highlight why connectivity and fleet management tools are important for giving South African leaders better business oversight. As more companies enter the marketplace, people should expect to see an even broader assortment of technology solutions.

People considering adopting fleet management systems to improve their operations should begin with goal-oriented mindsets. That way, they can stay focused on what they want to achieve and what it will take to reach those ideals.