Fleet Management & Forklift Safety Blog

Not Sure about the Cloud? Why Enterprise Cloud-Based Telematics Can Capture ROI

Posted by Neil O'Connell, SVP Technology, Innovation, & Product Development on Oct 3, 2017 3:00:00 AM

Cloud-based technology is a leap that some enterprises still hesitate to make. We get it. There is the worry about investment costs and, ultimately, return on investment. cloud-2537658_640.jpg

So, the question is, does cloud-based technology really improve operations and safety to the point that ROI is almost assured? The majority of businesses who use it say yes.

Enterprises that make the leap report that the benefits are substantial. Gains include:

  • Better access to actionable insight from any location
  • Improved safety
  • Increased productivity
  • Cost and waste reduction for a solid ROI, faster than most anticipated

In fact, 82% of companies said they saved money by moving to the cloud — and there are several reasons that ROI can be quickly realized.

The cost of impacts

What if cloud-based telematics could reduce accidents in your facility? How much would you save? Here are some basics to consider:

  • Costs following accidents average about $38,000 per forklift incident and $150,000 in indirect costs. These figures include damages to equipment, property, and inventory and equipment downtime for repairs.
  • According to OSHA, forklift accidents annually cost organizations across the country about $135,000,000 in immediate expenses.
  • Accidents cost money and human resources, affecting employees through physical and mental suffering and cost the company in workmen’s compensation. Larger costs can occur from major lawsuit awards resulting from forklift accidents.

But, cloud-based telematics facilitates scalable improvement plans that address safety issues, improve driver behavior, and identify things that put operators at risk. Having instant information telling you exactly how to avoid costly accidents can save thousands and thousands of dollars and allow you to capture ROI.

Key sources of cost reduction

What if your IT costs could also be reduced? Saving occurs because:

What if cloud technology could boost productivity? Gains occur because:

  • Improved data analysis comes from real-time information from the fleet, fully analyzed in the cloud, with immediate insights available.
  • Improved maintenance because reminders are sent, cutting downtime.
  • Monitoring operator behavior and task execution increases employee productivity and fleet right-sizing.

ROI matters

Cloud telematics delivers value-driven data that managers can use on the spot to make decisions and improve KPIs. Information is seamless and accessible, allowing users to identify key cost avoidance measures quickly and to take action.

Topics: warehouse productivity, ROI, Cloud-based solution, cloud-hosting, continuous improvement

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