Fleet cost management is one of the most tangible benefits of telematics.

It allows action to be taken on the three largest sources of expense.

First, **fuel**, by optimizing routes to travel fewer kilometers, drastically reducing excessive idle time, and coaching drivers on eco-driving.

Second, **maintenance**, by moving from a reactive (expensive) repair model to a preventive or predictive scheduling model, which avoids serious breakdowns and towing.

Third, **labor**, by improving productivity through better dispatching (sending the right vehicle to the right place), validating timesheets, and reducing unauthorized vehicle use.

By consolidating all this data, a manager can calculate the Total Cost of Ownership (TCO) for each vehicle and make strategic decisions about fleet renewal.