How AI tools empower fleet management
October 03, 2024
Artificial intelligence is an important resource to help automate and digitize your fleet management process. Element created the AI Fleet Forecasting and Tire Replacement tools* to save you time and money. They help you make informed decisions about the best way to allocate resources, manage risks, and plan for growth and sustainability.
Our Strategic Advisory team uses their deep expertise and technology to find innovative solutions tailored to your unique fleet needs. The predictions our tools provide, combined with our guidance, give you actionable insights to strengthen your strategic fleet planning with confidence.
How AI tools work to enhance fleet management
At their core, our tools use Meta's Prophet Forecasting Model2, an advanced AI and machine learning model designed for time series forecasting. This technology helps predict patterns over time. It looks at trends that change in ways that are not necessarily straightforward (non-linear).
These tools:
- Consider how things change by year, week, and day, including holidays.
- Are most effective when patterns repeat often, with a lot of past data available for analysis.
- Work well with data that shows strong seasonal patterns.
- Can handle missing information or changes in trends.
The information collected will give you the ability to adapt to changes in the marketplace. With the power to adjust and make informed decisions you will save time and money.
What does the AI Fleet Forecasting Tool do?
Our tool collects and analyzes historical client data, and current vendor metrics, as well as data from governmental bodies such as the U.S. Energy Information Administration (EIA)1. Future trend predictions are made based on this data foundation. It considers fuel costs and consumption, maintenance needs and schedules, and lease renewals alongside replacement timelines.
Example:
If historical data shows an increase in fuel consumption during winter months, the tool can breakdown: geographic locations, vehicle types, and current EIA projected fuel prices to enable highly relevant and efficient budget allocation.
How does the AI Fleet Forecasting dashboard work?
The dashboard generates easy-to-understand visuals from complex data, making it user-friendly and intuitive. You can tailor customizable reports as granular as a detailed analysis of fuel consumption or a high-level overview of maintenance costs.
For annual reports, it can specify the total maintenance expenditure broken down by vehicle type. It can also help identify which models are more cost-effective to maintain, guiding future acquisition decisions.
Shares relevant fleet data
The tool provides accurate fleet predictions based on your historical spend in addition to trusted external data sources, allowing fleet managers to adjust as needed. By continuously updating its predictions based on the latest information, it makes sure that you are always operating with the most current data. When you get actionable insights for fleet management, you can make data-driven fleet decisions. This type of enhanced strategic planning can make a big difference in your resource allocation.
Example:
The tool can identify that a particular vehicle type shows a significant increase in maintenance expenses after three years of operation. This suggests that a shorter lease period might be more cost-effective.
Where can you see the most benefit using an AI fleet forecasting solution?
You find the most value by predicting future costs with high precision, as the tool helps you budget, reduce waste, and maximize return on investment.
Enhanced fleet budgeting accuracy
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Predicts future costs with high precision.
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Helps allocate budgets more effectively.
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Reduces waste, avoids financial shortfalls, and maximizes return on investment.
Fuel cost management
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Provides accurate future fuel cost predictions integrated with EIA projected fuel prices
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Enables strategic fuel budget planning
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Identifies trends and patterns in fuel consumption
Discover our Fuel EKG™ product: The first artificial intelligence-powered fuel monitoring solution that goes beyond simple flagging.
Fleet vehicle replacement planning
Data-driven insights for optimal vehicle replacement timing, balancing:
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Costs
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Performance
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Reliability
The top 10 benefits of artificial intelligence for fleet management
Bar graph showing 10 areas where artificial intelligence has the highest percentage of benefit for fleet management solutions. Where have organizations that used AI solutions seen the most value? 3
Predicting tire replacement with AI
Replacing used tires is a major maintenance cost for service fleets. You can extend the safe driving distance between tire changes by optimizing the tire replacement process. This significantly cut costs to your fleet maintenance budget.
Our data science and strategic advisors combined efforts to provide recommendations on which tires should be used for specific scenarios, taking into consideration distances traveled.
What does the AI Tire Replacement Tool do for fleet managers?
Predicts tire performance and optimal replacement times
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Forecasts the mileage each tire brand and model can deliver.
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Factors in the specifics of your fleet's operation, including industry type and geographical nuances.
Makes tailored recommendations
- Aligns with your fleet’s unique needs—whether minimizing spend or maximizing the distances your vehicles cover.
How do AI forecasting tools designed for fleet management work?
AI analyzes rich data sets
This tool uses advanced algorithms trained on extensive datasets gathered from diverse fleet operations. By tapping into a wealth of data from a broad spectrum of vehicles, AI analyzes patterns and predicts outcomes, turning raw numbers into actionable insights.
Considers historical data on:
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Tire performance
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Vehicle makes/models
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Environmental conditions
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Tire unit cost
Identifies trends and predicts future outcomes with high accuracy
Continuously learns and adapts, refining its predictions as more data becomes available.
Conducts "What-If" scenarios
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Demonstrates how different tire options may play out.
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Simulates various scenarios, giving you a preview of how your choices could impact your fleet’s performance and bottom line over time.
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Explores how changes in variables could change the distance a vehicle can travel, helping to find the best outcomes.
Visualizes insights
Presents findings in an easy-to-understand format, highlighting key factors that influence tire wear and performance, making it easier to grasp the implications.
How does AI fleet management help you?
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Cost reduction through pinpointing which tires will provide the best value.
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Informed decision-making with insights and analyses tailored to your operations.
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Strategic planning to minimize downtime and maximize efficiency.
A client case study: Unlocking the secrets of tire longevity
Industry: Technology, media, telecom
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A client expressed concerns with the increase in tire wear expenses due to heavy loads, high mileage driven annually, and vehicles spinning out
Overall goal: gain perspective on top tire performance
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The tire replacement analysis tool conducted a vehicle specific performance review. It provided a comprehensive analysis of various tires, focusing on cost-effectiveness on a cents-per-mile basis and total life cycle costs.
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It aligned high traffic tire suppliers that aligned with the client's procurement patterns.
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It selected tires based on the client's specific requirement for domestic products.
The client achieved significant cost savings and enhanced efficiency.
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Reduced tire expense from current $0.0057/mile to $0.0026 by selecting suitable tires.
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Standardized tire options through Element’s maintenance team, identifying cost effective options with durability to minimize downtime.
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Potential annual savings of $141,429, reducing tire spend by over $424,000 over 3 years. This was based on an annual average mileage of 45 million per year.
Our client received a personalized experience with clear explanations about how predictions are made, detailing how each variable can affect the outcome.
How can you start to use AI in your fleet management solutions?
Begin using artificial intelligence by gathering data. This important step helps you find patterns and insights. Once your data is stored safely, you can start using AI successfully.
The road to overcome future challenges, improve processes and gain a competitive edge is around the corner.
Start your journey and explore the possibilities AI has to offer, reach out to the Element team today.
Sources
* Currently clients served by our trusted advisors will have access to this tool.
1 U.S. Energy Information Administration: Short-term Energy Outlook
2 Prophet
3 Chart: Top 10 benefits from implementing AI
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