Fleet Management
A facility management company with around 3,000 employees recently switched all its vehicle telematics from the well-known provider "Webfleet" to the ToolSense system. It is now saving more than €30,000 per year in software costs.
This case study looks at:
- How the company used Webfleet
- Which functionalities are used in ToolSense instead
- A comparison of the costs of both systems and a 4-year ROI analysis
- How the system change was made possible by a "ToolSense Contract Buy-Out" without any additional costs
How the company used Webfleet
The facility management company mainly used Webfleet for vehicle tracking, route tracing, and vehicle trip documentation.
However, the company did not use the option of a tax-relevant logbook with Webfleet.
Which functionalities are used in ToolSense instead
The same use cases are covered in ToolSense: an overview of the trips of a vehicle, route history, trip documentation, and driver identification with an RFID card.
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Comparison of the costs of both systems and 4-year ROI analysis
As the company has a fleet of 149 vehicles and had equipped all of them with the Webfleet system, the overall cost comparison is as follows.
A 4-year comparison shows that the company saves an average of more than €30,000 per year in software costs by switching to ToolSense. If the hardware purchase is disregarded and only the ongoing subscription fees for the telematics hardware are considered, the company still saves more than €20,000 per year with ToolSense.
It is important to emphasize here that, as mentioned, all the necessary functions for fleet management are also available in ToolSense, and therefore no compromises need to be made.
How the system change was made possible by a "ToolSense Contract Buy-Out" without any additional costs
However, one obstacle to changing the system was the contractual commitment to Webfleet. Some of the 149 telematics units had a contractual term of 12 to 24 months.
Therefore, the company had the following two options to realize a system change from Webfleet to ToolSense:
Option 1 – Wait until the Webfleet contracts expire
- Advantage: No additional costs
- Disadvantage: Lengthy process, laborious, two systems running in parallel, savings only come bit by bit
Option 2 – Switch immediately and keep paying the running Webfleet contracts
- Advantage: Fast process, only one system
- Disadvantage: High additional costs due to ongoing Webfleet contracts
Both options are rather unattractive. For this reason, ToolSense created the option of a "Contract Buy-Out".
For this, the company disclosed the list of Webfleet telematics units to ToolSense, each with the monthly cost and renewal date per unit.
ToolSense then calculated the contractually fixed Webfleet costs that the facility management company still had to pay to Webfleet in any case. In this case, it was €14,650.13.
ToolSense then granted the company a one-off special discount of €14,650.13 as part of an exchange campaign for 149 car telematics modules.
This enabled the company to cancel all Webfleet contracts immediately and switch to the ToolSense system.
This was done without any additional costs due to the Webfleet contracts. The only effort was to:
- cancel the Webfleet contracts at the earliest possible date
- unplug the Webfleet telematics module in 149 cars and plug in the ToolSense telematics module
This approach had the following advantages for the company:
- No additional costs due to ongoing Webfleet contracts
- Immediately working with only one system (ToolSense)
- Realization of the business case from day 1 and savings of more than €20,000 per year in software costs
The only disadvantage for ToolSense in this case was the additional discount granted. However, this was seen as a justified investment in a long-term partnership.
Talk to one of our team members about how ToolSense can improve your processes and make you more efficient while remaining the more cost-effective solution.
