Data Insights & Analytics 7 min read

Samsara Drives Cost-Savings Opportunities for Customers in their First Year

August 31, 2022

Daniel Dong
Daniel Dong

Manager, Expansion Growth

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Headwinds like inflation and high fuel prices have led physical operations companies to prioritize cost savings—and operations leaders are looking to technology as a solution. In our latest report on the State of Connected Operations, 95% of those we surveyed agreed that digitizing their operations improves their ability to weather disruptions, and 91% reported that their investments in digital technology have increased net profit. 

Digital tools, like those provided by Samsara, are an essential investment for operations looking to improve their resilience. In particular, operations leaders are looking to invest in technology with a proven record of fast time to ROI. Samsara’s technology can function as a deflation enabler—allowing our customers to quickly uncover and take advantage of net new efficiency gains that bolster their operations.

We examined our data to understand how adopting a Samsara solution has benefited our customers within the first year of adoption.

To do this, we aggregated anonymized data from hundreds of Samsara customers and our complete methodology can be found below. Our sample customer cohort includes:

  • 395 large Samsara customers in the field services and logistics industries

  • Who operate in the United States and Canada

  • Who have more than 100 active devices (either Samsara’s Vehicle Telematics or Video-Based Safety solutions)

  • And who have collectively traveled more than 793 million total miles in the last 12 months

Within their first year, this customer cohort saw the following results: 

  • 47% reduction in crashes: Furthermore, customers who use both our Vehicle Telematics and Video-Based Safety solutions saw a 63% drop in crashes within the first year of adoption.

  • 40% decrease in idling: Assuming a price of $5 per gallon of fuel, that’s equivalent to roughly $2,500 per vehicle per year. 

  • +20% improvement in vehicle utilization: Properly allocating vehicles and preventative maintenance can help reduce budget waste. 

Read on to learn more about the findings from our latest data analysis, including stories from real customers who have improved safety and efficiency with Samsara. 

Customers saw a 47% decrease in crashes 

Workplace safety is a top priority for many of our customers and reducing incidents is a particular concern. An average crash can cost a company between $16,500 and $74,000, and that cost skyrockets if there is a fatality. Furthermore, insurance premium costs per mile have increased 47% over the last decade, according to the American Transportation Research Institute.

Without visibility into driver behavior on the road, safety managers are limited in their ability to coach drivers without context. While Vehicle Telematics provide harsh event data, Video-Based Safety solutions—like AI Dash Cams—provide further visibility, capturing high-definition footage of safety events to further identify risky behaviors and enhance feedback and driver coaching.

When compared against the baseline measurement period, this customer cohort saw a 47% reduction in crashes within the first year of adopting at least one of Samsara’s solutions. 

Crash rates - Samsara Data Insights

When we compare the subset of customers who use only Vehicle Telematics with those who use both our Vehicle Telematics and Video-Based Safety solutions, we see that the second group experiences even greater improvements. Customers, who use both Vehicle Telematics and Video-Based Safety solutions saw a 63% drop in crash rate within the first year —which, in many cases, translates to significant cost savings.

Chalk Mountain Services, winner of the 2022 Samsara Connected Operations Award for Safest Operator, uses Samsara’s Vehicle Gateways and Video-Based Safety solutions. They were able to identify risky behaviors and coach drivers, citing the benefits of AI Dash Cams in particular. As a result, they reduced accident costs by 86%, decreased worker compensation costs by 43%, and improved driver retention by 15% through a data-driven rewards program. 

“The biggest contributor to reducing our accident costs was Samsara AI Dash Cams,” said David Serach, Director of Safety. “Samsara has allowed us to be more proactive in identifying risky behaviors and positively coaching drivers.”

Within a year, customers saw a 40% decrease in idling 

Fuel is a key cost for any organization that operates vehicles or equipment and can represent on average 60% of total operating budget. In our State of Connected Operations report, one of the top challenges respondents cited was rising fuel prices (43%). 

Idling is one of the biggest sources of fuel-wasting driving practices. For medium- and heavy-duty vehicles, idling for even 15 seconds can waste more fuel than restarting the engine. Approximately 1 gallon is wasted every hour of idling. 

Using telematics data from Samsara, customers can easily identify and coach drivers on fuel-wasting driving practices like idling. This customer cohort saw idling decrease by 40% within the first year of adoption. Assuming a price of $5 per gallon of fuel, that’s equivalent to roughly $2,500 saved per vehicle per year. 

Idling hours per month- Samsara Data Insights

Dohrn Transfer, a less-than-truckload carrier, reduced idling and improved fuel efficiency by 50% after adopting Samsara. They implemented a fuel coaching and gamification program based on Samsara data that enabled them to implement smarter idling policies, track progress, take action on fuel waste in real-time, and reward drivers who practiced responsible fuel management.

Vehicle utilization improved by over 20% among customers

Fleet managers often manually track vehicle or asset usage, which can be tedious, prone to error, and costly. Every year, the average fleet wastes an estimated 5-10% of its budget. Underutilized assets and lost productivity due to vehicle or equipment downtime are key culprits. 

However, access to utilization data can significantly improve this process with accurate insights into vehicle and equipment usage. When we look at the data from the customer cohort, we see that customers improved utilization by over 20% when comparing their last and first three months of their first year with Samsara. 

This 20+% improvement due to fleet rightsizing and increasing the productivity of individual vehicles, ensures organizations operate at maximum efficiency. Furthermore, as supply chain shortages limit inventory for new vehicles, asset utilization data can ensure operations maximize the productivity of their existing fleet and assets. 

Vehicle Utilization Rate: Samsara Data Insights

Artera, winner of the 2022 Samsara Connected Operations Award for Digital Transformation of the Year, is a great example of leveraging utilization insights to realize savings. “With real-time operational data, we can make smarter business decisions that directly impact our bottom line,” said Farrukh Rafiq, Chief Procurement Officer and VP of Fleet. “For example, we recently sold $10 million of underutilized equipment, freeing up cash flow to invest in areas that matter—like new equipment we really need. But most importantly, the technology keeps our people safe behind the wheel.”

Improve operational visibility and achieve ROI within the first year

This data analysis demonstrates the potential for your organization to drive real impact, fast with Samsara. Digitization can provide the necessary visibility to make better, smarter business decisions that help your operation’s bottom line. Learn more about how your organization can improve safety and reduce costs in an uncertain economic environment and how others in your industry are tackling these problems in our latest webinar: Leverage Industry Benchmarks to Uplevel Safety & Efficiency.

Get a more in-depth analysis of the findings in this article, as well as best practices and resources for how to identify new savings and revenue opportunities and gain a competitive advantage.

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Methodology

The statistics shown are based on anonymized historical data of 395 Samsara customers in field services and logistics. Accounts are selected based on the customer cohort detailed in the introduction. Results depend on individual customers and are not guaranteed.

We analyzed the first 12 months of adoption for each customer, who all started using Samsara in 2018 or later. The percent improvement was calculated by comparing the average of the first three months and the average of the last three months of each customer’s first 12 months with Samsara. 

Comparisons of crash statistics were based on measurements of crashes as detected by Samsara Vehicle Gateways. The 47% reduction in crashes cited above is equivalent to 53% of the baseline crash rate in the first three months of adoption, which is detailed in our webinar.

Utilization is defined as trip hours divided by total available vehicle hours in a given month. The available hours are calculated based on the number of active vehicles in a given month. This definition is also consistent with what is presented in the Samsara dashboard.

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