Managing a fleet is costly, plus there are many factors that can negatively impact cash flow. An ROI tracking system can help you find opportunities for cost savings. Unauthorized trips, extended breaks, and poor route management are just a few examples of wasteful spending that can be avoided. By tracking ROI and installing a vehicle tracking device in every asset, and connecting it to an internet-based tracking system, your business can see significant cash flow improvements.
Tracking a vehicle using GPS can increase a fleet company’s productivity by 7%, lower service costs by 4.9%, and reduce fuel expenses by 5%.1 Drivers are more likely to be efficient if their status, speed, and location are known at all times. The condition and use of vehicles can be tracked, which can reduce maintenance costs. These are just some factors that impact ROI, and which can make the fleet GPS tracking system cost practical for your company.
Reducing Labor Expenses with GPS
In addition to fuel costs and mileage, an ROI tracking system can account for driver wages. There are various factors that impact labor expenses, but GPS can help you:
- Verify work hours: Trip data can be used to view travel and stopover times. Instead of just the number of hours worked, you can see when drivers are in motion or their vehicles are idling.
- Hold drivers accountable: If a timesheet is inaccurate, you’ll know right away and, if a vehicle is being used in an unauthorized location, the GPS system will notify you. The same goes if a vehicle operator speeds or drives aggressively.
- Assist drivers: If drivers are lost, GPS can help get them to their destination, or direct them away from congested routes so jobs can be completed faster. Reliable information can mean more hours getting the job done rather than dealing with hold-ups.
- Improve productivity: Thanks to GPS tracking, business opportunities are in place to serve customers more efficiently. A tracking system can allow you to send and receive messages, so you can communicate directly with employees in the field. You also eliminate undesirable activities, such as side jobs and workers who perform personal errands during the workday.
Reliable tracking can ultimately lower payroll costs and improve driver safety. You can use the data to improve training or reward drivers who operate vehicles safely. If objectionable driver behaviors are identified, you can take measures to correct them.
Event data can be used to verify timecards and discourage unwanted use of time, reducing overall payroll costs. Additionally, managing drivers’ workloads can prevent them from being overworked, thereby improving productivity, efficiency, and customer service.
Reducing Operational Expenses with GPS
With a reliable means to track fleet activity, ROI can be improved, thanks to lower operational costs. Fleet managers gain insights necessary to identify excessive spending. They can then choose where to take action and cut costs. Some ways GPS and ROI tracking can benefit include:
- Improved logistics: An overview of all operational parameters is available. GPS tracking for business allows managers to coordinate activities and manage all assets at once, rather than one truck at a time, and provides support at the proper place and time. You can allocate vehicles and personnel as needed.
- Reduced downtime: Limiting the amount of downtime increases vehicle availability and efficiency. Routes and schedules can be optimized by fleet managers and dispatchers, while scheduled maintenance helps avoid more time- and cost-consuming breakdowns and service calls.
- Decreased fuel usage: Drivers’ speeding, idling, and braking habits can increase fuel costs by 20% and waste as many as eight gallons per month, per vehicle.2 By recognizing the patterns, fleet managers can act accordingly and deter wasteful activities, thereby seeing additional savings.
- Manage fuel costs: For any fleet-based business, fuel is a major expense. By shortening distances, avoiding traffic and bad weather, and finding other ways to reduce travel times, fuel management is possible. Engine data collectors let you analyze driver activity, which can help save up to thousands of gallons by promoting more economical driving.
- Route monitoring: The progress of every job can be viewed, thanks to GPS fleet tracking. You’ll know when a delivery or job is completed and where your employees are. Also, scheduling changes can be made and communicated as soon as they’re needed.
- Communications: With GPS fleet tracking, a small business can track drivers in the field, rather than constantly check in with them by phone. It also improves customer communications. You can provide real-time status updates, notify clients when a job is completed, and provide more accurate invoicing.
In terms of business opportunities, GPS vehicle tracking for small businesses can facilitate communication with sales teams. Tracking software can, therefore, be used to track revenue generated with each job. Software features may be used to create territory maps to identify high revenue generating customers.
US Fleet Tracking’s product includes a geofencing feature that enables users to define virtual fences; in addition to enabling alerts as to where vehicles are in relation to these boundaries, this can be used to pinpoint which customers are where.
However, there’s even more you can do with a GPS track manager. You can estimate arrival times of trucks, drivers, and technicians. Automated messages or emails can be sent to notify a customer an asset is nearby. Often the more information customers have, the more likely they are to be satisfied, loyal, and refer your business to friends. All these equal more revenue-generating opportunities.
Other Benefits of ROI Tracking Software
An ROI tracking system works in conjunction with your GPS tracking in many other ways. If a vehicle is due for an oil change or brake service, a tracking system can notify you. Regular maintenance means fuel savings and less downtime. Fuel level, temperature, and engine oil indicators provide insights into vehicle health and diagnostics. Global positioning and vehicle data can factor into operational parameters an ROI tracker that can analyze for precise estimates.
Reduced insurance costs are yet another benefit. If your vehicle fleet is equipped with GPS technology, most insurance companies will reduce your rates. They see it as a risk management system your business has in place to reduce theft, accidents, traffic violations, and other costly issues. With GPS, there’s a higher likelihood of:
- Stolen goods being recovered
- Drivers operating trucks safely
- Drivers avoiding accidents
- Reduced insurance claims
Vehicle maintenance and insurance cost fleet companies significantly. You can factor the savings from a GPS vehicle tracking device and software into your ROI calculations.
Improve ROI with US Fleet Tracking
The powerful tools included with our GPS tracking service enable you to experience all the benefits in terms of ROI. Speed, geofence, maintenance, idle, and ignition alerts enable you to track driver activity and vehicle status, while live traffic and radar enable your company to know where fleet assets are, direct them to more efficient routes, and avoid hazardous weather conditions. Detailed reports allow you to identify aggressive driving, device mileage, and a variety of other metrics on a computer or a mobile device.
Electronic logging and detailed reporting allow fleet managers to have all data available, at all times. The system also integrates with Google Maps, popular fuel cards, and service call systems to maximize efficiency. In addition, it stores contacts and addresses to improve dispatching. Remote access is another potentially cost-saving feature, which allows doors to be unlocked remotely (avoiding a locksmith) and ignition to be disabled (if a vehicle is stolen).
The average cost of GPS installation is typically reduced when you factor in ROI. If your business is on a budget, a GPS tracker may be affordable for every vehicle when potential labor, operational, and insurance cost savings are considered. An ROI tracking system is your best tool to estimate how much you can save.
Contact US Fleet Tracking for information on our web-based product and its features, and GPS fleet tracking pricing, by calling 405-726-9900 today.