Improve Your ROI: How Smart Fleet Managers Cut Costs With GPS Tracking
The return on investment fleet managers can reap from GPS tracking makes utilizing this technology a great idea for your business. The benefits can range from money saving to increased customer satisfaction, and everything in between. Over time, GPS tracking can offer numerous benefits that could ultimately pay for themselves.
Your Initial GPS Tracking Investment
Naturally, if you are considering the ROI (Return on Investment) of GPS tracking for your fleet, the first step is the "I," or making the initial investment. Your selection will depend upon the size and type of your fleet. For example, a long haul shipping company with a large number of vehicles would likely need more sophisticated devices capable of many things, including:
- Reading engine diagnostics
- Offering fast reporting
- Providing detailed, historical reports
Meanwhile, a company running a smaller fleet may only need such information as driver routes and locations.
Another aspect of investment to consider is installation costs if a wired device is chosen. Some devices need to be installed directly into a vehicle's power source, allowing the device to read engine diagnostics and run using power derived directly from the vehicle. This eliminates the need to remember to charge a device and the likelihood that one of your drivers might be stuck on the road with a device that needs to be charged in order to work. Installation costs for these devices is surprisingly low as most car radio installers can do it quickly and affordably, and a tech-savvy user may even be able to install the device on their own without difficulty. Some fleet managers have someone onsite who can assist in installing the GPS trackers and won't need to spend anything extra on installation costs.
Once the device is purchased and installed, the cost of operation entirely depends on how you choose to use it. Most GPS tracking service packages is typically around $40.00 - $70.00. Lightning GPS offers our GPS tracking monthly subscription at an affordable price of $19.99.
Cost Savings and Fuel Usage
Delivery and service vehicles cover a lot of ground and therefore use a lot of fuel. A commercial truck may use more than 20,000 gallons annually, which at an approximate cost of $2.50 per gallon can result in costs of over $50,000 per year. Even small, ongoing reductions in this cost can add up to thousands of dollars in savings.
Fuel savings can be accomplished with GPS trackers because of the data they make available. Fleet managers are now able to see how many miles per gallon each driver is getting, view fuel consumption figures, and ultimately identify inefficient drivers in the fleet.
Other ways users can monitor fuel use with GPS tracking includes monitoring idle times. According to the Ford Motor Company, every hour of idle time is equivalent to 25 miles of driving time. A fleet manager can ping a driver, alerting them to shut off their engine during extended idle times. For example, one large equipment rental company saved more than $100,000 and 28,000 gallons of fuel in a single month using this information!
Speed alerts are also useful tools in fuel savings. Speeding is a form of reckless driving that can lower gas mileage by around 5% for in-town driving and approximately 33% for highway driving. According to the U.S. Department of Energy, cutting down on speeding makes sense from both a safety standpoint and an economic one.
Establish Standards of Proper Vehicle Use and Identify Driver Misuse
Conserving fuel helps cut costs, money saving isn't the only benefit. Other data gathered by GPS tracking devices can give fleet managers greater power over their fleet in terms of management, efficiency, and economy. Other things that can be monitored by some GPS tracking systems include to-the-minute locations and historical records of vehicle locations and trips. This information allows fleet managers to compare a driver's claims with the facts captured by the GPS tracker, giving them the ability to encourage drivers to maintain proper driver standards.
Another positive benefit to GPS tracking is that fleet managers can gather raw data such as travel times, idle time, and driving quality, and use it to establish better driver guidelines to improve the efficiency of individual drivers, as well as the fleet as a whole.
Identifying and Dispatching Nearby Drivers
An additional benefit of GPS trackers comes under the header of improved customer service. When a fleet manager knows where their drivers are, they are able to dispatch drivers in a more efficient manner. For example, if a customer has an emergency, a fleet manager can identify the nearest driver to assist the customer. This helps to keep managers aware of each driver's location, viewing the entire fleet as a whole rather than as separate, disconnected individuals whose locations can only be self-reported.
Managing Your Investments
By tracking a vehicle using GPS, not only are you virtually ensured of your vehicle's recovery in the event of theft, you are also given the opportunity to know who in your team was last behind the wheel, where the vehicle went, and when it was there. This information can be gathered through detailed driver reports and schedules managed by the GPS cloud software. This added knowledge about your fleet has also proven valuable to many insurance companies and some even offer discounted premiums for using a GPS tracker.
Overall, the data shows that using GPS tracking devices in your fleet vehicles can save you money and improve fleet performance. The benefits of GPS tracking are being seen and praised in many businesses that utilize fleets, both large and small. It is clear that GPS tracking is not only here to stay, but it's becoming an essential tool for managing your company's vehicles and equipment, and ensuring that your business operates smoothly and efficiently. If you have questions about how GPS tracking can benefit your business, we invite you to contact the Lightning GPS team for more information.