Can GPS Tracking Save Your Business Money?

Business.com / Business Solutions / Last Modified: February 22, 2017

Can GPS Tracking Save Your Business Money? We have all heard about GPS Navigation devices, and many of us have used them to get ...

Can GPS Tracking Save Your Business Money? 

We have all heard about GPS Navigation devices, and many of us have used them to get directions to a destination.  What about GPS Tracking, a similar technology being used to track the current or past whereabouts of others?  It may be more common than we realize.  The tracking devices are commonly used for businesses applications ranging from ensuring employee safety to routing the closest vehicle to an address.   

Recent studies indicate that businesses have reported a reduction in fuel usage as the biggest advantage of GPS tracking. Monitoring and reducing speeds, routes, and idle time are just a few things that fleet owners can do to lower the fuel bill. Each mile per hour above 50 MPH increases fuel consumption by 1 ½ percent. Higher speeds also cause more tire heat, which puts more wear on tires. Wear on tires will almost double at road speeds of 70 MPH or greater. GPS tracking systems can report all vehicle activity and immediately alert fleet managers by cell phone and email of speeding and unauthorized use of company vehicles. Business owners are most concerned with fuel & maintenance, employee overtime, and employee productivity. 

GPS vehicle tracking solutions can significantly reducing excess costs for businesses:  ·       

1. Fuel & Maintenance - The average operating cost per vehicle is about $1.50 per mile. A company can reduce at least 25 miles per week for each vehicle with a GPS tracking device.·       

2. Employee Overtime
- The employee overtime rate is estimated at about $30 per hour. On average, a company can reduce at least 1 hour of overtime per week with a GPS fleet tracking system.·       

3. Employee Productivity
- On average, each vehicle could complete at lease 1 extra stop, job, or delivery per week with a live GPS tracking unit. 

What is the ROI?  For an average size fleet of 10 vehicles, the estimated monthly savings is generally over $6000 with a GPS tracking solution.  The cost of a GPS Tracking Device has significantly dropped over the past 10 years.  A high quality device can be purchased for around $425.  It's typical for a company to see their return on investment within about 30-45 days.   

What are the Benefits of GPS Tracking?
(18 Benefits of GPS Tracking)

Decreases Excess Speeds:
By tracking the speed of your vehicles you can reduce the chance of an accident and save money on fuel. Our systems keep a complete record of your vehicles speed at any particular moment.

Validates Service Calls:
 By simply looking at the history of a vehicle you can quickly tell when it arrived and how long it was at a particular service call. There is a clear record which eliminates assumptions and guesswork.

More Accurate Billing:
Using GPS tracking creates a digital log of time speed and route used by your fleet. Time and fuel costs used specifically on the job can be accurately calculated with this digital log.

Reduce Fuel and Maintenance Costs:
 The average operating cost per vehicle is about $1.50 per mile. A company can reduce at least 25 miles per week for each vehicle with a  GPS Tracking System.

Reduce Delay and Time Spent at Unauthorized Locations:
With our software you can not only track but easily establish an alert system for events like a driver going outside of a designated area or staying idle for too long.

Receive Lower Insurance Rates by up to 35%:
Many insurance companies offer discounted premiums for vehicles that have a Real Time GPS system.

Increase Efficiency:  On average, each vehicle could complete at least one extra stop, job, or delivery per week by using the one of our web-based systems.

Eliminates Paper Logs: 
The digital record is not subject to human error and makes the process of record keeping more in depth without any additional hassle.

Improves Response Time & Customer Service:  By knowing where your vehicles at all times on a real time map, dispatchers can easily send the nearest vehicle when a new job arises. This saves both money and time.

Monitors Driver Activities: 
Many of our systems report all vehicle activity and immediately alert fleet managers by cell phone and email of speeding and unauthorized use of company vehicles.

Application Options: 
Your system can be set up to detect several activities that are complete separate from simply tracking. You can monitor: seatbelt use, door lock/ unlock, starter kill, vehicle alarm notification, vehicle remote start (If equipped with remote start).

Reduces Operating Costs:
 Idling causes twice the amount of damage as average driving. One hour of idling is equal to between 80 and 120 minutes of driving time. The resulting loss of fuel economy from excessive idling can add up to 800 gallons of fuel annually for the average truck. Monitoring and reducing speeds, routes, and idle times are just a few things that fleet owners can do to lower their fuel bills. Each mile per hour above 50 MPH increases fuel consumption by 1.5 percent. Wear on tires almost doubles on road speeds of 70 MPH or greater.

Reduces Overtime:
 Employee overtime rates are estimated at about $30/hour. On average, a company can reduce at least 1 hour of overtime per week with a GPS fleet tracking system.

Monitors Routes and Stops:
 Creating a digital log of routes and stops is key for determining whether your fleet is running efficiently. Idle time and stops at unauthorized locations can become costly for your business; with a GPS system you can ensure that this does not become a problem.

Eliminates Paper Logs:
 GPS software keeps a digital log of speed, stops, route, and arrival times. This record is far more accurate and harder to dispute than paper logs. A digital record is not subject to human error. It creates more detailed records without any additional hassle.

Detects Side Jobs:
  By tracking both real time and historic data you can spot and eliminate suspicious use of your vehicles by employees. If employees are aware that they can be monitored they are less likely to engage in side jobs and unproductive behavior.

Improves Safety & Driver Responsibility:
 Drivers who know they are being monitored are more careful. This can reduce accidents.

Prevents Fraudulent Claims:
 With a good digital log you can prove that your fleet was where it needed to be when it needed to be there.

To learn more about Vehicle Tracking Systems, visit Rocky Mountain Tracking, Inc at http://rmtracking.com

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