Saving Money with GPS Tracking
GPS tracking systems have become a reliable tool over the last years. By making use of satellites, GPS tracking devices are able to deliver regular location updates with remarkable precision.
GPS Tracking technology enables people to determine the location of their vehicles, assets or loved ones with an accuracy of down to 1 meter depending on the conditions. With such cutting-edge technology, people are able to equip their valuables with tracking devices and easily locate them in real-time.
GPS tracking systems have proven to be a game-changer in the business world especially for companies that own a vehicle fleet. If we take a close look at the technology used in fleet management, we would notice that it encompasses a variety of devices, which include; GPS location systems, displays, digital tachographs, applications, etc. Every one of these devices revolves around GPS technology and we could call it the main instrument for reporting the situation of vehicles to fleet management in the quickest possible way.
When a company is faced with an option of implementing fleet management with GPS tracking systems, the first and most important question centres around “Return On Investment”, which can either be high or low depending on the number of vehicles involved. To answer this question, we must make clear the advantages of GPS tracking in fleet management systems which include: Real-time location of all vehicles in the fleet (lets you know at all times where they are and if they are parked or running), productivity and increased employee responsibility, accurate data on the use of fleets, faster roadside assistance and many more.
Among the numerous advantages of GPS tracking systems for vehicle fleets, one of the most important is the fact that it lowers costs. Lots of establishments today depend on vehicle fleets while carrying out business activities, as mobile assets such as vehicles entail a considerable amount of capital expenditure. Also, the cost of fueling and maintaining a vehicle fleet can lower a company’s profit margins. However, by installing GPS vehicle tracking systems in vehicle fleets, companies can drastically lower operational costs in the following ways:
Vehicle breakdowns can lead to loss of time on the road and massive repair bills. By automating alerts on vehicle maintenance, you can avoid unnecessary vehicle downtime and additional maintenance fees. With fleet management systems, you can set up alerts to notify you whenever a vehicle is driven at a certain distance, for certain amount of hours or when it exceeds the limit of appropriate load capacity and speed. You can also receive automatic alerts that let you know when the vehicle should undergo maintenance and this goes a long way in protecting you from unexpected repair costs.
Reduces excessive overtime
Eliminating overtime payments is a simple way to reduce operating costs. Several companies have discovered that their drivers perform tasks in a few hours and instead of returning to the office, they violate company rules and regulations by using company cars for personal purposes and return back after working hours with the excuse of traffic, thereby requesting bonuses for overtime. With a fleet tracking device onboard, you can properly monitor the use of your vehicles and consequently determine the genuine of overtime payment.
Aggressive driving can lead to accidents and this can cost your company fines which can take out a large chunk of the company’s profit. Instead of taking a reactive approach to driver behaviour, you can use the GPS tracking system to manage and promote road safety proactively. When safety is improved, businesses can drastically reduce payouts incurred from road safety violations as well as accidents.
One thing most business owners fail to understand is that the total cost incurred as a result of an accident is several times greater than the direct cause. Total cost deals with the cumulative amount lost as a result of an accident over a long period of time while the direct cost only focuses on the costs incurred in a short run which include things like vehicle repair cost, medical bills for injured victims, payouts etc. A variety of factors make up the total cost of accidents and these include:
- Time lost by drivers at the scene of the accident
- Loss of revenue due to equipment inability to yield income.
- Inability to keep up with orders as well as meet business deadlines as a result of an accident or accidents.
- Time lost by postponing missed business assignments
- Time lost as a result of accident investigations as well as reports by the management involved.
- Likely increase in insurance premiums
- Reputation damage
In some cases, the fleet management might have no other option but to replace a severely injured driver and such replacements have some costs attached to it which include: Cost of advertising the vacant position, loss of time in the driver application process, loss of time in performance tests for drivers, costs incurred during screening for banned substances, costs incurred during background checks, training costs etc.
There is also a high possibility of a temporary decline in productivity as unfamiliar drivers might need time to adjust to the new system before they can completely fill in the spots left by more experienced drivers. In addition, experienced drivers who later return after rehabilitation tend to start off sluggishly before picking up.
In a scenario where drivers get injured during accidents, managements might face lawsuits as well as an increase in compensation claims. If such claims are lost, this can result in high settlement costs which can affect business profits, not forgetting that the management will have to pay for attorney services resulting from their quest to defend the company in such quagmires. With the use of GPS tracking systems, you can significantly improve the safety of your vehicle fleets, thereby avoiding unnecessary and unwanted costs.