There is an old saying which says that a penny saved is a penny earned. But what if you could save a substantial sum of money and minimize customer wait times, ensure better environmental outcomes, and also operate efficiently? This can be possible with a vehicle tracking system.
It is a very useful cost-saving method for organizations that have a fleet of commercial vehicles. Vehicle tracking technology offers many opportunities for companies to save money and improve their operational efficiency.
The vehicle tracking systems market size has grown quickly in the last few years. The market size of vehicle tracking systems is expected to grow to $23.17 in 2024 at a CGPA of 17.3%. The major reason for this high demand has been attributed to these factors
- Growing need for fuel efficiency
- Adoption of GPS technology
- Growing demand for real-time monitoring
14 Ways Through Which A Vehicle Tracking System Can Help Your Business Make Optimum Savings
1. Ensure Better Fuel Efficiency
Road congestion has a major impact on fuel efficiency in various ways: traffic, more delays, greater number of diversions, and more stopping and starting which increases fuel consumption, thus making companies unnecessarily spend heavily on fuel.
Using a fleet vehicle tracking system, you can use a wide range of metrics, data insights, and tools to boost fuel efficiency. This is achieved by detecting vehicles, drivers who have bad habits, and routes that have maximum wasted miles. These issues can be resolved by utilizing a combination of fleet tracking tools and training programs to improve fuel efficiency metrics.
Using a vehicle tracking system, you can monitor driving habits and optimize routes in real-time, thereby minimizing idle time, and ensuring smoother acceleration. By analyzing data related to vehicle consumption and fuel consumption, you can make adjustments to improve fuel efficiency, lower operating costs and reduce carbon emissions.
Need a solution that offers real-time insights into your vehicles? Experience the power of our Vehicle Tracking System for unparalleled visibility and control!
2. Minimize Resource Wastage
Depending on the type of product your fleet is carrying, waste can be a major problem. Vehicle tracking systems can help youto minimize waste by enabling fleet managers to get deliveries to their destinations at per scheduled time, safely, and as per specifications.
Whether you are delivering food, medicine, or cement, using a vehicle tracking system ensures less wasted loads and direct cost savings. It also ensures that you can maintain your reputation as a trustworthy partner, making sure that your business continues to grow in the future.
Moreover, when your drivers are encouraged to take good care of the fleet vehicles, and loaded items, are aware that they’re undergoing route optimization, and have an idea of the best places to refuel. Your vehicles therefore spend more time on the road, generating money for your company and offering a better quality of service to customers.
3. Reduce Insurance Premiums
Several studies have shown that vehicle tracking solutions can help inreducing insurance premiums considerably. That’s because these systems can be utilized as coaching tools by fleet managers to help drivers develop better, safe driving habits. Moreover, many insurance companies provide discounts to businesses that implement vehicle and fleet tracking as a part of their wider driver training and safety program.
Using such a system can help you minimize the chances of road accidents by monitoring the location of a vehicle, speed, and driving behavior with features such as emergency buttons or automatic crash detection.
For example, in June 2022, as per the World Health Organization, nearly 1.3 million people died each year in road accidents. So, the rising number of road accidents is driving the demand for vehicle management systems.
4. Prevent Vehicle Theft
Most fleet managers are exposed to the risk of vehicle theft. Though the presence of CCTV and dashcams have reduced instances of vehicle theft to an extent, there are still plenty of cases of vehicle break-ins and thefts. Having a vehicle tracking system and using prominent signage on and within vehicles can help deter thieves who are looking for an opportunity to steal.
Most thieves lack the resources and knowledge to disable and remove vehicle tracking systems. Since criminals are always looking for an easy way to earn money with minimal risk, they are less likely to target a fleet vehicle that is being monitored with a vehicle tracking system.
Because of developments in vehicle tracking systems, better durability is now possible, ensuring a higher lifespan of vehicles. These systems help in real-time monitoring of vehicle conditions, ensuring proper maintenance and quick response to possible issues, thereby improving durability.
5. Better Vehicle Durability
Doing away with unnecessary wear and tear on your fleet vehicles can help to minimize maintenance and servicing costs. A fleet vehicle tracking system offers a complete view of all your fleet vehicles and records the data that you need for monitoring and rectifying the bad habits that can accelerate vehicle wear and tear.
Driving habits such as aggressive acceleration and applying sudden, harsh breaks can place stress on engine components, tyres, brake pads, and transmissions. The harder and more aggressively your fleet vehicles are driven, the more frequently they will need to be repaired. This costs not just money but takes these vehicles off the road, increasing the total cost.
Vehicle tracking systems help owners to promote safer, and better driving. Moderate speeds, progressive braking, and slower acceleration also help to minimize wear and tear and increase the durability of vehicles.
6. Protection From Fraud
Many transport companies make use of fuel cards. One of the major advantages of utilizing a vehicle tracking system is that you can link fuel cards with the GPS device and protect your business from fraud.
Linking your GPS tracker to the fuel cards of your organization means that you can cross-verify the stations where the cards were used, and also the time of purchase, to the vehicle location.
So, you can instantly find out if the card was utilized when your vehicle was anywhere else. Are your employees utilizing company fuel cards to refuel their cars without any authorization? GPS tracking makes it easy to detect these frauds.
7. Boost Productivity & Efficiency
The main aim of any organization is to increase its productivity and efficiency. One of the advantages of vehicle tracking is that it helps you manage the level of efficiency of your drivers. If you manage a van fleet, then with a vehicle tracking system, you can monitor the way drivers are working. You can view –
- How long do they stay on-site
- How many miles they’ve traveled
- The length of time their journeys take
You can use all the details you get from the vehicle tracking system to spot areas where you can enhance the productivity of your staff. For example, you might see that they aren’t taking the best routes between the sites. Vehicle tracking software can be used for viewing traffic jams and alert drivers in advance so that they don’t get delayed because of getting stuck in traffic. Changing routes can help reduce the time required to reach the destination and the fuel used to get there, helping you save business time as well as money.
Global Connectivity of Vehicle Tracking System
Source: Eletimes
8. Better Service Quality
GPS vehicle tracking is a very useful tool for enhancing the service you offer to customers. It helps companies to communicate quickly and accurately with customers, by enabling them to inform the latter when they can expect their orders or when their workers will arrive.
Live updates are essential if your company is sending a product or service that a customer needs to perform the next stage of a job or start their operations once more. For instance, your drivers might be delivering cement to a construction site. In such circumstances, your GPS tracker helps you to tell your customers specifically when they can restart their work at the construction site.
Using vehicle tracking systems, you can monitor vehicles in real-time, plan routes efficiently, and ensure timely deliveries. With the help of precise location data and comprehensive reporting, businesses can optimize fleet performance, improve customer satisfaction, and streamline operations effortlessly.
9. Quicker Response Time
A vehicle management system enhances response time bystreamlining fleet operations and also maintenance scheduling. Real-time data helps to make swift decisions for optimizing routes and fix problems quickly, ensuring high efficiency in a fast-paced work environment.
When you are aware of the location of your vehicles, then you can respond to each new job with precision. You just need to assign the closest staff to any new stop. You can also add more revenue to your schedule while reducing fuel and staff time costs.
If you add an extra job for one vehicle regularly, you’ll have around 260 – 325 additional revenue opportunities per vehicle in a year. If you earn $100 for each job, you’ll make $26000 – $36,500 more revenue per vehicle each year, with minimum additional overhead costs.
10. Optimize Man Hours
Payroll is one of the major expenses for small organizations. When your drivers are out for delivery, they are not generating revenue. This is a cost that pays dividends to track and reduce. When drivers aren’t supervised when they are on the road, they may be tempted to relax more.
When they take breaks frequently and waste time, they’re wasting your money. By minimizing 3 hours of wasted time on the road across your fleet daily, you’ll be minimizing the labor costs of your organization by $19,700 annually. By monitoring drivers, you are putting a supervisor in each vehicle of your fleet. Drivers will be more sincere with their work and optimize their hours.
Optimizing man hours with a vehicle management system involves streamlining, scheduling, maintenance as well as monitoring. Real-time tracking, predictive analytics, and automated maintenance reminders help to improve efficiency. Mobile integration offers drivers optimized routes and job assignments, boosting productivity.
11. Improvements In Scheduling
Downtimes in the daily schedule of a driver are annoying. Downtime also means that idle hours during the day cause overtime. Do you want to improve your scheduling and enhance the productivity of your drivers? Fleet tracking can help you do that.
Using a fleet vehicle tracking system, you can not only gather data but alsoanalyze and act according to it. Check where downtime comes from and change your schedule. This will help you to be more profitable with your existing customers and also free up more time to add more jobs.
Real-time monitoring with fleet management software will help you in making proactive adjustments, and ensure that your drivers are always on the road. Productivity will thus be boosted. By streamlining operations, you will be able to deliver better quality of service to customers.
12. Communication Will Improve
Want to send routes to drivers in an easier way? Looking for ways to send updates and new assignments seamlessly? The easiest way to do so is to use a good GPS tracking system that integrates with the existing communication tools to interact with your drivers.
They can also receive SMS text messages directly via the GPS mapping platform. This will ensure that drivers don’t miss any messages or take improper routes, and employees don’t have to text them from their mobile phones. So, everyone will be able to save valuable time.
If you want your fleet and staff to be highly efficient, then enhancing communication between dispatch and drivers is a simple way of doing so.
13. Better Driver Behavior
Hard braking, sudden change of lanes, and speeding can hurt the vehicles of your fleet but also cause customer complaints or mishaps. Your drivers deliver goods daily and are representatives of your business. What is the message they are sending?
GPS tracking can help you gain valuable insights and enable you to take effective actions before any mishap happens. If you need to change a driver because of this data, you can do so as mistakes can prove to be very costly.
By prioritizing safe and responsible driving practices, your drivers can not just ensure their safety but also those of others on the roads. The reputation of your business will thus be well maintained. Consistently cautious driving signifies a high level of professionalism and reliability.
Cycle of Fleet Management
Source: LogiNext
14. Improvement in Assignment Dispatch
Which of your drivers is closest to the new assignment you just received? Whom will you dispatch? Using a GPS tracking system, you can confirm if a driver has almost completed an earlier assignment and assign it to him instead of another free driver, but is far away.
This is just an example. Almost all fleet managers have faced circumstances when they have sent a free driver to a new assignment only to find that a driver who was already in the area could have covered it quickly and with a high level of efficiency. Vehicle tracking can help you to find out these mistakes before they occur and prevent them.
Adopting such a proactive approach reduces response times and boosts operational efficiency by assigning items to be delivered to drivers who are in the vicinity. By using real-time data, managers can reduce possible inefficiencies and ensure that assignments are quickly addressed.
Is A Vehicle Tracking System Beneficial for Small Businesses?
Yes. The benefits of using a vehicle tracking system can be availed by any business, irrespective of its size. Even for small companies with few vehicles, a vehicle tracking system can –
- Boost security
- Enhance productivity and efficiency
- Minimize costs
- Ensure customer satisfaction
There are many vehicle tracking systems available in the market. All tracker benefits do not suit all businesses. So, one thing you can do is compare the available systems and opt for the one that suits your business needs perfectly. Integrating a vehicle tracking system within the operations of a small business helps to streamline the logistics process and enhance the fleet management process.
Using the real-time tracking capabilities of the software, managers can monitor vehicle routes, optimize delivery schedules, and also respond quickly to emergencies. A high level of control boosts overall efficiency and also helps businesses to share accurate Estimated Time of Arrival (ETA) with customers.
How Can ROCKEYE Help You Get A Customized Vehicle Tracking System?
At ROCKEYE, we are adept at developing vehicle tracking software that can be used for real-time tracking, delivering accurate location monitoring, predictive maintenance scheduling, and route optimization. You can keep an eye on the location of vehicles in real-time, their velocity, and orientation using the cutting-edge live GPS tracking system.
Our vehicle tracking system will help you stay updated with periodic notifications for occurrences like speeding incidents, route deviations, and ignition events. You will gain access to detailed journey logs including velocity metrics, location chronicles, and instances of hazardous driving behavior.
FAQs
In this blog, we have explained in detail how a vehicle tracking system ensures optimum savings. If you have any queries, you can refer to the FAQs below-
1. How Does Vehicle Tracking Enhance Productivity?
A vehicle tracking system helps to ensure better scheduling and dispatch of vehicles, minimizing idle time and improving overall operational efficiency.
2. Can A Vehicle Tracking System Help To Optimize Fleet Size?
Yes. It analyzes usage patterns and detects underutilized vehicles. Companies can right-size their vehicle fleet, thereby ensuring optimum savings on acquisition and maintenance expenses.
3. How Does A Vehicle Tracking System Improve Driver Safety?
It monitors speeding, harsh braking, and similar risky behaviors and promotes safer driving habits, thereby reducing accidents and costs associated with such accidents.
4. Can A Vehicle Tracking System Improve Customer Service?
Yes. Using accurate ETAs and real-time updates, companies can ensure that their customers get accurate arrival times, improving their level of satisfaction and loyalty.
5. How Does Vehicle Tracking Streamline Administrative Tasks?
Automating mileage tracking, timesheets, and expense reports, minimizes administrative burdens and ensures that the company’s staff can focus on more strategic tasks.