GPS vehicle tracking is a reality that many businesses are taking advantage of in novel and disruptive ways. This begs the question: why are significant corporations implementing GPS vehicle tracking?
GPS tracking is here to stay, from ride-sharing companies using GPS to monitor and manage large fleets to the Subprime automotive finance industry mitigating risk and improving portfolio performance.
If you need more proof of vehicle tracking’s pervasiveness, consider that North America’s global navigation satellite system market is expected to reach a staggering $62 billion annual revenue by 2025.
Continue reading to find out how and why top businesses implement GPS vehicle tracking.
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You Can Make Sure Your Employees are Safe Drivers
The fundamental reason businesses are turning to company car tracker or vehicle tracker to ensure the safety of their drivers. This is true for businesses that use hundreds of vehicles and cannot afford to have many drivers get tickets, as well as for smaller businesses that only use a few vehicles. In the latter case, a severe accident could result in a crippling lawsuit.
You can see how your drivers behave on the road in real-time and get scorecards for each driver with vehicle tracking that includes a driver behavior module. The scorecard will consider a variety of maneuvers, such as harsh acceleration, aggressive braking, sharp turns, speeding, and more. The scorecard will rank each driver based on their driver safety and fuel consumption scores (leading to additional money savings).
You can also view driver behavior’s historical performance. These two views allow you to see precisely what is working and what needs advancement, allowing the fleet manager to have an educated conversation with each driver to influence a change in their driving habits. As a result, the fleet has safe and secure drivers, giving executives peace of mind. What more could a harried C-Suite executive want?
Notably, the global GPS equipment market is expected to grow at an 8.5% compound annual growth rate (CAGR) from $2.20 billion in 2021 to $2.38 billion in 2022. The rise is primarily attributable to businesses starting again and adjusting to the new normal as they recover from the COVID-19 impact, which had previously forced them to take restrictive containment measures like social isolation, remote work, and the suspension of commercial operations, creating operational difficulties. By 2027, the market is anticipated to have increased by 7.5% CAGR to $3.18 billion.
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You Can Recover Stolen Vehicles Quickly
One of the main reasons that top businesses are adopting GPS vehicle tracking is that it allows them to recover stolen assets quickly. The ability to quickly locate and recover vehicles is a valuable tool in the toolbox of any business. The cost of a stolen vehicle includes more than just the vehicle’s value. It also provides for the value of the tools and equipment stored in the vehicle, frequently greater than the car itself. This cost may include job losses due to not having a vehicle to deliver goods and services. This can result in late deliveries and insufficient vehicles to meet demand, leading to negative customer service reviews and further harming business.
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Weather & Traffic Updates
People working in the transportation industry have discovered how true the adage “time is money” is. There may be times when your fleet is stuck in traffic for several minutes. If you use an intelligent fleet management system, your fleet managers can instruct drivers in real-time to avoid congested streets and severe weather.
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Enhanced Delivery Experience
Rather than providing estimates to customers, the main office can easily see where the driver is now and how far they are from the customer. This enables the company to provide clients with pickup, delivery, or service arrival times as close to 5 minutes as possible.
Your customers will undoubtedly be impressed by the accuracy of your service times. This is a substantial competitive advantage that can assist you in outperforming your competitors.
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You Can Save Money
The primary reason companies large and small are adopting GPS vehicle tracking is that it offers significant cost savings across a wide range of operational areas. Installing GPS on any fleet is a wise decision, but installing GPS on a large fleet is a must in today’s ultra-competitive business environment.
So, what kind of cost savings are we talking about? Well, GPS can have an impact on your company’s spending in a variety of areas, including:
- Fuel costs – a macro view of your fleet’s fuel consumption will be at your fingertips. Drivers can be detected when they are speeding (using excessive fuel), idling (using unnecessary fuel), taking longer routes (wasting fuel), performing private tasks while on the clock, and other behaviors. You will also be able to dispatch drivers closer to any given location, allowing you to optimize your workflow and fuel budget.
- Insurance premiums – Many insurance companies offer discounts to businesses using GPS tracking. While these discounts vary depending on various factors, such as the number of vehicles you have insured with them, your driver’s ticket and accident histories, and so on, you can expect to save around 15%.
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Optimized Routes
GPS vehicle trackers identify a driver’s location, allowing you to quickly determine which driver is best suited to send to a job site. This can help you ensure you’re not sending a driver from the farthest away to complete a job, which can help you reduce your spending per mile. Some GPS tracking solutions include route optimization tools to help you plan more effective routes and find opportunities to streamline a route after it has been completed. They also offer resources for coordinated time-sensitive dispatching. Signifcantly, they allow dispatch managers to dispatch within the system’s dashboard, monitor drivers’ routes, and assess performance trends to optimize upcoming courses.
When evaluating a system, it’s important to consider?
If your business relies on providing products and services to its customers, regardless of the number of vehicles in your fleet, a GPS fleet tracking solution could benefit your fleet. However, which system is best for you? When assessing a system, it is critical to consider the following:
- Quality of location data: Would real-time equipment tracking benefit your asset inventory, or would a single location ping every five to ten minutes suffice? Is it also helpful to have the option to switch between real-time and interval alerts?
- Ease of installation: How easy will the installation be for your fleet? Will it necessitate the hiring of additional personnel or the acquisition of new resources?
- Ease of use: How simple is the asset tracking dashboard, and will it be difficult to onboard and train employees to use it?
- Customer support: How much customer service will your team need? Is it critical that your team has access to a team through a mobile device, mobile app, or digital help desk?
Bottomline
As you can see from the advantages listed above, GPS tracking software can significantly impact your field service business. It’s worth investigating which systems suit you and calculating their total cost of ownership.
