EZ Fleet Blog

Return on Investment for GPS Fleet Tracking

Posted by Jen Langan on Jan 4, 2018 5:41:08 PM

GPS Fleet Tracking solutions have become very popular since the return on investment is immediate and persistent. Often companies report paying for the full cost of the system in the very first month of use. Depending on the industry, it might take a few months to recover the cost but there are few solutions that deliver benefits so quickly.

The biggest benefit is in improved productivity of your field workers. With GPS tracking, the location of your field force is always known, allowing you to deploy your teams more effectively, eliminating unnecessary drive time. In addition, the fact that you are tracking your vehicles and that you can review driver logs at any time leads to better compliance by your drivers and field force. Simply put, they spend more time on the job and less time on uncompliant activities. Typically companies see increases in productivity of 5% or more. If your workforce is billing $100/hour, then adding 5% productivity is like adding 2 extra hours per week of work or 8 hours per month. For one worker, that can add $800 to the topline - paying for the cost of the GPS tracking system for the whole year.

A related benefit is a reduction in moonlighting with company vehicles and equipment. If you suspect that some of your team might be engaged in after hours activities with your vehicles or other assets, you now have a way of determining if that unauthorized activity is actually taking place. You can even geofence the vehicles at their nightime locations and get alerts if they are moved outside of the geofence.

The next most tangible benefit is in fuel reduction. Similar to the productivity benefit, the fact that you can more efficiently route your vehicles combined with better driver compliance since they will be aware that you can review their routes typically leads to substantial fuel reductions - savings of 20% of reported by most of our customers.

Of course, just one theft can cost the company thousands of dollars in losses, even if insurance is in place. If a vehicle is stolen, your GPS tracking solution can be used to pinpoint its location, allowing law enforcement the opportunity to quickly recover the vehicle and assets, reducing your loss and minimizing the loss of productivity. If a GPS tracking solution can eliminate one vehicle theft or substantially reduce the loss, it pays for itself many times over.

On a related note, many insurance companies offer discounts for companies that have GPS tracking solutions installed since they can be used to recover the vehicle and reduce the loss.  Read more about how your insurance rates can drop here.

In addition to these tangible benefits, there are a number of other benefits of GPS tracking which are a bit more difficult to quantify. These include improved customer satisfaction (since you can communicate with customers on the locations of your vehicles) and driver safety (since you can quickly dispatch help in the event of an emergency to the exact location). Find out more by requesting a quote today.

 

Topics: ROI, Fleet Tracking, GPS, Benefits

 

EZ Fleet Tracking

We offer a full line of GPS tracking solutions for fleets, powered assets and non-powered assets. We were the first to offer a 4G tracker. Our software is 100% cloud based, reliable and scaleable.

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