With the advancement of technology, it is imperative for managers to ensure GPS tracking and fleet management devices are among the modern industry tech innovations being leveraged in their business.

7 Reasons Why GPS Fleet Trackers Will Become a Need for any Business

Wearable technology, for example, is a new trend in the fitness world and a disruptive force that continues to transform the fitness industry. In the health sector, telehealth is making waves and is set to be the future of the healthcare industry.

In the logistics and transportation businesses, telematics is the technology to embrace—and the way things are looking, it will undoubtedly shape the future of fleet businesses.

So, what are vehicle telematics, and why should you care?

Fleet telematics gathers a wide range of data using GPS technology, sensors, and vehicle engine data to provide fleet owners with the info they need to manage their fleet.

By implementing a GPS fleet tracking system, fleet managers get an unprecedented level of access and control to their entire fleet.

Technical Aspects of GPS Fleet Tracking

Global Positioning System or GPS is a navigation system that uses satellites to determine the ground position of an object. When a GPS-enabled device is installed in a vehicle, it receives signals from this satellite system.

Upon receiving the signal, the GPS device (often referred to as the receiver) then computes its distance from the satellites (based on a mathematical principle called trilateration) to determine your exact location.

Technically, a GPS module is installed in each vehicle to track the fleet’s movements via the satellite system. This module can also monitor a wide variety of vehicle information, including diagnostics, idling, routes, speed, etc.

Once installed, the GPS device collects the relevant data, then transmits it to a remote user. Depending on the GPS tracker used, the remote user can view maps of vehicle locations, and routes taken, and access reports of vehicle status via the internet. (Check this guide for detailed information about GPS tracking for trucks).

Why GPS Fleet Trackers Will Become a Need for Any Business

If you’re serious about growing your transportation business, you don’t want to downplay the role GPS plays in fleet tracking. According to Teletrac, 55% of fleets report reduced fuel costs from telematics software.

But a reduction in fuel usage isn’t the only reason many businesses resort to GPS tracking. Here are the various ways GPS fleet trackers can improve your business.

1. Increased Customer Satisfaction

As customers continue to expect better services, quicker deliveries, and shipment tracking, it has become more difficult for businesses to stay ahead of the game.

However, successful transportation businesses know a thing or two about GPS fleet tracking and why it matters. They know that happy customers translate to more business. To that end, they give GPS fleet tracking precedence over other business technologies.

GPS fleet tracking improves customer satisfaction in many ways. Your customers will never have to call because their package hasn’t arrived yet. Better still, you’ll be able to provide them with real-time updates and accurate ETAs for their shipments.

Providing your customers with accurate, real-time information about their shipments will make them happier. And happy customers will undoubtedly become your brand advocates, spreading good vibes about your services to their friends and colleagues on social media.

At this point, you can leverage another piece of software, a referral program, to meet your sharers where they are with easy social sharing and mobile sharing. A good referral program can help to scale your business by bringing in more referrals and creating brand awareness from your existing customers.

2. Improved Safety

Safety is a critical factor to consider, especially if you’re in the transportation industry.

Every business aims to ensure the safety of its drivers and the security of its assets. And considering that most accidents (92% to be precise) occur due to the human element, there is a need to implement a solution that can minimize human error on the roads.

And this is where GPS fleet tracking comes in. According to Forbes, drivers who utilize GPS tracking experience fewer road accidents—by up to 20%.

Part of the reason why GPS reduces road accidents is that drivers tend to drive more responsibly if they know they’re being monitored.

A robust telematics system can improve safety by tracking and reporting bad driving behavior habits such as harsh braking, acceleration, etc.

Some advanced telematics systems even provide driver coaching with audible alerts that warn the drivers to drive responsibly.

3. Increased Productivity

It’s the goal of every business owner to have a productive workforce.

However, it can be challenging for employees to remain productive all along due to the big brother mentality. For instance, a driver may ask another driver to cover for him as he reroutes to attend to a personal business.

But with GPS fleet tracking, drivers can refrain from using company vehicles for unauthorized use since they’ll know they’re being monitored.

Moreover, GPS tracking systems allow you to optimize routes for your drivers. By optimizing routes and giving you visibility into the road conditions and drivers’ behavior, GPS devices enable you to keep things under control and run your business almost 24/7.

Higher Productivity can also be achieved by holding your employees accountable for their actions/performance. GPS systems collect data that can generate various reports (acceleration, idling, fuel usage) that you can use to analyze employee performance.

4. Improve Dispatching Mechanism

With GPS devices installed, it’s easier to monitor your driver’s driving habits.

When a driver over speeds, they’re risking both their security and your vehicles. Your dispatch or remote team can advise you when your drivers surpass a threshold speed limit which ensures increased road safety.

GPS fleet tracking also enables you to dispatch your vehicles more efficiently compared to the traditional approaches where phone calls are used to check on drivers.

With a GPS in place, you don’t have to worry about which vehicle is close to the pickup location. You also don’t have to worry about which route will minimize fuel usage, as your GPS data and reports can provide you with these insights.

5. Reduced Fuel Costs

According to a recent Third-Party Logistics study, cutting transportation costs is one of the top concerns for logistics companies.

The rising cost of fuel is a big problem for transportation companies. To minimize fuel usage, many companies are gravitating towards GPS fleet tracking and for many reasons. First, GPS tracking allows them to optimize routes and monitor fuel usage.

Secondly, with a GPS tracker, dispatchers can monitor drivers at all times, which helps prevent idling and unauthorized use of the vehicles.

Idling and aggressive driving are the top factors that lead to fuel wastage. According to the Environmental Defense Fund, an hour of idling can waste anywhere from 1/5 gallon to a whole gallon of fuel. GPS tracking can also remedy the idling problem through constant reporting.

With a GPS tracker, you’ll regularly get idling reports, and you can warn your drivers against idling or advise them accordingly. Plus, many GPS systems will send alerts to the driver to shut off the engine after a specified amount of idle time passes.

6. Reduced Theft

Your delivery trucks are your most valuable assets. That said, they also have a high risk of being stolen. While vehicle theft is an inevitable occurrence, you can mitigate the risk of theft by installing GPS trackers on your delivery vehicles.

GPS trackers allow you to recover your trucks fast in the event of theft. GPS technology provides instant alerts via notifications, so you’ll know exactly where your trucks are at any time of the day or night.

Additionally, some advanced GPS trackers come with a geofencing feature that alerts the dispatch if a truck enters or leaves a certain geofence.

You can even get alerts if a vehicle deviates from the usual route or leaves its base station without permission. To completely eliminate potential loss associated with theft, it’s advisable to ensure your small business is adequately insured.

7. Emergency Assistance

In the event an emergency situation arises, like when a vehicle breaks down an accident occurs, a GPS solution can be of great help.

For instance, GPS can decrease the response time by a big margin by identifying the vehicle’s exact location. Thanks to GPS tracking, it has become easier for fleet operators to track the broken-down vehicle and send immediate help when needed.

Moreover, the implementation of GPS fleet trackers can also reduce the incidences of your vehicles breaking down. Most of the GPS solutions send diagnostics and maintenance reports to the operators. The operators can then use this information to identify faulty vehicles and take prompt action.

Wrapping UP

GPS tracking has initiated a full-blown paradigm shift in the way businesses manage their operations and vehicles. This solution has proved effective for companies looking to increase revenues while decreasing costs.

With the right software in place, a business can increase operational efficiency, reduce costs, improve safety, and increase back-office efficiency.

And most importantly, a GPS solution enables fleet operators to make data-driven decisions.

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