GPS technology enables managers to gain fleet efficiencies, which can add up to large operational savings over the long-term. In the United States, trucking makes up nearly 80% of transportation costs, according to the US Department of Transportation (DOT).
Tracking technology is becoming an industry standard, especially for expensive assets and inventory. The trend is resulting in higher demand for hardware and solutions providers. There are nearly 6 million tracking devices in the United States. That figure is expected to jump to 15 million by 2015.
Here are four ways vehicle GPS tracking can help companies optimize their operations.
1. Improve Asset Utility
GPS tracking allows fleet managers to monitor vehicles and improve their utilization. Inventory is expensive, and transportation companies that can ship goods in a timely manner will improve their relationships with customers.
According to DOT, drivers move 54 million tons of freight each day—with inventory valued at $48 billion.
The transportation industry loses billions of dollars each year due to waste and abuse. For instance, an employee may routinely use a company car for personal use, which results in higher maintenance and fuel costs.
By improving fleet utilization, companies wouldn’t have to purchase or lease as many vehicles. Managers can also increase the productivity of their employees.
2. Optimize Logistics
Traffic presents a formidable challenge for drivers. American commuters adjust their schedules around traffic congestion, but at an annual cost of $121 billion in wasted time and fuel, according to the Texas A&M Transportation Institute.
GPS technology lets fleet managers use real-time data. Drivers can gain efficiencies by avoiding congestion and taking shorter routes.
“GPS tracking for company vehicles are like having a manager in every vehicle, one who effectively keeps track of hours worked, and who easily verifies time spent at locations throughout the day,” said a spokesperson for Valencia, CA-based LiveView GPS, a tracking technology firm. “You’ll instantly know where your vehicles are at all times, increasing productivity and … improving driver behavior.”
3. Delivery Analysis
Managers can gauge and measure on-time performance of its shipments and deliveries. GPS tracking helps managers look for root causes of problems by monitoring vehicle locations at any given time.
Companies can also use the data to incentivize top-performing drivers. Route analysis results in the following benefits:
- Decrease in fuel and equipment costs
- Decrease in non-productive labor costs
- Improvement in timely deliveries
- Obtain profitable backhaul opportunities.
LiveView GPS’s device works with a web-based platform which can pinpoint an asset’s exact location in 5- or 10-second intervals. Users can monitor their fleet from mobile devices such as smartphones and tablets.
The company’s GPS technology can also gauge a vehicle’s driving speed, a useful tool for managers concerned about potential speed violations.
4. Recover Assets
According to DOT, 84% of trucks move goods at less than 750 miles. Nearly 40% of goods are moved less than 100 miles.
Trucks carrying valuable goods are often targeted by thieves.
Vehicle GPS tracking helps law enforcement identify and recover lost or stolen assets. The technology can also provide evidence during litigation or criminal prosecution (such as screenshots of vehicle location).