In today’s time-sensitive business environment, transportation companies must manage their fleet to serve and deliver the products optimally. With increasing needs for time-sensitive delivery and cost savings, the entities are introducing the newest technologies in GPS tracking systems.
These systems provide the company with updated information to improve the management of the company’s fleet as it keeps growing. The overall market of international fleet management is forecast to accelerate from 28.6 billion in 2023 to 55.6 billion by 2028 with a 14.5% CAGR, according to MarketsandMarkets.
By leveraging GPS tracking devices, companies can enhance route management, reduce unnecessary consumption of fuels, enhance driver protection, and support regulation compliance. The systems also provide insightful information that helps the companies offer evidence-based decisions that translate to their levels of profitability and productivity.
In this article, you will learn how car GPS tracking devices are revolutionizing vehicle management and why they are a must-have for companies that want to stay ahead of the current market trend.
Contents
1. Enhancing Route Optimization to Reduce Fuel Consumption
One of the best benefits of car tracking systems is that they can plan the route as best as possible. GPS trackers provide the current status of the roads due to jams, roadblocks, and climatic conditions that help the fleet manager plan the optimal route to the vehicles. This ensures time is saved and punctual delivery is also made possible.
Moreover, optimized routes also translate into less fuel usage, saving a significant cost to company fleets. GPS trackers allow the avoidance of unnecessary side steps while lowering idling time, a significant cost-saving fuel usage.
2. Improving Driver Safety and Behavior
Another critical benefit of GPS trackers is that they can also enhance driver safety. Managers can monitor driving behavior in real-time, such as hard brakings, excessive speed, and hard accelerations.
According to the National Highway Traffic Safety Administration (NHTSA), overspeeding crashes cost the US economy a staggering over $40 billion annually.
Hence, managers can intervene by taking action to address dangerous driving behavior if they can identify the patterns of behavior that are dangerous.
Ideally, GPS trackers can be installed into telematics systems to provide other protection measures. For example, upon the incidence of a crash, the company can have the system give a message to the manager to permit a quick response. Not only is the driver rendered safer with this measure, but the company also saves itself potential liabilities and time loss due to the crash.
3. Ensuring Regulatory Compliance
Compliance with sector requirements is a significant issue with company fleets operating within highly regulated sectors such as transport and logistics. GPS tracking facilitates ease of compliance by providing detailed information about driving time, service histories of the vehicles, and travel histories.
For instance, the US Federal Motor Carrier Safety Administration (FMCSA) regulates commercial drivers’ logging of hours of service (HOS) to prevent fatigue crashes. GPS tracking devices log the driving time mechanically to keep the company within limits.
Likewise, in the EU, the European Working Time Directive (EWTD) sets tight constraints on working hours among drivers. By automating the compliance reporting, the businesses are relieved from the hassles and the money spent incurring heavy fines and penalties.
4. Boosting Operational Efficiency & Productivity
GPS trackers also serve a significant purpose in improving overall operational performance. Managers can base their decisions on hard evidence with real-time vehicle tracking to enhance asset deployment. For example, if a delivery is delayed, the manager can simply redistribute the work to another driver or reschedule delivery schedules.
Furthermore, GPS tracking systems deliver comprehensive analysis of the performance of the vehicles, mileage, engine status, and maintenance requirements. With the ability to discover potential problems ahead of time, companies can plan preventative care to avoid sudden breakdowns. Not only does this prolong the vehicles’ lives, but it also minimizes the time they are out of service to the best possible performance levels.
5. Enhancing Customer Satisfaction
In today’s competitive environment, customer satisfaction is the key to success. GPS trackers allow companies to provide transparent and accurate delivery updates to their customers. For example, the status of their delivery can be notified to the customer with real-time updates of estimated arrival time. Transparency of this kind creates trust among the customer base and increases the customer experience overall.
Moreover, by eliminating the lanes and reducing delays, the company can deliver within time, a key driver of customer satisfaction. Thus, the company can deliver to customer needs with GPS tracking capabilities and gain a market lead.
6. Reducing Theft and Illegal Consumption
Fleet vehicles are assets of value to a company, and their theft or misuse can lead to considerable financial loss to a company. It is estimated by the National Insurance Crime Bureau (NICB) that about 880,000 vehicles were stolen in the U.S. in 2020.
That said, GPS trackers solve this issue by allowing vehicles to be tracked in real time. In case of vehicle theft, the system can provide the vehicle’s exact location, enabling the vehicle’s speedy recovery.
GPS trackers can also be configured to alert if a car is driven off-route or at other than company work hours. It protects company vehicles against theft and misuse while keeping them strictly reserved for company work.
Conclusion
In conclusion, car GPS trackers have contributed immensely to fleet management by allowing companies to improve their performance levels, reduce their spending, and enhance customer satisfaction. From route optimization to fuel conservation to driver protection to remaining compliant with the law, the benefits of GPS tracking systems are undeniable.
As the need to manage a fleet becomes a cost imperative increasingly to the bottom line, the companies that outsource GPS tracking will have a greater chance to thrive within a saturated marketplace. With real-time information and down-to-earth advice, companies are maximizing their bottom line and reputation of excellence and trustworthiness.
