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Why Do Enterprises Invest in Fleet Vehicle Tracking?

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Jul 13, 2021

Fleet vehicle tracking enables fleet managers to find their vehicles, drivers, and other assets in real time. With modern advances in technology, fleet vehicle tracking solutions are increasingly evolving to power full fleet visibility, offering deep insights into the last mile and delivery management as a whole.

fleet vehicle tracking

Smart tracking systems and telematics solutions can provide fleet operators and managers reliable and up-to-date information on fuel consumption, vehicle usage, total time spent per stop, and so much more. Arming decision-makers with this information empowers them to come up with data-driven decisions, increasing their potential for return on investment (ROI) on their technology.

Why Invest in Fleet Vehicle Tracking?

GPS tracking is nothing new—it’s been available in one form or another since the 1980s. But major advances have been made in recent years, making the technology more reliable, useful, and affordable.

Advances in sensors and telematics devices—plus a general improvement in the quality of last mile solution ecosystems overall—let businesses gain more insights into their fleets than ever before. Modern tracking solutions capture data regarding compliance, driver behaviors, job management, and vehicle maintenance, all of which can be easily understood in context via integration with your routing, scheduling, and other delivery management solutions. These insights are useful in evaluating fleet performance and identifying areas for improvement.

The ability to track vehicles, drivers, and assets and the ability to capture and generate useful insights are the main reasons why businesses choose to invest in a fleet tracking system. Companies that have already implemented this kind of functionality are now enjoying improved operational efficiency, driver safety, and higher customer satisfaction scores. Why? Because when you know what’s going on in the field, you can take control of your deliveries—and you can do so without having to manage a mountain of fuel tax paperwork at the end of the day. 

last-mile-visibility-guide-blog-bannerOther companies are also implementing GPS fleet tracking so they can improve their communication with drivers on the road. Many modern systems come with mobile applications, connecting fleet managers, dispatchers, and drivers at all times while streamlining task assignments. Mobile apps make it easy for dispatchers and fleet managers to communicate delivery tasks and route changes. These apps also allow companies to capture proof of delivery (POD) digitally. 

In short, fleet vehicle tracking slots nicely into larger last mile optimization workflows. The more trucks you have in your fleet, the greater the potential for ROI with this technology. 

The Many Benefits of Fleet Tracking

Businesses of all sizes invest in a fleet tracking solution to improve efficiency, save money and ensure long-term sustainability and profitability. As the global economy tries to recover from the devastating effects of the COVID-19 pandemic, many businesses are seeing the need to invest more in technologies that can help them stave off delivery challenges and decrease manual effort. Below are some of the main benefits of implementing a fleet tracking system.

Cut Down on Fuel and Labor Costs 

Fuel and labor costs are without a doubt the two biggest expenses of a fleet. Fuel price fluctuations hurt businesses, which makes it imperative to ensure the highest fuel economy possible for all vehicles. A tracking device enables fleet managers to monitor drivers' activities that are causing the fuel bill to go up. These activities can include speeding, taking longer routes, and idling. In this way, monitoring driver behavior can help cut down the fuel bill. 

As it happens, this technology can also cut down on back-office labor. By tracking fuel consumption alongside vehicle location, for instance, the right solution can easily generate reports on fuel tax payments on a state-by-state basis. This can save administrators time and effort, freeing them up for more valuable tasks. 

Easily Resolve Disputes 

The tracking system also logs crucial information about the delivery such as time, date, and length of each job attended, which makes it easy to handle complaints and claims filed by customers. If you can pinpoint a driver’s exact location at a particular time, you can confirm that your driver did in fact visit the customer’s home during the delivery window, for instance, shifting the onus for the failed delivery to the customer who wasn’t home when they claimed they would be. 

Increase Driver Safety

Poor driving behaviors cost businesses a lot of money and damage brand reputation. For one, unsafe driving practices mean higher insurance costs, more vehicle downtime and maintenance expenses, and higher settlement and legal costs. Plus, as the drivers are also the public face of the company, poor driving will always affect the reputation of your brand.

A fleet tracking solution can help address unsafe driving practices by notifying fleet managers when their drivers are engaging in unsafe behavior such as overspeeding, harsh braking, and so on. The software enables fleet managers to identify poor-performing drivers and come up with a specially-tailored plan to correct these driving behaviors.

Improve Security

Vehicles, stocks, and equipment are some of the most valuable assets of any company and are natural targets of thieves. A fleet tracking solution helps minimize the possibility of asset theft by enabling you to track the vehicle anywhere around the country. It helps authorities find and recover the stolen vehicle, stock, and equipment.

Boost Driver Retention

Delivery organizations of all sizes have been facing the same problem for years: driver retention. A fleet vehicle tracking tracking solution can help companies take off the pressure on drivers as real-time visibility helps them perform better and ensures their safety. This, in turn, lessens the frustration of drivers who might otherwise feel like they’re not being looked out for. 

Improved Productivity

Tracking solutions help maximize drivers' productivity as they are well-informed of their tasks for the day and are being monitored for unnecessary idling or movements. It also lessens drivers' time answering calls and messages from the office, allowing them to get to their destinations as quickly as possible.

Better Customer Service

It's a highly competitive marketplace these days, which is why businesses need to ensure timely responses to customers’ requests. Implementing a telematics device and solution, you can more easily provide customers with the accurate expected time of arrivals (ETAs) and updates if there are delays and changes to the ETA. This improves customer experience and decreases the odds of a customer-not-at-home situation. 

Tracking fleets go beyond spotting the vehicles’ locations on the map. Thanks to technological advances, fleet tracking solutions offer more benefits than ever before, from improved fleet safety and lower operating costs to higher operational efficiency, and better customer service. It’s no wonder why more and more enterprises are investing in fleet vehicle tracking solutions.

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