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6 Ways Business Vehicle Tracking Can Improve Profitability

Business vehicle tracking

There are a multitude of potential benefits that a GPS business vehicle tracking system can provide. Vehicle tracking systems are extremely beneficial in improving the cost-effectiveness of fleets with a quick return on investment to offset the costs of implementation.

Vehicle telematics systems have grown in prominence over the last few years as technology has got cheaper and GPS infrastructure has improved in speed, accuracy and reliability.

However, it is important to understand that a vehicle tracking system is, in essence, a data capture tool. They capture data in great detail, and it is then your responsibility to analyse the data thoroughly so that you can identify and address the issues and money saving opportunities.

Business vehicle tracking can save your business cash in a variety of ways.

1. Planning

Fleet tracking system

The data generated and stored by a business vehicle tracking system will be most valuable to you when it comes to planning. Other solutions that keep you in touch with drivers, such as mobile phones and manual time and attendance, cannot help you do this as well as a tracking system can with its greater detail and pinpoint accuracy. Mobile phones are a wonderful asset of the modern world and a powerful technology but they can be expensive, dependent on a consistently good signal and are easily lost, stolen or damaged.

Knowing where your drivers are at any given point will enable you to make more informed decisions about their work and directions, making your overall routing and despatch process smoother and more informed. In the past, once a driver and vehicle left the parking lot in the morning, there was next to no way of knowing their location and what they were up to. Vehicle tracking will allow you to follow a driver on every step of their working day, as if you were accompanying them in the cab. Not only that but it allows you to do the same for each and every driver and vehicle in your fleet.


2. Vehicle Maintenance

Business vehicle maintenance

Further to the detailed information gathered from a particular vehicle, the data will build a picture over time of its condition and assist in routine maintenance and repair scheduling.

Maintenance of vehicles can be planned way ahead of any problems, taking them out of use for routine maintenance, at your convenience. After all, having even one van off the road unexpectedly can be a major headache if your company relies on that vehicle day to day.


3. Fuel Efficiency and Driver Behaviour

Business fuel tracking

One of the most obvious ways vehicle trackers can save your business money is in fuel consumption. As fuel prices continue to rise, any fleet manager will know the difference this can make to the bottom line. A reduction in fuel consumption is actually a secondary effect of using business vehicle tracking as the primary effect is improved driver behaviour, particularly when it comes to speeding, acceleration and breaking.

Rapid acceleration and driving at erratic speeds uses up more fuel and when compounded by the inefficiencies of the internal combustion engine, especially when driving above the speed limit, can land your company with a hefty fuel bill. Because driver performance is being tracked, drivers are less likely to break the speed limit, of course this has numerous advantages for your business including the safety and well-being of your staff but many companies report that fuel consumption noticeably improves once vehicles have tracking systems.

Furthermore, commercial vehicle tracking systems often report on idle time allow fleet managers to see not only when a vehicle is on the move, but also when it's stationary with the engine still engaged and for how long. An up to date system should be able to tell you exactly how long a vehicle has been idle for and this can be critical in determining the efficiency and proficiency of your staff.

In terms of safety and competence, you can be assured from the retrievable data which of your drivers are taking undue risks or behaving erratically. Some jobs are always going to call for staff to be on the road for long periods and tracking systems will enable you to tell if anyone is pushing the boundaries of the legal limits.

You will probably also notice other improvements in driver behaviour as well, including greater efficiency and competence, resulting in lower overtime costs; and better driving means less wear and tear on your company's vehicles.


4. Traffic Reporting and Route Planning

Business route planner

The facility to view live traffic data started out as a secondary function for GPS and telematic systems but the value of this in a busy environment cannot be overstated. The overall management of your fleet will undoubtedly be improved by the inclusion of this feature.

Ultimately, no business exists in a vacuum and when rapid and efficient vehicle logistics are part of your business, knowing what the rest of the nation's drivers and roads are up to cannot be anything but an advantage.

Not only are these functions useful for the driver to avoid the oncoming rush hour but they can enable you from a central point to foresee potential problems and re-route vehicles as necessary, potentially saving valuable time and money.

Reports that include traffic problems, allowing you to re-route vehicles, up to the minute mileage, and fuel consumption can help you to make informed decisions about your fleet.


5. Asset Management

asset management

Not only does tracking mean that you can keep an eye on a customer’s valuable delivery but it also means you have a complete data record for the movements of that delivery and, therefore, back up should anything go wrong.

This may well prove a bonus when it comes to insurance and other financial factors but you shouldn’t underestimate how it could improve the level of customer service you can deliver to your clients. For some companies this level of customer service is what sets them apart from the competition.


6. Reduced Insurance Premiums

commercial vehicle tracking insurance

Firstly, because of all the data and information trackers can provide, vehicle telematics may well have an impact on your fleet's insurance premiums. It would be wise to check with your insurance provider, but even a small saving per vehicle could add up to a significant saving over time, offsetting the initial investment you have to make in hardware and software. Commercial ‘black box’ devices often include cameras that align video footage with speed, time and GPS data, offering a further layer of protection to your company in case of an accident where your drivers are not at fault. Certainly, as their cost falls, so called 'black box' tracking systems are becoming increasingly popular with consumers, and providers of consumer insurance.

Secondly 'insurance' here also applies in the sense of 'back up', potentially helping you find an answer to the many little problems that may occur as a matter of course when managing a fleet of vehicles.

For example, if a dispute arises over an alleged late delivery, with your driver saying one thing and your client saying another, it may be possible to pinpoint exactly where your van was at the time of delivery, indeed, for the whole day, and settle with one side or the other.



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Business Vehicle Tracking Buyer Guide

Business vehicle telematics can help you to streamline the overall management of your fleet. However, before purchasing a business vehicle tracking system there are a few things you should consider.

Not all commercial vehicle tracking systems are the same. There is no one size fits all solution and the features offered will vary from supplier to supplier. You should take time to consider exactly what you want to get out of your vehicle tracking system and find the best supplier for your business.

In particular, you need to be certain that the data generated and stored by the system you choose is accurate. With the level that technologies have advanced to today this should not be an issue for any reputable supplier, but it's always worth keeping this is mind.

Additionally, make sure that before handing any money over that you have a vehicle tracking systems that suits your business and meets all of your requirements. The level and degree of data reported by different telematic systems will vary and sometimes more is not always going to be better for your needs. Bear in mind that your company will develop in the future and so choosing a scalable tracking system may be best.

Commercial Vehicle Tracking Costs

Fortunately advantages in technology have made telematics relatively affordable. Business vehicle tracking systems can be now be leased from £9.99/Month.

The main difference in cost you will see between suppliers will usually be down to the level of functionalities and customer support they provide and the depth of data their systems can deliver.

Another consideration is reliability. Any business vehicle tracking system can break down. Similarly, software may experience bugs and glitches so it is always important to check with a supplier what troubleshooting and support they have in place, especially in regard to the tracking server.

Find the Best Business Vehicle Tracking System

Implementing vehicle telematics can be a big change for a business and usher in exciting new practices and ideas. Together with complete data reporting, telematic vehicle tracking can give you a more complete picture of what is happening on the road, and in turn help you to make important decisions to bring down costs and improve productivity.

Find the best tracking system can be a difficult process. However, we can help you choose the right tracking system.

We can match your requirements with our database of suppliers and provide you with tailor-made quotes from top UK vehicle tracking suppliers.

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