Using Vehicle Tracking to Cut Costs For Your Business By Kent Stabler At Isnare.com Ezine Articles

For fleet managers, the installation of a vehicle tracking system into their fleet can lead to substantial cost savings and a more efficient fleet. The initial investment of a high quality system may be expensive, but GPS tracking can soon show a return on your investment by reducing excess mileage, preventing out-of-hours use and even saving on insurance premiums.

Vehicle tracking systems are designed for tracking both vehicles and people. Although fleet managers may initially meet some resistance from fleet drivers concerning the introduction of a vehicle tracking system, if the advantages are explained carefully most fleet managers say that the installation of the system is then welcomed by hard working drivers. Those who are perhaps taking advantage of an ‘out of sight, out of mind’ mentality will find that their actions are curbed, saving the company money as a result.

One of the main benefits of having a vehicle tracking system installed into a fleet is the reduction in insurance premiums that it may generate. Because GPS tracking means that the location of the vehicle is constantly monitored, stolen vehicles can be recovered quickly, minimising the risk of excessive damage. Vehicle theft costs insurance companies millions of pounds in claims every year, and the cost to the individual business (particularly small operations) can be far higher through the interruption of normal business, paying for replacement vehicles and loss of customer confidence through delays and items lost in transit. GPS tracking uses a triangulation algorithm to locate a vehicle quickly and good tracking systems can even issue a silent alert if a vehicle is moved when it should be stationary. This alert can be instantly relayed to the Police with a co-ordinate location, allowing them to recover the vehicle quickly.

Fleet management is not just ensuring that everyone is where they’re supposed to be and the vehicles are in good operational order. It’s also about maximising efficiency, reducing costs and maintaining good customer relationships. It’s also making sure that your public image on the road is a good one, particularly if your company vehicles carry recognisable company livery or are sign-written. Vehicle tracking systems can help to improve efficiency by ensuring that your drivers are using the most efficient routes and are not wasting fuel through excessive speeding (which can also damage your company’s reputation with ordinary members of the public). Using a comprehensive GPS tracking system, fleet managers can redirect the closest vehicle to a pick up, reducing waiting time for the customers and improving customer relations.

Vehicle tracking can also minimise the temptation for drivers to use their vehicles ‘out of hours’, thus increasing the cost to the fleet manager through excess wear and tear on the vehicles and increasing the potential for the vehicle to be damaged or stolen. If drivers know that the exact location of the vehicle is being monitored and that detailed information is being fed through to a central system as to the vehicle’s movements they will be less inclined to chance disciplinary action through inappropriate usage of company vehicles. All of this adds up financially, and by preventing these excesses through efficient fleet management and the incorporation of cutting edge GPS tracking systems, fleet managers can be responsible for saving the company a considerable amount of money.

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