GPS Fleet Tracking: Expert Guide To Double Your Business ROI
Today, GPS vehicle tracking is an integral part of fleet telematics and is vital to smart fleet management. Besides giving fleet managers more control and visibility over their operations, GPS tracking also helps companies increase profits and boost their annual ROI.
Discover how a GPS-powered fleet tracking device can help you boost profits and your business’s annual return on investment.
In this article, you will:
- Learn about ROI in fleet management , what it is, and how to start boosting it
- Discover how GPS tracking helps companies increase their annual ROI
- Unpack our guide on using GPS tracking to double your fleet business’s ROI
- Get all the kickstart fleet management and GPS tracking essentials
- Find out how Cartrack Nigeria’s products play a big role in doubling your fleet’s ROI
What is ROI in fleet management?
The best place to start will be by understanding what ROI is in fleet management and how it can change how you look at your business’s profitability.
As you know, ROI stands for “return on investment”. It’s a fleet’s net profit ratio to its investment cost. If your business has a high ROI, your profits outweigh operational costs, giving your business more profitability. In contrast, if your business currently has a low ROI, you’re spending more than your business is earning.
Critical data points that can affect your fleet’s ROI include:
- Annual claims: Your annual out-of-pocket claim costs for the previous year
- Annual repairs: Your annual out-of-pocket repair costs for fleet vehicles or third parties
- Fuel waste: The total estimated cost of wasteful driving behaviour like idling
- Insurance premiums: Some insurance companies offer a reduced premium if fleet vehicles have devices that track GPS data
While specific metrics can help you understand your fleet’s performance, looking at the correct data will positively impact your decision-making, helping improve your fleet’s ROI.
For example, addressing driver performance helps improve overall fleet performance. However, looking at the effects of driver performance, like fuel waste or conservation and accident-related claims, help identify where drainages are so you can improve your ROI.
Why should you calculate your fleet’s ROI?
Calculating your business’s ROI helps identify and determine the financial benefits of specific purchases, which can be used to justify the investment to stakeholders or for record keeping. So, if you’re considering incorporating EVs in your fleet, looking at ROI will indicate whether going green is doable and profitable.
Calculating also helps businesses prioritise goals, identify areas of improvement, and track progress over longer periods. Progress tracking is beneficial for informed future decisions and progressive changes.
In short, calculating your fleet management business’s ROI gives you immediate and extended insight for intelligent decision-making in present and future times.
4 ways statistics prove GPS fleet tracking technology boosts ROI
Can GPS tracking technology really help you boost your profits?
Looking at relevant statistics can help you make a smart decision. These mind-blowing stats from the US indicates how intricately linked GPS tracking technology is with increased ROI.
- 64% of fleet managers currently use GPS fleet tracking technology in their businesses. This shows that GPS is a valuable fleet tracking asset that lightens the load on fleet managers.
- While medium-sized fleets are more likely to adopt GPS tracking technology, a 12% increase was recorded for smaller fleets from 2019-2020, indicating an increase in the benefits of GPS fleet tracking technology and its profit-boosting benefits.
- In 2021, a whopping 45% of 1,200 U.S. fleet managers and other business professionals using fleet management solutions reported a positive ROI in 11 months or less — a clear indication of how quickly companies can start seeing a difference in their profits.
- In 2020, a massive 54% improvement in customer service was reported due to fleet tracking technology. Happy customers is a solid profit-boosting tool, making this stat a testament to how fleet tracking technology is instrumental to business success.
How Cartrack’s Delivery App enables significant fuel cost savings: A case study
Cartrack’s Delivery app was put to the test with one of South Africa’s biggest furniture suit manufacturers in the quest to help them reduce their fuel costs.
How Cartrack Delivery was used: The app was used on one of their main truck’s daily routes. This truck had 15 deliveries to complete in a single day which amounted to a total distance of 195 km.
What the Delivery app achieved: The Cartrack Delivery app’s route optimisation software was used which resulted in the following:
- The route optimisation managed to complete all 15 deliveries in 165 km, 30 km less than the original daily distance
- This amounted to a daily total fuel saving of approximately seven litres
- And a monthly fuel saving of approximately R3000
What this means for your business: These results were from just one commercial vehicle, imagine the total fuel savings for an entire fleet. With fuel savings becoming an unavoidable requirement in many businesses’ budgets, GPS fleet tracking and management technology are helping more businesses worldwide to maximise their annual ROI.
Your expert guide to double fleet business ROI with GPS tracking
If you’re ready to see a real profit boost, the best place to start is to ensure you understand what to do. With our expert guide, you can quickly identify pain points, implement cost-saving solutions, and double your fleet’s ROI.
Start using your fleet data for optimised results
Harnessing the power of your fleet data can unlock a world of benefits for your business. Here are five innovative ways to optimise the way you use fleet data:
- Optimise routing efficiency: By using GPS tracking and real-time position data, you can identify the most efficient routes for your drivers, ensuring timely deliveries and cost savings.
- Prevent costly repairs: Implementing maintenance schedules and reminders based on fleet data allows you to proactively address vehicle upkeep, extending lifespan and avoiding expensive repairs.
- Enhance safety and reduce incidents: Tap into fleet data to evaluate driver adherence to safety protocols, enabling you to identify areas of improvement and reduce the number of accidents and safety violations.
- Get insights from fuel consumption analysis: Take advantage of fleet data to pinpoint excessive fuel usage or theft and identify areas where consumption can be optimised, leading to substantial fuel-cost savings.
- Boost operational efficiency: Analysing data on idling time, lengthy trips, and absenteeism helps identify bottlenecks and inefficiencies within your fleet, enabling you to streamline operations and maximise productivity.
Prioritise your fleet’s safety for enhanced returns
Driver safety is essential when calculating your fleet’s ROI. You gain valuable insights into driver performance and cost allocation by closely monitoring safety-related incidents over time. Ultimately, reducing accidents frees up funds and increases a business’s profitability.
Use fleet data to identify drivers who require additional training, enabling you to reduce safety incidents. Proactively playing it safe can also lower your insurance premiums and monthly expenses.
Maximise returns by tracking your assets
Real-time asset tracking unlocks significant benefits, including enhanced productivity, reduced losses, and improved ROI. Knowing the precise location of your vehicles empowers you in various ways. You can identify idling cars and trucks, eliminating time and cost waste. Additionally, optimising routes based on accurate data helps conserve fuel and reduce time spent on the road.
Efficient asset tracking also ensures timely task completion and allows you to allocate the proper drivers for each job. With this data-driven approach, you’ll experience immediate financial benefits and streamline operations.
Streamline your operations with workflow automation
Automating your operations is crucial to implementing the fleet ROI strategies mentioned above. It’s time to say goodbye to outdated methods like sticky notes, spreadsheets, and time-consuming paperwork. In today’s fleet management market, cutting-edge GPS tracking solutions that provide actionable data are what will improve your ROI.
Embrace preventative maintenance investments
Investing in preventive maintenance means proactively addressing issues before they disrupt your operations. By maintaining a comprehensive maintenance history and attending to potential problems early on, you safeguard your vehicles — the invaluable assets of your company. As your vehicles spend less time in maintenance and repairs and more on the road, you increase your revenue and returns.
By incorporating preventative maintenance as a core strategy, you demonstrate a commitment to caring for your fleet by promoting its longevity and maximising profitability.
Where to start? Use these basic Qs & As to kickstart increased ROI
Everyone needs to start somewhere. Looking at popular questions on fleet management ROI for fleet managers and business owners can provide much-needed insight on where to begin. Even if you’re already actively focusing on increasing your fleet’s ROI, returning to the basics may remind you of a few important points you could’ve overlooked.
- How do you succeed in fleet management?
The number one requirement any business needs to succeed in fleet management is a comprehensive system that allows fleet vehicle tracking and offers insightful data regarding a fleet’s performance.
In fleet management, data is power, and knowing how a fleet performs in terms of efficiency, safety, and costs is the primary tool any fleet manager needs to boost their operations and make a success of their fleet management business.
- How much fuel does a GPS save?
A recent study by American consulting firm Frost & Sullivan reports that GPS fleet management systems can raise vehicle utilisation by 15-20% and fleet productivity by 10-15%. At the same time, it reduces:
– Fuel consumption by up to 25%
– Idle time by up to 30%
– Miles driven by up to 10%
– Overtime for drivers by up to 15%
That’s a lot of fuel savings for any business hungry to cut costs.
- How do fleets use telematics?
Fleet telematics is a valuable tool that offers a wealth of asset information. Using GPS tracking and onboard diagnostic readings, telematics systems gather data directly from assets, providing in-depth insights into asset usage, driver behaviour, fuel consumption, and DTCs or diagnostic trouble codes.
- Can fleet management statistics help increase ROI?
Fleet management software linked to a fleet tracking device allows you to access valuable statistics showing exactly where your money is going. Having this data at your disposal will enable you to pinpoint excessive spending, and one step at a time, you can start cutting costs and boosting your ROI.
Unlock the advantages of GPS fleet tracking for a sky-high ROI with Cartrack
The more data you have at your fingertips, the more efficiently you’ll track costs and boost your fleet’s ROI. Cartrack’s SaaS-based telematics and GPS tracking software gives you access to a kaleidoscope of data while constantly advancing products based on proven fleet management industry trends.
- Cartrack’s MiFleet cost management software helps you keep track of your insurance expenses, vehicle permits, taxes, and finance costs, so you know exactly where to start cutting costs. Vehicle maintenance reminders help you keep your fleet in good shape to avoid costly repairs and untimely maintenance.
- The Cartrack fleet management platform’s fuel monitoring system also works with MiFleet to calculate fuel costs per vehicle, allowing you to compare fuel expenditure with driver reports and curb bad driver behaviour like idling – a big contributor to extra fuel costs.
- Cartrack’s LiveVision AI-powered camera solution is designed to detect distracted or fatigued driver behaviour and audibly alert drivers in real time so they can regain focus. This helps fleet managers improve driver safety and reduce avoidable running costs.
- Secure your movable assets with our asset tracking device. It helps you to minimise equipment theft and loss. If you’ve got generators, containers, truck trailers, cement mixers, and other movable equipment, keep them safe and avoid costly replacements.
- Cartrack’s fleet management platform has smart mobile app features like route optimisation that helps you ensure your drivers use the most efficient routes possible, and geofencing that alerts you when your vehicles enter or exit preset virtual boundaries. These tools help you combat fuel costs and improve driver accountability, making them essential profit-boosting components.
Cartrack’s telematics-based solutions can help you turn your fleet-management business into a profit-generating machine.
Contact Cartrack Nigeria today for the ultimate ROI-boosting fleet management tools.
