Vehicle Tracking Systems in Economic Downturns
Vehicle tracking devices have been available for several years and despite a slow adoption of technology have risen in favor among those who manage commercial fleets. Known not only for giving fleet managers confidence that they know where each of their fleet vehicles are at all times, an added benefit is the improved efficiency of the overall fleet. This is particularly important in challenging economic times.
A GPS-based traking system functions using a triangulation algorithm that corresponds to the exact position of the vehicle. This information is transmitted through a remote operations facility, which will plot the location of each unit in the group. Thanks to this technology, fleet manager are able to route or re-prioritize the pick-up points for any vehicle to accommodate customer needs while maintaining optimum efficiecy for the vehicle and its driver. Public service companies operating large networks of mobile engineers are experiencing the benefits because service calls can be allocated to the nearest vehicle. Courier services and delivery companies were the early adopters of this technology and have been using vehicle tracking devices. Because of the nature of their business, they came to a very quick appreciation of vehicle tracking systems.
Global Positioning Systems are able transmit more than just location information. High quality management systems can also provide professional fleet managers with the speed of the vehicle. As we all know, speeding is very inefficient in terms of fuel consumption. Large fleets using these systems can reduce annual fuel costs by as much as 40%, thanks to the information made available by the tracking systems.
With modest additional initial investment, a GPS tracking system for vehicles, can assist with efficient scheduling, minimize the amount of time that vehicles are idle, or are being operated at less than peak efficiency. You can also minimize dalays in deliveries and better manage the supply chain and allows managers to prioritize the routing of the fleet. This results in improved customer relations and fleet managers are in a position to better estimate arrival times for their clients.
Another economy is available in an unexpected area. The insurance of the fleet can be prohibitively expensive for those in the small to medium enterprises space. However, insurers are currently considering tracking devices for vehicles as a key factor in reducing the incidents of theft of the vehicles. They offer significant discounts for fleet policies where GPS trackers are installed. Savings occur in the speed of recovery of stolen vehicles and the potential damage to trucks and cars stolen by thieves. Reducing the time rentals are needed in order to bridge the gap after the theft of vehicles provides additional significant savings.
Vehicle tracking devices can also let a fleet manager know what hours the vehicle is being used and whether it is being used outside of business hours for personal use. Depending on organizational guidelines, this could be considered a misuse of company resources and cost companies a lot of money over a year. Advising drivers that the use of the vehicle is being tracked by GPS technology they will be less likely to use the vehicle for unapproved purposes. Again, the combination of all these areas, adds to impact to the bottom line for the enterprise.
During an economic downturn, every company is watching for ways to improve the productivity, efficiency and reduce costs. Even if it seems strange to invest in a vehicle tracking system during challenging times, the payback for systems that are properly implemented suggest that the investment represents financial wisdom and must be considered as a critical component of the overall fleet.
Mail this post
Tags: cost justification, economic downturns, recession, vehicle tracking systems