Companies with commercial vehicle fleets know that their vehicles are their most cost-intensive assets. Protecting these assets should be a big part of any company’s fleet management strategy. To maintain an operation that is efficient and profitable, it’s essential that fleet managers know exactly where their vehicles are at all times.
GPS fleet tracking systems help companies track and manage their assets, control and reduce operating costs, minimize vehicle breakdowns, reduce fuel usage, and more.
While a GPS fleet tracking system is an added investment for a company, it’s an investment that’s also proven to help reduce costs and generate a return on investment quickly.
What is GPS fleet tracking?
GPS fleet tracking systems allow companies to track the location of their vehicles as well as collect valuable data about each vehicle. Most fleet tracking systems have a small GPS tracking device connected to each truck’s diagnostic port.
The tracking device’s job is to collect data about the vehicle and send it back, through a cellular or WiFi connection, to a dashboard for fleet managers to view and interact with. The GPS fleet tracking device collects data like:
- GPS location
- Distance traveled
- Fuel usage
- Idle time
- Abnormal braking or turning
The data collected by the GPS device can then be used to generate reports and alerts that fleet managers can use to manage and optimize their operations.
How much does GPS tracking cost?
The cost of GPS tracking devices is not one size fits all. Companies will pay different amounts for GPS fleet tracking software depending on their particular needs. Factors that can affect the cost of GPS tracking devices include:
- The type of system you choose
- How many vehicles you’ll be equipping
- The type of monitoring software or service used
- Where you purchase your GPS fleet tracking device
Some providers of GPS fleet tracking offer rental options.One downside to renting is that the fees associated with it can cost more than it would have to purchase a system.
GPS fleet tracking pricing ranges from around $14 to $250 per vehicle per month. While this is a wide range, it’s important to note that most GPS tracking costs are on the lower end of the range, with an average cost of $25 to $45 per vehicle, per month.
GPS tracking costs for the system you choose should align with your company’s growth plans. Make sure you select a GPS fleet tracking system that can grow with your company as it scales.
Other questions to consider that affect the cost of GPS tracking are:
- How big is your fleet (how many tracking devices will you need)?
- Do you need real-time monitoring and alerts?
- Do you want a plug-and-play system or something that requires a hardwire installation process?
Why GPS fleet tracking devices are worth the cost
Every business operates with the goal of making a profit by generating a return on company investments. GPS fleet tracking systems show that they are worth the cost by not only generating ROI for GPS fleet tracking pricing but also aiding the company in cost savings and operational assistance in other areas like:
- Tracking vehicles in the field
- Improving driver safety
- Reducing fuel costs
- Monitoring for vehicle maintenance and repair needs
- Improving the security of vehicles
The Commercial Carrier Journal (CCJ) explains that businesses are taking advantage of technology that calculates insurance risks, as these risks are a factor when it comes to the cost of insurance premiums.
CCJ explains that after installing truck tracking devices, one company’s insurance premiums went from $14,000 per vehicle per year to $7,500 per vehicle per year.
Using GPS fleet management to increase profits
If used correctly, a GPS fleet management system can help manage expenses and increase profits. GPS fleet tracking systems can help companies:
Reduce fuel usage
GPS fleet tracking systems help reduce fuel usage by reducing idle time by tracking it by user, preventing misuse (vehicles being driven after hours for personal use), and helping to plan more efficient routes.
Increase customer retention
Using GPS fleet tracking systems also helps companies increase customer retention by providing faster response times about deliveries or scheduled services, automatic ETA notifications, and increasing the percentage of on-time arrivals and deliveries.
Minimize vehicle breakdowns
GPS fleet management systems generate vehicle diagnostic reports so companies can proactively plan maintenance. The systems also identify critical vehicle issues in real-time and send automatic alerts to help minimize vehicle breakdowns.
With the ability to proactively identify at-risk drivers and improve coaching effectiveness with integrated dash cams, GPS fleet management systems help companies prevent collisions and save on the associated costs.
By automating compliance and streamlining communication, GPS fleet management systems help scale businesses, making operations more efficient and controlling overhead costs associated with back-office operations and support staff.