14 Benefits of GPS tracking in 2021

Curious what the benefits of GPS tracking are? The transportation industry has become increasingly competitive in today’s market. Businesses are looking for a logistics solution that can provide an edge with faster shipping times, tracking information and location data, and quality customer service.

Now fleet managers can utilize GPS tracking software to manage their remote teams of enterprise sized fleets easily. Without a GPS vehicle tracking system, you’ll have to rely on guesswork and likely struggle to keep your customer’s happy. GPS tracking systems could be one of the best assets for any business that manages fleets.

What is a GPS Tracking System?

gps fleet tracking with tablet

A GPS tracking system or “global positioning system” uses a network of satellites and devices on the ground to establish an object’s location.

In essence, GPS systems allow you to pinpoint a vehicle’s location at all times, provide drivers by helping them navigate to where they want to go and provide accurate timing to how long it will take to arrive at their desired destination.

Benefits of Using GPS Tracking Systems

All business owners of a transportation company need to use fleet management software.

Fleet Managers Gain More Insight

The purpose of fleet management is to find opportunities to improve the efficiency of your fleet. With GPS vehicle tracking, everything is accounted for. This includes current location, vehicle speed, stops, idle time, and unnecessary use. You also receive real-time notifications and automated reports about your fleet. This real-time data from GPS technology will hold everyone accountable, making life much easier for fleet managers.

Reduce Operating Expenses

A fleet tracking system will reduce plenty of expenses such as reduce fuel costs, fewer repair costs, less downtime in vehicles, lower insurance costs, and reduced risks for accidents. Having fleet management software can even allow you to cut back on administrative sites, tax software, and other tools that this software can provide for you.

Vehicle or Asset Theft

Fleet vehicles can be subject to theft, especially during overnight stays. This can lead to a loss in customer assets. The GPS tracker can easily provide mapping data and alerts to identify where the vehicle. This allows you to quickly form a plan and contact the authorities of the theft that took place.

Optimize Fuel Usage

Although you can control case prices, you can ensure optimal fuel usage. With GPS technology, you can optimize the route of each vehicle to reduce fuel consumption. In addition, GPS fleet tracking will limit fuel costs because it’ll alert you anytime any one of your drivers is performing bad behavior such as speeding, unnecessary idling, or unauthorized usage.

Lower Insurance Costs

Nowadays, most insurance companies will provide a special discount for any fleet company that uses GPS tracking devices and software.

Improve Productivity

Fleet optimization is another component to reducing costs and maximizing the potential of each driver. With tracking systems, you’ll be able to track your drivers’ hours to ensure they are optimizing their time while working. The tracking device will record what they’re doing and where they are at all times.

In addition, comprehensive fleet management software can automate your fleet driver’s work schedules to manage their workloads. This means you’ll increase your productivity and assign the most relevant job to your driver’s skills and location.

For example, one job may require specific trucks to deliver the assets. Matching each job to the right driver will allow you to focus on more client opportunities. With vehicle tracking, you have the visibility to see trucks that are currently idle.

vehicle tracking system

Then you can assign more jobs to these vehicles, which translates to more business and more productive time spent on the job for your employees.

A GPS fleet tracking software will also automate employee reports such as fuel receipts and timesheets. These reports provide key data points for you to make decisions about fleet management.

Enhance Safety Measures

Drivers are typically much more responsible with GPS tracking because they know that fleet managers monitor their driving. Typically, fleet software solutions come with hardware to monitor the drivers as well.

This prevents poor driver behavior such as speeding, abrupt stops, unnecessary idling, and taking detours away from the most optimal route. Bad driving behavior is more likely to lead to accidents.

In addition, fleet managers can access vehicle tracking to identify their location in an emergency like a broken-down engine. As a result, you can quickly make roadside assistance and service calls before the situation gets worse.

Satisfy Your Customers

Your customer will likely ask questions about the estimated delivery time and proof of shipment. With GPS tracking systems, you’ll be able to predictably provide your customers with real-time tracking information and accurate delivery times.

man using gps tracking on his phone

Real-Time Alerts

GPS trackers will be able to provide alerts anytime a vehicle enters or leaves a job site. Receiving this information in real-time helps to lessen administrative work. For example, receiving this data allows fleet managers to contact receivers and shippers when vehicles reach the facility based on the geo-fenced alerts.

This will help your receivers and shippers monitor the assets across all sites.

Usage-based Invoicing

With GPS data, you’ll be able to provide invoicing, payroll, and manage the bill easily. For example, oil and gas companies can calculate how much time their vehicles have spent on site, or how many miles it took to reach a site, which is important for invoicing and running their business.

Also monitor engine hours for equipment rental companies.

Receive Maintenance Reminders for All Vehicles

Vehicle diagnostics and service maintenance are a crucial part of ensuring all vehicles run smoothly and prevent unnecessary repair costs. GPS tracking devices will provide reminders for maintenance based on engine hours and mileage.

This means your fleet of vehicles will never miss out on important reminders such as tire change, oil change, or an inspection.

Avoid Traffic Violations

One of the more underrated benefits of GPS tracking devices is their use for avoiding traffic violations. In the event of a traffic ticket, you can use camera-based evidence and data from tracking devices to prove a case.

For example, if the police officer reported that the vehicle was speeding, your GPS fleet tracker can show the speed that the vehicle was going at a specific time. Or maybe you’ll find information that the driver was wrongfully accused because that employee wasn’t driving at that time.

Ensure Your Fleets are Compliant

The FMCSA has many regulations and compliance laws, such as ensuring that all fleets have an ELD unless they are exempt.

GPS tracking devices can provide information such as IFTA State fuel-tax reporting and ELD to ensure your vehicles and business remains compliant and avoid any costly fines.

Improve Communication Between Dispatcher and Driver

Most businesses operate more efficiently when their communication is on point. There are times when drivers and dispatchers should communicate directly. If a driver is tied up with a customer, they can inform the dispatcher to assign other drivers.

An unreliable tracking and communication system will result in the customer receiving a poor experience.

Final Thoughts

There are so many benefits of GPS tracking that we wouldn’t understand why any transportation business wouldn’t adopt it.

In the end, if you install a GPS tracking system you make better decisions in your business, save yourself lots of time and money, and significantly increase your bottom line. Not to mention customers will rave about your timely deliveries.

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