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Reasons To Implement A Vehicle Tracking System

Sep 5, 2008
Any fleet manager worth his salt today has heard and should have considered introducing vehicle tracking technology to their operations. The information provided by these tracking systems can give managers knowledge of the actions of their drivers, the efficiency of their operations and ways to improve their business.

Many industries are utilising vehicle tracking solutions today as a way to reduce running costs and improve the effectiveness of operations. For instance companies who have a large amount of contractors on the payroll, knowing their whereabouts can be valuable in ensuring they reach destinations as quickly as possible, meaning that customers have to wait less time. Taxi companies can also benefit from vehicle tracking technology as it can give the precise position of each and every vehicle in the fleet, meaning that when a customer rings for a cab, they will be given an extremely accurate estimated time of arrival. The result is that customers are happier with the service and are more likely to recommend it to friends or use it again; subsequently profits will undoubtedly increase.

The majority of tracking systems on the market today are a twofold solution. Often a device is placed in each vehicle that either records or transmits the information and in the headquarters a central computer runs the software giving the manager the ability to pick up on the speed, direction, and fuel economy of every vehicle. In some systems this information is displayed in an up to the minute fashion, in less advanced systems the information is not real time and is only relayed to the manager at the end of the day. If this sounds too good to be true and you are a fleet manager who has not yet considered utilising this technology, read on; here are some of the most common reasons for implementing vehicle tracking systems.

Firstly most agree that these systems will greatly reduce the running costs of a fleet. This is done through a number of ways. It can help in targeting wasteful drivers and giving them further instruction on how to be more productive and fuel efficient.

Secondly many modern systems have the capacity to monitor mileage of every vehicle in the fleet. This is useful in ensuring vehicles are serviced regularly when their mileage demands it. Subsequently as vehicles are better maintained, running and mechanical costs are greatly reduced, as are any legal problems and large garage bills.

Thirdly as insuring a fleet of vehicles can be expensive; introducing a vehicle tracking system can reduce this cost. Many insurance companies are now realising that a system makes a fleet more secure and ensures it is driven in a safer way. Hence insurance costs drop and the business becomes more profitable.

Fourth and finally the productivity of a company can be greatly improved with the introduction of a tracking system. With up to the minute information managers can pick up employee downtime and the instances were bogus overtime requests have been put in. This may put some managers off as they feel they trust their staff but it is important to remain objective and see these systems as a business management tool.

These four reasons only scratch the surface of what a vehicle tracking system can do for a company. The benefits are clear and while the initial outlay may be costly, most agree that within six months to a year the costs of implementation are recouped through increased profits and productivity. The question all fleet managers need to ask themselves is whether they can afford not to implement this technology?
About the Author
Technology expert Thomas Pretty looks into ways in which vehicle tracking systems can help improve the efficiency and profitability of businesses who own fleets.
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