7 Benefits Of Fleet Asset Tracking
- 06 May 2021
Fleet asset tracking uses a global positioning system (GPS) to track the activities of assets and vehicles. The tracking device is connected to a vehicle, and it actively collects data such as the position, speed, and engine activity and converts it to easy-to-read information.
Business owners and fleet managers use tracking for convenience purposes by monitoring the real-time activities of these vehicles. By utilizing this efficient management method, fleet management tracking has brought several benefits to businesses.
Benefits Of Asset Tracking
For a business to enjoy the benefits of asset tracking, they need to install a good GPS. GPS systems are always prone to electromagnetic interference, which can easily affect tracking. However, getting a high-quality system will ensure correct relaying of information and benefit a business in the following ways:
1. Reduces Operating Costs
By monitoring the position of vehicles, fleet managers can make cost-cutting decisions by knowing what vehicle is the closest to the pick-up points. They can also advise drivers on the best routes to take. Such efficient cost-cutting decisions can help save fuel and overtime costs.
The manager can also collect and compare costs per mile and revenue per mile. This will help them determine the profit they’re making and improve on areas that are costing them. Vehicle analytics will also help them compare the efficiency of different vehicles.
2. Save Time
An efficient GPS will enable a business to save time by making decisions that will avoid delays. A manager can monitor busy streets in real-time and advise drivers to avoid them. By also monitoring engine activity, unnecessary time wastage is cut by reducing idle time.
3. Reduce Insurance Costs
Roads usually have a lot of unforeseen circumstances that require vehicle insurance to cover the losses. Cases such as accidents, damage, or theft cause substantial financial losses, and that's why it's recommended for any fleet company to have insurance costs. In some countries, it's mandatory to be insured.
Insurers may offer discounts on vehicles with a tracking system. This is because when activities are monitored, there are fewer cases of accidents, thefts, and damages. Companies will therefore have fewer insurance claims and, in turn, get discounts on premiums.
4. Customer Satisfaction
In the fleet industry, one of the critical factors that will determine the success of a business is customer satisfaction. A satisfied customer will give good reviews on your business and help grow your business.
When assets are tracked, customers get a real-time update on where their parcel is. This enables them to determine the time they'll receive it and can make decisions based on it. They're also updated on the time of delivery. Having vehicles close to pick-up points will mean a quicker response to customer calls. Customers are more likely to be contented with companies that respond fast and deliver on time.
5. Reduce Thefts
Theft is a significant security risk in the fleet industry. Cases of lost vehicles could be devastating to a business and customers due to loss of assets. However, with the excellent GPS tracking system and cybersecurity, managers and law enforcers can easily track the position of the stolen vehicles and recover them.
Thieves will be discouraged from stealing a vehicle, knowing they could be hunted down because of the tracking system. This improves the safety of drivers, vehicles, and assets in transit.
6. High Driving Standards
While most drivers are required to be careful on the road, this isn’t always the case. Some drivers are usually reckless, causing accidents and damage to assets. However, when the activities of vehicles are monitored, safe driving will be enhanced.
The company can then encourage drivers to be more careful on the road. Training may also be offered to drivers on how to improve their safety on the road to avoid unnecessary costs.
7. Better Scheduling
Fleet managers can make better decisions regarding their vehicles if they can track all of them. Tracking helps reduce uncertainties regarding fleets enabling future trips to be scheduled.
They’ll also know about the availability, downtime, mechanical services, and costs. These will enable them to schedule more trips and more business for the company. An organized company will be seen as dependable by customers and they’re more likely to work with that company.
Asset tracking is an essential part of any fleet business and management. In a business that depends much on customer satisfaction, such as fleet business, getting the right tools for GPS tracking is crucial. It offers so many benefits that help cut costs, increase efficiency, and improve customer service.
The GPS will also give managers better insight into the performance of vehicles and drivers. With this vital data, they'll make more informed decisions to improve the business. While getting a tracking system may not be mandatory, you can't afford to miss out on its benefits.