Businesses are saving thousands of dollars per month with GPS vehicle tracking devices.
“Businesses have reported a reduction in fuel usage as the biggest advantage of GPS tracking,” said Brad Borst, Founder and President of RMT. Monitoring and reducing speeds, routes, and idle time are just a few things that fleet owners can do to lower the fuel bill. Each mile per hour above 50 MPH increases fuel consumption by 1 ½ percent. Higher speeds also cause more tire heat, which puts more wear on tires. Wear on tires will almost double at road speeds of 70 MPH or greater. RMT’s GPS tracking systems report all vehicle activity and immediately alerts fleet managers by cell phone and email of speeding and unauthorized use of company vehicles.
Business owners are most concerned with fuel & maintenance, employee overtime, and employee productivity. New GPS technology significantly reducing excess costs for businesses:
1. Fuel & Maintenance – The average operating cost per vehicle is about $1.50 per mile. A company can reduce at least 25 miles per week for each vehicle with a GPS tracking device.
2. Employee Overtime – The employee overtime rate is estimated at about $30 per hour. On average, a company can reduce at least 1 hour of overtime per week with a GPS fleet tracking system.
3. Employee Productivity – On average, each vehicle could complete at lease 1 extra stop, job, or delivery per week with a live GPS tracking unit.
For an average size fleet of 10 vehicles, this means an estimated monthly savings of over $6000 with RMT’s GPS tracking solution.
A new Mileage (odometer) tracking feature for the Discovery LITE GPS fleet tracking system. The mileage tracking will allow fleet managers to observe vehicle performance and maintenance from the convenience of their computer. RMT expects to offer the mileage tracking to its thousands of customers by the end of the month.
By: Brad Borst
Posts Tagged ‘Fuel Maintenance’
GPS Tracking is Saving Businesses Money
March 15th, 2010GPS Tracking For Fleet Management
December 10th, 2009
The cost of managing and operating a fleet of vehicles has dramatically increased over the past 5 years. Increased fuel, maintenance and insurance cost bear much of the blame. Probably the biggest variable in fleet management is the human element. Once the vehicle operator leaves the dock you have little control or feedback on their performance. Most of your people are probably good employees that perform reasonably well. However it only takes one or two poor performers to cut into your slim profit margin. New technology in the form of GPS auto or vehicle tracking has the ability to manage your vehicle fleet and save you money and time.
Basically there are two types of GPS tracking systems that are used to monitor and mange vehicles. The passive system consists of a GPS receiver that is placed in a vehicle and at the end of a specified period of time is retrieved and downloaded into a computer data base. This system is great for gathering historical data on the vehicle to include speed, location, direction, time at rest, time at a specific location, travel route and customer service verification. Through the use of a fleet management software program you will be able to determine what management decisions are needed to make your fleet most efficient.
Active or real time GPS tracking systems are designed to work with cell phone technology so that a vehicles GPS data is reported in real time. Data is uploaded to your computer on a timed frequency. Most real time systems complete an upload every 2 to 5 minutes. Again just as with GPS tracking information is provided to you in order to make fleet management decisions. Real time tracking is best used for dispatching, customer care or when vehicles are located over a larger area. The system allows the dispatcher to observe where the vehicles are allowing them to be rerouted to new calls or pickups. All of which saves considerable money in terms of fuel, time and overtime costs.
GPS tracking system benefits include:
Start and stop time managementVehicle speed controlVerify work/wages paidLower Fuel CostLower Maintenance CostLower Insurance costsCorrect billing informationAccident reductionCustomer service verificationCustomer interface timingEfficient vehicle staging May allow employee to take vehicle to their residence.
The use of GPS tracking systems has become an absolute necessity for managing your fleet. Without it there is little chance you will be able to compete in the market place. It is estimated that it costs about $500.00 a day to put a box truck on the road. It is also estimated that you can maximize your fleet’s efficiency by using a $3.00 GPS tracking fleet management tool that will shortly more than pay for its self. The use of a fleet GPS tracking system may be the fast way to increase your bottom line.
By: Jim Kesel
