Vehicle Tracking offers substantial benefits to business owners
Vehicle Tracking offers substantial benefits to business owners
In so many instances, when the topic of vehicle tracking is raised, company employees express frustration with the mere thought that vehicle tracking may be
installed in their company-owned vehicle. Conversely, while not as unanimous, but still with some frequency, business owners will express concern over the potential loss of a valued employee if a tracking device be installed in the company-owned vehicles. The reality is vehicle tracking does not need to be punitive. It does not need to be used as a form of punishment for employees that drive a little faster than the speed limit or for that employee that takes a brief detour on their return trip to the office. The benefits of vehicle tracking to the business owner, the person purchasing the vehicle, paying for the insurance, paying for the fuel, paying for the repairs are numerous and in virtually every case, the benefits received to the owner far outpace the expenses for the equipment and the monthly fees.
Even though many drivers bristle at the thought that the company owner has installed a tracking device in their vehicle, the benefits of vehicle tracking are numerous – fuel savings, insurance savings, fewer repairs, less overtime and better reputation in the community. While owners do have the ability to monitor their employees driving behavior, in many cases, their employees simply drive more carefully and make fewer detours throughout their day to avoid the uncomfortable conversation about their driving habits even if the owner is not actively monitoring their driving.
Vehicle tracking benefits are substantial to a point that the Return on Investment is weeks or a couple months. The savings are realized in numerous categories. With a tracking device in each vehicle, the company can dispatch drivers more efficiently saving miles, fuel and hourly wages. For example, a service business that receives urgent customer requests throughout the business day can be most responsive when the company can dispatch the closest driver which reduces the miles driven, which in turn saves fuel, extends time between maintenance. In addition to the ‘hard dollar savings’ the improved reputation in the market from being more responsive to the customer needs adds value to the business, as well.
So, what are the effects to the business when the vehicles have tracking installed?
- Dispatching — Routing the closest driver to the next opportunity saves miles, time, fuel and overtime. Seeing all of your drivers on a map at one time is a beneficial management tool.
- Maintenance — Maintaining a vehicle according to mfg. specifications helps avoid costly breakdowns and larger repairs. Scheduling maintenance also maximizes productivity keeping your employees serving clients.
- Fuel costs — For every hour a vehicle idles unnecessarily, the vehicle wastes at least 1 gallon of fuel. With fuel at $3.00+ per gallon, the costs add up. Fuel savings can be the most consistent contributor to reducing vehicle expenses.
- Driver behavior — Rapid Acceleration, Hard Braking/Cornering increases wear & tear and accidents, which can get expensive. A logo wrapped vehicle is a rolling billboard. Squealing tires draws attention to the vehicle, but not the right attention. Aggressive driving also decreases the lifespan of the tires, brakes and suspension parts. Moderate driving extends the life of these components reducing the vehicle expenses.
- Insurance costs — Better driving reduces accidents saving deductibles and lowering insurance premiums. The number one contributor to increased insurance premiums is accidents. Minimize accidents saves money, increases productivity of each vehicle and improves the company’s reputation in the community.
- Reputation — Nobody wants to do business with a company when they see their vehicles taking turns on two wheels. Reckless driving is a significant turn-off for prospective future customers and one of the things customers remember about a company. Clean, well maintained trucks and cars shows that the company cares about their assets, their employees and their customers. A good first impression is good for business.
This is a comprehensive list of benefits to vehicle tracking. Data is captured every 30 seconds and numerous reports can be run to provide significant information about
the vehicles, but penalties for poor driving behavior do not need to be assessed. Driver behavior can be managed in an as needed manner. Even for those drivers defiant of the technology and upset with the tracking do actually settle into a much more respectable habit contributing to the bottom line of business.
If the owner spent the company’s money on the vehicles, applied the wrap for the vehicle, filled it with tools and supplies, is paying for the fuel and insurance, they have the right or some might say obligation, to the manage these assets closely and consistently.
Would you like to learn more? Contact:
Precise Fleet Tracking Solutions
Michael Drelicharz
(847) 942-3086
