10 benefits of GPS tracking and geofencing for fleets

10 benefits of GPS tracking and geofencing for fleets

Advances in GPS fleet tracking have changed the trucking industry for the better. Although GPS tracking has existed for many years, the onset of the Internet of Things and connected devices — especially in the trucking industry — has improved the effectiveness of tracking systems.

With GPS, fleet managers can track all the vehicles in their fleets in real-time, view past location records to improve operations and utilize various data points and key insights to increase efficiency and profitability.

GPS tracking has truly become essential in the day-to-day operations of fleets of all types and sizes. There are multiple benefits of GPS, which is what we will highlight in this post.

What is GPS tracking?

GPS or Global Positioning System is a worldwide radio-navigation satellite system that helps you remotely track the location of your drivers and vehicles.

The system relies on a transmitter, inside a phone or a navigation device, sending out a signal that is then received by multiple satellites in space.

Top 10 geofencing and GPS benefits for fleets

GPS fleet tracking can help improve business productivity, streamline operations, and make life easier for drivers and fleet managers.

Here are some important benefits of using a GPS system and geofencing:

1. Smarter route planning

GPS fleet tracking can also help identify the best and worst roads by reviewing details for past trips using the location history map. Fleet managers can optimize routes by identifying busy roads with location-based historical data.

Optimizing routes can directly increase the efficiency and productivity of drivers.

2. Safety against cargo theft

In 2018, there were 592 cargo thefts in the U.S. worth $142,342.

GPS tracking and virtual geofenced parameters can play a role in preventing vehicle and cargo theft. Fleet managers can keep track of the location of all vehicles in real-time, and appropriate, timely action can be taken if a vehicle deviates from its path.

3. Prevent unauthorized vehicle use

With real-time GPS tracking as well as location history records, fleet managers can quickly identify if a vehicle is being misused for side jobs or personal use.

4. Reduced administrative burden

With real-time GPS tracking, fleet managers can also reduce administrative burden by eliminating manual paperwork and minimizing phone calls to drivers.

Whenever a fleet administrator wants to get a status update from their drivers, they can get a real-time update just by looking at their fleet management dashboard.

5. Automated real-time alerts

What are the costs associated with truck tracking

As GPS tracking can track vehicles in real-time, fleet managers can create virtual parameters to set up geofenced alerts whenever a vehicle enters and leaves a job site.

You can plan your operations and daily tasks more productively when you don’t have to keep track of your vehicles manually. Knowing where all your vehicles are and receiving automated notifications when they enter or exit important destinations can help reduce administrative burden.

For instance, it’s a huge GPS tracking benefit to be able to inform customers if there is a delay. Similarly, fleet managers can also notify shippers or receivers — based on geofenced alerts — if drivers are about to reach the facility. Early notifications can speed up processes, increase productivity, and reduce detention time.

6. Usage-based invoicing

GPS tracking helps you know where your vehicles and assets are and how long they have been at a particular location. This is especially helpful for oil & gas companies, for example, as accurately calculating time on site is important for invoicing and getting paid.

Fleet administrators can easily manage billing, invoicing, and payroll with location-based data.

7. Better customer service

GPS tracking and real-time vehicle location data can also be used to provide better customer service and gain a competitive advantage.

When you know exactly how far away your vehicles are from their destination, you can deliver accurate estimated times of arrival to your customers.

8. Increased productivity

Ensuring drivers and technicians are staying on task

Another GPS tracking benefit is that you can become more competitive by tracking performance against delivery service level agreements. A service-level agreement (SLA) defines the level of service you expect from a vendor and lays out the metrics. It also includes remedies or penalties in case the service levels are not achieved.

For example, if your SLA says you will deliver a package by 10 a.m., you can prove that you were there on time or there before the expected delivery time with GPS.

9. Reduced detention time

Detention time can cost fleets up to $1,280 per driver per year. Moreover, according to a DAT survey, only 3 percent of drivers receive detention fees for over 90 percent of their claims to shippers.

That’s why it’s important to reduce the possibility of detention time with GPS tracking and geofencing.

With real-time vehicle tracking and automated geofencing alerts, you can easily identify when a driver enters and exits a facility. This information can help you identify unproductive shippers and receivers that detain drivers for too long and too frequently.

KeepTruckin customers can also use Facility Insights, which shares detailed warehouse information, including average dwell time and peak hours.

Facility Insights - Average Dwell Time

10. Reduced fuel usage

According to a 2018 ATRI report, the operational cost of trucking increased by 7.7 percent from 2017. Of all the different types of operational costs, fuel costs recorded the highest year-over-year growth, a jump of 17.7 percent.

Fuel can be one of the biggest operational expenditures for most fleets. By optimizing fuel usage and reducing waste, fleet managers can make a significant positive impact on profitability.

GPS tracking can help you minimize fuel wastage.

Fleet managers can compare multiple routes with GPS tracking and historical reports, identify the amount of fuel each route takes, and pick the most efficient route to minimize fuel wastage.

With more visibility into operations, location history, and smarter route planning, operating expenses can be cut down significantly.

Improve productivity and profitability with GPS tracking

The KeepTruckin’s fleet management solution comes with a built-in GPS tracking system that allows fleet managers to view each driver’s real-time location on an interactive map.

Additionally, fleet managers can also view the location history for any driver or vehicle to find out exactly where they were at any point in time.

Learn more about GPS tracking and how it can help your business become more efficient, productive, and profitable.

Disclaimer: All content and information on this website is for informational and educational purposes only, does not constitute financial, business, or legal advice. Although KeepTruckin strives to provide accurate general information, the information presented here is not a substitute for any kind of professional advice, and you should not rely solely on this information. Always consult a professional in the area for your particular needs and circumstances prior to making any professional, legal, business and financial or tax-related decisions.

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