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GPS Fleet Tracking Systems: Debunking the Myths

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Table of Contents

Debunking the Myths ......................................................................................................................................... 1

Myths related to GPS Fleet Tracking Systems ................................................................................................... 2

Adoption ........................................................................................................................................................ 2

Usage .............................................................................................................................................................. 2

Installation and Setup .................................................................................................................................... 3

Benefits of GPS Fleet Tracking Systems in reducing costs ................................................................................. 4

Summary ............................................................................................................................................................ 5

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GPS Fleet Tracking Systems: Debunking the Myths Managing a mobile workforce is not only

challenging, but according to fleet managers, “it is expensive as well." Many fleet managers are

reluctant to invest in GPS-enabled systems to

manage their fleets, as they have bought into the

myth that such systems are too expensive.

Managing a fleet with the right GPS-enabled fleet

tracking system is critical. Every GPS tracking

company must justify the cost of the service to win

over fleet managers, and some obvious points

include saving fuel, labor and maintenance costs.

However, many GPS tracking services have plenty

of other benefits to offer, supporting the argument

that investing in a reliable service that’s right for you will generate optimum return-on-investment.

In addition to questioning whether a GPS-enabled fleet tracking system will save money, fleet managers

often struggle with other apprehensions that cause them to hesitate in investing in a GPS tracking service.

They have bought into the myth that such systems are too expensive, in time and money.

Here are some myths related to GPS fleet tracking along with some facts that should help you find the right

service for your business.

A survey published by Motorola, Inc.,

found that nearly 50 percent of businesses using GPS fleet tracking technologies report:

• A reduction in travel distance by an average of 231.2 miles per week

• An average of $51,582 in yearly fuel savings

Saving approximately 54 minutes per day, with yearly labor savings of $5,484 per employee

GPS ROI Stats and Benefits

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Myths related to GPS Fleet Tracking Systems

Adoption Our employees will not adopt this: Besides keeping a check on employees’ field activity, GPS tracking also

helps field employees by providing greater safety, improved quality of service, and overall reduced fleet

cost. Most important, improved dispatch and routing data creates direct benefits for employees by giving

them the ability to complete more jobs per day. When employees understand the basic use of the

technology and how it helps their interest, they do not hesitate in leveraging the benefits.

If we adopt a GPS tracking system, our drivers will quit: Contradictory to this myth, field workers have been found to

depend on GPS tracking for routing information, roadside

assistance, and verification of work performed on time. GPS

tracking provides security to the drivers and the vehicle, as well

as eliminating time-consuming paperwork.

We trust our people, so we don’t need GPS tracking: Some

fleet managers believe that the only use for GPS tracking is to

keep a check on the mobile workforce. However, GPS fleet

tracking not only helps monitor employees, but also helps

reduce operating costs and inefficiencies in the field. It helps

reduce maintenance costs and fuel consumption, makes routing and dispatching more efficient, offers more

security and safety for drivers, and proactively addresses customers’ queries.

Our employees will not adopt this: Besides keeping a check on employees’ fi eld activity, GPS tracking

also helps field employees by providing greater safety, improved quality of service, and overall reduced

fleet cost. Most important, improved dispatch and routing data creates direct benefits for employees by

giving them the ability to complete more jobs per day. When employees understand the basic use of the

technology and how it helps their interest, they do not hesitate in leveraging the benefits.

Usage

We can track our fleet using cell phones: Many fleet

managers believe that cell phone-based tracking is cheaper

than a GPS-enabled tracking system, and provides easier, more

effective communication with their employees. Although this is

not entirely incorrect, phone-based tracking has many technical

and practical limitations that can lead to inaccurate and

incomplete information.

GPS tracking with a cell phone requires a great deal of phone

battery life as the application constantly accesses signals from

satellites. GPS fleet tracking systems, however, make use of the

vehicle battery, which offers much greater capacity and

minimizes battery issues.

"The software helps us keep

our vehicles on track and

moving. I can manage all our

drivers really easily by

viewing one screen."

Bryan Krieser, Fleet Manager, Acorn Stairlifts

Teletrac's GPS Fleet Tracking Customers Review

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Additionally, installed systems are “always on,” while cell phone GPS systems can easily lose connectivity through a low signal

area, dead battery, or simply by switching the phone off.

Some GPS tracking solutions allow businesses to send and receive

text messages to drivers’ cell phones with a Web-based interface.

Dispatched routes can also be sent to the drivers’ cell phones, making dispatch communication much more efficient.

Cell phones are an important component of GPS tracking, but are

not designed to serve as a comprehensive GPS fleet tracking

system. Cell phones cannot monitor fuel consumption, speeding,

and idle time. They cannot report if a vehicle is stolen. Monitoring

and reporting are within the capabilities of a GPS fleet tracking

system.

This is unproven technology: GPS-enabled tracking technology

has been used effectively for decades. The effectiveness of this

technology in increasing productivity and reducing operational

costs has been carefully calculated and well documented.

All GPS fleet tracking systems are the same: This myth has

some amount of truth. In general, GPS-enabled fleet tracking

systems use the same basic GPS tracking technology. However,

technology is not the most important criteria for choosing a GPS

provider. Liaising between the customer and the service provider

plays a major role in exploiting the best of GPS service.

Not all vendors commit to after-sales services to help customers

leverage GPS tracking technology to grow their business. It is

important for fleet owners to choose a GPS vendor that shows

interest in learning the goals and requirements of the business.

This is just another product: GPS tracking is a service, not just a

product. GPS tracking service vendors can assist in increasing a

company’s overall productivity, efficiency and profitability. While the service plays an important role in tracking the fleet with GPS,

the service provider is crucial for enabling deeper data analysis

with a user-friendly interface.

In addition to basic features, a robust GPS tracking service

provides advanced functionality such as maintenance scheduling,

fuel card reports, and mobile phone applications. User-friendly

software along with the most promising features will give you the

most significant ROI.

Installation and Setup

Hard to install and use: Installing and using a GPS tracker is easy. Commonly, GPS fleet tracking systems

have a GPS receiver, which is connected with a vehicle, and an interface which organizes and displays the

gathered information.

A good GPS tracking service provider will implement the fleet management solution, interpret system data

and apply it to improve operational efficiencies. In general, GPS fleet tracking providers work with fleet

managers and provide both technical and sales support to cover service issues.

“The first month we placed the trackers in our fleet

vehicles our first-call arrival

times were 30 minutes earlier

each day. This increased our

technicians’ productivity, decreased response time and

increased the number of

service calls we could handle

in a day with our current

resources.”

Greg Elliot, Director of Operations,

Standley Systems1

Us Fleet Tracking Testimonials

“It’s a very user friendly system. It took a few months

for us to master some of the

advanced features, but in

terms of the basic vehicle

tracking, and monitoring

speed and idle times, we

were up and running

quickly.”

Mike Ledieff, General Manager, All Valley

Telogis system case study

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Benefits of GPS Fleet Tracking Systems in reducing costs Better routing and dispatching: Routing and dispatching can be managed more effectively and optimized

with GPS fleet tracking systems. They can provide current traffic conditions so drivers can be diverted to

other routes in case of delays. Fleet managers can also determine when fleet vehicles take unauthorized

journeys or extended routes. Better routing means less fuel consumption, thereby increasing profitability.

Decreasing idle time: Drivers often use fleet vehicles for climate

control, costing money to your business. According to Ford Motor

Company, keeping a vehicle idle for an hour is as costly to a

company as driving 25 miles. GPS fleet tracking systems can send

a notification when the vehicle idles for excessive periods of time,

helping your company save fuel and increase productivity.

Managing compliance: Most GPS fleet tracking systems include

a host of tracking and reporting features to help you comply with

state and local regulatory requirements. These compliance items

can be related to reducing violations and penalties such as

speeding violations by the driver. Vehicle violations can also be

reduced through reminders for scheduled maintenance and

inspections, which have the additional benefit of extending

vehicle life and increasing driver safety.

Reducing vehicle speed: Most GPS fleet tracking systems have

an alert feature that can send a notification when a vehicle

exceeds a set speed threshold. The speed monitoring feature

helps to reduce fuel costs by keeping a check on the vehicle

speed.

Preventive vehicle maintenance: GPS fleet tracking systems can

send service alerts for each vehicle based on calendar time. When

fleet vehicles are due for maintenance, fleet owners are notified

via email or reporting suite. A properly serviced and maintained

vehicle gives more mileage as well as better and safer driving

conditions. Proactive vehicle maintenance ensures good business

by reducing vehicle breakdowns and keeping vehicles on the

road.

Visibility of fuel consumption: Fuel cards can be integrated with

GPS fleet tracking systems, giving a clear and precise picture of

fuel consumption. This allows fleet managers to track fuel-wasting

practices or outright fuel theft. It identifies and pinpoints the

causes of high fuel consumption, enforces fuel-saving habits and

ensures that the vehicle runs efficiently, ultimately reducing

overall fuel costs.

“My Logistics managers are

able to see where our

tractors are at any given time

using satellite imagery,

making on-the-fly changes in

routing and operations

seamless.”

Steve Provenzano, Vice President of Logistics, Pro’s Ranch

Telogis system case study

“Since the drivers know they can’t make unscheduled stops or idle for long periods

without us knowing about it,

they’ve been finishing their routes more quickly.”

Mike Ledieff, General Manager, All Valley

Telogis system case study

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Summary

Considering the many myths regarding GPS fleet tracking systems, including use and installation,

affordability, adaptability, reliability and compatibility, these systems have undoubtedly proven to give

maximum ROI with benefits like speed control, notification of vehicle idling, routing, dispatching and

maintenance. It has become necessary for fleet managers to use GPS fleet tracking systems to effectively

manage mobile assets and the mobile workforce, and managers must convince staff to adopt these services

for increased productivity and maximum benefit for the business.

GPS fleet tracking systems are an investment that can contribute to your bottom line. Look at the real costs

and check the short- and long-term benefits to determine if such a system could improve the efficiency and

productivity of your fleet.