Debunking Common Fleet Tracking Myths

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    21-Jan-2015

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Managing a mobile workforce is challenging. So what keeps fleet managers from enabling GPS tracking systems? Unfortunately, there are several misunderstandings about GPS fleet tracking that make managers reluctant to invest in these systems. Many have bought into the myths that GPS fleet tracking is expensive and time-consuming. The reality is GPS fleet tracking systems not only save on the obvious fuel, labor, and maintenance costs but they also have plenty of other benefits, like efficient dispatching and routing. The following guide breaks down these common myths, and provides valuable information on how you can use GPS fleet tracking systems to benefit your productivity, quality of service, safety, and bottom line.

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  • 1. GPS Fleet Tracking Systems:Debunking the Myths 2014 Business.com Media, Inc. All Rights Reserved.1900 Wright Place, Suite 250Carlsbad, CA 92008(888) 441-4466

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Table of ContentsDebunking the Myths ......................................................................................................................................... 1Myths related to GPS Fleet Tracking Systems ................................................................................................... 2Adoption ........................................................................................................................................................ 2Usage .............................................................................................................................................................. 2Installation and Setup .................................................................................................................................... 3Benefits of GPS Fleet Tracking Systems in reducing costs ................................................................................. 4Summary ............................................................................................................................................................ 5 2014 Business.com Media, Inc. All Rights Reserved. 2 3. GPS Fleet Tracking Systems:Debunking the MythsManaging a mobile workforce is not onlychallenging, but according to fleet managers, it isexpensive as well." Many fleet managers arereluctant to invest in GPS-enabled systems tomanage their fleets, as they have bought into themyth that such systems are too expensive.Managing a fleet with the right GPS-enabled fleettracking system is critical. Every GPS trackingcompany must justify the cost of the service to winover fleet managers, and some obvious pointsinclude saving fuel, labor and maintenance costs.However, many GPS tracking services have plentyof other benefits to offer, supporting the argumentthat investing in a reliable service thats right foryou will generate optimum return-on-investment.In addition to questioning whether a GPS-enabled fleet tracking system will save money, fleet managersoften 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.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 savingsSaving approximately 54 minutes per day, with yearly labor savings of $5,484 per employeeGPS ROI Stats and BenefitsHere are some myths related to GPS fleet tracking along with some facts that should help you find the rightservice for your business. 2014 Business.com Media, Inc. All Rights Reserved. 1 4. Myths related to GPS Fleet Tracking SystemsAdoptionOur employees will not adopt this: Besides keeping a check on employees field activity, GPS tracking alsohelps field employees by providing greater safety, improved quality of service, and overall reduced fleetcost. Most important, improved dispatch and routing data creates direct benefits for employees by givingthem the ability to complete more jobs per day. When employees understand the basic use of thetechnology 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 todepend on GPS tracking for routing information, roadsideassistance, and verification of work performed on time. GPStracking provides security to the drivers and the vehicle, as wellas eliminating time-consuming paperwork.We trust our people, so we dont need GPS tracking: Somefleet managers believe that the only use for GPS tracking is tokeep a check on the mobile workforce. However, GPS fleettracking not only helps monitor employees, but also helpsreduce operating costs and inefficiencies in the field. It helpsreduce maintenance costs and fuel consumption, makes routing and dispatching more efficient, offers moresecurity 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 trackingalso helps field employees by providing greater safety, improved quality of service, and overall reducedfleet cost. Most important, improved dispatch and routing data creates direct benefits for employees bygiving them the ability to complete more jobs per day. When employees understand the basic use of thetechnology and how it helps their interest, they do not hesitate in leveraging the benefits.UsageWe can track our fleet using cell phones: Many fleetmanagers believe that cell phone-based tracking is cheaperthan a GPS-enabled tracking system, and provides easier, moreeffective communication with their employees. Although this isnot entirely incorrect, phone-based tracking has many technicaland practical limitations that can lead to inaccurate andincomplete information.GPS tracking with a cell phone requires a great deal of phonebattery life as the application constantly accesses signals fromsatellites. GPS fleet tracking systems, however, make use of thevehicle battery, which offers much greater capacity andminimizes battery issues."The software helps us keepour vehicles on track andmoving. I can manage all ourdrivers really easily byviewing one screen."Bryan Krieser, Fleet Manager, AcornStairliftsTeletrac's GPS Fleet TrackingCustomers Review 2014 Business.com Media, Inc. All Rights Reserved. 2 5. Additionally, installed systems are always on, while cell phoneGPS systems can easily lose connectivity through a low signalarea, dead battery, or simply by switching the phone off.Some GPS tracking solutions allow businesses to send and receivetext messages to drivers cell phones with a Web-based interface.Dispatched routes can also be sent to the drivers cell phones,The first month we placedmaking dispatch communication much more efficient.the trackers in our fleetCell phones are an important component of GPS tracking, but arevehicles our first-call arrivalnot designed to serve as a comprehensive GPS fleet trackingtimes were 30 minutes earliersystem. Cell phones cannot monitor fuel consumption, speeding,each day. This increased ourand idle time. They cannot report if a vehicle is stolen. Monitoringtechnicians productivity,and reporting are within the capabilities of a GPS fleet trackingdecreased response time andsystem.increased the number ofThis is unproven technology: GPS-enabled tracking technologyservice calls we could handlehas been used effectively for decades. The effectiveness of thisin a day with our currenttechnology in increasing productivity and reducing operationalresources.costs has been carefully calculated and well documented.Greg Elliot, Director of Operations,All GPS fleet tracking systems are the same: This myth hasStandley Systems1some amount of truth. In general, GPS-enabled fleet trackingsystems use the same basic GPS tracking technology. However,Us Fleet Tracking Testimonialstechnology is not the most important criteria for choosing a GPSprovider. Liaising between the customer and the service providerplays a major role in exploiting the best of GPS service.Not all vendors commit to after-sales services to help customersleverage GPS tracking technology to grow their business. It isIts a very user friendlyimportant for fleet owners to choose a GPS vendor that showssystem. It took a few monthsinterest in learning the goals and requirements of the business.for us to master some of theadvanced features, but inThis is just another product: GPS tracking is a service, not just aproduct. GPS tracking service vendors can assist in increasing aterms of the basic vehiclecompanys overall productivity, efficiency and profitability. Whiletracking, and monitoringthe service plays an important role in tracking the fleet with GPS,speed and idle times, wethe service provider is crucial for enabling deeper data analysiswere up and runningwith a user-friendly interface.quickly.In addition to basic features, a robust GPS tracking serviceMike Ledieff, General Manager, Allprovides advanced functionality such as maintenance scheduling,Valleyfuel card reports, and mobile phone applications. User-friendlyTelogis system case studysoftware along with the most promising features will give you themost significant ROI.Installation and SetupHard to install and use: Installing and using a GPS tracker is easy. Commonly, GPS fleet tracking systemshave a GPS receiver, which is connected with a vehicle, and an interface which organizes and displays thegathered information.A good GPS tracking service provider will implement the fleet management solution, interpret system dataand apply it to improve operational efficiencies. In general, GPS fleet tracking providers work with fleetmanagers and provide both technical and sales support to cover service issues. 2014 Business.com Media, Inc. All Rights Reserved. 3 6. Benefits of GPS Fleet Tracking Systems in reducing costsBetter routing and dispatching: Routing and dispatching can be managed more effectively and optimizedwith GPS fleet tracking systems. They can provide current traffic conditions so drivers can be diverted toother routes in case of delays. Fleet managers can also determine when fleet vehicles take unauthorizedjourneys or extended routes. Better routing means less fuel consumption, thereby increasing profitability.Decreasing idle time: Drivers often use fleet vehicles for climatecontrol, costing money to your business. According to Ford MotorCompany, keeping a vehicle idle for an hour is as costly to acompany as driving 25 miles. GPS fleet tracking systems can senda notification when the vehicle idles for excessive periods of time,helping your company save fuel and increase productivity.My Logistics managers areManaging compliance: Most GPS fleet tracking systems includeable to see where oura host of tracking and reporting features to help you comply withtractors are at any given timestate and local regulatory requirements. These compliance itemsusing satellite imagery,can be related to reducing violations and penalties such asmaking on-the-fly changes inspeeding violations by the driver. Vehicle violations can also berouting and operationsreduced through reminders for scheduled maintenance andinspections, which have the additional benefit of extendingseamless.vehicle life and increasing driver safety.Steve Provenzano, Vice President ofLogistics, Pros RanchReducing vehicle speed: Most GPS fleet tracking systems havean alert feature that can send a notification when a vehicleTelogis system case studyexceeds a set speed threshold. The speed monitoring featurehelps to reduce fuel costs by keeping a check on the vehiclespeed.Preventive vehicle maintenance: GPS fleet tracking systems cansend service alerts for each vehicle based on calendar time. Whenfleet vehicles are due for maintenance, fleet owners are notifiedSince the drivers know theyvia email or reporting suite. A properly serviced and maintainedcant make unscheduledvehicle gives more mileage as well as better and safer drivingstops or idle for long periodsconditions. Proactive vehicle maintenance ensures good businesswithout us knowing about it,by reducing vehicle breakdowns and keeping vehicles on thetheyve been finishing theirroad.routes more quickly.Visibility of fuel consumption: Fuel cards can be integrated withMike Ledieff, General Manager, AllGPS fleet tracking systems, giving a clear and precise picture ofValleyfuel consumption. This allows fleet managers to track fuel-wastingpractices or outright fuel theft. It identifies and pinpoints theTelogis system case studycauses of high fuel consumption, enforces fuel-saving habits andensures that the vehicle runs efficiently, ultimately reducingoverall fuel costs. 2014 Business.com Media, Inc. All Rights Reserved. 4 7. SummaryConsidering the many myths regarding GPS fleet tracking systems, including use and installation,affordability, adaptability, reliability and compatibility, these systems have undoubtedly proven to givemaximum ROI with benefits like speed control, notification of vehicle idling, routing, dispatching andmaintenance. It has become necessary for fleet managers to use GPS fleet tracking systems to effectivelymanage mobile assets and the mobile workforce, and managers must convince staff to adopt these servicesfor 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 costsand check the short- and long-term benefits to determine if such a system could improve the efficiency andproductivity of your fleet. 2014 Business.com Media, Inc. All Rights Reserved. 5