The Growing Trend of GPS Tracking: Does it make sense for your business?
According to the 2014 Fleet Management Technology Report, only 45% of businesses currently use GPS tracking to enhance their business. The numbers are lower than expected, considering our lives are rapidly transforming into a world run by technology. So what’s holding back the other 55%? Is it misconceptions or costs? Or is the majority bandwagon unaware of the benefits? It turns out there are a variety of reasons why many companies have yet to adopt a telematics solution, coupled with simply being uninformed on the benefits and ROI that GPS software can bring.
With the addition of any new asset to a company come concerns. With the adoption of a GPS tracking solution, the top concerns of service fleets were that their “drivers would hate it”, the software is a hassle, the software isn’t worth the money, or that all software is the same. But the truth of the matter is the benefits greatly outweigh the costs and concerns. Not only does GPS software come with tangible benefits such as cost savings, reduced idling, time savings, and reduced pollution, but GPS adoption has its intangible benefits as well. You’ll find that with the visible numbers come gains such as improved efficiency and productivity, accountability, employee safety, customer service, and overall bottom line performance.
To give you an idea of just how much you can save, consider a fleet of 25 vehicles. Assume that 1 hour of idle time equates to 1 gallon of gas at $3.60 per gallon. By reducing vehicle idle time from 1 hour per day to just 20 minutes per day, you could be saving $2.41 per vehicle per day. That’s $72.30 per vehicle per month. Take into account your entire fleet, and that’s $22,000 in savings per year from simply reduced idling, one of the many benefits that comes with a GPS solution. Less idling means less pollution, more stops, and ultimately, more money in your pocket; a win-win for everyone involved.
The use of GPS tracking also aids in the recovery of stolen assets. An article published by Auto Fleet revealed that an average of two vehicles are stolen every year with most fleets and are only able to recover less than 50% of their assets. The costs accrued from this percentage can add up on average from $1,000 to $5,000. This amount can severely dent a small startup and can create major setbacks. Besides this initial financial loss, insurance premiums can rise as a result of this loss. With the use of GPS tracking, not only are assets more likely to be recovered, insurance companies offer a discount on premiums with the use of the technology.
What every manager is most concerned with is, of course, the Return on Investment, which takes time. Around 66% of fleets reported to expect full ROI after 1 year or more and 34% reported to expect full return in 6 months or less.
Lucky for you, mobi has got you covered. Head over to our ROI Calculator to see exactly how much mobi’s solutions can save you based on your specific fleet, and how long until you see the ROI. mobi’s suite of products are customizable to every aspect of your business, whether you’re looking to visualize long-range planning, minimize route overlap, or simply take the first step of adopting a GPS tracking solution that will improve your bottom line.