Take Control Of Your Fleet’s Performance and ROI With GPS and Telematics System

Fleet management as we know it becomes more and more complicated and gets even harder by the day. Add to that the challenges of keeping the whole operation profitable and it becomes a whole new endeavour. But it doesn’t have to.

The use of GPS tracking and telematics technology can help any struggling fleet manager to keep everything on track and revenue afloat.

And speaking of revenue and profit, it’s worth noting that for both GPS and telematics, a quick return on investment (ROI) is not far away. So if you’re interested, and of course you are, we’ll take a deep dive into getting that ROI faster than you can imagine.

And we’ll provide a step-by-step guide for doing so.

Understanding The Basics

First, let’s take a closer look at the basics of GPS tracking and telematics technology.

GPS tracking involves the use of a GPS device that is installed in a vehicle which communicates with a satellite to determine its location. On the other hand, telematics technology goes beyond simple GPS tracking as it collects and analyzes data on factors such as vehicle speed, fuel consumption, and driver behaviour. The result of all that data is a comprehensive view of your fleet’s performance which can be used to identify areas for improvement and increase efficiency.

So with that out of the way, how can these two get you on track with your sweet sweet ROI?

Automation and Risk Management

One of the most significant benefits of GPS tracking and telematics is automation. Telematics in particular can automate certain tasks and processes which can significantly help reduce the workload on fleet managers. In turn, it ensures that everything is running smoothly on their behalf.

For example, GPS tracking can automatically track the location of your fleet vehicles. At the same time, it can provide real-time updates on their status that help reduce the risk of theft or unauthorized use of company vehicles. This can also help fleet managers stay on top of maintenance and repair schedules.

Risk management is another area where GPS tracking and telematics technology shine and where fleet managers can take proactive steps to reduce accidents and keep their drivers safe. They can do this by monitoring driver behaviour and identifying potential road hazards.

Insurance Premiums and Tax Benefits

Another way that GPS tracking and telematics technology can help is with insurance. Believe it or not, you can generate better ROI by reducing insurance premiums since insurance companies are often willing to offer lower rates to safer companies. And by safer, they mean companies that can demonstrate a commitment to safe driving practices and risk management.

Apart from insurance premiums, there are also tax benefits that you can gain here. Surprisingly, the ATO (Australian Tax Office) does not publish specific returns with telematics but in reality, companies can get a better return when they install good telematics technology in their fleets. The ATO also offers fringe benefits tax (FBT) to companies that issue cars to their employees for personal use.

The trick here is tracking the kilometres driven for personal versus business use so that when fleet companies know that, they can minimize their FBT liability and reduce costs.

Fuel Management

Fuel is among the most significant expenses for fleet managers and one that they have to constantly watch out for. With GPS tracking and telematics technology, these costs can be reduced with ease and together, this pair can identify areas where fuel consumption can be optimised.

And to that point, we can safely say that driver habits and behaviour is often involved as these are directly responsible for fuel consumption. Inefficient driving habits such as idling on breaks and engine revving can take a heavy toll on their fuel but these can be monitored with GPS tracking and telematics technology. And when done properly, fleet managers can take steps to improve fuel efficiency which directly leads to reducing costs and having a significant impact on the fleet’s budget.

Safe Driving and Driver Training

Speaking of driver habits, safe driving and overall road habits are a necessity for the well-being of your drivers. What few might not know is it can also help reduce costs and improve your ROI. Since fleet managers can monitor driver behaviour even from afar, they can look into how it can be improved and they can look into areas where training and education can be provided to improve safety.

For example, a driver is consistently engaging in risky behaviour like speeding when he wants as if cast in the latest instalment of the Fast and the Furious movies. That driver would also brake harshly whenever he/she pleases.

Sounds problematic? Sure.

But fleet managers can easily pick up on this and provide training on areas to improve and they can implement safer driving practice training for any “crazy” drivers once detected. After all, the end goal here is to reduce the risk of accidents and minimize repair costs.

Incentives and ROI

And we’re sure you can guess by now, the main focus here is the drivers. Drivers that are on the road constantly take centre stage in any aspect of the fleet that’s worth monitoring.

So something that fleet managers can go even deeper in monitoring, other than driving habits, is their overall behaviour while on the road. They can also go the other route in managing that same behaviour. Where they give further training to aggressive drivers, they can also incentivize safe driving behaviours which remains to be an effective way to improve ROI and motivate drivers at the same time. When fleet managers implement an effective incentive program, they can meet performance metrics and at the same time, can help reduce costs and improve ROI.

For example, they can implement an “employee of the month” program. As old as it may seem, it’s still an effective way to award good behaviours among drivers. They can give rewards like a gift card or extra time off to the best driver each month which may seem like an additional cost for no good reason to some but you’d be surprised at what it can do. A little extra cost to reduce risk-taking behaviours will lead to a better bottom line at the end of the day.

Additionally, driver training courses can also be used as another form of incentive for drivers. They can use that to improve their skills and adopt safer driving habits. With those, fleet managers can encourage drivers to take an active role in ensuring the fleet’s ROI.

Solid Overall Management

Finally, nothing beats good old-fashioned solid overall management. You may have the best telematics and GPS tracking but with poor management, you’d still fall broke.

Implementing GPS tracking and telematics technology in your fleet management strategy is not just about installing the hardware as it requires a comprehensive approach that encompasses everything. It goes from risk management and insurance premiums to fuel management and driver training.

Remember that the ROI of implementing GPS tracking and telematics technology in your fleet management strategy is not automatic and that action still needs to be taken by management to leverage all the data provided. Someone will have to take charge and use it to optimise the whole fleet and make informed decisions that drive better outcomes.

Parting Words

It’s important to recognize that achieving a return on investment (ROI) should not be a hasty race. Safety and driver education are critical components that can go a long way in enhancing the performance and profitability of any fleet business. While cutting-edge technology may be beneficial, it’s ultimately futile if companies fail to make sound decisions that contribute positively to their bottom line. So prioritize safety and education while leveraging technology and you’ll be on the road to a quick ROI.