Vehicle tracking systems have been used for quite some time now and these systems have proved invaluable for fleet managers who have a pivotal role to oversee the proper functioning of an organization’s fleet of vehicles, especially ones who are involved in core logistics.
An advanced vehicle tracking system can assist fleet managers in accomplishing their goals. But in hindsight, it can also increase fleet profit for companies.
We know that a fleet management vehicle tracking system can offer a wealth of data to fleet managers, without them having to question and distract the drivers for every little thing.
But besides empowering fleet managers with real-time tracking and helping them scrutinize drivers’ behavior, well-seasoned telematics systems can facilitate cost savings along with time. This article describes the most prominent ways a vehicle tracking systemcan do that.
8 Ways to Increase Fleet Profit
1. Enhancing Fuel Efficiency
Fuel expenses are a cause of great concern for any logistics company and for SMEs as well. With fuel prices touching the skies, fleet managers keep looking for ways to increase fuel efficiency and save fuel costs.With smart tracking solutions, they can make it possible. This can be done by looking at the data on rash driving, vehicle idling time, and harsh braking. Such habits can lead to wastage and over-consumption of fuel.
By analyzing this data, fleet managers can take necessary measures to combat the situation. They can offer feedback and provide necessary training to drivers which can lead to better driving and eventually, cutting down on fuel costs.
2. Finding Better Routes
Route optimization is another well-known and highly used feature of a telematics system. Inappropriate routing can lead to unwanted fuel consumption along with delayed delivery.But with smart tracking solutions, companies can minimize fuel consumption by charting the most effective routes which will significantly reduce the overall time, leading to profitability.
3. Proactive Maintenance
Maintenance is another cause of concern for fleet managers. Sudden breakdowns and unwanted incidents are some common problems encountered during transport. Add the repair expenses with the much-needed maintenance costs, and you will see that these costs can greatly impact profits.A fleet management vehicle tracking system cannot predict unplanned incidents. Still, it surely can help fleet managers by monitoring vehicle health and sending alerts to fleet managers before they cause any major issues.
With proactive maintenance, organizations can at least reduce the probability of unwanted breakdowns, reduce extra repair costs, and extend the life of their fleet of vehicles, leading to more profits.
4. Reducing Overtime
One of the biggest advantages of having smart tracking solutions is that it can offer exact data on locations, and vehicle performance parameters along with driver schedules and working hours. With this data, fleet managers can easily manage, optimize, and reduce overtime costs.They can assign new tasks too based on location and schedules. For example, if a driver has delivered a consignment before time and happens to be near another delivery location, then instead of sending out a fresh vehicle, managers can assign the task to the nearby vehicle. Such overtime cost-cutting can actually lead to significant profits over time.
5. Increased Safety and Security
Among the unwanted incidents mentioned above, vehicle theft, vandalism, and unauthorized usage are the alarming ones. Such incidents can have a devastating effect on delivery, customer satisfaction, and last but not least, company profitability.First and foremost, in case of any theft or vandalism, drivers can immediately report to managers. They can then share the real-time vehicle data with the police department which can help alleviate the recovery process.
A vehicle tracking system can also prevent vehicle misuse because as the drivers know that their movements are tracked, they are less likely to conduct any improper vehicle usage.
6. Save on Insurance
A huge benefit of implementing smart tracking solutions is that they can help you save on insurance costs. How? That’s because insurance companies are more likely to offer discounts to organizations that use vehicle tracking systems.Insurance companies are aware of the fact that with telematics systems, organizations can significantly reduce the risk of accidents, and the vehicles are also maintained properly.
Since drivers are aware that their driving, location, and other data are continuously monitored, they will try and avoid risky driving behaviors like tailgating and speeding, thereby leading to fewer chances of accidents.
7. Compliance with Industry Standards and Regulations
When it comes to transportation, different regions have their own set of rules and regulations. Each one can have its own industry standards regarding breaks, total driving hours, and vehicle maintenance.Non-compliance with these rules can lead to lawsuits, penalties, or other legal issues and their resolution can become a costly affair for companies. Vehicle tracking systems with their AI-powered algorithms can automatically update drivers about these rules when they enter other zones.
This ensures compliance with legal laws and industry rules, mitigates the risk of violations, and brings down the additional expenses that come with it.
8. Weight and Load Optimization
Optimizing cargo load distribution can help in increasing overall ROI. Vehicle tracking systems offer real-time insights into load distribution.By utilizing this data, fleet managers can ensure that vehicles carry maximum load without exceeding their limits as that can lead to extra pressure on the engine leading to poor performance and maintenance costs. Reducing the extra weight per trip can lead to better vehicle performance which means more cost savings.
Summing Up
The fleet management sector is a competitive and costly one, especially due to fuel costs. Fleet managers are always in search of ways that can boost fleet profitability but they can’t do it all on their own.Thanks to the advanced smart tracking solutions for fleet management, fleet managers can now have the much-needed assistance.
The array of benefits offered by these vehicle tracking systems can help companies optimize their routes, avoid accidents, manage maintenance, plan delivery schedules, and lower insurance costs which can lead to increased profitability for companies.