As technology continues to advance, companies are finding new and innovative ways to streamline their operations and increase efficiency. One technology that has been gaining popularity in recent years is GPS tracking. By utilising GPS trackers, companies can save money in a variety of ways, from reducing fuel costs to optimising routes and increasing productivity.

In this article, we will explore how companies can save money by using GPS trackers.

One of the most significant expenses for companies that operate a fleet of vehicles is fuel. Fuel costs can quickly add up, especially if vehicles are driven inefficiently.

By using GPS trackers, companies can monitor the routes taken and how the vehicle has been driven in order to identify areas where fuel usage can be reduced. A study by Geotab found that aggressive driving, such as speeding and rapid acceleration, can increase fuel consumption by up to 40 percent. For example, if a driver is consistently driving at high speeds, the company can work with the driver to encourage them to slow down, which will save fuel.

GPS trackers can also be used to identify idling vehicles, which waste fuel unnecessarily. According to a report by the U.S. Department of Energy, idling can waste up to one gallon of fuel per hour.  By tracking the idling time of vehicles, companies can take steps to reduce this time, such as turning off engines when vehicles are parked.

Another way companies can save money with GPS trackers is by optimising their routes. A study by Verizon Connect found that 54% of fleet managers use GPS tracking to optimise routes in order to lower fuel consumption.

GPS trackers allow companies to track the location of their vehicles in real-time, which enables them to create more efficient routes that reduce travel time and fuel consumption. By planning routes in advance, companies can also avoid traffic and road closures, which can save time and reduce fuel usage.

In addition, GPS trackers can help companies make adjustments to their routes on the fly. For example, if a driver is delayed due to traffic, the company can use GPS tracking to redirect the driver to a faster route, which can help them make up lost time and reduce the overall time of the journey.

Depending on the software used, historical data can also be shown. This allows companies to see which routes have been taken in the past and compare different routes or routes taken by different drivers to see which routes are quicker, shorter or allow for more consistent speeds.

Some GPS trackers can also help companies monitor the behaviour of their drivers, which can improve safety and reduce the risk of accidents. According to the Insurance Information Institute, aggressive driving is a factor in up to 56 percent of fatal crashes.

By tracking driving habits such as speed, acceleration, and braking, companies can identify drivers who are driving aggressively or unsafely.

There are various options to improve driving standards. Simply providing feedback may be enough to prompt change. Showing comparisons between drivers can foster competition to improve or incentivising drivers are all ways to try and improve driver behaviour for the benefit of the company and the individual.  It may also be worth offering driver training to some or all drivers. This can be cost effective especially if insurance costs are reduced due to less risk of accidents.

In addition, GPS trackers can be used to monitor driver hours and ensure that drivers are not driving for extended periods, which can increase the risk of accidents. By ensuring that drivers take adequate breaks and rest, companies can reduce the risk of accidents and improve safety.

Another way companies can save money with GPS trackers is by improving productivity. By tracking the location of their vehicles and the status of their deliveries, companies can ensure that their vehicles are being used efficiently and that their drivers are not wasting time on non-work-related activities.

GPS trackers can also be used to monitor the time that vehicles spend at delivery locations. By tracking the time that drivers spend at each location, companies can identify areas where there are bottlenecks or delays and take steps to address them. By reducing the time that vehicles spend at delivery locations, companies can increase the number of deliveries that they can make in a given day, which can increase revenue and profitability.

This is backed up by research from Verizon Connect that found that 52% of companies they surveyed using GPS tracking saw increases in productivity.

Finally, GPS trackers can help companies reduce the risk of theft and vandalism. By tracking the location of their vehicles, companies can quickly identify if a vehicle has been stolen or is being used in an unauthorised manner. This can enable the company to take swift action and recover the vehicle before any damage is done.

GPS trackers can also be used to monitor the activity of vehicles when they are parked. By monitoring the location and movement of parked vehicles, companies can quickly identify any suspicious activity, such as attempted theft or vandalism.

GPS trackers can be a valuable tool for companies operating fleets of vehicles. By using GPS trackers, companies can reduce fuel costs, increase productivity and improve driver behaviour for the benefit of both the company and the individual.