How Does Vehicle Tracking Save Money?

In today’s economic climate more companies are seeking new ways to cut operational costs whilst at the same time looking to improve employee productivity. Vehicle tracking offers companies with a fleet of vehicles of any size to tick both of these boxes. This article outlines the cost saving benefits that vehicle tracking offers.

There are many features that vehicle tracking offers and whilst not all of these will benefit a business the 1 or 2 that can will still mean that a tracking system remains a worthwhile investment.

Fuel Saving:

Tracking helps companies to minimise fuel wastage. For many fleets a lot of fuel is wasted through unnecessary and excessive idling, vehicle tracking systems actively monitor idling and can provide an alert notification when a vehicle exceeds predefined idling times thus allowing a fleet manager to manage the levels of idling in real time. The tracking system is also able to generate idling reports allowing fleet managers to identify where improvements can be made.

Fuel can also be saved through journey optimisation ensuring that the most fuel and time efficient routes are taken by drivers as opposed to taking the scenic route. This not only prevents fuel wastage but also improves productivity as the driver will spend less time travelling between destinations.

Mileage Claim & Time Sheets:

Tracking systems are able to generate accurate mileage and time sheet reports. These reports have saved many companies that have previously used paper based time sheets and mileage claim forms valuable time. The automated mileage and time sheets save money as they prevent employee inaccuracies and abuse and they have saved companies more than 10% of the total value of claims which means that the tracking system has paid for itself.

Communication:

Many companies that have a fleet of vehicles that need to respond to incoming customer requests spend a lot of time on the phone to drivers to simply locate the best placed driver to respond to a customer. Tracking displays vehicle locations in real time which means that the best placed vehicle to respond to a customer can be easily and quickly located so that calls between the office and driver can be dramatically reduced. In turn customer service is also improved.

Insurance Discounts:

Many insurers offer premium discounts of up to 30% for companies that have tracking installed. Tracking also increases vehicle security as it tracks the vehicles location 7 days a week which means that should the vehicle be stolen the tracking system can assist in quickly locating and recovering the stolen vehicle. Tracking also helps fleet managers to ensure that their employees are driving responsibly within speed limits and has also proved successful when used to dispute claims made against your driver for causing an accident.

Due to the various purchase options vehicle tracking has such as: outright purchase, lease, rolling contract and rental, business’s have the flexibility to pay for the system in a way that best suits their business. Monthly payments options provided by leasing and rental means that the cost savings companies can achieve result in the tracking system paying for itself thus an immediate return in investment.