7 Ways Vehicle Tracking Can Lower Costs

We are frequently asked about the benefits of vehicle tracking and how it can help reduce costs. Our years of experience show that both fleet managers and business owners are often surprised by the efficiency savings that a vehicle tracking solution can offer.

Let’s explore 7 ways vehicle tracking can help cut your fleet operating costs.

1 – Reduced Fuel Costs

Vehicle tracking enables you to monitor factors like vehicle speed, acceleration and deceleration intensity, and time spent in traffic. This data helps identify why fuel consumption might be higher than expected.

This ties into driver behavior monitoring, which helps train employees to drive efficiently. Tracking vehicle speed and promoting defensive driving reduces speeding and leads to better fuel economy.

By reducing aggressive acceleration, a major cause of fuel waste, vehicle tracking helps maintain optimal speed, enhancing fuel efficiency across your fleet.

2 – Optimized Routing

Building on the first point, vehicle tracking reveals which drivers are not using the most efficient routes. Sometimes the shortest route isn’t the quickest or most fuel-efficient.

Fleet managers who optimize routes will see benefits such as faster deliveries, lower costs, reduced time waste, and increased efficiency. Tracking also helps identify inefficient drivers and issues like unauthorized breaks, vehicle misuse, and excessive journeys without rest periods.

3 – Reduced Wear & Tear

Enhancing driving efficiency and route optimization also reduces vehicle wear. Less aggressive braking decreases tire and brake wear, and better driving habits reduce engine strain. Optimized routes lead to shorter journeys, lowering overall mileage. These improvements result in higher residual value for your vehicles and reduced maintenance costs.

4 – Reduced Waste

Fleet drivers often let their vehicles idle excessively during traffic or rest periods, wasting fuel. Effective vehicle tracking and driver guidance can reduce this idle time. Monitoring and educating drivers on reducing idle time and mindful use of air conditioning or heating can make a significant difference over the year.

5 – Minimized Theft Risk

While vehicle tracking might not prevent theft, it helps mitigate its impact. Tracking your vehicle’s location makes it easier to report and recover stolen vehicles, reducing costs related to theft, such as employee downtime, increased insurance premiums, transport costs, lost equipment, and damaged customer relationships.

6 – Reduced Paperwork

Vehicle tracking software reduces the paperwork required across the company. Drivers no longer need to manually track metrics like mileage or fill out extensive fleet-related documents. Automation of these processes frees up time for more critical tasks, improving efficiency and productivity while minimizing administrative costs.

Vehicle tracking can also replace timesheets, accurately tracking operational hours to ensure drivers are paid correctly, with overtime claims verified.

7 – Insurance Benefits

The trend towards better, safer, and more efficient driving resulting from vehicle tracking appeals to insurance companies. This can lead to reduced premiums and a better relationship with your insurer.

Considering all these benefits, it’s clear how vehicle tracking can become an essential tool for fleet managers looking to improve their bottom line.

Stay tuned to our blog for more tips on how vehicle tracking can enhance your fleet management.