How GPS Tracking Saves Your Business Money

by Jill
22. December 2010 18:54

Most of us use GPS Navigation devices to get directions to a destination.  The latest use of GPS Tracking encompasses a similar technology, used to track the current or past whereabouts of others.  It’s more common than we realize.  Tracking devices are commonly used for businesses applications ranging from routing the closest vehicle to an address to ensuring employee safety.  

Recent studies indicate that businesses report a reduction in fuel usage as the biggest advantage of GPS tracking. Monitoring and reducing speeds, routes, and idle time are just a few things that fleet owners can do to lower the fuel bill.

Fact is, each mile per hour above 50 MPH increases fuel consumption by 1 ½ percent. Higher speeds also cause more tire heat, which puts more wear on tires. Wear on tires will just about double at road speeds of 70 MPH or greater.

DashTrac can report all vehicle activity and immediately alert fleet managers by cell phone or email of speeding and unauthorized use of company vehicles. Business owners are most concerned with fuel & maintenance, employee overtime, and employee productivity. 

GPS vehicle tracking solutions significantly reduce costs for businesses:      

1. Fuel & Maintenance - The average operating cost per vehicle is about $1.50 per mile. A company can reduce at least 25 miles per week for each vehicle with a GPS tracking device.      

2. Employee Overtime - The employee overtime rate is estimated at about $30 per hour. On average, a company can reduce at least 1 hour of overtime per week with a GPS fleet tracking system     

3. Employee Productivity - On average, each vehicle could complete at least 1 extra stop, job, or delivery per week with a live GPS tracking unit.

What is the ROI?  For an average size fleet of 10 vehicles, the estimated monthly savings is generally over $6000 with a GPS tracking solution.  The cost of a GPS Tracking Device has significantly dropped over the past 10 years.  A DashTrac device can be purchased for around $200 and can be easily self-installed by plugging directly into a vehicle's OBDII port. It's typical for a company to see their return on investment within about 30-45 days.   

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