ROI Calculator: How Do Telematics & Fleet Tracking Save Your Business Time and Money?
Where does all the time and money go? For nearly every business we speak to, there’s always a need for time savings and cost savings. It just depends on what’s causing the bottleneck. Think about the constraints in your fleet management from fuel costs to labor to vehicle maintenance to compliance: there are viable, cost-effective solutions within reach.
You can use the ROI calculator at the end of this article that will help you accurately estimate what you could save and where you could increase revenues in your fleet. First, let’s look at exactly how fleet management makes such a difference!
Creating Operational Efficiencies with a Fleet Management Platform
When it comes to operations, there are several ways a fleet management system can help improve your fleet and save you money. From reducing the risk of accidents to route optimization to using data to dynamically schedule and deploy drivers, the possibilities are far-reaching. When it comes to the systematic management of your personnel and vehicle fleet, telematics, in-vehicle monitoring and coaching are the trifecta for success. In fact, A study from the Virginia Tech Transportation Institute observed a fleet of oilfield workers and found that instances of speeding dropped by 60% and aggressive driving decreased by 50% when they implemented in-vehicle monitoring systems along with being coached to avoid excessive speed, sharp turns and hard braking.
Generating Truck & Van Fuel Savings with Tracking & Monitoring
One of the biggest expenses for any fleet is fuel. Trucks don’t move without it. Here are a few specific ways that telematics and tracking move the needle:
Ineffective routes don’t just waste time and affect your ETAs. They burn precious fuel resources. So route optimization is just as much about saving on fuel costs as it is about getting from point A to point B in record time.
Monitoring error codes
Idling and long routes aren’t the only way trucks waste gas. A poorly maintained engine can burn up to 50% more fuel. Issues like faulty sparkplugs and overheating are telltale signs of problems and wasted efficiency. Monitoring error codes in real-time can spot issues before they become breakdowns that result in unplanned downtime.
Modifying driver behavior
Sometimes, cost savings come directly from accountability. For instance, fleet owner Jim B. had this to say once he was able to track driver movements and idle times:
“When the gas costs went through the roof, I was looking at idle times and going, why aren’t you turning your truck off? ”
Luckily, Jim was able to curb this behavior quickly. But he wouldn’t have gained that insight without first monitoring idle times.
Lowering Fleet Maintenance Costs via Realtime Data
As we mentioned above, faulty parts and general wear and tear can make a big impact on your vehicle’s performance. But that’s not all. A well-maintained vehicle will also last a lot longer. In fact, the average lifespan of a medium-duty truck can be extended by as much as 120,000 miles with GPS Trackit.
Monitoring each vehicle’s error codes separately can be a nightmare. But there’s an easier, more intuitive way to log these reports. Here’s what Tim D. said about the impact of the GPS Trackit solution on one aspect of reporting:
“We started this relationship as an experiment to see how GPS tracking of vehicles could impact our operations as a construction company. The first 10 vehicles tracked eventually grew to 168 and went on to track our full fleet of over 200 vehicles. The initial interest was in preparing State Mileage reports. That process went from a manual effort requiring 1 hour per truck per month for 30 vehicles to six clicks of the mouse to handle all vehicles for the month. That savings alone paid for the cost of the units.”
Creating Compliance Savings by Reducing Risk
Telematics doesn’t just save money. It saves lives. Insurance industry analyses have shown that average claim costs per mile are 8-13% lower for telematics-equipped vehicles. And when the average cost for large-truck accidents is about $120,000 ($4.8 million when fatalities are involved), those claims can easily bankrupt a company. But there’s good news. A Virginia Tech study found that the combination of an onboard safety monitoring device with driver feedback and coaching resulted in a 52.2% reduction in safety-related events and a 59.1% reduction in the most severe safety-related events.
How to Calculate Potential Revenue Increases & Annual Savings from Fleet Management Systems
Most GPS Trackit customers start seeing their return on investment in less than a month. Customers report an average 40% increase in productivity after implementing fleet management AND a nearly 40% decrease in idle time by monitoring their fleet with our solution.
In this case, we’ve done all the work for you. This easy ROI calculator will break down each of the key areas above: fuel savings, operational savings, maintenance savings and compliance savings in a clear, concise depiction of what the benefits of the GPS Trackit fleet management solution would look like — for you.
If you’d like to learn more about how GPS Trackit can help you optimize your fleet management and telematics, speak with one of our knowledgeable Fleet Advisors at 866-320-5810 or get a quick Custom Quote.
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