GPS tracking dispatching efficiencyGPS tracking systems can help you save money in several ways, including improving dispatching efficiency. It’s a simple concept: the more efficiently you can dispatch your fleet, the more profit you will have. It comes down to a combination of two factors:

  1. Maximizing labor costs – Every minute that your drivers are on the road, they cost you money. In addition to fuel use and vehicle mileage, you have to pay for their time. Any time not spent with a customer detracts from your overall profit. The more time each driver spends at a customer site, the more you get from your labor expenses.
  2. Increasing daily service calls – Any business that charges per visit or for time spent at a customer site needs to maximize the amount of time spent serving customers. More efficient dispatching means you can serve more customers in a day, which translates to more billable time and greater revenue for your.

How Does GPS Tracking Improve Dispatching Efficiency?

Using the two factors outlined above, you can determine just how much efficient dispatching will help you save over time. Even if you add just one service call per vehicle per day, the numbers can quickly add up, helping you grow the bottom line.

Let’s use this basic example to illustrate how much you can save with GPS tracking:

  • Assume you have a fleet with 10 vehicles and you pay each driver $20/hour. If efficient dispatching can reduce every vehicle’s drive time by one hour each day, that’s $200/day in labor costs that you can redirect to more profitable activities.
  • If reducing drive time by one hour per day per vehicle allows you to add one more site visit for each driver, your revenue will increase accordingly. If you charge$85/visit and are able to add 10 more service calls each day, that’s another$850/day that you could not have made without efficient dispatching.
  • Accounting only for labor costs, in this scenario you would make an additional$650/day in gross profits, which is a significant improvement over the $200/day in labor costs that you would be losing without improving dispatching efficiency.

Of course, every business is different and your ROI will depend on your industry, the size of your fleet, how many drivers are assigned to each vehicle, and several other factors.

GPSTrackIt can help you determine the return on your investment for any GPS tracking system you select. Whether you want to focus on conserving fuel, reducing engine hours, maximizing your labor budget, or all of the above, we can work with you to calculate just how much you will save. Request a quote today to speak with a representative.

How much money do you think you could save with more efficient dispatching?

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