You have already learned about how GPS tracking can help you save on fuel costs. Another primary component that should be factored into calculating the return on your investment is the money you will save with increased productivity and efficiency. The better you can monitor your staff and their behavior, the more efficient they will become.
How to Improve Performance with GPS Tracking
Historically you had to rely on drivers to be honest about the way they spend their time in the field. If you have been in the fleet management business for a long time, you know how many labor dollars have been wasted on long lunches, personal detours, and other behavior that contributes to inefficiency. However, modern technology has made it possible to monitor driver activities without breaking the bank. Fleet GPS allows you to:
- Reduce overtime hours
- Monitor driver locations
- Track idling time
- Create alerts around forbidden areas
- Dispatch drivers more efficiently
- Select smarter routes to reduce drive time
- Optimize customer site visits
- Verify time sheets
- Reduce billing time for administrative staff
- Run detailed reports on driver behavior
- View quick analytics reports to compare activity over time
All of these features translate to better driver performance and more work for your labor dollar.
Calculating the ROI of Improved Performance with GPS Tracking
Improving efficiency will allow you to reduce costs, but just how much money can you save? The ROI for every business is different, but you can use this basic example to think about how much wasted labor is costing you every year:
Assume you have 10 vehicles in your fleet and assign only one driver per vehicle. You pay your employees $20 per hour. If GPS tracking can save you just 2 hours per week, you are saving about 8.6 hours per vehicle per month. For 10 vehicles, the monthly savings can quickly add up:
$20/hour x 8.6 hrs/vehicle/month x 10 vehicles = $1,720 in monthly payroll savings
$1,720/month x 12 months = $20,640 in annual payroll savings
As you can see, the ROI of GPS tracking is much more than just pennies or even hundreds of dollars. Saving more than $20,000 is not insignificant, no matter how large or small your business is. If you have more than one employee per vehicle, this number can quickly expand.
Remember, productivity is not the only factor that contributes to ROI. You can also save on fuel costs, Section 179 taxes, and insurance costs for your entire fleet.
If you are interested in learning more about how GPS tracking can save money for your business, contact the experts at GPSTrackIt. Get started with a free price quote today.
How much money do you think you could save on payroll with fleet GPS?