In today’s business world, vehicle tracking is no longer a “nice to have” feature—it’s essential. A vehicle tracking system (VTS) allows you to track and manage your fleet of vehicles in real time, providing valuable insights into your business operations.
Businesses in the transportation and logistics industry must have a VTS or fuel card for business, as many moving parts need coordination to keep things running smoothly.
In this post, we’ll highlight six reasons why fleet-based businesses need a VTS and why they should start utilizing one today:
1. Improve vehicle utilization and optimize routes
Proper vehicle utilization can help reduce overall operating costs. This is because a vehicle tracking system can identify unutilized vehicles and optimize routes, thereby reducing fuel and operating costs.
For instance, if you have a vehicle sitting idle for long periods, you can reassign it to another task. Or, if you see that one of your vehicles will take a longer, inefficient route, you can dispatch a different vehicle closer to the destination.
2. Reduce fuel consumption
With a GPS tracking device like this, you can observe your vehicle’s route and how long it took to reach its destination.
If you realize that a vehicle may have used a longer route, you can change its route or offer additional training for the driver. This simple modification can save, for example, 30 gallons per month. In a year, that’s enough to fill your vehicle’s tank three times.
3. Improve driver safety and compliance
Most vehicle tracking systems have driver safety features to keep your fleet—and drivers—safe.
For example, some vehicle trackers can monitor driving habits. If you notice a driver idling for long periods or accelerating too quickly, you can provide coaching or additional training to help them improve their driving habits.
4. Combat vehicle theft
Theft is always a worry for businesses with vehicle fleets. According to the National Insurance Crime Bureau (NICB), nearly 1 million vehicles were stolen in 2021 in the United States, resulting in an estimated loss of $6.4 billion. Real-time tracking of your vehicles can help you keep tabs on them and ensure they don’t end up in the wrong hands.
If a stolen vehicle has a tracking device, you can use the GPS data to pinpoint the vehicle’s location and recover it quickly. Some vehicle trackers even have features that allow you to remotely disable the ignition, making it more difficult for thieves to get away with your vehicle.
5. Improve communication and customer service
Knowing your fleet’s location can help you improve communication with your drivers and, as a result, improve customer service.
For example, if you add a vehicle tracking system to your delivery fleet, you can give your customers up-to-the-minute information on the status of their deliveries. This transparency helps build trust and loyalty with your customers.
6. Generate insightful reports for business decision-making
Data and analytics drive business decisions. This is especially true for fleet management. A vehicle tracking system can provide you with valuable insights and data that can help you make better decisions for your business.
For example, let’s say you want to know the most frequently driven vehicles. Using a vehicle tracking system, you can quickly compile a report showing which vehicles are driven the most and how many miles they have accumulated. This data can assist you in making decisions regarding vehicle upkeep, driver scheduling, and more.
Conclusion
A vehicle tracking system is a valuable tool for any business that relies on a fleet of vehicles. It can help you save money, improve efficiency, and make better decisions for your business. If you’re not already using a vehicle tracking system, now is the time to consider it.
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