Fleet Tracking: What It Is And Why It Matters

Introduction

Fleet tracking is a term used to describe any fleet management system incorporating Global Position System (GPS) coordinates into its strategy.

Most vehicles available today have built-in GPS functionality, as the technology was adopted globally in the first decade of the 2000s. GPS employs a sophisticated system of satellites to determine a user’s position and time nearly anywhere on Earth. For GPS to function, an end user must be within the broadcast range of four satellites, which all send signals to one another to triangulate a user’s location. [1]

In 2024, the average American consumer will be accustomed to how GPS enhances their lives. Most of us rely on navigational apps to route travel to unknown destinations, use location-based dating apps to get to know new people, or log on to a traffic-routing app when we start our commute home.

Organizations should also incorporate these powerful and flexible technologies into their best practices. Businesses must remain on the cutting edge to compete in today’s marketplace. Modernizing your fleet for the twenty-first century should be a priority for any fleet manager looking to reduce costs and maximize value.

The Benefits Of Fleet Tracking

The benefits of adopting GPS tracking into your fleet management program are innumerable. Fleet tracking apps monitor and track driver routes in real-time. This gives fleet managers more data to refine operations, locate inefficiencies, or adjust driver routes.

Here are just some of the ways that GPS-enabled fleet tracking can assist your business in reaching its goals:

• Identifying fuel consumption problems – and solutions. Managing fuel costs is the number one priority of any fleet manager, especially in the inflationary economic environment of the early 2020s. While some businesses buy into a fleet card system to lower fuel costs, others dial in their routing strategies to save cents on every gallon.
• Monitoring and correcting driver behavior as needed. Humans are creatures of habit, and many people switch to automatic and unconscious cognitive functions when handling routine tasks. This seems to be especially true for driving, a phenomenon that experts deem as “highway hypnosis.”[2] [3] The problem is that driver behavior is often at odds with an organization’s best interests, and drivers can resist suggestions that their automatic preferred routes cost the company money.

• Fleet tracking apps provide managers with complex data to back up their claims – routes can be compared between drivers, illustrating where driver behavior is racking costs.

• Providing more accurate delivery windows to recipients. Logistical and shipping companies widely employ GPS technology to track shipments and provide customers with exact delivery times. Down-to-the-minute delivery estimates mean satisfied customers.
• Ensuring compliance with federal and state regulations concerning overtime and overtime pay. When logged into a fleet tracking app, real-time tracking can warn managers when their drivers are about to tip into overtime and reduce the risk of employees falsifying or exaggerating overtime and mileage claims.
• Providing businesses with the tools they need to implement a FAVR tax-free reimbursement program. Employing GPS fleet tracking better enables companies to take advantage of the Fixed and Variable Rate tax structure program that the IRS offers, which can lower fleet costs by up to thirty percent.

Critical Features Of Fleet Tracking Systems

• Geolocational data. Monitoring driver location and routes in real time gives businesses many tools to adjust for driver behavior. Dispatchers can plot routes and detours as needed.

• Odometer readings and mileage logs. Verifying employee mileage logs is one of the most tedious tasks for any fleet manager. Mileage tracking logs offered by some fleet tracking programs reduce the administrative burden for management and employees. Logs stored in a fleet tracking app can also serve as the “adequate documentary evidence” that satisfies the IRS’ requirements for a tax-free benefit program.

• Mobile repayment. Specific fleet tracking software allows drivers to submit receipts for work-related expenses on the road or even offer direct deposit services within the app.

Industry-Specific Benefits And Applications

Construction

Fleet telematics software lets construction companies maximize uptime by providing maintenance diagnostics before mechanical problems reach a critical point. Many fleet telematics programs will log precisely how long an asset has been on the road, allowing fleet managers to cycle drivers and vehicles out proactively rather than reactively.

It also helps address the industry’s relevant theft problem, protecting high-value assets like backhoes and bucket trucks. The benefit of immediately locating assets should be noticed.

The construction vehicle reimbursement data report is out now:

Beverage

No one understands the importance of accurate delivery time like the beverage industry. With spoilage and temperature control being major concerns sector-wide, fleet management software helps proactive managers monitor routes to avoid weather and construction-related delays.

Fleet tracking software can also reduce the risk of mechanical failure of coolant systems and help flag possible maintenance problems ahead of time. 

The food and beverage industry data report is now live:

Transportation

Riders want convenience, reliability, and clarity when dealing with transportation agencies. Real-time fleet management can help whether you run a fleet of twenty buses or two hundred taxicabs.

The review of the literature shows that passengers…are satisfied with [a transportation agency…when] the frequency of service and the on-time performance are accurate,” according to van Lierop and Badami in their 2018 Transport Review research paper, titled “What influences satisfaction and loyalty in public transit? A critical review of the literature.”[4]

While this review studied global public transportation agencies and summarized the findings of dozens of customer satisfaction surveys, the results apply to the transportation industry. Reliability of service and user expectations around arrival times and departures make all the difference. Real-time asset monitoring can help dispatchers provide customers with accurate and reliable ways to get from point A to point B.

Challenges And Considerations

Most vehicles available today have built-in GPS functionality, and most drivers are accustomed to using GPS maps when navigating from place to place. The financial benefits to the organization should be made clear.

However, drivers have every right to be concerned about privacy. Becoming informed about your telematics software’s privacy and data control policy is crucial to establishing driver trust and buy-in. Nobody wants to feel like their boss has attached a tracking device to their car – at least before they’ve had the opportunity to ask questions.

Help your team understand what your fleet management software does, how it tracks and stores data, and what is done with that data afterward. Explain precisely how adopting such software helps your organization attain its goals and what benefits such a result will bring to drivers. Addressing driver concerns ensures employees feel listened to, strengthening trust and fostering a productive and happy workforce.

Sources

[1] Global Positioning System | Wikipedia 

[2] Zoning Out: Why It Happens And How To Stop | Healthline 

[3] Highway Hypnosis Could Explain Why You Zone Out While Driving | Healthline [4] What Influences Satisfaction And Loyalty In Public Transport? | Mcgill