Jan 16, 2024

How GPS Fleet Tracking Systems Benefit Your Bottom Line

For many modern businesses, the ability to efficiently manage a fleet of vehicles is crucial for maintaining competitiveness and profitability. One tool which has revolutionised the ways in which businesses manage and monitor their vehicles is GPS fleet tracking.

These advanced systems provide invaluable insights into operations, offering a wealth of data that can be used to improve various aspects that can ultimately benefit your bottom line.

In this comprehensive guide, we’ll be covering all the ways in which fleet tracking can improve your bottom line.

How GPS Fleet Tracking Systems Benefit Your Bottom Line

What is Fleet Tracking?

Fleet tracking uses advanced technology to provide fleet managers with the ability to track the location, movements, and status of their vehicles in real time. By doing so, businesses can gain valuable insights into their operations, allowing them to make informed decisions that enhance efficiency and reduce costs.

The core of fleet tracking lies in GPS technology. GPS, or Global Positioning System, is a network of satellites orbiting the Earth that provide location and time information to GPS receivers anywhere on the planet.

In the context of fleet tracking, GPS devices are installed in vehicles, allowing fleet managers to monitor the precise location of each vehicle at any given time. This real-time data is crucial for optimising routes, ensuring driver compliance with scheduled itineraries, and improving overall fleet performance.

Telematics: The Heart of Fleet Tracking

Telematics refers to the integration of telecommunications and informatics, particularly in fleet management. It's a technology that combines GPS tracking with on-board diagnostics to provide a wealth of information about a vehicle.

Essentially, telematics systems are equipped to collect and transmit data related to the vehicle's location, movement, status, and behaviour. This data is sent to a centralised server, where it can be analysed and interpreted for various purposes.

Additionally, telematics devices can monitor vehicle health metrics, like engine temperature, battery status, and maintenance needs, thereby offering comprehensive insights into both the operational aspects and the physical condition of the fleet.

Saving on Fuel Costs

Reducing fuel consumption is a primary goal for any fleet-based business, and fleet tracking systems are instrumental in achieving this. By leveraging GPS tracking data, businesses can adopt several strategies to decrease their fuel expenses significantly.

Optimal Route Planning

Fleet tracking systems enable the selection of the most efficient routes, avoiding traffic congestion, roadworks, and longer paths. Some systems use historical data and predictive analytics to avoid traffic-heavy areas, thus reducing the likelihood of vehicles getting stuck in traffic and idling unnecessarily, directly leading to reduced fuel usage.

Driver Behaviour Monitoring

By analysing data on driving habits, fleet managers can identify behaviours that lead to excessive fuel consumption, such as speeding and unnecessary acceleration. Training can then be provided to encourage more fuel-efficient driving practices.

Vehicle Maintenance Alerts

Regular maintenance is crucial for keeping vehicles in optimal condition. Fleet tracking systems provide alerts for routine maintenance, ensuring that vehicles operate efficiently and consume less fuel.

Reducing Unnecessary Engine Idling

With real-time data, fleet managers can monitor and address instances where vehicles are idling unnecessarily, a common cause of wasted fuel.

Minimising Idle Times

Fleet tracking systems provide accurate data on how long vehicles spend idling. Managers can use this information to implement policies that reduce vehicle idle times, such as turning off the engine during prolonged stops.

The Impact of Bad Driving On Fleets

Fuel Costs and Inefficiencies

Poor driving behaviour, such as excessive speeding, abrupt acceleration, and harsh braking, can significantly increase a vehicle's fuel consumption. When drivers don't adhere to efficient driving practices, it directly impacts the amount of fuel used, leading to higher operational costs.

For example, speeding beyond optimal fuel-efficient speeds (typically around 50 mph) can increase fuel consumption by up to 10% for every 5 mph over this threshold. Similarly, frequent and unnecessary acceleration and braking lead to more fuel being used than in steady and smooth driving conditions.

The cumulative effect of these inefficiencies can result in substantial additional fuel expenses, especially across a large fleet. Implementing fleet tracking systems can help in monitoring and correcting these inefficient driving habits, leading to more economical fuel usage and reducing overall business expenses.

Safety Concerns and Legal Implications

Poor driving habits pose significant safety risks, not only to the drivers themselves but also to other road users. Hazardous driving behaviours such as speeding, not adhering to traffic rules, and aggressive manoeuvres can lead to accidents, resulting in injuries or even fatalities.

From a business perspective, these incidents can have severe legal implications, including liability for damages and potential lawsuits. The legal consequences following an accident can be extensive, ranging from fines and penalties to criminal charges in severe cases.

Additionally, accidents caused by company drivers can tarnish a business's reputation and lead to loss of customer trust. Fleet tracking systems play a vital role in mitigating these risks by providing insights into driver behaviour, allowing fleet managers to enforce safe driving practices and reduce the likelihood of accidents and their associated legal ramifications.

Maintenance and Repairs

Bad driving behaviours significantly contribute to the wear and tear of vehicles, leading to more frequent and often costly maintenance and repairs. Practices such as harsh braking, rapid acceleration, and aggressive cornering put extra strain on various vehicle components, including brakes, tires, engines, and transmissions.

This increased stress accelerates the deterioration of these parts, necessitating more frequent maintenance and, in some cases, premature replacements. The costs associated with these repairs and maintenance can quickly accumulate, especially for larger fleets, impacting the overall financial health of the business.

By using fleet tracking systems, businesses can monitor and address these damaging driving habits, extending the lifespan of their vehicles, reducing maintenance and repair costs, and thereby preserving the company's bottom line.

Enhancing Vehicle Utilisation

Effective vehicle utilisation is crucial for maximising the efficiency of a fleet. Fleet tracking systems contribute to this in several ways:

Better Dispatching

With real-time location data, dispatchers can assign tasks to the nearest vehicle, reducing travel time to the site and ensuring quicker job turnaround.

Load Optimisation

Tracking systems can provide insights into vehicle capacity utilisation, enabling better planning of load distribution and reducing the number of trips required.

Utilisation Analytics

By analysing usage patterns, businesses can identify underutilised vehicles and reassign them to increase overall fleet efficiency.

Preventive Maintenance Scheduling

By ensuring vehicles are well-maintained and available when needed, fleet tracking systems help avoid downtime and keep all vehicles in the fleet actively and productively engaged.

Through these strategies, fleet tracking systems play a pivotal role in enhancing vehicle utilisation, minimising idle times, improving routes, and ultimately leading to significant cost reductions for the business.

Fleet Tracking and Insurance Premiums

Lowering Insurance Costs

Insurance companies often determine premiums based on the perceived risk associated with the vehicle and its usage. Fleet tracking systems provide detailed data on vehicle usage, driver behaviour, and compliance with safety norms, which can be used to demonstrate a lower risk profile.

By monitoring and improving driver behaviour, fleet tracking systems reduce the likelihood of accidents. Insurers often offer lower premiums for fleets with a good safety record, as this indicates a lower risk of future claims.

Evidence in Claims

In the event of an accident, the data collected by fleet tracking systems can provide valuable evidence to support insurance claims. This can expedite the claim process and potentially lead to more favourable outcomes.

Preventive Maintenance

Regular vehicle maintenance, prompted by the tracking system, ensures that vehicles are in good condition, reducing the risk of breakdowns and accidents, which can further contribute to lower insurance costs.

Theft Prevention and Recovery

Fleet tracking systems also play a significant role in preventing theft and assisting in the recovery of stolen vehicles. The presence of a tracking device itself can act as a deterrent to potential thieves. Knowing that a vehicle can be easily traced makes it less attractive to steal.

Many tracking systems, such as Fleetmsart, offer features like geofencing, which can alert fleet managers if a vehicle moves outside a predefined area, indicating a possible theft. This immediate notification allows for a quick response.

In case of theft, GPS tracking provides real-time location data, greatly increasing the chances of recovering the stolen vehicle quickly and reducing potential losses.

As fleet tracking systems contribute to lower instances of theft and higher recovery rates, businesses may file fewer theft-related claims. Insurers often take this reduced claim frequency into account when calculating premiums, potentially leading to further cost savings.

Choosing the Right Fleet Tracking System

Selecting the most suitable fleet tracking system is crucial for maximising its benefits. Here are key factors to consider.

Features and Functionalities

Assess the specific needs of your fleet and compare them against the features offered by various systems. Look for essential functionalities like real-time tracking, route optimisation, driver behaviour monitoring, and maintenance alerts.


Choose a system that can grow with your business. It should be able to handle an increasing number of vehicles and adapt to evolving business needs.

User Interface and Ease of Use

The system should have an intuitive and user-friendly interface. Ease of use is essential for efficient management and quick adoption by your team.

Reliability and Support

Opt for a system known for its reliability and backed by strong customer support, such as Fleetsmart. Check for reviews or testimonials about the system’s uptime and the quality of support provided.

Measuring Fleet Tracking Return on Investment (ROI)

Measuring the financial impact of fleet tracking on your business involves a detailed analysis of both direct and indirect cost savings, as well as efficiency improvements:

Direct Cost Savings

Compare fuel costs, maintenance expenses, and insurance premiums before and after implementing fleet tracking. Monitor the reduction in unnecessary mileage, idling times, and unauthorised vehicle usage to quantify fuel savings.

Efficiency Metrics

Assess improvements in operational efficiency, such as increased number of deliveries or service calls per day, reduced travel times, and enhanced route planning.

Maintenance and Downtime Reduction

Track the decrease in vehicle maintenance costs and unscheduled downtimes. Preventive maintenance facilitated by fleet tracking can significantly reduce these expenses.

Safety and Compliance Costs

Evaluate savings from reduced accident rates and traffic violations. Improved driver behaviour and adherence to safety regulations can lower these costs.

Indirect Savings

Consider the impact on customer satisfaction and employee productivity. Efficient fleet operations often lead to improved service quality and employee morale.

ROI Calculation

Use the collected data to calculate the ROI. Subtract the total cost of the fleet tracking system (including installation, subscription fees, and any other associated costs) from the total savings. Divide this number by the total cost of the system and multiply by 100 to get the ROI percentage.

Projected ROI and Timelines at Fleetsmart

At Fleetsmart, we typically expect that clients will see a return on investment within 90 days, including initial payments and a full year's subscription. This projection is based on typical savings experienced by our clients.

On average, our clients save between £1,000 to £2,000 per vehicle per annum. These savings come from reduced fuel costs, lower maintenance expenses, and improved operational efficiencies.

For businesses with larger fleets, the ROI might vary depending on the scale of implementation and internal management practices. Larger fleets may take longer to fully integrate fleet tracking solutions, but they also have a higher potential for savings due to economies of scale.

Fleets that have significant room for improvement in areas like route optimisation, driver behaviour, and vehicle maintenance are likely to experience a faster ROI. The more a fleet stands to gain from implementing fleet tracking solutions, the quicker the return on investment.

Fleet Tracking FAQs

This section is designed to answer common questions about fleet tracking, providing concise and informative responses that are suitable for featured snippets.

How Does Fleet Tracking Work?

Fleet tracking works by installing GPS devices in vehicles, which transmit data to a central system. This data includes location, speed, driving behaviour, fuel usage, and vehicle health. Fleet managers can access this information through specialised software, allowing them to make informed decisions.

What Are the Benefits of Fleet Tracking?

The primary benefits of fleet tracking include reduced fuel costs, improved driver safety, enhanced route planning, decreased vehicle maintenance costs, and increased overall operational efficiency. It also assists in regulatory compliance and provides valuable insights into fleet performance.

Can Fleet Tracking Reduce Operating Costs?

Yes, fleet tracking can significantly reduce operating costs. It optimises routes to save fuel, encourages safer driving to reduce accident-related expenses, and facilitates preventive maintenance, which decreases repair costs.

Is Fleet Tracking Difficult to Implement?

Implementing fleet tracking is straightforward. It involves installing GPS devices in vehicles and setting up the tracking software. Most providers, such as Fleetsmart, offer support and training to ensure smooth implementation and integration with existing systems.

How Does Fleet Tracking Improve Driver Safety?

Fleet tracking improves driver safety by monitoring driving behaviours like speeding, harsh braking, and rapid acceleration. This data helps in identifying risky behaviours and providing targeted training to encourage safer driving practices.

What Kind of Data Can Fleet Tracking Systems Provide?

Fleet tracking systems can provide a wide range of data, including real-time vehicle locations, travel history, driving patterns, fuel consumption, vehicle diagnostics, and maintenance alerts.

Can Fleet Tracking Help with Vehicle Maintenance?

Yes, fleet tracking systems often include features for monitoring vehicle health and scheduling maintenance. They can provide alerts for routine checks and detect issues early, preventing major repairs and downtime.

Is Fleet Tracking Useful for Small Businesses?

Absolutely, fleet tracking is beneficial for businesses of all sizes. Small businesses, in particular, can benefit from increased efficiency and cost savings, which are crucial for growth and competitiveness.

Improve Your Fleet’s Bottom Line with Fleetsmart

Are you ready to take your fleet management to the next level? Don't miss out on the benefits that GPS fleet tracking can bring to your business. Whether you're looking to reduce costs, enhance efficiency, or improve safety and compliance, Fleetsmart has the solution tailored to your needs.

With our state-of-the-art tracking technology and dedicated support team, we make the transition smooth and hassle-free. Experience the transformation that comes with detailed insights into your fleet operations and the peace of mind from making data-driven decisions.

Take the first step towards optimising your fleet operations today with Fleetsmart.

Talk to our team

Get a quote from our team for any
vehicle tracking requirements

Contact Us