Connect with us

Business

10 Ways To Improve Your ROI with Vehicle Tracking System

Published

on

To manage your fleet business properly, then you have to ensure that the operations will remain uninterrupted. Some practical skills and years of experience will be enough to keep the company up to demand. For standing among the players in the market, you just need to enhance your operation with a hi-tech vehicle tracking system. These systems will help increase the efficiency of the business above the costs.

How does the vehicle tracking system help in improving the ROI?

With the introduction of best GPS tracker based vehicle tracking devices, fleet businesses can increase their ROI. This helps in cutting down the operations expenses and lowers the costs, and thus, improves productivity.

Real-Time Route Tracking

The GPS vehicle trackers will help in real-time tracking of the routes that let you track the vehicle’s movement. It is always important to see whether they are traveling on the designated road or not. Taking the wrong route might cost some extra fuel. One can ensure that no two vehicles are running in the same direction until it is required. Tracking of real-time location will help in smooth operation without any confusion of routes.

Monitors driving behavior

For increasing the ROI of your fleet business, you need to control the excessive expenditure. One must be aware of any mistreatment of your vehicles across the fleet. A vehicle tracking system will make this possible by providing information on the acts impacting the mileage and the vehicles’ performance. The Drivers do some activities while driving, such as unnecessary overspeeding and harsh braking, which will be added to fuel management system expenses. By analyzing the vehicle tracking system’s reports, one can plan on how to cut such expenditure.

Increases the productivity

As the system allocates the deliveries to the most suitable vehicles and drivers with the right skills and can requisite the available working hours, this will be resulting in an absolute and one of the best possible utilization of the fleet and human resources. The companies can now maximize the number of deliveries in every shift. Also, it increases the number of changes because of the time saved. Thus, the productivity of both the drivers as well as the vehicle will be increased.

Reduces the fuel costs

Fuel costs are the single most significant contributor to transportation costs. But when the vehicle drives on the most optimal routes every day of the week with fewer stops on the road, it will result in fewer miles traveled and less idling, in simple words – the less fuel consumed for each vehicle. On a monthly or a weekly basis, this can be added up to the considerable savings. In addition to this, since the route optimization does not leave the traffic to chance but accounts for the traffic congestion, fuel wastage on account of over idling can also be reduced.

Cuts the third party expenses

The fleet managers get lots more flexibility to run their vehicles. They can run some extra shifts, schedule the return visits, or pick up an empty container in the shame shifts, thus, doing away with the need to employ the third party vehicle, or the drivers can do some extra work.

Lowers the maintenance costs

The vehicles that are running on the shortest possible routes mean less time on the roads. When the vehicles are being allocated the optimized routes plan, they are driven optimally, with fewer starts and stops and some minimal idling due to the traffic congestion. All of this means minor wear and tear of the vehicles. This will eventually result in lower repair and maintenance expenses for the fleet.

Drive Continuous improvements

Advanced route optimization applications and fleet management come with fixed analytics tools that can analyze accurate time fleet operation data and carry out “What if analysis” – i.e., examining the impact of changing vehicle capacity, increasing the customer’s location, changing days of delivery. Thus, the companies can always explore any new decision’s financial implications as they grow their business.  The information collected from the vehicle telematics systems, drivers, customers, and the planners can be fed back to the system to improve the system further and drive additional growth.

Increase in the customer retention

Using route optimization, the companies can ensure on-time deliveries, accurate ETA, and frequent communication with the customers. All of these will result in an overall better customer experience. In the long term, this means happier customers and increased customer retention rates, which positively impacts the bottom line.

Avoids wrong deliveries

On one side, the clients demand increased frequency of deliveries within smaller time windows and accurate ETA’s. On the other hand, driver shortages, unpredictable fuel prices, and increasing driver compensation demands are a constant threat. Thus, in such pressing circumstances, a manual or inefficient route planning application can easily lead to errors, delays, or incorrect deliveries, which could prove very expensive for the company in the long term. But the route optimization software, all such constraints of the business, is accounted for loads being built and distributed as per the precise route plan. The probability of a miscalculation or any mistake is almost nil.

Reduces the number of vehicles

They are implementing the route optimization solution resulting in a minimum number of vehicles that deliver more orders while covering the maximum catchment area. Over some time, the companies have realized that they can do more with less. Thus, they decided not to purchase new vehicles that they might have planned initially to scaling up the operations or remove some excess vehicles from their fleet.

Thus, choosing the correct route optimization software can profoundly impact fleet operations, costs, and business and profits. The companies that employ advanced fleet management software with superior route optimization capabilities can be assured of tangible cost savings from the first week of the implementation.

Spread the love

Sophia James is a creative and smart content developer with almost eight years of experience in design and marketing. She’s always striving for excellence in her job and is a great leader.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.