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Read moreOne of the top priorities for businesses and fleet managers is to reduce the operational fleet costs of day-to-day activities. To achieve this, more and more companies are choosing GPS fleet management software that allows them to collect vehicle activity information and analyze it to find new ways to help reduce fleet costs.
The latest Fleet Technology Trends Report reveals how companies that have implemented a GPS tracking solution have managed to reduce fleet costs in strategic areas of day-to-day operations such as:
- Fuel consumption
- Accidents
- Labor
- Vehicle maintenance
- Insurance
In fact, across all industries, GPS tracking users decreased fuel costs by an average of 16%. Users also saw an average decrease of 22% in accident costs and a decrease in overall labor costs of 16%.(1)
Users also decreased vehicle maintenance costs by an average of 16%, and participants across all industries saw an average decrease of 13% in insurance costs.(2)
Fleet management software can reduce fuel fleet costs
Driver behavior impacts your fuel consumption: Monitoring driver behavior across your fleet is crucial. The reasons for this are clear: safety and fuel efficiency. Several studies have shown the effects of aggressive driving, which includes frequent rapid acceleration and hard braking. These driving behaviors “can lower gas mileage by roughly 15% to 30% at highway speeds and 10% to 40% in stop-and-go traffic.”(3)
Engine idling time matters: Engine idling consumes fuel. It is therefore crucial to notice when excessive engine idling is happening and educate the driver to prevent it from occurring again. It’s important to remember that “idling can use 0.84 gallons of fuel per hour for a medium-heavy truck or delivery vehicle.”(4) Monitoring and reducing idling can help you save fuel and reduce premature engine wear and tear—making a major impact on overall fleet costs.
Fuel efficiency should be a focus: Poor fuel efficiency can really impact a business. Measure how much poor fuel efficiency is costing you, and help identify vehicles experiencing fuel efficiency issues. Efficiency is displayed within your fleet management solution as an overall positive or negative fleet cost based on estimated fuel consumption and mileage attained.
Fuel lost by your fleet: Check the amount of fuel lost by your fleet. With the help of a fleet management solution, you can check whether the location of the fuel station actually matches up to the vehicle’s location at the time of purchase. And, you can compare if the amount of fuel purchased exceeded the tank’s capacity. If there are any irregularities, you will be able to identify them and take action.
Fleet management software can help reduce accident fleet costs
The safety score of your drivers matters: Use the Safety Score in your fleet management solution to check your drivers. This is a number between 0 and 100 that determines how safe a driver is on a daily basis.
Bad driving habits lower this score, which is calculated based on various factors, including the number of moderate and severe events like:
- Harsh accelerating
- Hard braking
- Harsh cornering
Fleet managers can analyze a driver’s behavior and determine where the areas of improvement are, promoting both efficient driving that reduces fleet costs and an overall culture of safety within the organization.
Speeding is unsafe for your drivers and vehicles: Speeding is a key cause of road accidents. In fact, according to the NHTSA, there were 12,151 speeding-related deaths in 2022 in the U.S. (5)
To face this situation head on, you can set up alerts within your fleet management solution to know when speeding occurred and take action to coach drivers to improve.
Fleet management software can reduce labor fleet costs
Overview of completed tasks: Remotely monitor your team to know when they arrive at the customer’s destination or are setting off to the next location, as well as the time spent completing a task or service, and have a clear overview of what’s going on along the route.
Route optimization for your team: Optimize your team’s routes to make the journeys quick and safe so you can better organize your team’s work time—helping them visit more customers and spend less time on the road. According to our latest research, 52% of businesses have improved productivity since implementing a GPS tracking solution.
Fleet management software can help improve vehicle maintenance fleet costs
Schedule preventive maintenance for all your fleet vehicles: Plan an effective regular schedule for routine updates (oil changes, tire rotations, engine check-ups) of all your vehicles. Near real-time data provided when the sensors trigger an alert that maintenance is needed when a specific parameter, or condition, has been met. With this information, fleet managers can take action and plan the required maintenance.This type of maintenance is crucial for managing the health of all fleet vehicles and reducing fleet costs for vehicle repair.
Fleet management software can lower insurance fleets costs
Save on vehicle insurance: Implementing a GPS tracking solution can help you get lower insurance for your vehicles. Many insurance companies reward companies for utilizing this kind of technology and will quote you a lower insurance price that can really impact your overall fleet costs.
According to the Fleet Technology Trends Report, participants across all industries saw an average 13% decrease in insurance costs since implementing fleet management software in their company.
Find out how telematics can help your business. Download the 2025 Fleet Technology Trends Report.
Sources:
(1-2) Fleet Technology Trends Report 2025
(3)https://www.energy.gov/energysaver/driving-more-efficiently#:~:text=Aggressive%20driving%20