Fleets achieve positive ROI with fleet tracking technology

The uptick in fleet technology adoption from 2021 underscores the continued need for fleets to meet customer demands, offset rising costs and protect themselves from accidents and their fallout, especially in the face of the continuing pandemic and supply chain disruptions.

However, deriving value from any technology investment is paramount to achieving an improved bottom line. And with 62% of GPS tracking users reporting a positive ROI, according to the 2022 Fleet Technology Trends Report, fleet tracing software is showing its worth.

Fleets that invest in GPS fleet tracking technology don't have to wait long before realizing true value from their investment, according to the 2022 Fleet Technology Trends Report. The survey, conducted for Verizon Connect by Bobit Business Media, found that 42% of respondents across industries achieved a positive ROI in less than a year. 

More than 70% of users are leveraging fleet tracking technology to better manage their operations, signaling the effectiveness of the solution. Data points indicate improvements and benefits in key business areas, including customer service, productivity and vehicle maintenance.

The report indicates a true competitive advantage for these companies when it comes to improving productivity, decreasing costs and even boosting customer service. The report, based on surveys completed by more than 500 U.S. fleet managers, executives and mobile-business professionals, highlights the value fleet businesses are achieving by investing in fleet tracking technology.

Who responded to the survey

Survey respondents represent a number of demographics within the United States. Twenty-nine percent of respondents are fleet managers and 32% are at the executive level in their organizations. This includes fleets of all sizes spanning diverse industries, including construction, government, manufacturing, retail, utilities and more. 

Read the full 2022 report to learn more about how your peers view and value GPS fleet tracking.

A short road to achieving positive returns on GPS fleet tracking investments 

Ninety percent of survey respondents said using GPS tracking software was beneficial, and many reported that once they implemented a new GPS fleet tracking solution, it did not take long to realize a positive return on their technology investment. In fact, 31% reported seeing a positive ROI within six months of adopting fleet tracking technology.

The benefit of achieving a positive ROI within a short span of time applies to multiple industries. Of the respondents in the transportation vertical, 52% achieved a positive ROI in under one year, while 51% of those in construction and 32% of those in government did the same.

Some of the ways organizations can get a positive ROI out of their fleet tracking solution include: 

1. Prioritizing driver safety and reducing liability: Using GPS tracking, managers can proactively monitor behavior that increases the probability of a driver causing an accident. Safe driving can also be reinforced by using in-cab alerts, as near real-time coaching has proven to be particularly effective at keeping drivers aware of unsafe driving habits. 
2. Improving asset utilization: Fleet tracking technology includes a number of dashboards that show operational efficiency and fleet utilization. These dashboards monitor a range of actionable metrics, including idle time and miles driven for each vehicle. This allows fleet managers to examine how individual vehicles are being driven and then balance capacity and vehicle utilization to reduce miles driven and wear and tear. 
3. Reducing direct labor costs: Those managing a mobile workforce face the challenge of having little visibility into how teams are spending their time. Using GPS tracking, managers can see vehicle history for a specific day, including all trips taken, stops and idling events. It’s a simple way to see how efficient workers are with their time, and where opportunities exist for improvement. 

GPS fleet tracking helps lower other fleet-related costs

Given the wide-reaching benefits GPS tracking systems can provide to fleet-dependent organizations, it’s encouraging to see so many companies embracing technology that can streamline costs and operations by:

• Tracking vehicles in the field in near real-time
• Improving worker productivity
• Encouraging safe driving
• Providing dashboards, reports and alerts that allow operators to:
• Track driver behavior like speeding, idling and harsh driving
• Help reduce costs for vehicle maintenance and fuel consumption
• Improve dispatch, routing and visibility

In addition to achieving ROI quickly, many organizations are realizing cost savings from GPS fleet tracking technology in other ways. On average, survey respondents reported a 14% decrease in accident costs, a 10% decrease in fuel costs and a 10% decrease in labor costs.

GPS tracking technology can also help fleets drive efficiency and complete more jobs per day. A GPS fleet tracking solution helped 42% of respondents improve routing, 46% improve productivity and 48% improve customer service - all contributing to a better bottom line.

As costs continue to rise and customer expectations become greater, operating a safe and profitable fleet is more important than ever. GPS fleet tracking technology gives organizations the data they need to improve their operations across all areas of concern, and prepare to more proactively address the challenges that come with an uncertain industry landscape.