Do I need GPS to Manage My Fleet?

I found a cool online test to determine the need for a GPS tracking solution based on fuel costs, how big your fleet is, location....etc. The GPS need test is at http://www.fleetboss.com/needssurvey.asp

Don't be Soft on Soft Costs....use GPS

Hard costs of doing business are easy to measure....fuel; tires, equipment, etc. are easy to measure. Soft costs are not, that is they weren't until now. Soft costs include such things as fleet downtime and driver safety. Let's look at these two soft costs and how to calculate the cost to your business.

Downtime of your fleet costs money, that much is obvious. But how much does it cost? Let's have a look:

COST =
$750 x 2 days =$1,500 per month
$1,500 x 12 months = $18,000 per year

SAVINGS =
25% savings X $18,000 (year) =
$4,500

In this scenario having downtime of 2 vehicles for one 1 day, twice a month produces a cost of $18,000 per year, provided a down day costs $750, which can vary by industry.

Using a GPS fleet tracking system can save 25% of downtime through remote vehicle diagnostics. This can equate to a savings of $4,500 per year!

Safe driving is more than peace of mind, its money!

Industry studies average the costs to a business per vehicle accident between $6,000 and $12,000. GPS fleet tracking can monitor driving speeds, which can reduce the amount of speeding occurring within a company vehicle. A reduction in accidents of only 5% for a 50 vehicle fleet adds up to a savings of between $18,000 and $36,000 per year.

Sleeping (Not So) Beauty

We'll all seen it, or most of us have; workers sitting around, slacking off, and obviously not being productive. In fact, some of us have probably been the slacker at one point.

There is no doubt that this lack of productivity costs the employees company money. Now lets make the scenario even worse. What if the workers are slacking off in an idling company vehicle? Talk about costs; labor, time, fuel, wear & tear on the engine, pollution...this list could go on. So how do you stop the afternoon nap in the company truck? Easy. Watch your company vehicle every minute it is in the hands of the employee. Easy you say? With GPS vehicle tracking it is.

A Global Positioning System installed in a vehicle can tell the owner when the vehicle is running, when it is stopped, and when it is running while stopped. Of course it can also tell you about oil changes, possible mechanical problems, how to get to the grocery store, and mileage......but I digress.

Installing GPS tracking on your company vehicles can help prevent this.....Hard at Work?

Throwing Money Away?

Every company throws money away. But where does it go? Here are 3 places it disappears to that can be stopped.

1) Gas is not cheap; and it seems like that this statement is becoming ever more amplified. Many businesses have gas expenses and in some cases, it can be one of the biggest costs of doing business. Stop the money (and gas) drain by eliminating idling. At $2.75 per gallon, one vehicle idling for 1 hour per day can cost an additional $700 per year. How may vehicles do you have in your fleet? Can you tell when they are idling? GPS enabled fleets can.

2) Overtime anyone? Employees say yes, but if it is unnecessary, it could be costing the company their profits. Keeping an eye on vehicle productivity using GPS is a good way to find out where the unnecessary overtime is coming from.

3) The company vehicle being used for after hours activities can be a major drain on the cost to operate a fleet. Wear and tear, gas, and depreciation all factor in to where the money is going.

Testimonials of vehicle tracking benefits

Gas Prices vs Technology

Just a quick note in reference to an earlier post, I found a couple of great articles about increasing gas prices and using GPS technology to offset some of the soaring costs. The Gas Prices vs GPS Cost articles have some good information about managing a fleet to reduce operating costs and help our environment.

GPS: The Doctor is in...

Have you ever been driving down the road and that little light that says "Check Engine" pops on? If not, you are one of the very few. The real issue with that little light is it's a symptom of a problem that has already occurred. Yes, things with the electrical system or engine can get worse if the vehicle is not looked at, but there is already something at least partially serious going on when that little light blinks.


Now imagine if you had fore warning, even before your dash starts flashing at you. That is what a GPS can do for you. Now, I'm not saying everyone who owns a car should buy a GPS unit (although it's not a bad idea), but imagine managing an entire fleet of vehicles. How nice would it be to sit in your office, watching where your trucks are, where they are going, and what issues, the fleet may be having. It sure beats waiting by the radio with hopes it never beeps.

Not only does a Fleet GPS system help with the headaches, but it will also help with the wallet. By knowing what is likely to cause serious issues, more inexpensive maintenance on the fleet can replace expensive repairs.

Fleet Ownership Costs

The cost of running a fleet can be staggering and it is even more difficult when you don't know where your money is going. For many small business owners and family business there just is not enough time to trackdown all of the expenses. In some cases, I have been told if the cost to find the savings was more than the savigns then why bother.

Why bother you ask? Because the cost of saving money on your fleet operations are compounding, meaning that the savings over time will continue to pay for itself over time.

Technology can help you save money on determining your fleet's Total Cost of Ownership and as technologiy increases the investment need to determine how you can save money is less than ever before. So lets review TCO:

At its most basic level, Total Cost of Ownership (TCO) can be defined as both the direct and indirect costs incurred throughout the life cycle of an asset. These costs relate to acquisition, deployment, operation, support and the expiration date of a product's usefulness.

Direct fleet costs: Direct costs cover tangible and support-related investments and expenses, including hardware, software, technical operations, technical support, fully loaded labor costs, and various administrative departmental allocations such as finance, human resources, and procurement.

Indirect Fleet costs: Indirect costs are hidden costs that are dispersed company-wide and involve ongoing interaction between a company's employees and the training, troubleshooting and maintenance associated with operating a technology. Such indirect costs reflect the value of employee time taken away from their primary or planned duties.

Determining TCO To determine your Total Cost of Ownership (TCO) on an annual basis simply compile and compute all of your a particular technology investment's direct and indirect costs.
Studies have shown that some technology items such as a basic $200 company printer can easily have an annual TCO of over $1,000 or more when needed supplies and maintenance requirements are factored in. A single corporate desktop computer can average over $5,000 per year in TCO.

However, in some rare cases, like that of a FleetBoss GPS technology purchase, a business's TCO can actually be quickly exceeded by a substantial Return On Investment (ROI) and revenue generation due to an increase in productivity, efficiency and profitability.

Clients who purchase a FleetBoss GPS solution generally experience a complete ROI within six months. A typical FleetBoss customer sees a 15% savings in fuel costs alone within the first year of solution operation. Similar savings and revenue are generated from preventive maintenance and increased service calls.

Making TCO analysis a regular part of your technology investment purchase process is a valuable and essential tool for any successful business.

So how do you get a handle on direct costs and save money on fleet expenses? A GPS fleet management system that tracks time, speed, idling, and many other factors can help you get started. Even if you are not sure about whether you want such a system, it's worth the look so you can understand how you may be able to cut fleet ownership costs.

Fleet Fuel Costs Reduced with GPS

High fuel cost continue to eat away at profits and put many small business on the edge of financial ruin. But for many business they may never realize, what steps they should have taken to reduce costs and how easy it is.

Speeding, idling, and moonlighting with your truck all costs you money and fuel, how much? Sometimes 10 - 25% of your fuel costs, basically go out the window becuase the drivers are not concerned about saving fuel, they are concerned about convenience.

With skyrocketing fuel costs busting the budgets of service, sales and delivery companies nationwide. The Police, Fire, Parks and Public Works departments for the city of Houston, Texas exceeded their fuel budgets with six weeks left in the fiscal year in 2004. And in 2005, some cities and counties had to close schools after Hurricane Katrina, not because of damage to their community but based on high fuel costs!

In contrast to these high fuel casualties, a towing company in Orlando, Florida actually decreased its fuel costs by 15%, creating an annual savings of over $11,000! This company expected similar savings 2005 as they learned to control their fuel spending and eliminate bad driving habits.

How were the savings achieved?
The tow truck company used a GPS fleet tracking http://www.fleetboss.comsolution to track drivers.

Speeding drivers use more fuel and put your company at risk.
Idling - Few people realize how much gas you waste idling for 5, 10, or 20 minutes.
It can sometimes add up to an hours or more a day!
Moonlighting - Your trucks should be used only for your business

A Global Positioning Satellite (GPS) fleet management system uses signals and data from multiple satellites in space to determine a vehicle's location anywhere on Earth. GPS fleet management begins when a vehicle-mounted device receives satellite signals and calculates a vehicle's position on the ground. This device then relays the vehicle's position as latitude and longitude coordinates to a database computer at a business' home base. Software on this home base computer lets a fleet manager view valuable operational data on each of his vehicles.

Depending upon the GPS system used, a combination of wireless technology and the Internet allows a company to receive GPS information and store, collect and organize it according to categories.

By focusing on just a few things like speeding, idling, and checking to see if your vehicles are used after hours you can begin to identify where fuel and dollars are being wasted and then take action to reduce costs and increase profits.

The real issue is not if you use GPS to reduce costs, but when? If you do not find ways to lower your costs then your competitors will.

We like the product and services offered by FleetBoss GPS, they don't offer an out of the box solution, but help you develop the system that is right for you. I would consider looking into this today as gas prices don't appear to be coming down.