Sunday, March 23, 2008

GPS Tracking to reduce labor costs for fleets?

I've talked to more fleet managers and company owners than I can count.  Though fuel costs are a big issue for all, labor costs have been a bigger issue than I had originally imagined.  GPS Tracking of company vans and trucks allows these company owners and managers to virtually eliminate costs from unauthorized employee activities.  GPS Truck Tracking allows employers to know where their people are, when they arrive at their destination, and when they leave. 


Let's consider a few examples:



  1. One of my favorite customers owns a catering company.  For a long time, she has suspected that one of her delivery truck drivers was wasting time and burning more fuel than was reasonable.  So, she added GPS Tracking to her truck.  The first day after getting her GPS Tracking unit installed, she was able to monitor her driver stopping at home for 30 minutes while on delivery run.  Imagine if that happens every day in a 5 day week.  That's 2.5 hours per week.  If that driver makes just $10 per hour and you expect 50 weeks of work, that means that employee could cost $1,250 annually.  So, once the problem was corrected, her investment in GPS Truck Tracking was recouped in about 5-6 months.  Figure in fuel savings on top of that, and the ROI is complete in about 2-3 months. 

  2. Another customer was having issues with one truck driver that had a fuel bill that was 4 times the cost of the other trucks in the fleet.  The driver's actions were costing the company as much or more than $11,000 each year.  In this case, GPS Tracking paid for itself in the first month.  The same GPS Tracking solution ensured that the timesheets from this employee and the others are now correct.  (ok - this is a fuel issue, but it was incredibly crazy)

  3. An HVAC company I talked to was having issues with employees  reporting time incorrectly.   GPS Truck Tracking allows the owner to know when the employees are done with their day.  He suspected that he was losing at least 2 hours a week for each employee.  At a rate of $35/hour, that works out to $3,500 per year per tracked vehicle.  Being able to verify the time the employees leave allows for a savings that recoups the GPS Tracking costs for a year in less than 3 months. 


These simple numbers show why every company with a fleet can benefit from GPS Tracking of their trucks, cars, vans, etc...  The process is simple and the payoffs are potentially huge.  With every fleet owner I have talked to, none feel that they are losing money from paying for GPS Tracking.  I can't think of any other industry where that can be said.



Trust your instincts about your company's employees, they are probably correct.


Steven Van Ooyen

CTO - Track What Matters

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Wednesday, March 5, 2008

Why not use my GSP Cell Phone to Track?

One of the most common questions we receive when talking to customers is "Why wouldn't I just use my cell phones to track my company vehicles?". This is a valid question that I completely understand. Since most people and companies already carry cell phones, there is a natural attraction.


The problems with cell phones for tracking company cars and trucks are numerous. Of course, it depends on the needs of the customer.


First, for most companies, their assets are in the vehicle that is being tracked. Unfortunately, you cannot count on a cell phone being in a car, truck, or van. So, if the vehicle is stolen, there is nothing in place to track it.


A second issue is cell phone battery life. It is incumbent  on the driver to keep the cell phone charged.  If all of our drivers were reliable enough to keep their phones charged, we wouldn't be talking about this!


Third, the cell phone can be undermined in the sense that it can be put in a toolbox disabling the signal.


Fourth, the cell phones do not allow you to track idling, ignition starts/stops, or allow for things like starter disabling.


The great benefits to a wired-in device are related to reliability and features.  With a wired device, you always know the device is on the job.  You also get the benefits of a having access to vehicle information.


Steven Van Ooyen

CTO - Track What Matters

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