How to improve fleet efficiency with vehicle Tracking System | LogiPe

Improve Fleet Efficiency with a Truck Tracking System

Published By: LogiPe onAugust 30, 2022

The modern-day fleet manager has to deal with large fleets, delivering cargo across far-apart regions. Each dispatch runs a range of risks while on the road. Tracking fleet movements down to the individual vehicle is essential to running a successful fleet management operation. Vehicle GPS tracking can help fleet owners achieve this goal and run a successful business.

What is a Truck Tracking system?

Vehicle tracking systems use GPS (Global Positioning System), a network of satellites and ground stations, to convey real-time information about the trucks’ whereabouts. GPS consists of 27 satellites placed strategically around the world, which communicate with ground stations to triangulate the location of an object equipped with a tracker. In the case of logistics, the tracked object could be a vehicle on the fleet, the cargo it contains, or both. The usage depends on the owner’s preference and feasibility in terms of expenses. GPS allows the owner to monitor the location and motion of the vehicle, timestamped 24/7. It gives a valuable sense of control over the status of the fleet.


Caption: GPS tracking helps keep track of logistics at all phases of the dispatch, boosting efficiency.

Source: Image by vectorjuice on Freepik

How does a vehicle tracking system help improve fleet efficiency?

We have mentioned above that a GPS vehicle tracking system can provide fleet owners with important information about their fleet vehicles. Here, we discuss how it can benefit the fleet and increase its efficiency.

Improved route planning

Vehicle GPS tracking provides real-time insights into the location of the vehicle, as well as surrounding traffic status. This helps plan in advance and chart a route that is cost-effective. This planning can include major factors like cargo type, vehicle specifications, possible hazards on the road and delays. As a result, the cargo spends less time in dispatch, boosting efficiency.

As an added benefit, the drivers receive regular updates about possible route changes while on the road. In case of any modifications en route, the changes are executed instantly, without communication lag. This clarity in communication minimises potential delays due to unforeseen circumstances.

Better fuel management

This benefit stems from the previous one. Better route planning helps reduce wasteful usage on inefficient routes. More economical fuel usage leads to savings, as fuel accounts for a significant portion of expenses. GPS tracking can help the drivers use the best information in real-time to proceed with the dispatch. Further, vehicle GPS tracking also monitors other vital indicators of fuel usage, such as idling and excessive speeding. Fleet owners can intervene and motivate drivers to incorporate better driving habits.

Reduce the risk of cargo theft

Cargo theft is a significant cause of loss of goods in transit. Theft can occur in two forms: one, the whole vehicle is hijacked, and two, the cargo is stolen without taking the vehicle off-route. Suitable precautions can help avoid this. Installing suitable GPS trackers in the vehicle helps reduce the chances of hijack. The owners can mitigate the risk of cargo item theft by using trackers attached to the cargo itself.

In the unfortunate event of cargo theft, the trackers help promptly notify the fleet owner about the event. Then the owner can take quick action in locating the goods or the vehicle, reducing possible losses.

Minimise fleet downtime

A fleet owner can use GPS tracking software to track all vehicles’ locations, on the road or in the warehouse. If a vehicle is not currently in use, the manager can take note of the situation and quickly assign a free driver to it. The manager can also prioritise dispatches and allot vehicles accordingly. As a result, trucks are out on delivery at optimal capacity, barring maintenance times.

Underutilisation leads to a fleet not reaching its full potential. Installing GPS trackers minimises downtime and ensures that vehicles are in use whenever feasible.

Simplifying paperwork

A sizeable portion of logistics paperwork is done partly manually. This paperwork includes steps like billing and invoicing. Delays due to reporting can lead to a knock-on effect in the collections process, hurting cash flow. GPS tracking automates this process by using a geofencing system to automate the dispatching of invoices to customers as soon as the truck enters the delivery area. This process digitises and speeds up payment collection.

GPS tracking can also help in a variety of compliance-related paperwork. For example, drivers no longer need to manually log hours after every dispatch. The technology integrated with GPS automates this. Insurance providers are also keen to provide premiums discounts to fleet owners installing GPS units on their vehicles.

Clearer communication

GPS tracking helps establish smoother communication about the delivery status between all stakeholders. From the driver’s perspective, this helps make the dispatch hassle-free and efficient. They do not have to be left waiting for new instructions in case of changes in plans.

From the customer’s point of view, GPS tracking provides instant information regarding the location of the dispatch. The customer gains trust in the service provider and has a better estimate of ETAs. Finally, the fleet owner can keep an eye on the big picture and ensure on-field operations run hiccup-free.

Implementing truck tracking system

GPS truck tracking is a serious long-term investment for any logistics company. The amount of money involved can be prohibitive for smaller logistics firms to invest in a GPS tracking service. Not using the benefits of technology, however, causes decreased profits in the long run for the company. As we have seen, GPS truck tracking can improve efficiency in multiple ways.

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GPS truck tracking can benefit companies increase their efficiency significantly. Installing a GPS for truck fleets provides scope for crucial insights into truck routing and dispatch schedules, giving rise to the effective execution of operations. Installing GPS tracking is an essential upgrade for any fleet. Proactive fleet managers adopt this technology to maximise the potential of their fleet. Visit LogiPe today to learn more about the credit and investment services offered which can help fleet owners to organize funds to invest in truck tracking system.