Today, GPS vehicle tracking is an integral part of fleet telematics and is vital to smart fleet management. Besides giving fleet managers more control and visibility over their operations, GPS tracking also helps companies increase profits and boost their annual ROI.
Discover how a GPS-powered fleet tracking device can help you boost profits and your business’s annual return on investment.
In this article:
- Learn about ROI in fleet management , what it is, and how to start boosting it
- Discover how GPS tracking helps companies increase their annual ROI
- Unpack our guide on using GPS tracking to double your fleet business’s ROI
- Get all the kickstart fleet management and GPS tracking essentials
- Find out how Cartrack’s products play a big role in doubling your fleet’s ROI
What is ROI in fleet management?
The best place to start will be by understanding what ROI is in fleet management and how it can change how you look at your business’s profitability.
As you know, ROI stands for “return on investment”. It’s a fleet’s net profit ratio to its investment cost. If your business has a high ROI, your profits outweigh operational costs, giving your business more profitability. In contrast, if your business currently has a low ROI, you’re spending more than your business is earning.
Critical data points that can affect your fleet’s ROI include:
- Annual claims: Your annual out-of-pocket claim costs for the previous year
- Annual repairs: Your annual out-of-pocket repair costs for fleet vehicles or third parties
- Fuel waste: The total estimated cost of wasteful driving behaviour like idling
- Insurance premiums: Some insurance companies offer a reduced premium if fleet vehicles have devices that track GPS data
While specific metrics can help you understand your fleet’s performance, looking at the correct data will positively impact your decision-making, helping improve your fleet’s ROI.
For example, addressing driver performance helps improve overall fleet performance. However, looking at the effects of driver performance, like fuel waste or conservation and accident-related claims, help identify where drainages are so you can improve your ROI.
Why should you calculate your fleet’s ROI?
Calculating your business’s ROI helps identify and determine the financial benefits of specific purchases, which can be used to justify the investment to stakeholders or for record keeping. So, if you’re considering incorporating EVs in your fleet, looking at ROI will indicate whether going green is doable and profitable.
Calculating also helps businesses prioritise goals, identify areas of improvement, and track progress over longer periods. Progress tracking is beneficial for informed future decisions and progressive changes.
In short, calculating your fleet management business’s ROI gives you immediate and extended insight for intelligent decision-making in present and future times.
4 ways statistics prove GPS fleet tracking technology boosts ROI
Can GPS tracking technology really help you boost your profits?
Looking at relevant statistics can help you make a smart decision. These mind-blowing stats from the US indicates how intricately linked GPS tracking technology is with increased ROI.
- 64% of fleet managers currently use GPS fleet tracking technology in their businesses. This shows that GPS is a valuable fleet tracking asset that lightens the load on fleet managers.
- While medium-sized fleets are more likely to adopt GPS tracking technology, a 12% increase was recorded for smaller fleets from 2019-2020, indicating an increase in the benefits of GPS fleet tracking technology and its profit-boosting benefits.
- In 2021, a whopping 45% of 1,200 U.S. fleet managers and other business professionals using fleet management solutions reported a positive ROI in 11 months or less — a clear indication of how quickly companies can start seeing a difference in their profits.
- In 2020, a massive 54% improvement in customer service was reported due to fleet tracking technology. Happy customers is a solid profit-boosting tool, making this stat a testament to how fleet tracking technology is instrumental to business success.
How Cartrack’s Delivery App enables significant fuel cost savings: A case study
Cartrack’s Delivery app was put to the test with one of South Africa’s biggest furniture suit manufacturers in the quest to help them reduce their fuel costs.
How Cartrack Delivery was used: The app was used on one of their main truck’s daily routes. This truck had 15 deliveries to complete in a single day which amounted to a total distance of 195 km.
What the Delivery app achieved: The Cartrack Delivery app’s route optimisation software was used which resulted in the following:
- The route optimisation managed to complete all 15 deliveries in 165 km, 30 km less than the original daily distance
- This amounted to a daily total fuel saving of approximately seven litres
- And a monthly fuel saving of approximately R3000
What this means for your business: These results were from just one commercial vehicle, imagine the total fuel savings for an entire fleet. With fuel savings becoming an unavoidable requirement in many businesses’ budgets, GPS fleet tracking and management technology are helping more businesses worldwide to maximise their annual ROI.
Your expert guide to double fleet business ROI with GPS tracking
If you’re ready to see a real profit boost, the best place to start is to ensure you understand what to do. With our expert guide, you can quickly identify pain points, implement cost-saving solutions, and double your fleet’s ROI.
Unlock the advantages of GPS fleet tracking for a sky-high ROI with Cartrack
The more data you have at your fingertips, the more efficiently you’ll track costs and boost your fleet’s ROI. Cartrack’s SaaS-based telematics and GPS tracking software gives you access to a kaleidoscope of data while constantly advancing products based on proven fleet management industry trends.
- Cartrack’s MiFleet cost management software helps you keep track of your insurance expenses, vehicle permits, taxes, and finance costs, so you know exactly where to start cutting costs. Vehicle maintenance reminders help you keep your fleet in good shape to avoid costly repairs and untimely maintenance.
- The Cartrack fleet management platform’s fuel monitoring system also works with MiFleet to calculate fuel costs per vehicle, allowing you to compare fuel expenditure with driver reports and curb bad driver behaviour like idling – a big contributor to extra fuel costs.
- Cartrack’s LiveVision AI-powered camera solution is designed to detect distracted or fatigued driver behaviour and audibly alert drivers in real time so they can regain focus. This helps fleet managers improve driver safety and reduce avoidable running costs.
- Secure your movable assets with our asset tracking device. It helps you to minimise equipment theft and loss. If you’ve got generators, containers, truck trailers, cement mixers, and other movable equipment, keep them safe and avoid costly replacements.
- Cartrack’s fleet management platform has smart mobile app features like route optimisation that helps you ensure your drivers use the most efficient routes possible, and geofencing that alerts you when your vehicles enter or exit preset virtual boundaries. These tools help you combat fuel costs and improve driver accountability, making them essential profit-boosting components.
Cartrack’s telematics-based solutions can help you turn your fleet-management business into a profit-generating machine.