Return on Investment (ROI) from GPS Fleet Management
Investing in your fleet is an important decision, particularly when it comes to fleet technology. With so many options available, it can be challenging to make the right choice. GPS tracking is one of the most popular solutions in fleet management, whether you’re just starting out or looking to upgrade. Let’s examine the return on investment (ROI) of GPS fleet tracking.
Fleet Tracking ROI
Your fleet management ROI calculator can help you determine the cost savings of using GPS technology. Below we will discuss how those savings can be achieved and the areas in which you’ll see benefits.
- Fuel: Fuel costs are a significant expense for fleets. GPS tracking enables you to use route optimization software, which helps to reduce fuel consumption by getting your vehicles to their destinations as efficiently as possible.
- Accident Prevention: By monitoring driver behavior and ensuring compliance with company policies, you can prevent accidents and save your business thousands of dollars.
- Labor: Fleet tracking software helps to make your fleet more efficient, reducing wasted time and labor costs.
Calculating ROI
When calculating ROI, you need to consider both the gains and the costs of your investment. In terms of GPS tracking software, this means considering the benefits to your fleet and the associated costs.
Gains: The benefits of fleet management software include increased productivity, improved customer service, greater ELD compliance, and better fleet vehicle maintenance. These benefits can be quantified using accurate data.
Costs: The cost of fleet tracking software includes the cost of the system itself, installation and maintenance, and staff training and policy updates.
Calculate ROI: Once you’ve quantified these gains and costs, you can calculate ROI using the formula: ROI = (Investment Gains – Investment Costs) / Investment Costs. Your fleet management’s ROI calculator can guide you through this process.
If you’re considering GPS tracking, Smart Fleet offers comprehensive solutions for all aspects of fleet management. The software solutions include geofencing and asset tracking for vehicle safety, as well as route planning and streamlined dispatching for increased efficiency.
To see the benefits of GPS tracking solutions, contact us or schedule a free live demo today!