Real time fleet tracking and its role in a transportation management system
– Article by Prashant Kumar, AVP – Business and Growth at LogiNext
Real time fleet tracking and real time delivery management as a whole have come a long way from dots-on-a-map software. It is a vital business tool that provides logistics visibility and detailed insights into every aspect of fleet operations and logistics management. Efficient and accurate vehicle tracking systems have a proven track record for reducing the last mile delivery cost. As per a report released by Frost & Sullivan, only improving driving styles alone can reduce fuel consumption by up to 25% (source).
Real time tracking can help reduce operational costs
When implemented by businesses with fleet operations such as in industries like Courier express parcel companies or the Quick service restaurants, or transportation (3PL/4PL) vehicle tracking systems come with – and meet – an expectation of reduced operational costs, increases in productivity, and maximize efficiency.
Combining or integrating vehicle tracking systems with route optimization platforms like LogiNext Mile and last mile delivery applications also enable businesses to reduce the delivery costs further with Accurate ETA and real-time order tracking for the end customer. Vehicle tracking systems provide greater visibility into your operations, supports a culture of accountability and improvement, and improves efficiency and productivity.
How does it work?
Well, there are various components to it starting from:
- GPS Satellite: The vehicle’s location is provided by the telematics fitted into the vehicle communicating with the GPS device in the orbit.
- Vehicle & Data: Data generated by the vehicle get captured by the telematics device.
- Communication: Collected data via telematics devices get communicated via a cellular network.
- Fleet Management Software: The system gives the business access to insights in real-time to help and make more informed decisions.
All organizations have different needs based on the unique challenges they face. Depending on how robust a vehicle tracking system’s feature-set is, it can provide a wide variety of benefits that support businesses operating effective, safe, and compliant fleets.
Increased Bottom Line with High Margins: Vehicle tracking systems allow you to keep an eye on business operations in a digital environment. Managers are able to see how vehicles are used, how drivers are operating them, see where inefficiencies in processes are occurring, and more, ultimately reducing costs and creating more revenue.
Customer Experience and Satisfaction: The most basic functionality of a vehicle tracking system – location – is not just about where your vehicles are, but more importantly how far they are in relation to your customers allowing businesses to provide detailed and timely customer communications. Vehicle tracking systems can also improve route plans, which further increases customer satisfaction with increased on-time delivery metrics.
Safety: More robust vehicle tracking systems inform fleet managers on metrics that can lead to decisions that increase safety for your drivers and the vehicles they share the road (or Jobsite) with. Monitor and get real-time alerts regarding poor driving behaviors to have evidence-based driver coaching conversations and driver rewards programs.
Reduced Downtime: This system will help you find efficient routes, which will increase productivity by reducing downtime. With delivery companies, it helps to ensure that all deliveries are made on time while cutting down fuel costs. Hence, your reputation also improves along with overhead expenditure.
Instant Alerts on route deviation: Geofencing is a feature in vehicle tracking systems with which an area can be set up that you consider safe for the employees, or even set up as a business zone. You will get an alert the very instant your vehicle goes out of the preset area, preventing drivers from wandering off to non-work places or getting into unsafe zones.
Improved Order Lifecycle Management: Lifecycle management is a critical element for efficient fleet management. A vehicle tracking system provides information on both the vehicle and driver, improving efficient lifecycle management.
The benefits of GPS tracking are endless. Get a better grasp of how employees are performing and find better ways to manage workloads with a comprehensive fleet tracking system. Not only will you save time and money, but your drivers will be safer and perform to their full potential. All of which adds up to a smoother business operation and improved customer service that each of your customers will love.