If you are realistic about cutting costs and increasing the productivity of your fleet, it’s hard not to jump on the GPS technology bandwagon. Perhaps you should. Following are three asset tracking system statistics that will make your jaw drop.
1. 33% Reduction in Fuel Consumption
Fleet expenses differ, depending on the type of vehicle, the route taken, and the area being driven. Variable expenses, including fuel, tires, oil, and maintenance and repair must all be considered when measuring profit. Fuel costs usually account for the highest percentage of outgo of all variable expenses, followed by maintenance and repair costs.
Any reduction in these two expense categories will result in the highest level of overall savings. A GPS asset tracking system helps reduce fuel consumption in numerous ways.
A. Monitoring Driving Behavior
Aggressive driving is not only dangerous, it uses more fuel. According to the U.S. Department of Energy (DOE), aggressive driving such as rapid acceleration, hard braking, and speeding lowers gas mileage by:
- 15% to 30% at highway speed
- 10% to 40% in traffic that is stop-and-go
According to the DOE, driver feedback devices help drivers perform more efficiently. Those who use them to save on fuel consumption have been found to improve their overall gas mileage by about 10%.
A GPS asset tracking system that tracks driver behaviors monitors performance as soon as the engine is turned on. The systems use complex algorithms that are able to monitor sudden changes in speed so that rapid starts and harsh braking trigger alerts to the fleet manager. Detailed reports are then available that establish the number of instances of aggressive driving events that have occurred per trip, further establishing whether a driver’s behavior requires modification.
B. Eliminate Excessive Idling
According to Ford Motor Company, one hour of idling time is, nearly the same, as driving 25 miles. Smaller fleets that operate 25 vehicles would be able to reduce fuel consumption by 600 gallons annually if each vehicle cuts back 15 minutes off their daily idling time.
A GPS asset tracking system monitors when a vehicle’s ignition is on or off as well as its speed. Fleet managers are provided detailed information on where and how long a vehicle has been sitting with the ignition on, and can immediately act to correct the driver’s behavior.
C. Eliminate Speeding
The U.S. Environmental Protection Agency (EPA) reports that highway driving over 50 mph uses more fuel. As the EPA states, "You can assume that each 5 mph you drive over 50 mph is like paying an additional $0.16 per gallon for gas." With GPS asset tracking systems, fleet managers receive an alert any time a vehicle exceeds the posted speed limit, and contact the driver to stop the behavior.
2. 10% - 20% Reduction in Maintenance Costs
GPS asset tracking systems provide detailed accuracy about vehicle maintenance. Systems factor in the actual amount of engine hours that the vehicle has run, giving real-time numbers for scheduling preventative maintenance.
Opting for a fleet maintenance system allows fleet managers to lower the number of breakdowns they have on the road, reduce the amount of time a vehicle is out, and have data about when a vehicle is up for replacement.
3. Up to 33% Savings in Insurance Premiums
GPS asset tracking systems help fleets cut expenses by making them eligible for a discount on insurance. Companies such as USAA, Liberty Mutual, and AAA all offer discounts for GPS system installation. These systems help reduce the risks involved with fleet management in two very important ways, including monitoring driver behavior, and asset recovery.
A. Monitoring Driver Behavior
GPS tracking systems provide real-time data about every driver in a fleet. Their speeding behavior can be monitored, as well as when they detour from their established route or engage in aggressive driving behaviors. Being able to monitor and correct behavior before a ticket is received or an accident has occurred helps managers increase driver safety, reduce risk, and keep insurance premiums lower.
B. Asset Recovery
When a vehicle is stolen, businesses not only suffer from the loss of the asset itself, but also in the lost time associated with the theft. GPS asset tracking systems have proven successful in increasing the likelihood of recovery of stolen assets, and because of this, many states now require insurers to provide discounts on comprehensive insurance when GPS is used. Insurers from other states often provide discounts to fleet managers for installing GPS systems at their own discretion.
The above statistics indicate that adopting a GPS asset tracking system for your fleet may be in your very best interest. What are you waiting for?