White Paper. Calculating ROI for GPS Tracking. Jack Duncan ERP Integration NW 156th Street Edmond, OK

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1 White Paper Calculating ROI fr GPS Tracking Jack Duncan ERP Integratin 2912 NW 156th Street Edmnd, OK

2 Hw can we plt the prjected ROI fr a GPS System? Successful implementatin f a GPS system invlves careful planning as well as a prper explanatin fr emplyees as t its purpse in the business and the related plicies cvering its use. This white paper is prvided t ffer helpful infrmatin and is in n way intended t ffer legal pinins. Strategies behind calculating ROI: Because the reasns fr implementing a GPS tracking slutin are many and varied, this white paper is ffered t prvide helpful infrmatin t enable yu t d yur wn prjectins based n yur actual gals as well as the particular applicatins yu will be using. Since previus white papers are available t help yu chse the prper devices and mnitring plan fr yur applicatin we will nw address hw t calculate yur csts, ptential savings and then the actual Return On Investment What will yur equipment and setup csts be? When determining actual csts yu will need t knw a few cst facts: Actual cst per device Any activatin fees Expected depreciatin perid Mnthly mnitring csts Number f wrking days per average mnth Knwing these facts will allw yu t determine the average cst per wrkday Calculating the Avg. Cst per Wrkday In this example we will determine the cst f a single unit which can then be multiplied by the ttal number f units t be installed. If multiple devices f different types are t be deplyed this calculatin will need t be dne fr each different mdel. Mdels and csts here are fr demnstratin purpses NT X5 $ Device Activatin $ Ttal $ Depreciatin perid (mnths) 36 Prjected Mnthly Equipment Cst $7.47 Mnthly Mnitring Cst $29.95 Mnthly TCO (Ttal Cst f Ownership) $37.42 Calculating ROI fr GPS Tracking 2012 US Fleet Tracking Page 1

3 Since the simplest way t lk at the prjected ROI is t lk at avg. daily cst vs. ptential savings and the average wrk week is 5 days, we will assume 20 days in the wrking mnth. In the example abve: Mnthly TCO / 20 wrking days per mnth = $1.87 per wrkday We nw have the investment, nw where des the Return cme frm? Since we nw have established the prjected cst per wrkday fr each device let us nw fcus n where the return n that investment may cme frm. Using the example abve, ur gal might be t save apprximately ½ galln f fuel per vehicle daily. Ptential impact areas (pprtunity fr savings) can cme frm several situatins: Decreased travel time Can cme frm smarter wrkrder assignments r ruting Decreased travel time shuld result in increased prductive time r actual hurs spent ding what the emplyee is actually paid t d Decreased miles driven between stps The ability fr management t actually see where the vehicles are lcated vs. where they need t be typically decreases miles driven by as much as 10% Cmpany wned vehicles can benefit frm tighter cntrls arund after hurs use r persnal use f cmpany wned vehicles Reimbursement f miles driven in persnal vehicles can als benefit frm reprting frm the GPS system t mre accurately determine miles driven n business use Emplyee prductivity Nearly every time we see increases in prductivity due t mbile emplyees starting wrk earlier and wrking later simply because management knws where they are Stps t run errands etc. are eliminated and the emplyee just plain wrks smarter Calculating ROI fr GPS Tracking 2012 US Fleet Tracking Page 2

4 ROI Scenaris Using the examples abve: If we reduce miles driven by 4 miles per $0.50 per mile, ur ROI is immediate If we are ding a billable service at an example f $50.00 per hur and increased ur billable hurs by.5 hurs per day thrugh additinal prductivity and mre effective ruting, we nt nly recvered ur GPS investment immediately, we increased revenue fr that emplyee by $500 fr that respective mnth Cnclusin In cnclusin, I wuld suggest that with a well planned slutin, prper devices, accurate reprting and alerts which can be mnitred live, the investment in GPS technlgy can nt nly return value immediately but in many cases result in an immediate savings n expenses as well as a ptential increase in revenue. In a field service situatin where mbile emplyees are deplyed ff site t run service calls: If the average number f calls perfrmed per day is 4 and GPS technlgy can be used t increase that number t 4.5 calls per day. Fr every eight emplyees that yu have yu will gain anther ne free! N additinal payrll, fringes and benefits, additinal vehicle etc. In summatin, the cst f leveraging GPS technlgy t increase efficiencies and lwer perating csts far utweighs the initial investment. Calculating ROI fr GPS Tracking 2012 US Fleet Tracking Page 3

5 Abut US Fleet Tracking US Fleet Tracking, lcated in Edmnd, Oklahma is the leader in real time asset and vehicle tracking, prviding industry leading sub ten secnd service. In an industry where the standard is tw minute updates, US Fleet Tracking flies past the cmpetitin with live updates and at a third the cst. Knwing lcatin f vehicles and assets has imprved the efficiencies f US Fleet Tracking s clients at a rate where the initial cst f the equipment and service is recuped within a few days f purchase. In additin t its experience tracking cmmercial vehicles, the cmpany has prvided tracking t cuntless large scale public venues including Super Bwls XLI, XLII, XLIII and XLIV, the 2010 Pr Bwl, and the 2010 Winter Olympics. Fr mre infrmatin n US Fleet Tracking, visit and access a live demnstratin with actual mving vehicles. Cntact Infrmatin Address: US Fleet Tracking Crp NW 156th Street Edmnd, OK Telephne number: Our addresses: Sales: Supprt: Dealer inquiries: Office hurs: 7am t 7pm CT Mnday thrugh Friday 9am t 4pm CT Saturdays Clsed Sundays Calculating ROI fr GPS Tracking 2012 US Fleet Tracking Page 4

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