Four Ways You Can Use GPS Tracking to Increase Productivity and Eliminate Payroll Issues

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1 A FleetMatics White Paper Glasgow Barncluith Business Centre Townhead Street Hamilton ML3 7DP Four Ways You Can Use GPS Tracking to Increase Productivity and Eliminate Payroll Issues May 2010

2 Global positioning systems (GPS) have quickly become the gold standard as a costeffective way for businesses with vehicle fleets to reduce fuel and fleet costs. With GPS installed, businesses know the exact location of their vehicles. This helps businesses save fuel through dispatching efficiencies and improved routing. Data gathered by many GPS systems including driver speed and idle time can further help businesses by improving safety and decreasing fuel costs. However, some GPS fleet tracking solutions offer tools and data gathering features that help business owners improve driver productivity and increase payroll efficacy both of which can ultimately reduce overtime hours and garner additional revenue. In fact, a recent study by Aberdeen Group, a respected firm that studies the impact of technology on business, reported that businesses experience a 23 percent increase in the total number of jobs completed per day per technician with GPS installed on their vehicles. The study also found a 14.8 percent reduction in average time per job and a 9.9 percent decrease in overtime pay. Here are four ways business owners can use GPS to help with productivity and payroll issues. Please note, that not all features are available by all GPS tracking providers. Please, be sure to ensure your provider includes all these features when choosing GPS for your fleet. 1) Better Dispatching and Routing With GPS tracking, dispatchers know the exact location of every vehicle in a fleet. This helps them to direct the closest vehicle to any job site. Some GPS tracking solutions go a step further by providing a feature that automatically locates the vehicles nearest to any address. In addition, dispatchers can ensure drivers take the most direct route to any job site and quickly re-route them should they get lost on a journey. Some GPS tracking solutions also provide real-time traffic reporting so dispatchers can warn drivers of traffic delays and provide rerouting as needed. To ensure that you get the most efficient dispatching and routing, look closely at the mapping functions of any potential GPS provider. Many solutions offer inaccurate or incomplete mapping. Choose a GPS solution that includes powerful mapping like Google Maps API to give you pinpoint accuracy. Lowering fuel consumption and reducing wear and tear on vehicles through efficient routing is an obvious benefit. But less time spent on the road also means more time spent completing jobs during the day.

3 2) Monitor Inefficient Employee Practices Another reason productivity increases with GPS has to do with simple human nature. When employees know that their vehicles are monitored, they tend to drive and work more efficiently. In essence, GPS gives fleet owners the ability to ride along with their drivers. Under direct supervision, employees perform their duties faster and at a higher level. Some GPS tracking solutions also include features that monitor vehicle idle times and engine status. Business owners can use these tools to ensure that drivers are not wasting extensive time idling in one location or spending an excessive amount of time at a particular job. Combined with an alert function, owners can be notified if a vehicle has idled or remained inoperative after a certain amount of time and quickly determine the cause. By knowing the location of every vehicle, business owners can also immediately determine if a driver deviates from a direct route to a job site. This eliminates the practice of employees using work hours to complete personal business. Vehicle monitoring can also help improve productivity by giving business owners a quantitative measurement of employee performance. This works especially well with GPS solutions that provide in-depth historical reporting. Businesses can use hard data gathered through GPS tracking like idle times, mileage, speed and engine on time to implement an employee reward program. Bonuses based on tangible performance metrics encourage productivity and boosts morale. The best GPS solutions provide data reporting that dates back all the way to when a client first begins using the system. In some cases, performance can also be compared between drivers or against the company average. 3) Automate Timesheets and Payroll A majority of businesses with vehicle fleets rely on manual timesheets to determine payroll. A manual system often opens the door to inaccuracies and falsification of work hours. By automating payroll, business owners can ensure their employees are paid accurately for actual work done. Many GPS systems track the time when a vehicle starts for the first time during the day, and when a vehicle shuts down for the day. This provides an accurate, automated record of how long an employee worked. In addition, shutoff and startup times during the day can be used to record accurate time spent for lunches and breaks. Reputable GPS providers include extensive reporting functionality that compiles this information in an easy format that can be used as an electronic timesheet. Integrating

4 this information into back office applications will further increase business efficiencies and reduce administrative costs. 4) Eliminate Unauthorised Vehicle Usage GPS vehicle tracking can give business owners the ability to ensure employees use their vehicles only for authorised purposes and only during specific times. High-quality GPS programmes help in this effort by alerting business owners when their vehicles enter areas considered off limits. For example, drivers may congregate during business hours at a specific location, wasting valuable company time. GPS can alert owners when their vehicles enter that location. In addition, some GPS tracking solutions can notify business owners when their vehicles are used during unauthorised hours. These alerts are essential in notifying business owners of vehicle theft in progress and can help with quick recovery of a stolen vehicle. But a vehicle activity alert is especially useful for businesses that allow drivers to take company vehicles home. Employees that use company vehicles for completing unauthorised side jobs tend to spend time during work hours scheduling and handling administration of non-company jobs. Eliminating unauthorised vehicle use can ensure your drivers avoid restricted areas, significantly improve production during the day and reduce any liability of drivers using vehicles during off-hours. Case Study: Ian Stirling Haulage For over 20 years, Ian Stirling Haulage in Renfrew has provided exceptional haulage services to its clients throughout Scotland. It s a small, family-run business facing much larger competition in an industry that has felt the direct effects of climbing costs as the economy struggles. For Ian Stirling Haulage, GPS vehicle tracking seemed to be the answer to all of their cost and control issues. Once the tracking system was installed, the results overwhelmingly impressed company owner Ian Stirling. According to Mr. Stirling, his company utilises the GPS tracking to know exactly when drivers arrive at a job site and how long it took for them to get there. This eliminates any routing discrepancies and ensures drivers use the quickest route possible to a job.

5 Dispatchers also have the ability to locate the vehicles nearest to any job site, thus further improving productivity. The automated reports allow Mr. Stirling to see any excessive mileage and unauthorised vehicle usage on off-days. Ian Stirling also makes extensive use of the GPS reporting features to verify payroll. Prior to using GPS tracking, Mr. Stirling had no way to verify when his drivers started work or if his drivers took unauthorised breaks. Throughout the day, he knows exactly when an employee arrives on a site, how long they stay there, and when they leave. Without GPS, you really have no idea where your vehicles are or what they are doing, said Mr. Stirling. Now I know where they are every minute. Mr. Stirling can now ensure employees work efficiently during all their required hours without worrying about overtime. In fact, his employees now work shorter hours during the day because of their increased productivity. We implemented the system to control our vehicles, reduce costs and make our business more efficient, said Mr. Stirling. The system has helped us do just that. We are quite happy with the cost savings and will never be without GPS tracking. Conclusions The current economic recession has been particularly hard on businesses with vehicle fleets. In addition to lower revenues, fleet owners have had to deal with volatile fuel costs. GPS fleet tracking has helped businesses around the world meet their immediate need to decrease fuel consumption and increase their profit margins. Often overlooked are the impacts of GPS on productivity and payroll. Almost all GPS tracking services in some way provide the information needed to gain more control over these two areas. But only reputed, forward-thinking GPS solutions include a wide variety of tools to make it easy for business owners to leverage the most benefit. When choosing a GPS tracking provider to maximise productivity and control overtime, look for these features: Precise, Minute-by-Minute Tracking Make sure your provider tracks vehicle locations at least every minute and provide regularly updated mapping. Traffic Reporting This helps ensure your drivers spend more time on the job and less time stuck in traffic. Monitors Idle Times and Engine Status

6 Knowing how long your vehicles idle and when they are actually in operation is imperative to reduce wasted time. Management Reports and Alerts Your GPS solution should have a variety of reporting functions to provide easy access to data gathered by the system. Reliable GPS tracking should also provide immediate alert notifications when drivers deviate from rules you set, including entering restricted areas. Automated Timesheets If you still have to use manual timesheets after installing GPS, then your system is not using the latest tracking technologies. Eliminating manual timesheets is essential to improving payroll. Historical Reporting The ability to view historical information in key metrics such as idling, mileage, average speed and engine-on time will enable you compare drivers to each other, view your top offenders, and make corrections to driver behaviour as needed.

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