What GPS Will Do for You in 2015: the Future of Fleet Tracking

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1 What GPS Will Do for You in 2015: the Future of Fleet Tracking

2 GPS systems confer a competitive advantage on companies that use them for fleet vehicles. Fleet managers who use GPS systems to track drivers are usually extremely pleased with the systems. GPS systems are so widely used and liked that companies that don t track drivers put their companies at a competitive disadvantage. The tools that come along with GPS systems help companies minimize delivery times, improve safety, and save fuel. Here are a few of the reasons companies with fleets have embraced GPS fleet tracking systems. They can get cumulative and real-time reports on drivers. GPS systems allow companies to identify inefficiencies and practices that waste time and fuel. Systems with route optimization let companies minimize wasted time, and some GPS systems provide information on things like how many times a vehicle starts and stops, idle time, and whether the driver is speeding. Fuel savings can be significant. When GPS systems provide route optimization, delivery times improve, and fuel costs drops. And with GPS systems, finding new points of delivery is far more efficient with turn-by-turn navigation, so drivers don t waste time getting lost. Fleet managers and dispatchers can communicate better with drivers. With GPS tracking systems, managers and dispatchers have real-time data on where drivers are located, allowing for smarter route assignment and better monitoring of driver behavior on the road. Though larger fleets are more likely to adopt GPS systems than smaller ones, the benefits of GPS tracking to small fleets cannot be overemphasized. The increases in productivity and fleet safety and security from GPS system use can make companies with small fleets much more competitive with larger companies Business.com Media, Inc. All rights reserved

3 The Future of Fleet Tracking As more data can be collected by GPS systems, thefts can be solved, and insurance premiums can be lowered. Fleet tracking has been used for years, but the technology and technology delivery continues to evolve. Web-based tracking systems have been integral to finding stolen fleet vehicles, even when they end up far away from the point of theft. When a vehicle is stolen, the company and law enforcement can stay a step ahead of the thief, who may not even be aware that tracking is happening. Tracking features like playback show exactly what happens to a stolen vehicle, and this data can be valuable to prosecutors, whether the theft is a one-time occurrence or part of an ongoing theft ring. But aside from assisting in criminal investigation, tracking is moving toward providing a comprehensive data backup system with capabilities like 90-day playback. This can be invaluable in the event of billing disputes with clients, for example, because it allows fleet owners to show exactly where and for how long delivery teams are working. Increasingly sophisticated data overlay, including weather and traffic with frequent updates offers yet another dimension to the tracking capabilities of GPS systems. Some systems are starting to offer detailed reporting, including incidents of aggressive driving and driving activity within certain zones (like construction zones). The inclusion of more data in reportage makes addressing safety and security even more effective. One of the best things about the current shift toward web and cloud technology for GPS systems is the easy scalability that comes along with it. Tracking data can give fleet owners a clearer picture of peak demand, and cloud technology allows companies to easily access the computing power necessary to cope with these periods of peak demand Business.com Media, Inc. All rights reserved

4 GPS and Telematics Telematics allow fleet managers to head off problems early. Telematics is a type of machine-to-machine communications, but it s most often used in connection with communication from a vehicle. General Motors OnStar program is a type of telematics. By 2017, it s expected that 70% of car manufacturers new vehicles will have telematics capability. The insurance industry uses telematics as a way to collect information from vehicle operation and validate self-reported information used to calculate premiums. Telematics information may be as simple as distance verification, or it may be much more complex. Vehicle electronics already capture countless sensor inputs for processing onboard controllers and diagnostics. Aftermarket devices can collect data and combine it with GPS positioning and other data, and insurers analyze that data to identify patterns indicating risky driving behaviors. Systems are now able to link this data with additional information, like weather, traffic conditions, and road type. Today s GPS systems are starting to include web-based portals for telematics that allow fleet managers to access consolidated data from all GPS-tracked assets through one interface. This onestop fleet visibility solution can also be integrated into business software for things like reporting and forecasting. Until recently, only the largest fleets with big budgets could use telematics optimally, but these technologies are becoming more affordable for smaller businesses, which could arguably have the most to gain from it. Not only can telematics allow insurers to calculate premiums more accurately, it can do things like send information to the dispatcher and to a repair shop about the precise nature of a vehicle breakdown. This can ensure that repairs are done more quickly, and that fleet vehicles spend a minimum of time out of service Business.com Media, Inc. All rights reserved

5 Driving Behaviors and Insurers Telematics can lead to safer drivers and lower insurance premiums. With your personal vehicle, you deal with your own automobile insurance premiums, but at work, your professional drivers do not, because the company takes care of it. The disconnect between behindthe-wheel behavior and the employer s insurance premiums can lead drivers to engage in behaviors they might not with their personal vehicles. But GPS systems are changing that; telematics can connect individual employee behavior with insurance premiums, and more commercial fleets are using telematics data. The technology is there, but fleet managers must make the decision on whether they have reason to share the data with their insurers in exchange for risk management information, value-added services, or discounts on premiums. Zurich North America is one company that has started using telematics data to improve efficiency and encourage drivers to improve their skills to reduce risk. Reduced crash rates are reflected in lower insurance premiums, fewer driver injuries, and less vehicle downtime. Insurance underwriters have some discretion with pricing commercial accounts. When calculating premiums, a fleet s safety management program is considered as well as the use of telematics data. Companies themselves can use benchmarks to compare overall fleet behavior to other fleets in similar industries and develop training programs for improving driver performance. The ultimate goal for the employer is to create an atmosphere of efficiency and safety and improve the track record of the entire fleet. This ultimately reduces fleet operational costs, and these improvements may be reflected in lower insurance premiums Business.com Media, Inc. All rights reserved

6 Benefits Telematics Can Offer Some telematics pick up diagnostic codes before the check engine light ever comes on. Telematics combined with GPS can produce results greater than the sum of their parts. Here are just a few of the benefits of combining GPS with telematics. Early diagnosis of vehicle problems. Some telematics systems can alert fleet managers to diagnostic codes before the check engine light comes on. This can save on repair costs by allowing them to be made before problems proliferate, and help keep repair providers honest. Driver behavior modification. Telematics can have the same result as if the fleet manager were riding along with a vehicle operator. With telematics, your drivers are more likely to comply with posted speed limits, reduce time with the engine idling, and cut down on hard acceleration and braking. This all helps with fuel economy, reduced maintenance and repair costs, and lower accident rates. Long term savings. By analyzing the frequency of various diagnostic codes presented by telematics systems, companies are able to compare the reliability of various makes and models of vehicles. The long term result can be better purchasing decisions when it s time to replace vehicles. Better hours of service compliance. For long haul fleets, hours of service (HOS) compliance is critical. Telematics allow HOS tracking to be automated, with instant information on how long a driver has been driving or off-duty. Telematics can also help operators comply with requirements for documenting pre- and post-trip inspections Business.com Media, Inc. All rights reserved

7 The Future of Fleet Tracking GPS systems result in better employee safety, lower costs, and more efficient service delivery. A GPS Insight survey of fleet managers about GPS systems recently found that around 45% of fleet managers use GPS tracking software, and that larger fleets have the highest adoption rates. Providers are generally chosen based on how easy the systems are to use, monthly fees, and return on investment. Of those surveyed, two-thirds said they expected full ROI in about a year. Large fleets aren t the only ones that benefit from GPS systems. Cloud technology has brought down up-front costs, making GPS systems far more reasonable for small business fleets than they used to be. The benefits of reduced operating costs, lower fuel and maintenance costs, possible savings on insurance premiums, and lower carbon footprints can make smaller businesses more competitive. The fleet tracking GPS systems of today do much more than locate vehicles, and more features are being added all the time. GPS systems are now looking into ways to integrate with big data, which is becoming part of many types of technology initiatives. Systems will be able to use more of the data they collect and analyze it in new and informative ways. Some systems can integrate vehicle and driver data into company back office functions and third party systems, automating even more operational processes. And an increasing number of smartphone apps are empowering drivers and fleet managers to improve productivity further. If you re interested in learning more about GPS systems and in obtaining competitive quotes based on your company s specific needs, visit the GPS Systems section of Business.com. Millions of buyers from small and medium-sized businesses turn to Business.com every year to learn about, compare, and purchase products and services they need to thrive and compete effectively. Let Business.com help you choose the right provider for your GPS tracking system needs Business.com Media, Inc. All rights reserved

8 [All prices in this guide are estimates. The cost, especially on per-vehicle charges or monthly fees, can vary widely from provider to provider, and discounts are certainly possible with the right negotiating tactics. Always get specific quotes from providers about each feature.] 2013 Business.com Media, Inc. All rights reserved

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