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Last Updated: 25. July 2017

Benefits of Vehicle Tracking

What is Vehicle Tracking?

Vehicle tracking systems, as the name suggest, allow tracking of vehicles in its most basic function. Other functions include vehicle tracking performance and maintenance, driver’s performance, but also facilitates fuel management and dispatching, sends alerts and notifications, prevents thefts and provides reports and enables analysis of these reports. More functionalities are possible, however, that depends on the company offering fleet management solutions.

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Passive and Active Tracking

Vehicle tracking systems can be divided into passive and active tracking. Passive tracking systems collect and save all the information, which will be later retrieved. Active tracking systems collect and send information in the real-time, which offers more advantages. Some tracking system may use both systems - passive and active tracking - if there is no signal, information will be saved and sent as soon as there is the possibility. While passive tracking devices and systems may be a less expensive solution, however fully sufficient to some companies.

Read more: Types of Tracking Devices

Benefits of Vehicle Tracking

What will implementation of vehicle tracking into fleet management bring? What are the advantages and why should a vehicle tracking system be used? Among the benefits of using vehicle tracking system we can find cost saving, discounts on insurance, improved safety of employees and fleet, better service for customers, improved time and employee management as well as administration and theft prevention.

  • Cost Saving

Vehicle tracking system can bring the advantage of better financial management. This is thanks to the information on fuel consumption and better fuel management, eliminating unwanted behaviour from drivers such as speeding and better management of idle and maintenance time.

  • Discounts on Insurance

Cost saving and cost cutting can be further facilitated by discounts offered from insurance companies. These companies tend to give discounts for companies, who use vehicle tracking system in their fleet management as it provides more information on fleet and improves safety of employees and the fleet.

Read more: Advantages of Efficient Fleet Management

  • Safety of Drivers and Trucks

Thanks to vehicle tracking systems it is possible to reduce traffic accidents, as well as avoid any problems on the way, traffic jams and construction on the roads. Fleet management benefits also from theft prevention feature.

  • Better Service for Customers

All the information gained from vehicle tracking system can lead into better management of all business processes. That also includes better service for the customers, as it is possible to see the route, stops, idle time and possible arrival time.

  • Employee Management

Vehicle tracking system can bring the advantage of better employee management thanks to information on fuel management and monitoring of driver’s behaviour. Thanks to these features, it is possible to see better and worse performing employees. Besides this, it is also possible to use all the information gained for better training of drivers.

  • Improved Administration

Administration is facilitated thanks to vehicle tracking systems. Time saved on administration can be used for processes that need more attention and therefore it could lead to a more efficient business.

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  • Time Management

Improved administration can add to better time management. However, time management can be improved also thanks to better employee management, fuel management, monitoring of driver’s behaviour, routes tracking, but also thanks to reports and its consequent analysis.

Read more: 5 Reasons to Track your Fleet with a GPS Tracker

  • Theft Prevention

Among very common features of vehicle tracking systems is theft prevention. This feature send alerts and notifications whenever a suspicious behaviour occurs and allows a quick reaction to this behaviour. This feature can also avoid excessive costs of acquiring new vehicle.

  • Improved Lifecycle Management

Good lifecycle management is crucial to efficient fleet management. With tracking systems, it is possible to improve lifecycle management - with information such as technical information on the vehicle (engine, tyres and more), with known driver behaviour and information on idle time, maintenance time and service needed.

  • Vehicle Utilization

Thanks to all the information gained from vehicle tracking systems, vehicles will be used more efficiently - from more efficient use of fuel, better driver behaviours, better routes taken, the possibility to avoid traffic and construction, but also employee fraud avoidance can lead to better vehicle utilization.

There are many advantages to using vehicle tracking system in the fleet management. However, to make the most out of the vehicle tracking system, prior thorough research on different systems is needed in order to ensure a cost-effective choice.