The installation of GPS car tracking modules on the company vehicle fleet, or more precisely, the installation of GPS tracking devices in passenger cars that are used for commercial purposes, has a direct impact on reducing transportation costs. The cost reduction, on average, is about 25-30%, and in some companies, it can reach 50%, depending on the control that was applied before the implementation of the GPS.

What happens to the fleet when GPS devices are installed and why does it reduce costs?

1. Elimination of parasitic mileage, which reduces fuel consumption

Quite logically, when drivers of company cars know that their work is being monitored, or can be checked at any moment, they stop using the cars for personal purposes during work or after work. The effect of this is to reduce the vehicle’s mileage. As the distance is reduced, the required fuel is also reduced, hence the cost of its purchase. According to information shared by customers, the mileage of some cars decreases by up to 50%, which means that the fuel consumption will also decrease by the same percentage.

2. The maximum speed of the cars is reduced, which also reduces fuel consumption per 100 km.

There is hardly anyone who is not aware that fuel consumption increases as the speed of the car increases. The reduction in top speed is due to two main reasons:

– drivers change the way they drive because they know that cars have GPS tracking;

– GPS car trackers record speeding violations, which coupled with employer fines for the violations see a permanent reduction in the car’s top speed and fuel consumption.

3. Movement routes are optimized, hence less mileage and less fuel

With the detailed information that GPS systems provide about traffic routes, any employer or transportation manager can carefully analyze traffic routes and refine them so that most sites are covered in the least amount of time and with less effort. low mileage. The result of such optimization is a reduction in the required fuel due to the use of shorter routes;

4. The number of visited objects per unit of time, for example per day, increases, which increases the efficiency of the car

GPS devices precisely register the locations (objects) and duration of each stay of the cars. This very quickly becomes clear to all company car drivers, especially when you ask them the question why did you visit 30 instead of 40 sites today? Thus, if you increase the number of sites visited by one car, you will have a higher income with the same resource of people and cars, which is essentially a reduction of the cost, due to the increased efficiency.

5. Parasitic downtime is reduced both at commercial sites and for personal purposes, which increases the efficiency of the car

As the length of stay decreases, the number of visited sites increases, respectively the efficiency of cars and human resources.

GPS car tracking for your fleet

All the reasons described above have one thing in common and that is that drivers change their behavior when they know they have GPS tracking cars. GPS tracking systems discipline drivers and reduce their opportunities for misuse of company cars. Also, with little administrative effort, the efficiency of the cars is increased. All this reduces the cost of cars.

To learn more and test GPS car tracking, read more about our start service here.