GPS Technology: Why Fight It?
There is an old saying that goes “You have to spend money to make money.” In the case of fleet management, spending just a little on a GPS (global positioning system) can bring about revenue growth as well as savings in time, travel, and fuel usage. However, a recent study shows some in the industry still have yet to embrace using this technology.
According to the survey, 55% of respondents reveal they do not have a tracking system at all. Of that, the delivery industry reports the highest usage at 56% with manufacturing reporting the lowest at just 25%. The survey was sponsored by GPS Insight, www.gpsinsight.com, in conjunction with by Bobit Business Media.
Respondents were polled in various industries—primarily delivery, including construction, government, utilities, and service—using fleets of all sizes. The survey explored four main areas: current adoption rate, choosing a provider, benefits, and ROI (return on investment).
According to the survey, fuel consumption, maintenance, and equipment and replacement are the three biggest hurdles facing fleets.
Reasons GPS is not being adopted to combat these issues include budget and the need to do more research. But, 23% feel using the technology will not help whatsoever. What this number seems to indicate is either these fleets do just fine as currently constructed, or management is hesitant or resistant to change.
In the survey, 86% of the respondents say use of GPS is either somewhat or very beneficial to their business. In fact, four out of five areas—productivity, fuel usage, vehicle maintenance, routing, and customer service—show results from GPS use exceeded goals that were set (maintenance was the only area to have a decline). As for the ROI, fleets report full returns in at least one year. Fleets see savings in fuel consumption, travel time and distance, and recovery of stolen equipment.
Complete insight into fleet operation is seen as important by 90% of respondents, and 84% say GPS can improve fleet management.
This isn’t a situation of “if you can’t beat them, join them.” GPS is here and will be for the long haul. The positive impact of its use is real and can be felt in a relatively short period of time. So, why not embrace what it has to offer and save both time and money?
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