What is a vehicle tracking system ?

Technology can help improve businesses and make a huge difference to their bottom line. This rings particularly true when leveraging a vehicle tracking system that seamlessly integrates automatic vehicle location with a comprehensive fleet management system that collects all vehicle activity data to help improve strategic areas. 

The use of technology such as a vehicle GPS tracking system has become pervasive and is steadily gaining global traction. In fact, the recent Fleet Technology Trends Report in Australia and New Zealand revealed that an impressive 72% of Australian companies and 69% of New Zealand companies surveyed incorporate this technology into their daily operations and other key fleet management technologies like asset tracking or video telematics.(1).

The most common vehicle GPS tracking devices

Modern vehicle tracking systems commonly rely on GPS (Global Positioning System) technology to facilitate the automatic location of vehicles. These systems typically offer two distinct types of tracking devices: passive and active. (2)

In short, the passive vehicle GPS tracking device stores information about ‘GPS location, speed, heading and sometimes a trigger event such as key on/off, door open/closed. The device is then removed and the data downloaded to a computer for evaluation. Passive systems include auto download types that transfer data via wireless download.’ (3) 

Active vehicle GPS tracking devices not only share similar functionalities with their passive counterparts but also excel in their capabilities by taking it a step further because they ‘transmit the data in near-real-time via cellular or satellite networks to a computer or data centre for evaluation.’ (4)

The potential of ‘active’ vehicle GPS tracking devices lies in their ability to provide a comprehensive, near-real-time overview of fleet operations. This includes valuable insights such as precise location, speed, distance travelled, routes taken, fuel consumption, idling, speed alerts, security alerts, and instances of theft or unauthorised use. Notably, there’s no need to download the data for regular updates, as this information can be conveniently received on mobile phones, tablets, or computers, keeping fleet managers informed at all times.

5 benefits of vehicle GPS tracking in combination with a fleet management solution

By providing education on good driving habits, businesses can effectively reduce fuel usage while simultaneously demonstrating the associated benefits. 

This approach enlightens drivers about the direct correlation between improved driving practices and enhanced job security, as this contributes to the company's profitability. Furthermore, fostering an understanding of how driving habits directly impact fuel consumption raises driver consciousness regarding their ecological footprint, as well as the safety benefits of driving more responsibly.

Let’s dive into some of the benefits of vehicle GPS tracking and fleet management:

1. Promote safety for your team 

By prioritising the safety of the team, the integration of vehicle GPS tracking technology with fleet management offers valuable functionality. This combination enables remote tracking of vehicles and seamless monitoring of fleet operations in a proactive manner, all in near-real time.

In the event of emergencies or unforeseen circumstances, this setup enables swift action and the prompt dispatch of necessary assistance. 

2. Cultivate a culture of sustainability in fleet operations

Driver behaviour plays a crucial role in ensuring safety, optimising fuel consumption, and minimising environmental impact. The way we drive directly influences our CO2 emissions, carbon footprint and overall environmental footprint.

In addition to its significance in fuel efficiency, vehicle GPS tracking and fleet management systems offer a comprehensive overview of your operational status, highlighting areas for improvement. This enables businesses to identify specific aspects that require attention, promoting both economic efficiency and a strong commitment to the environment and customers. Cultivating a culture of sustainability demonstrates a dedication to doing things better, resonating positively with customers.

3. Safe driving is crucial for a safe fleet

To effectively improve your current situation, understanding how your team drives is key. It serves as the foundation for making necessary changes. 

Unsafe driving practices such as speeding, harsh driving, and fast cornering pose significant risks to both your team members and vehicles. Moreover, they contribute to unnecessary and premature wear and tear of vital components like the engine, tires, and brakes. Notably, these unsafe practices also lead to increased fuel consumption, directly impacting the overall profitability of your business.

In fact, according to a recent study, ‘speeding consistently contributes to around 41 per cent of road fatalities and 24 percent of serious injuries each year. This means almost 150 lives lost and 1,270 people seriously injured each year.’ (5).

Also, recent tests have demonstrated the effects of aggressive driving, which encompasses frequent rapid acceleration and hard braking. These driving behaviours can increase fuel consumption by approximately 40%. A simple yet effective strategy to optimise fuel efficiency is to adhere to posted speed limits. Lowering your cruising speed from 120 km/h to 100 km/h on highways can result in fuel consumption reductions of up to 20%. (6)

4. Boost fleet excellence

In the era of industry 4.0, data-driven decisions hold immense potential to make a significant difference. Leveraging technology that provides accurate and reliable data and reflecting on the operations and costs of your business can elevate your company and have a profound impact on your bottom line.

Technology like vehicle GPS tracking in combination with fleet management can help analyse fleet performance (vehicle activity, fuel consumption, routing, distance travelled, total idle time, etc.). Analysing fleet activity can help enhance key performance and uncover hidden costs.

Applying these insights enables businesses to anticipate future scenarios, identify past trends, and strategically realign their approach. This includes adapting to current resources and aligning with fuel efficiency goals, among other benefits, all within the realm of data-driven decision making.

5. Protect what you’ve built

Car thefts and unauthorised use of vehicles are common and costly. The latest report of the Australian Bureau of Statistics showed that there were 55,400 motor vehicle thefts and more than 38,000 were passenger or light commercial vehicles (104 cars a day/year). (7)

Beyond the economic implications, preventing such incidents is crucial for maintaining customer satisfaction and ensuring their safety.

In this context, the integration of vehicle GPS tracking technology with fleet management can help. By utilising this combination, businesses can receive prompt alerts when vehicles are used outside designated working hours.

Additionally, we can collaborate with the authorities by sharing comprehensive information regarding the vehicle's near-real time location, route and activities. 

The integration of vehicle GPS tracking technology with fleet management offers numerous advantages to businesses. By downloading our eBook titled 9 Secrets to Reduce Your Fleet Costs, you can explore effective strategies that not only minimise expenses but also generate a positive impact on your overall fleet operations. 

Sources: 

• (1).Fleet Trends Report in Australia and New Zealand 2023

• (2-3-4) Wikipedia

• (5) https://www.transport.govt.nz/statistics-and-insights/safety-annual-statistics/sheet/speed

• (6) https://sgi.sk.ca/documents/37148/138037/drivers_handbook.pdf/cdd760de-a90c-401e-9a5e-f2d60b4041e2

• (7) https://www.police.govt.nz/can-you-help-us/stolen-vehicles