GPS Return On Investment
Reasons For Investing In GPS Equipment.
Many customers wonder if investing in GPS telematics and/or GPS video telematics is a smart choice. For individual consumers, the purchase of a GPS device or devices in many cases is a personal choice related to piece of mind, convenience, safety, and theft recovery. For businesses of any size, owners should consider the financial and operational merits of investing in a GPS system.
The Orbit Connected monitoring platforms do far more than real-time monitoring and historical tracking. The Orbit Connected proprietary monitoring platforms include data analysis and report generation capabilities that produce meaningful results related to equipment and employee utilization and operating costs including fuel, maintenance, and insurance savings. In fact, numerous published studies indicate the return on investment (ROI) can range from 30% per annum to 100% per annum subject to business type and management utilization.
How does a Fleet Management Solution impact ROI?
In a published survey conducted by the publishers of Automotive Fleet, Work Truck, Government Fleet and Heavy Duty Trucking magazines, revealed that 96% of organizations using a fleet management solution found it beneficial.
Also impressive, the majority of organizations who had implemented the technology achieved a positive return on investment (ROI) in less than one year. This holds true for organizations across multiple sectors:
While these figures underscore the value of investing in fleet management technology, there’s more to the telematics-driven ROI story. Survey respondents clearly indicated that GPS tracking can have a positive impact on business operations and cost centers.
The data showed that a majority of survey respondents saw increased improvement in critical areas such as customer service (54%), productivity (54%) and routing (38%). Respondents also reported decreases in fuel, accident, and labor costs.
By using a fleet tracking system, companies saw an 8% average decrease in fuel costs. This was slightly higher or lower when broken out by industry: Transportation – 10%, Government – 6%, Construction – 8%, Services – 9%.
With telematics, organizations reported an 11% average decrease in accident costs. By industry, the decreases achieved were as follows: Transportation – 14%, Government – 7%, Construction – 14%, Services – 8%.
Post-GPS technology implementation, companies reported experiencing an average decrease of 10% related to labor costs. Similar percentages were seen when broken down by industry: Transportation – 9%, Government – 5%, Construction – 10%, Services – 15%.
What about the ROI for GPS Video Telematics?
This is a great question, why pay more for GPS video compared to GPS telematics? There are two reasons, GPS telematics tells where and when, but GPS video tells why, plus it produces additional savings that can be substantial for fleet operators.
Real time video monitoring further improves employee efficiency, but more importantly it significantly reduces insurance costs and legal expense related to accident claims.
The following statistics for insurance and legal savings are provided by SmartWitness, a world-class maker of GPS video telematic equipment.
Please watch the accompanying video to see the power of GPS video telematics.