Today, GPS vehicle tracking is an integral part of fleet telematics and is vital to smart fleet management. Besides giving fleet managers more control and visibility over their operations, GPS tracking also helps companies increase profits and boost their annual ROI.
Discover how a GPS-powered fleet tracking device can help you boost profits and your business's annual return on investment.
The best place to start will be by understanding what ROI is in fleet management and how it can change how you look at your business’s profitability.
As you know, ROI stands for “return on investment”. It’s a fleet’s net profit ratio to its investment cost. If your business has a high ROI, your profits outweigh operational costs, giving your business more profitability. In contrast, if your business currently has a low ROI, you’re spending more than your business is earning.
Critical data points that can affect your fleet’s ROI include:
While specific metrics can help you understand your fleet’s performance, looking at the correct data will positively impact your decision-making, helping improve your fleet’s ROI.
For example, addressing driver performance helps improve overall fleet performance. However, looking at the effects of driver performance, like fuel waste or conservation and accident-related claims, help identify where drainages are so you can improve your ROI.
Calculating your business’s ROI helps identify and determine the financial benefits of specific purchases, which can be used to justify the investment to stakeholders or for record keeping. So, if you’re considering incorporating EVs in your fleet, looking at ROI will indicate whether going green is doable and profitable.
Calculating also helps businesses prioritise goals, identify areas of improvement, and track progress over longer periods. Progress tracking is beneficial for informed future decisions and progressive changes.
In short, calculating your fleet management business’s ROI gives you immediate and extended insight for intelligent decision-making in present and future times.
Can GPS tracking technology really help you boost your profits?
Looking at relevant statistics can help you make a smart decision. These mind-blowing stats from the US indicates how intricately linked GPS tracking technology is with increased ROI.
Cartrack’s Delivery app was put to the test with one of South Africa’s biggest furniture suit manufacturers in the quest to help them reduce their fuel costs.
How Cartrack Delivery was used: The app was used on one of their main truck’s daily routes. This truck had 15 deliveries to complete in a single day which amounted to a total distance of 195 km.
What the Delivery app achieved: The Cartrack Delivery app’s route optimisation software was used which resulted in the following:
What this means for your business: These results were from just one commercial vehicle, imagine the total fuel savings for an entire fleet. With fuel savings becoming an unavoidable requirement in many businesses’ budgets, GPS fleet tracking and management technology are helping more businesses worldwide to maximise their annual ROI.
If you’re ready to see a real profit boost, the best place to start is to ensure you understand what to do. With our expert guide, you can quickly identify pain points, implement cost-saving solutions, and double your fleet’s ROI.
Harnessing the power of your fleet data can unlock a world of benefits for your business. Here are five innovative ways to optimise the way you use fleet data:
Driver safety is essential when calculating your fleet's ROI. You gain valuable insights into driver performance and cost allocation by closely monitoring safety-related incidents over time. Ultimately, reducing accidents frees up funds and increases a business’s profitability.
Use fleet data to identify drivers who require additional training, enabling you to reduce safety incidents. Proactively playing it safe can also lower your insurance premiums and monthly expenses.
Real-time asset tracking unlocks significant benefits, including enhanced productivity, reduced losses, and improved ROI. Knowing the precise location of your vehicles empowers you in various ways. You can identify idling cars and trucks, eliminating time and cost waste. Additionally, optimising routes based on accurate data helps conserve fuel and reduce time spent on the road.
Efficient asset tracking also ensures timely task completion and allows you to allocate the proper drivers for each job. With this data-driven approach, you'll experience immediate financial benefits and streamline operations.
Automating your operations is crucial to implementing the fleet ROI strategies mentioned above. It’s time to say goodbye to outdated methods like sticky notes, spreadsheets, and time-consuming paperwork. In today's fleet management market, cutting-edge GPS tracking solutions that provide actionable data are what will improve your ROI.
Investing in preventive maintenance means proactively addressing issues before they disrupt your operations. By maintaining a comprehensive maintenance history and attending to potential problems early on, you safeguard your vehicles — the invaluable assets of your company. As your vehicles spend less time in maintenance and repairs and more on the road, you increase your revenue and returns.
By incorporating preventative maintenance as a core strategy, you demonstrate a commitment to caring for your fleet by promoting its longevity and maximising profitability.
Everyone needs to start somewhere. Looking at popular questions on fleet management ROI for fleet managers and business owners can provide much-needed insight on where to begin. Even if you’re already actively focusing on increasing your fleet’s ROI, returning to the basics may remind you of a few important points you could’ve overlooked.
The more data you have at your fingertips, the more efficiently you’ll track costs and boost your fleet’s ROI. Cartrack’s SaaS-based telematics and GPS tracking software gives you access to a kaleidoscope of data while constantly advancing products based on proven fleet management industry trends.
Cartrack’s telematics-based solutions can help you turn your fleet-management business into a profit-generating machine.
Contact Cartrack Singapore today for the ultimate ROI-boosting fleet management tools.
Discover how you can boost and even double your fleet business’s ROI with GPS fleet-tracking technology. It’s all here in our latest expert guide.