How Tracking Vehicle Movement Saves Your Company Money

If you have been managing a fleet of vehicles very long, you know that every minute a vehicle is on the road is costing money. So, how much are you spending on unauthorized vehicle use and on drivers who waste time and money to reduce work? Managing this cost alone by tracking vehicle movement could make you the company hero for the next year.

Most companies have policies in place stating that company vehicles can only be used for company business. Some companies allow their employees to take vehicles home, while others do not. But are you tracking vehicle use? Some of the most common abuses of company vehicles include:

- running errands on the way from the last business stop back to the garage

- using the truck for your weekend moving business

- using a company car you are allowed to drive to and from work to take your kids on weekend day trips.

Each of these abuses of the privilege of driving a company vehicle can be detected by tracking vehicle movement. With a simple GPS tracking device that attaches to the steering column of each vehicle, you can not only know where each vehicle is at any moment (because you will be tracking vehicle movement), but you can also use the capability of tracking vehicle movement and save the history to prove where each vehicle has been and when it was there.

Let's look at the cost of fuel for this kind of activity. Let's assume that you have 30 vehicles in your fleet. Some are trucks, some are cars, and some are vans. Let's say that the vehicles are being driven an average of 150 miles each week for non-business activities, and that the average gas mileage over all vehicles is 15 mpg. Let's also assume that the price of fuel averages about $2.80 per gallon. When you do the math, the annual cost for misuse of your vehicles is $43,680 for fuel alone. Tracking vehicle use allows you to document this cost.

If you then calculate all of the other costs to the company of employees making unauthorized use of vehicles, the total could reach triple digits. Tracking vehicle use with a simple and affordable GPS device will enable you to calculate all costs of operating your fleet on a "per vehicle" basis. You just need to pull together fuel, maintenance, oil, parts, tires, wear and tear, insurance, license tags and taxes and estimate the risk of having the vehicles on the road. The total cost could be staggering.

When you add up all of the costs for unauthorized use of all vehicles in your fleet you might be surprised by how widespread the problem actually is. When the reports from tracking vehicle movement are compiled, you would have a good bit of evidence for tighter enforcement of the rules governing use of corporate vehicles. You might also discover that you would be able to save enough money to pay for GPS devices for every vehicle and for monitoring in less than 90 days. You could end up getting a raise, the reports from tracking vehicle travel patterns would make your work easier and faster, and the company could do something important with the money you save.

Finally, consider that I've only asked you to think about the cost of unauthorized use of company vehicles and the cost savings you could achieve by tracking vehicle use. Now think about the money you could save if you could prove that some of your drivers were intentionally taking longer routes from one place to the next, or that by tracking vehicle movement you could prove that some of your drivers are sitting somewhere killing time. The more you think about the value of tracking vehicle movement, the greater the potential savings you can achieve for your company.

About the Author

To learn more about the benefits oftracking vehiclebehavior, get the white paper "7 Ways Your Company Can Save Thousands of Dollars With GPS Fleet Tracking." Many companies have substantially boosted their revenue and lowered their costs by installing GPS vehicle tracking for their fleet. To calculate the ROI for your company, click through to the GPS vehicle ROI calculator.

by: Todd Cavanaugh
Total views: 1 Word Count: 653 Date: Tue, 9 Mar 2010 Time: 5:33 AM 0 comments

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