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Realizing Cost Savings with GPS Fleet Management

fleet management cost savings

Author: Robert Mowat

Organizations are continuously looking for new ways to grow their yearly profits. One proven way of reducing costs and increasing profits is through a more efficient utilization of fleet vehicles. This can be achieved by, for example, optimizing on-road driver productivity, reducing fuel costs, and improving vehicle maintenance. To help fleet managers develop a positive business case for investing in GPS fleet management technology, this article will outline some cost saving and expense considerations. By identifying these elements and associating the cost-benefit of managing them, you’ll have put together your business case for taking action based on facts!

How an I justify the investment in fleet management technology?

First, look at the investment:
Calculate any one-time upfront costs for the tracking device, along with the monthly subscriber fees. Ensure to consider whether the device is a self-install, or whether hiring a professional installer will be required.
Second, look at the cost savings:
Benefits come from utilizing the valuable data that the fleet management system produces for the business.

1) Fuel Cost Savings:

Fuel consumption can be reduced by:

  • Reducing excessive speeding – remind drivers immediately when over speed limits.
  • Leveraging in-cab notifications to management excessive idling.
  • Using fuel efficiency reports to get side-by-side fuel consumption data for all your fleet vehicles, as well as driver behaviour trends over time.

2) Route Optimization Savings:

Reduction in labour and fuel costs can be realized by:

  • Reviewing real time information directly as to the optimal daily delivery route to destinations.
  • Fleet managers can view their vehicle locations in real-time, and can provide important information to drivers to make accurate and fast deliveries.
  • Effectively dispatch your drivers with Geotab’s route optimization tool. Locate and direct drivers to avoid traffic congestion and or alter  routes to pick up and drop off additional deliveries.
  • As a manager of Fleets, you can keep track of driving behaviors that directly lead to increased fuel costs. You can also compare drivers or vehicles with one another to target improvement areas.

3) Maintenance Cost Savings:

The GPS device helps companies determine a truck’s performance, condition and when to schedule maintenance to stay ahead of problems.

  • Instead of performing maintenance at regular time intervals, regardless of a truck’s mileage or use, schedule maintenance based on actual vehicle use and performance. (i.e. engine service).
  • This can help you better determine the right time to pull trucks off the road for maintenance, thereby reducing downtime and wasted maintenance expenses.  (i.e. oil change).
  • The GPS system will help identify trucks performing less efficiently, or when to simply place a vehicle on a shorter route.
  • Stop engine issues before they turn into costly repairs or vehicle down-time by managing your engine fault code information. These vehicle codes explain what the engine issue is and where to locate it, helping you save on vehicle inspection time and costs.
  • By focusing on predictive engine health, you will realize savings by pro-actively working with service technicians to pinpoint the core problem areas.
  • There are Cost Savings tools on the Geotab website and examples of Companies achieving significant savings.


The power of the data is invaluable. Companies can set standards for their business, identify underused and spare equipment, and achieve higher levels of customer service. The positive return on investment is driving demand for the fleet management technologies and raising the standards in overall fleet management. For more information, please leave your questions or comments in the area below.

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