Managing a vehicle fleet is a significant operational expense for many organisations. Implementing GPS fleet tracking can provide actionable data to reduce costs and enhance efficiency.

Fuel consumption: a major operational cost

Fuel expenses constitute a substantial portion of fleet operating costs. According to the New Zealand Vehicle Operating Cost (NZVOC) model, fuel use is a key component of total vehicle operating costs.

Fuel cards are a popular method of tracking fuel usage. This is a great top-level way to understand how much fuel each vehicle has used. But it lacks the ability to provide deeper insights into how those fuel costs are generated and if there are any opportunities to reduce fuel consumption.

Strategies to reduce fuel consumption

1. Monitor and improve driver behaviour - Harsh driving behaviours, such as rapid acceleration and hard braking, can significantly increase fuel consumption. By monitoring these behaviours through GPS tracking, fleet managers can implement targeted driver training programs to promote more fuel-efficient driving habits. Smartrak’s fleet management system gives managers the ability to monitor individual driver behaviour. This includes key elements such as overspeeding and harsh driving (high G-force cornering, and excessive braking).
2. Optimise job allocation and routing - GPS tracking provides an organisation with an accurate understanding of where all fleet assets are located. This can be incredibly handy when allocating jobs to workers in the field because you can easily see how far away drivers are to the new job. More efficient allocations mean reduced distance travelled and less fuel consumed – not to mention, less travel time for staff.
3. GIS overlay - Businesses often have data and locations that may not be easily searchable on a standard map. However, these data points can easily be uploaded into the Smartrak map as separate Geographic Information System (GIS) layers. Through the use of the Smartrak APIs, these GIS overlays can be integrated into Smartrak’s map interface and jobs routed to points of interest based off the GIS data.

Enhancing vehicle utilisation

Optimising vehicle utilisation involves maximising the use of each vehicle in the fleet, potentially reducing the total number of vehicles required. By removing unnecessary vehicles which eliminates the costs associated with ownership and maintenance.

Benefits of Improved Utilisation

• Fleet size reduction: Identifying underutilised vehicles can lead to decisions to sell or repurpose them, lowering maintenance and ownership costs.
• Efficient resource allocation: During maintenance periods, underutilised vehicles can be temporarily reassigned, reducing the need for rental vehicles.

The Australasian Fleet Management Association (AfMA) highlights that effective fleet management practices, including utilisation tracking, are essential for cost control and operational efficiency.

Mitigating insurance costs and risks

Accidents and vehicle theft can result in significant financial losses. GPS tracking systems can provide critical data to mitigate these risks.

• Accident Analysis: Detailed telematics data can help reconstruct incidents, potentially reducing liability and insurance claims.
• Theft Recovery: Real-time location tracking aids in the swift recovery of stolen vehicles, minimising downtime and replacement costs.

The Transport Accident Investigation Commission (TAIC) in New Zealand notes that tracking technologies can improve safety outcomes and assist in incident investigations

FBT compliance and log booking

FBT compliance and log booking can be a pain to maintain, especially in large fleets with paper-based logs.

Users can use Smartrak’s fleet management system and FBT Reporting to allocate trips for either personal or work purposes. This saves your staff from having to enter paper logs manually for any FBT claims, reducing admin and saving hours.

Conclusion

Implementing GPS tracking within your fleet operations can lead to substantial cost savings through reduced fuel consumption, improved vehicle utilisation, enhanced risk management, and streamlined compliance processes. Leveraging technology not only improves operational efficiency but also supports regulatory compliance in both New Zealand and Australia.