How Aussie businesses are saving thousands by plugging this tiny device in their vehicles

by Aug 21, 2019Fleet Management

What is this device?

The device is a GPS tracking device, or by its official name a “telematics device”, this device conveniently plugs into a vehicle’s OBDII diagnostics port which is found in almost every vehicle manufactured after 1996. Alternatively, for a more covert installation, the GPS tracking device can be hard-wired.

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How does it work?

GPS tracking devices connect to a network of satellites to determine the location of a device that was specifically designed for that purpose. The basic idea is that a GPS tracker uses a process called trilateration to determine its physical location based on its distance from three or more GPS satellites. This is the exact same technology used by your portable or in-car navigation system.

The difference between a GPS tracker and a car navigation system is that the navigation system provides you with your location and driving directions, while a tracker either keeps a record of your driving habits and broadcasts its location to a GPS fleet management software platform in real time.

When a GPS tracker for a car is capable of broadcasting its location, it typically uses the exact same technology that your cell phone does to make calls or connect to the internet. This is why GPS car trackers require a monthly subscription fee.


How can it save my business money?

Implementing a GPS vehicle tracking system can dramatically reduce excess costs for businesses running a fleet of vehicles

  1. Fuel & Maintenance – With fuel costs at an all time high, reducing your fleet fuel consumption is by far one of the best ways to reduce total fleet costs, managing idling time, routes and driver behaviour, our clients have seen upwards of 20% reduction in fuel and maintenance costs for each vehicle with a GPS tracking device.
  2. Employee Overtime – On average, employee overtime rates are estimated at about $35 per hour. Keeping on top of unauthorised trips and jobs could mean you fit more work in and thus be able to reduce at least 1 hour of overtime per week with a GPS fleet tracking system, which in comparison with the price of implementing a GPS tracking system could pay itself off in just 1 day.
  3. Employee Productivity – It’s not hard to imagine a scenario where an employee would start 15 minutes late, take an extra 30 minutes lunch break and leave 15 minutes early, this equates to 1 hour of lost time each day, and potentially around $6000+ per year. Managing start, finish and break times automatically with a GPS tracking system could prevent this from happening to your business.


What is the ROI?

For an average size fleet of 10 vehicles, the estimated monthly savings is generally over $20,000 with a GPS tracking solution when you take into account the lost time, overtime, fuel reductions, insurance discounts, etc. You can get a more accurate ROI estimate using our calculator here:

The cost of a GPS Tracking Device has significantly dropped over the past 10 years.  A high quality device can be purchased for around $300 or rented for around $10 per month, with monthly tracking fees starting from just $10 per month. It’s typical for a company to see their return on investment in the first day of implementing a GPS tracking system.


What are the Benefits of GPS Tracking?

20 Benefits of GPS Tracking

Decrease Speeding Events: By tracking the speed of your vehicles you can reduce the chance of an accident and save money on fuel. Our systems keep a complete record of your vehicle’s speed at any particular moment.

Proof of time on site:  By simply looking at the history of a vehicle you can quickly tell when it arrived and how long it was at a particular service call. There is a clear record which eliminates assumptions and guesswork.

Accurate Billing: Using GPS tracking creates a digital log of time speed and route used by your fleet. Time and fuel costs used specifically on the job can be accurately calculated with this digital log.

Reduction in Fuel & Maintenance Costs:  Maintaining the fleet’s maintenance requirements with a quality GPS tracking device and software helps to keep the vehicles in top shape and running efficiently.

Prevents Fraudulent Claims: With a good digital log you can prove that your fleet was where it needed to be when it needed to be there.

Higher Fuel Tax Credit Claims: Automate real-time telemetry data and vehicle information with detailed location and boundary analysis to determine your fleet’s exact operation and fuel consumption to get more back on your fuel tax.

Reduce Delay & Time Spent at Unauthorized Locations: With our GPS tracking software, you can not only track the vehicles but be alerted for events like when a driver is going outside of a designated area or are idling for an extended period of time.

Improved Customer Service: With real-time GPS tracking, you are able to send your customers a tracking link to view the movements of the vehicles about to arrive at their location, thus eliminating the need for them to call your dispatchers.

Reduce insurance premiums by around 15%: Many insurance companies offer discounted premiums for vehicles that have a real-time GPS tracking system installed.

Increase Productivity: Using a GPS tracking system, you would be able to better time manage your mobile workforce and fit in at least 1 extra job per day.

Automate logbooks:  Eliminate the tedious task of manually entering a paper logbook, and automate the process with an ATO approved FBT (Fringe Benefits Tax) GPS tracking and reporting system.

Eliminate Parking Fines: Drawing a digital fence around certain areas where drivers are typically parking and creating alerts for each driver to remember to move their vehicles after the parking time limit has been reached.

Reduce Response Time:  By knowing where your vehicles at all times on a real time map, and get an ETA on how far the drivers are from a job, dispatchers can easily send the nearest vehicle when a new job becomes available. Saving you both time and money.

Improve Driver Behaviour: Monitor and report on the driving style of each driver, with metrics such as harsh acceleration, braking, cornering and speeding. With a leaderboard available to each driver to see their position within the company.

Reduce vehicle theft: Each GPS tracker comes with a sticker that you can place on the outside of the vehicle, which will deter thieves from stealing or breaking into the vehicle. And if the vehicle is stolen, giving the tracking link to the authorities will enable them to quickly recover the vehicle.

Eliminate Double Entry: Most GPS tracking systems can easily integrate with 3rd party cloud based software applications to help reduce the amount of double entry needed for day to day tasks and reporting.

Reduces Overtime: Employee overtime rates can be estimated at around $30 per hour. On average, a company can reduce at least 1 hour of overtime per week, but some Linxio customers have seen upwards of 2 hours per day with a GPS tracking system.

Monitors Routes & Stops: With a digital snail trail of a vehicles routes, you are ablet o find trends of poor and inefficient routes taken by drivers or extended periods of time where drivers may stop on the side of the road to avoid additional work prior to coming back to the office or warehouse.

Eliminate Side Jobs:  By tracking both real time and historic data you can spot and eliminate suspicious use of your vehicles by employees. If employees are aware that they can be monitored, they are less likely to engage in side jobs and unproductive behavior.

Improves Safety & Driver Responsibility: Drivers who know they are being monitored are more careful. This can reduce accidents and dangerous driver behaviour.

Want to find the best GPS tracking solution for your business?

Every business is unique, and your GPS fleet management requirement can be different compared to the shop owner across the street. Talk to a fleet management expert today to know your options. We will help you find the exact type of GPS tracking solution for your unique needs. We have GPS trackers to suit all budgets and requirements.


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