How can You Reduce Fleet Expenses Using the GPS Tracking System

Monday August 8, 2016


For making the best out of business and keep your operating expenses under control, you need to make sure your drivers as well as fleets are operating efficiently.

As the technology became affordable and easier to access, the real time GPS trackers have gained more popularity than ever. With the GPS tracking system, you can effectively manage labor costs and improve service quality.

Use of real time GPS tracker systems are very much beneficial to your organization as it not only improves productivity but also reduces unnecessary fleet expenses.

For any company, GPS tracking system serves as an excellent anti-theft tool. Below lists some of the excellent ways by which real time GPS trackers help to reduce the cost of your fleet operations:

1. Helps you to reduce vehicle breakdowns by timely repair and maintenance

Vehicles that receive proper maintenance run more efficiently and consume less fuel than those vehicles that are neglected. Vehicle breakdowns can lead to unnecessary wastage of time and huge repair bills. By preventing vehicle breakdowns, you will be able to reduce driver downtime.

When the vehicle undergoes timely repair and maintenance, you will be able to reduce losses and costs. You can set alerts whenever the vehicle covers a certain distance or a certain amount of hours or a predetermined date arrives for repairs.

When a vehicle is due for maintenance, an instant notification will be sent via e-mail using the modern tracking system.

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2. Avoid unnecessary fuel costs

Fuel purchases represents one of the biggest expense for most of the fleet. By lowering fuel costs, you will be able to cut down operating expenses. But it is difficult to track these expenses across fleet operations.

With the modern real time GPS trackers, you will also get the ability to track the driver’s behavior that increases fuel costs. Thus you can avoid the fuel cost that may be caused by unauthorized trips.

3. Cut overtime pay

Using trackers, you are able to monitor the work schedule and watch whether there is overtime for any of the employees. Thus, you can try to reduce the amount if there is any excessive overtime pay.

4. Decrease wear and tear of the vehicle

By proper servicing, you will be able to reduce wear and tear of the vehicle. Using trackers, you can monitor vehicle’s engines and avoid unnecessary wear and tear.

This helps to avoid possible damage by motivating proper driving. Also using the information from GPS devices, you get a detailed report of idling time for each vehicle.

Recommended Read: 3 Essential Features Of GPS Tracking System

5. Avoid adding extra staff to the organization

With the use of trackers, you will be able to manage various fleet activities efficiently and effectively. Hence you do not require any extra staff for the purpose of increasing productivity.

6. Lower insurance costs

By using trackers, you can eliminate the risk of rash driving that ultimately causes accidents and liabilities.

Installation of tracking devices helps you have an insight on driver behaviors and reduce insurance premiums by reducing the risk of accidents. Thus overall fleet safety is improved by making use of the GPS tracking systems.


Thus a GPS tracking system provides your business with the data, they need for making improvements in vehicle performance, driver behavior and location information.

It is a difficult task for you to reduce fleet expenses, but is worth reducing if the businesses rely on a vehicle fleet for managing day to day operations. A business, whether it is small or big, you can gain benefits by cutting various costs and increasing cash flow.