How Can A Vehicle Tracking Device Help In Logistics Business

Tuesday June 4, 2019

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The importance of vehicle tracking in logistics business is immeasurable. GPS(Global Positioning System) technology, used in vehicle tracking, is more than a tool that helps drivers to go from one location to another.

Vehicle tracking devices have transformed the sphere of logistics industry helping to run businesses profitably while simultaneously meeting customer requirements.

Logistics Business

Logistics is basically transportation of goods and services from point A to point B in a structured and disciplined manner.

The portfolio of logistics engulfs the whole process of ordering, packaging, paying, routing, dispatching, transporting, delivering and receiving of goods and services required.

Read Also:How Will Logistics Industry Get Improved Using Vehicle Tracking System

Logistics is paramount to all industries ranging from oil and machinery to clothing and food items. Delivering the goods safely and responsibly to the satisfaction of the customer is the motto of a good logistics business.

Vehicle tracking software increases the efficiency of the operations, reduces cost and increases profitability. It helps the logistics business in numerous ways.

Fleet Management

Control of the fleet is the key factor in achieving success in a logistics business.

When you run a business that operates through a fleet of vehicles, it is important to have information regarding the whereabouts of vehicles at any given time.

The GPS tracking system is the most basic vehicle tracking system in operation today. The system enables tracking of all vehicles in the fleet on a map.

Details of all vehicles which are in motion and the directions in which they are travelling in are easily available on this system.

Details of all vehicles which are in motion and the directions in which they are travelling in are easily available on this system.

GPS tracking technology can detect engine start up, shut down and resting times. Vehicle speeds and routes travelled can be monitored.

Any deviations from assigned destinations are logged automatically. The system is extremely helpful in logistics business.

The current day GPS solutions allow for two way communication with the fleet. Last minute changes inre-routing vehicles, assigning additional routes, picking of extra consignments, cancelling of deliveries can be accommodated at bare minimum costs.

Notifying drivers who are on wrong routes, warning drivers against misconduct while on duty can be done based on the information provided by the tracking software.

Notifying drivers who are on wrong routes, warning drivers against misconduct while on duty can be done based on the information provided by the tracking software.

Fleet management allows better management of the vehicles. Informed and better decisions can be made faster based on the location of vehicles.

On Road Safety

Drivers are the backbone of any transportation or logistics business. Their safety and well-being is of top priority. The tracking systems provide two-way communication and panic buttons for the use of drivers in case of emergency.

Monitoring of speed limits and driver behavior will keep the drivers and all others on the road safe. Constant tracking by GPS systems prevents them from over-speeding and rash driving.

Drivers with good driving skills can be identified. They can be rewarded or offered incentives to boost morale.

Door sensors are installed on the vehicles to ensure that the cargo is secure from the origin to the destination. The tracking system sends alerts when the sensors are tampered with.

The GPS tracker detects the use of signal jammers and helps in preventing hijacking of the vehicle.

The GPS system sends alerts in cases of theft. If a vehicle with a full consignment is stolen the company suffers massive losses. The system helps in tracking and finding the stolen vehicle.

System Efficiency

The tracking system is automated and provides real-time information on smart devices including mobile phones and internet networks. This helps in quick decision making and results in faster response times.

The data generated by the system is accurate unlike the manual reports where the chances of error are high.

Read Also:How Logistics Can Be Redefined Using Technology

The drivers and the staff need not spend time on paperwork as the details are obtained directly on the system. They can utilize their time productively for other tasks.

The tracking system develops a trust between employers and drivers leaving no scope for doubts.

The GPS system provides transparency providing explanations for every action by the driver in the operation of the fleet. Exact causes for lapses in delivery, delay in services can be determined.

The GPS system provides transparency providing explanations for every action by the driver in the operation of the fleet. Exact causes for lapses in delivery, delay in services can be determined.

Exact causes for lapses in delivery, delay in services can be determined.

Drivers need not stress themselves on extra mileage and fuel consumption due to road repairs, detours or traffic jams. Technical failure of vehicles can be handled efficiently allocating the tasks to the next nearest vehicle.

Driver performance can be monitored to get tasks done faster and on a proactive basis. Drivers log will help to keep track of the real hours worked by them. Wasting of productive time can be controlled.

Operational Cost Reduction

In a logistics business, the major part of operational costs is that of fuel utilized by the fleet. Fuel consumption and costs can be analyzed from the reports generated by the tracking system.

Monitoring of distances travelled, routes taken, speeding, idling and fuel consumption will help in minimizing fuel expenses. Optimal routing reduces fuel consumption and increases efficiency.

Old vehicles that consume more fuel can be identified.On-board diagnostics in vehicles indicate wear and tear of the vehicle. Vehicle usage can be restricted to trips related to business only.

Driver habits which lead to excessive consumption of fuel can be detected and curtailed.Sudden starts and acceleration, aggressive braking and rash driving take a toll on the engine performance and increase fuel consumption.

The requirement of less number of personnel to man the operations is another advantage. Extra features on the system enable ordering, routing and dispatching of goods smoothly with the least of human intervention.

Reports are generated automatically and are easily available to all. Costs can be saved on wages and allied benefits for staff.

Insurance companies offer leverage on premiums for vehicles equipped with GPS tracking systems. If the vehicle gets into adverse situations, the tracking devices prompt immediate action thus minimizing risk. Hence the insurance premium is reduced.

With vehicle tracking systems it is possible to keep an eye on every single aspect of the business so that the operations can run smoothly with lower operating costs.

Activity Report

Descriptive maps on vehicle movement can be replayed to help study and analyze the routes. Very often the optimal routes suggested by the tracking software need not be the best.

Practical difficulties faced in transit are many. A detailed study of truck activity helps in finding factors that can aid or hinder the different stages in the completion of a trip. This information can be of great help in the planning and routing process for future trips.

Customer Service

Demand for delivery services has increased drastically in the modern era where every customer prefers personalized delivery at his door-step. They would like their items to be handled by a company that takes care of their goods.

The system enables real-time tracking of personnel, vehicles and consignments. Tracking of vehicles and drivers can help in prompt customer service.

The GPS tracking system can be used by the customer to track the progress of his order. Additional features on the tracking system update the customer on the expected time and day of arrival of his goods. Delays if any are intimated to the customer.

The tracking system enables the customer to view the journey of his order from the factory to his premises. Intimation of the expected time of delivery is of immense help to the customer.

Read Also:6 Types Of Trucks Used In Logistics Worldwide

He can be present to receive the goods at the time intimated and need not spend hours waiting for the arrival of the consignment.

GPS technology comes with benefits of convenience and flexibility and has the potential to transform logistics into a highly successful business.

Productivity can be increased, costs can be controlled and workflow can be improved at one stroke. The technological advances increase the scope for adding more features into the ambit of vehicle tracking.