Most of us came across the term “GPS” a couple of decades ago, when the first satellite navigations were starting to become more mainstream in our vehicles.
For the logistics industry, it would be fair to say that the GPS tracker has had a much more significant impact though. Sure, the turn-by-turn instructions are important, but they don’t benefit profit margins like some other benefits that many of us don’t even think about.
This is the reason today’s guide has been put together. We will now take a look at some of the main ways in which the GPS tracker has shaped the logistics industry and ultimately allowed companies operating in the space to increase their bottom line by really big numbers.
It’s all about fuel efficiency
First and foremost, these devices are all based about collecting data. They mainly collect data on driving habits, and this can be used to great advantage for a logistics company.
We’re not talking about drivers breaking speed limits here (that’s the next point we will cover), but more about the most efficient speed to drive at for journeys. As we all know, there is an optimum speed for a vehicle to travel in terms of efficiency, and this can save a company significant amounts of money over the course of the year due to fuel.
Driving habits are observed more closely
As any logistics firm will testify, one of the most frustrating things is when drivers disobey the highway laws and are subsequently fined or banned. It’s the company that has to foot the bill, one way or the other, with the result either being lost profits or even a lost driver. In the case of the latter, this has a whole host of other repercussions, not least because the company has to recruit a replacement as they serve their ban. This replacement isn’t usually instant either – there’s a wait while they are brought up to speed.
Modern-day GPS trackers will feedback all driving habits back to a central computer. It means that alerts can be set up which establish when a driver is traveling at excessive speed and ultimately putting himself at risk of being penalized by the laws.
Traffic is (almost) a thing of the past
OK, the title might be somewhat misleading. Unfortunately, we’re still nowhere near the era of traffic being abolished completely. Even with driverless cars on the horizon, the traffic problems only seem to be getting worse – with no viable solutions on the cards.
However, there’s no doubt that GPS trackers have at least helped the situation. Drivers are now being constantly updated with the latest traffic updates, and being told when a route is going to be slower than an alternative.
This is something that again links with the time is money principle. In other words, journeys are at least being shortened, which can allow the logistics firms to make more trips and ultimately boost their bottom line.