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reduce fuel costs

Case Studies for Small Fleet Vehicle Tracking

Business owners are most concerned with fuel & maintenance, employee overtime, and employee productivity.  UTS provides a real time GPS-based solution that is significantly reducing excess costs for businesses: 

  1. Fuel & Maintenance - The average operating cost per vehicle is about $1.50 per mile.  A company can reduce at least 25 miles per week for each vehicle with a small fleet vehicle tracking device.    
  2. Employee Overtime – The employee overtime rate is estimated at about $30 per hour.  On average, a company can reduce at least 1 hour of overtime per week with a small fleet vehicle tracking device.
  3. Employee Productivity – On average, each vehicle could complete at lease 1 extra stop, job, or delivery per week with a live GPS fleet tracking unit.

For an average size fleet of 10 vehicles, this means an estimated monthly savings of over $3,000 with our GPS fleet vehicle tracking device. 

Department of Energy, Argon National Laboratory Study

Tires: Tire wear will almost double at road speeds of 70 MPH or greater

Don’t Speed. Every 5 mph you drive over 60 mph is like wasting 10% more in fuel.

Engine: 73% more horsepower to cruise at 60 MPH., 159% more horsepower to cruise at 70 MPH. paying an extra $.21 cents a gallon for gas.

Accident Probabilities: Approximate stopping distances. At 70 MPH, stopping distance is 63% greater than at 50 MPH. Even in daylight, higher speeds will significantly increase accident probabilities.

Maintenance Cost: Increasing from 60 MPH to 70 MPH increases the cost by 80%.

Various GPS Fleet Vehicle Tracking Benefits

There are many significant opportunities to increase the efficiency, productivity and accountability of your organization. Improvements in these areas will lead to an increase in profitability in as little as 30-days depending on how your operation is run daily. Almost all the benefits can be applied to any service, delivery or sales organization.

1. Use the information for an employee bonus program and a cost-savings sharing program. Help employees quickly accept the idea of using GPS fleet vehicle tracking technology to keep up with the times and increase the financial position of the company. Employees value their jobs, especially in a tight economy, more than they do the idea of being supervised. GPS fleet vehicle tracking technology is just another management tool to help run the business. It can also be one that brings noticeable benefits to the employees.

2. Use GPS fleet vehicle tracking technology to resolve customer disputes related to arrival time, service duration and service location. Employees will appreciate this type of support.

3. Help employees when they are lost. By knowing the location of the fleet vehicle, a dispatcher can quicker assist a lost driver. This helps the employee stay on schedule and not have to work too quickly or run up overtime.

4. Slow your fleet vehicle's average speed. Get your fleet vehicles to stay below 65 mph on the highway and 45 on other roads. This ties directly into fuel consumption, maintenance and accidents. This will save you about 10% on your monthly fuel bill. Tracking vehicle maintenance will only be evident over time. It might take a year for you to really see the difference on your P&L but it has to come if you are driving fewer miles.

5. Verify the accuracy of time cards. This is generally a key area for improvement. Most companies recover their monthly fee and the cost of their vehicle unit from this one factor alone in the first 3-6 months. Have your administrator compare the GPS fleet vehicle start-stop report to the time cards since the unit has been installed. Determine what the average margin of error is and then compare that to the time cards before you installed our GPS fleet vehicle tracking system. It might pay for itself this month.

6. Verify sales calls. If you can get just one additional sales call in every three days, you have increased the number of sales calls by 7 per month. If you have a sales call to sale ratio of 1:5 you can expect to increase sales by this amount. If nothing else you will realize a reduction in the cost of paying mileage or fuel for unproductive driving or personal business on company time.

7. Watch the time per stop. Service managers know how long it takes to make a delivery or perform a service. By watching the stop time they can determine if the employee is "hanging out" with customers, not hustling or not spending enough time with your customers. This ties into customer cancellations, allowances, returned inventory and sales. Efficiency is the name of the game.

8. Market the fact that you are using GPS fleet vehicle tracking technology and that you are committed to customer service. No more telling customers "We'll be there between 8-5." This is not acceptable in today's market. This will help close sales when all else is equal. You only need one deal a year to cover the cost of the GPS technology. If you run ads you might say something like: "We use GPS technology to insure the quality and timeliness of our service."

9. Contact your insurance carrier and request a discount when you can show them your vehicles are now driving slower, driving fewer miles and you are reducing the risk of an accidents. If your insurance company will not give you a reductions, shop around. There are insurance companies that will once you can show an improvement.

10. Let employees take vehicles home at night. If an employee is paying $300 a month to drive a vehicle to and from work, he can sell one of his cars if he can take the company vehicle to and from work. This gives the employee a $300 a month raise and it cost you $0. We recommend you make this an option for current employees and a requirement for new employees. In exchange for saving the employee $300 a month you should charge them a restricted use fee of about $8 per week. This helps offset your cost of fuel and the GPS system that gives you the confidence to let them take the vehicle home. The company will also benefit by not needing a parking area, won't be paying wages for driving from the employees home to the first job or from the last job to the employees home.

11. Use the Alert function and Begin-End day report to eliminate moonlighting, driving after hours and unwanted stops during the workday. This will save you money on wages, fuel, maintenance, limit your liability and provide for better customer service. Your driving policy must be a written policy to reduce your liability in case of legal action. Consult your legal counsel for preparing this document.

 


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