By definition, any mobility-driven operation relies on vehicle fleets to produce value for the company. When there are multiple vehicles on the road at the same time, there is also room for optimization using fleet management and tracking solutions. 

Tracking your fleet operations can provide significant benefits. It improves productivity and efficiency, increases asset utilization, and improves driver and customer attitude, among other things. Maybe most crucially, all of this contributes to improved unit economics, which steers your company toward long-term, sustainable profitability.

Read on to learn more about fleet tracking and how it can help fleet managers in increasing profitability.

What Is Fleet Tracking?

Fleet tracking is a management solution that monitors the activities of fleet vehicles and assets using GPS tracking (e.g., workers, and equipment). It is also known as vehicle tracking. 

How Does Fleet Tracking Work?

GPS fleet tracking collects data from fleet vehicles and assets using telematics technology. This data is generally collected in near real-time (actively) using a GPS tracking device connected to a vehicle's OBD connection, making it more helpful for fleet managers and company owners, who may use the data to make strategic choices regarding operations. For example, a fleet manager can decide which car they should send to a new job.

What Are the Benefits of Fleet Tracking?

Fleet managers can benefit from effective fleet-tracking solutions in various ways. Listed below are some of the benefits of fleet tracking solutions:

  • Reduces fuel usage and costs while improving fuel usage.
  • Improves timely dispatch and customer satisfaction.
  • Enhance driving habits by reducing engine idle time and severe cornering.
  • Improves compliance with FMCSA standards like HOS and the ELD mandate.
  • Helps track vehicle diagnostic information that can help reduce maintenance costs.

Cost of Inefficient Fleet Tracking

Without the assistance of technology, it is nearly difficult to maximize fleet efficiency. Managers, like everyone else, make errors. They may forget paperwork, miscalculate hours, or make mistakes in high-pressure circumstances. Minor fleet management mistakes may quickly mount up. Even the smallest errors can cost your fleet a little fortune.

Inefficient fleet tracking can lead to:

  • Driver productivity is lowered significantly which can cause delays
  • Fuel wastage increased 
  • Utilization of assets is decreased
  • Maintenance, repair, and overall operating costs are significantly increased
  • Lead to an unsafe work environment 

How Can Fleet Managers Increase Profitability Using Fleet Tracking?

It can be difficult to calculate the return on investment for many new software solutions. That is not the case with an all-encompassing fleet tracking system.

With proper fleet monitoring, it is relatively simple to track and quantify meaningful increases in KPIs across the board. 

Listed below are a few examples of how fleet tracking may help you boost profitability.

  • Greatly Improves Scheduling 

Vehicle assignments may be a time-consuming and tough task if you don't know what assets you have at your disposal. Fleet tracking helps you to create weekly or monthly schedules more quickly. It tracks all of your most valuable assets, their activities, and their locations in real time. This data is automatically updated and saved on the app, eliminating the need for clumsy spreadsheets. More money in your pocket means faster dispatch and more production.

  • Idle Time Is Significantly Reduced 

Vehicle idling is not only harmful to the environment; it may also drain your bank account. It consumes fuel, contributes to air and noise pollution, and causes engine wear. It is critical to keep track of your fleet's idle time. Excessive idling may also result in penalties and fines in some zones.

Yet, how can fleet managers monitor and decrease idle time? The idle time of each vehicle is automatically documented with telematics. Real-time and historical data is stored in the cloud, so management may view it whenever they choose. Set up specific notifications to monitor the performance of your fleet and enhance driver training. With the correct technology, it is simple to minimize idle time.

  • Route Optimization Is Improved 

With greater route optimization, you may save fuel and spend less on labor. A route optimization tool in fleet management software can help you avoid countless delays and boost fleet efficiency. It makes it simple to plan multi-stop itineraries for your fleet.

With the use of fleet management software, you can make faster deliveries and even complete projects earlier. Your organization will profit from route optimization in addition to the obvious advantages. Customers will be happier, and staff satisfaction will be higher. 

Drivers waste less time getting from point A to point B, and the driver companion app makes their tasks simpler. The driving app will always recommend the most effective route. All of these fantastic features benefit the organization, the drivers, and the consumers.

Moreover, the efficiencies gained through fleet tracking are not limited to traditional transportation; they also extend to limo services. The real-time data collected by the tracking device is invaluable for optimizing routes, reducing downtime, and improving overall operational efficiency in limo software applications.

  • Significantly Reduces Operations and Maintenance Costs

It might be difficult to keep track of which vehicles require care, preventative maintenance, or repairs. (Particularly if you have a huge fleet.) Sadly, if you fall behind on important maintenance too frequently, your vehicle's health will suffer. They may waste more gasoline, break down more frequently, and have a shorter total lifespan.

Fleet tracking allows you to monitor vehicle status in real-time and decrease downtime. It will notify you of any scheduled or overdue maintenance. You will avoid the long-term implications of poor vehicle health this way. Improved vehicle health boosts fleet uptime while also increasing resale value. The sooner you integrate telematics, the sooner you will save money on your fleet.

  • Helps Save on Insurance 

One of the less obvious advantages of fleet tracking is lower liability and insurance rates. Some insurance providers may even provide a discount if you use a recognized fleet tracking service. Implementing telematics and explaining how it works to your drivers shows your dedication to driving safety and risk reduction.

You can avoid and minimize the number of accidents by employing fleet tracking to monitor driver behavior. Based on real data, fleet managers may better train their employees, making the road safer for everyone.

Implementing a telematics system is one of the most effective strategies to safeguard your firm from a future liability nightmare.


With the above-mentioned examples you can understand how fleet tracking can increase profitability. Comprehensive fleet monitoring and route optimization technologies let you remain ahead of the competition. In 2023, every fleet must have this solution.