There was a rise in fleets that used GPS tracking software in 2019, the total of which 98% reported having reaped positive benefits for their companies, according to Verizon Connect’s 2019 Fleet Tracking Trends Report.
The report found that 45% of fleets that used this type of software achieved a positive return on investment (ROI) in 11 months or less, which was up 18.5% from last year, according to the report. Meanwhile, 22% reported seeing a positive ROI in less than three months, up 37.5% from 2018. Verizon also conducted a Driver Policy Reveal Customer Survey that found fleets could improve safety and save approximately $51,000 a year by using fleet management software.
Potential annual savings for companies leveraging fleet management software include:
- $45,540 due to increased daily stop duration on a job
- $1,030 due to decreased daily idle time
- $4,089 due to decreased daily distance per stop
Of the fleets who found GPS tracking software beneficial, 80% consider fleet tracking “very” or “extremely” beneficial, which was up from 74% in 2018, according to the report.
The findings of the report are based on surveys completed by more than 1,200 fleet professionals. There was a 5% increase of fleets that reported using GPS fleet tracking software when compared to last year, up to 64% from 59% in 2018.
Commercial and work truck fleet respondents reported having the highest percent of utilization, 69%, when compared to other industry segments. Roughly 65% of ground transportation fleet respondents, as well as trucking fleets, reported using the software also. Meanwhile, government fleets saw a 7% decrease when compared to 2018.
Fleets using the software also reported seeing improvements elsewhere in their businesses, using key performance indicators (KPIs) to measure their success. Companies reported an increase in customer service (50%), productivity (53%), routing (45%), maintenance (49%), ELD and compliance (52%), fuel consumption decrease (36%), decrease in accidents (22%), and a decrease in labor costs (13%).
More than 50% of respondents—and 72% of trucking companies—cite improved Hours of Service (HOS) compliance from an electronic logging device (ELD) as a major benefit of fleet technology, the results of the report found.