Fleet Tracking Return On Investment

Once you’ve purchased your fleet tracking system, what variables should you be looking at to reduce business expenses?  The two we recommend first looking at are:

1. Payroll Costs
2. Fuel Savings

Before you begin to quantify your ROI, you’ll need a baseline to measure your current average costs.  For payroll costs, get a total of the number of drivers and their hourly rate of pay.  Calculate your monthly spend on payroll, including overtime hours.  For fuel expenses, total your monthly fuel spend.

Let’s focus in on payroll savings, which are at most businesses their largest recurring business expense.

You’ll want to look for areas where time is being wasted:

1. Employees starting late
2.  Extended breaks
3. Unauthorized stops

You won’t be able to see the above by just looking at a submitted time sheet – by using a vehicle monitoring system, you’ll be able to easily uncover these key variable that will reduce your labor costs. Furthermore, you’ll be able to verify submitted time sheets and find discrepancies.

Take action.  Once you’ve identified specifically where the payroll “leaks” are occurring, correct them.  Than simply measure your baseline measurements to post-corrective measures that were taken.  Set a new baseline and repeat the measurement again. Optimizing your payroll costs will help you trim the fat – ultimately, saving you a lot of money.

In our next blog posts, we will discuss – the fuel saving aspect of this equation.

You Are Here: LiveViewGPS Blog » Fleet Tracking Return On Investment