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How can GPS Tracking Software help Reduce Operational Cost?

by Arthur Zuckerman

These days, running a fleet management business requires heavy investment. Businesses that use many vehicles are finding it difficult to turn a profit due to rising costs and high petrol prices. 

According to Statista, the total market size of the logistics industry is to reach $14.08 trillion by 2028. However, the overall cost the sector faces is between 25% to 45%. Similarly, the delivery cost can be 30%. These numbers define the logistics industry, especially the one that depends on vehicles, as one that can face maximum operation costs.

Although there are different ways to reduce this cost, the best and most proven method is investing in a GPS vehicle tracking system. This is an excellent way to operate your fleet more cheaply. Fleet management software has changed how fleet managers run the business without facing many issues. 

GPS vehicle tracking software is not limited to tracking your fleet in real-time; there is much more you need to know. Data collected through this tool can help you manage your operational costs accordingly. Just like business management software helps in handling the business in different ways, GPS fleet tracking tools also help in managing the fleet in many ways. 

This article presents you with insight into how GPS tracking software can help reduce operational costs and lists the top ones in the global market.

Top ways GPS Tracking Software can reduce operational costs:

GPS fleet management systems provide real-time vehicle location, which helps with route optimization, congestion avoidance, and fuel efficiency. Let us check in brief.

Reduced Fuel Costs

Fuel is the major operational cost that every fleet management company faces. 60% of operational expenses happen due to fuel. Using an effective GPS vehicle tracking system can help to keep an eye on variables like speed, how much acceleration and deceleration the vehicle does, and how long the car is stuck in the traffic. With this information, you can create a comprehensive picture of the reasons behind your vehicle’s excessive fuel use. So, the next time you can plan a new route where the traffic congestion is less. Moreover, the tool helps reduce incidents of speeding and raises the bar for acceptable fuel use.

Route Management

As mentioned above, vehicles stuck in traffic for a long or taking up a long route can consume maximum fuel. Investing in effective GPS tracking software will help you keep an eye on drivers who need to follow route management. It’s crucial to remember that the shortest path is only sometimes the fastest or most economical with fuel. A fleet’s overall efficiency is increased via efficient route optimization, which leads to quicker deliveries, cheaper operating expenses, and more efficient use of time.

Additionally, tracking will assist in identifying and removing inefficient drivers as well as issues like unauthorized breaks, improper use of vehicles, and lengthy trips without breaks.

Minimum Vehicle Maintenance

Proper routing can help to bring down vehicle wear and tear and also improve driving efficiency. Driving less aggressively puts less pressure on tires and brakes. Additionally, encouraging smoother driving practices has a favorable impact on engine health, and optimized routing results in shorter travel times and reduced overall mileage.

Your fleet cars’ lifespan will be increased by these improvements, which will also eventually raise their residual value. Your fleet management plan will be even more cost-effective in the short run if you can expect lower servicing and maintenance expenditures.

Effective Vehicle Utilization

Effective vehicle utilization can help businesses to cut operational costs. The aim is to reduce the size of your fleet while improving vehicle use. It is accomplished by getting rid of cars that aren’t necessary, which also cuts down on needless maintenance and ownership expenses. You can detect underutilized resources by using vehicle utilization data to benefit from enhanced task allocation and GPS tracking efficiencies.

Increase in Productivity

GPS vehicle tracking software boosts business efficiency in many ways. You can eliminate idle time and increase employee performance with the GPS management program. The streamlined interaction between the driver and dispatcher enhances route guiding. As a result, the driver can work on the task during the day and has less downtime in between deliveries. You can quickly compare planned and actual scheduling, which you may use to analyze and get better at scheduling over time.

It further helps increase sales, which fleet managers can do with the sales software along with the fleet manager.

Top GPS Vehicle Tracking Software

Since we now know how GPS can help reduce operational costs in fleet management, let us check the top GPS vehicle tracking software you can choose to invest in.


FleetStack is among the top GPS vehicle tracking software that fleet managers globally use. It’s easy to install and use. FleetStack is now the most popular choice among fleet owners thanks to its one-touch setup and self-deployment features. It is intended for companies with significant automobile networks. It won’t be a problem to utilize FleetStack if you don’t know how to code or if you’re not good at installing and using tools. 

Key Features

One-Touch Installation: Fleet Stack is a one-touch installation tool that allows businesses to start using it without a long process.

Driver Performance Monitoring:  The driver performance monitoring feature looks at driving behaviors, idle times, and speed tracking to improve productivity and safety.

Customizable Dashboards: It meets the demand of the company with its tailored user experience via dashboards that highlight significant metrics and insights.


Next is Samsara, which offers a plethora of clever features that make it a valuable tool for crucial business management choices. Samsara, for instance, uses AI Route Analytics to maximize the effectiveness of your car’s resources and optimize driving routes. This is achieved by letting you choose which tasks should be finished in the shortest amount of time, using historical data to calculate stop and departure timings, and then automatically designing an itinerary.

Key Features

Smart Fleet Management: Samsara offers an intuitive dashboard that provides a comprehensive picture of all fleet activities, including driver performance and real-time position tracking.

Maintenance Scheduling: Automated maintenance alerts will help vehicles stay in top condition by prolonging their lifespan and reducing downtime.

Fuel Management: The plan includes instruments to monitor fuel consumption, identify inefficiencies, and implement cost-cutting initiatives to reduce overall expenditures.


GPSGate is among the best GPS fleet tracking software with multiple features. The state-of-the-art tool enables businesses to efficiently monitor and manage their mobile assets thanks to features like real-time tracking and alerting. Pushing the boundaries of GPS technology for organizations globally, GpsGate is committed to improving operational efficacy, safety, and customer pleasure.

Key Features

Flexible Integrations: Offers a wide range of pre-built interfaces for several different hardware and services.

Comprehensive Reporting: Provides detailed reports on asset usage, fuel consumption, and maintenance.

Event Rules and Alerts: Using GPS data, users can create rules that automate procedures and trigger alerts.


An easy-to-use GPS vehicle tracking software, TrackMyRide prioritizes driver safety while also boosting productivity. Its comprehensive monitoring and security features, together with its overall user-friendly design, make it the ideal choice for anyone looking to watch over and protect their vehicles. TrackMyRide is from Australia, offering real-time tracking and alerts, giving fleet managers—particularly those in the logistics sector—peace of mind.

Key Features

Real-time vehicle tracking: Using TrackMyRide can help fleet managers get real-time updates and exact vehicle location information. This is a very useful tool for finding stolen cars and stopping car theft before it starts.

Trip History: Users can review their vehicle’s trip history to monitor usage, confirm travel routes, and learn more about driving habits.


GPS fleet tracking systems can increase productivity and bring down operational costs in different ways, which can result in financial savings for the business. Using the right fleet tracking system can be a long-term wise investment.

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