Fuel Lines December 2008

Q: Lately, we've heard quite a bit about how GPS technology helps fleet owners reduce fuel cost. What are some specific ways that GPS mapping and reporting can help?

A: It's important to be sure that the GPS solution you're evaluating offers an engine idling report. This report identifies vehicle operators who have exceeded company policy, relative to acceptable engine idle levels per day, and can be e-mailed to managers to take corrective actions when these instances occur. Immediately after implementing GPS, fleet owners have informed us that their idle times have decreased from hours per day to minutes per day per vehicle. Given the fact that most vehicles consume one half to a gallon of fuel for each hour of engine idling, there is potential for a significant amount of fuel to be wasted without a tool to regularly monitor idling time. Also, solutions which offer a "bread crumb trail" mapping feature, clearly illustrate the actual routes taken by mobile workers. This information can be used to improve route efficiency and eliminate unauthorized use of company vehicles. Finally, speeding can be monitored and e-mail alerts can be sent to management when predefined speeding thresholds are exceeded. These are all ways that GPS technology can significantly reduce fuel expense.

Q: How can GPS have a positive impact on labor costs?

A: GPS implementation leads to greater efficiency by enabling more direct routes from job to job, re-routing drivers stuck in traffic and eliminating unauthorized use of company vehicles. Recent studies have shown that GPS solutions reduce overtime pay by almost 10% over the course of a year.

Q: In a tight economy, how do companies justify an investment in GPS?

A: Many high quality GPS solutions cost less than $2 per day per vehicle, but return 3-4 times this in financial benefits. As the economy continues to slow down, many prudent fleet operators are seeking out ways to reduce all possible operational costs and gain a tool that provides real-time insight into their daily operations. Old ways of doing business do not work in today's difficult marketplace.

Q: Do you have any suggestions on eliminating the "big brother" objection sometimes associated with GPS tracking?

A: Yes, management has to provide a clear explanation as to the medley of benefits provided by GPS to their company and their mobile workers. GPS is an efficiency tool which can help the company save money on fuel, labor, maintenance and insurance costs, leading to greater profitability. A financially stronger company generally leads to greater security for the entire workforce. In terms of the mobile workers, management must point out that GPS will increase their safety while they're on the job. If an issue occurs, real-time location information can be used to locate the worker quickly. Also, disputes involving customer arrival and departure times can be eliminated utilizing GPS reporting, as well as false claims against the mobile worker.

Q: How is MMR different from other companies who provide GPS technology?

A: We take the necessary time to thoroughly understand our prospective customers' needs and objectives, and then recommend the right mobilitysolution. We've learned early on in our business that not one technology fits all needs.

Q: What types of companies benefit the most from your GPS solutions?

A: MMR has customers in a wide variety of vertical industries including service-based companies (HVAC, electricians, plumbers), construction, distribution, transportation, and state and local governments. The key here is that all of these entities were looking to improve efficiency, and reduce the costs of their mobile operations.

Q: If a company is in the early stage of evaluating the benefits of a GPS solution, how can the fleet owner see first hand how the software operates?

A: MMR provides online demonstrations requiring only an internet connection, a telephone and about 20 minutes of their time, with no need to leave the comfort of their office.

For more information contact Steve Johnson, Mobile Management Resources at (856) 642-3900, ext. 113.