Vehicle tracking in logistics business: 7 key benefits explained

Supply chain logistics can be improved with tracking. Here are the seven ways that justify how vehicle tracking makes complete sense in the logistics business.

Vehicle tracking in logistics business: 7 key benefits explained


By Vikram Kumar

In the logistics business, GPS isn’t just another navigation tool, it makes good business sense. Here are seven ways in which GPS vehicle tracking can improve supply chain logistics:

Managing fleet: Tracking allows fleet owners to get in touch with suppliers as and when the pick-up vehicle reaches there. Modern app-based vehicle tracking can open a two-way communication avenue for fleet manager(s) and suppliers.

Optimising resources: GPS tracking can help fleet managers cover deliveries or pick-ups by using the shortest route or by taking non-crowded roads. Fleet managers can check which vehicles are idle, or the ones closest to a pick-up point.

Improving driver safety and performance: Drivers form the backbone of any logistics business, and their safety is paramount. Using a real-time vehicle tracker, one can check which vehicle is over-speeding or taking unsafe routes. Some apps also record the driving pattern of each driver.

Enabling quick decisions: With live tracking, fleet managers can avoid time-consuming paperwork and instantly send messages to drivers. They can verify causes of delay, if any, and make timely adjustments for scheduled delivery/pick-ups.

Improving cost-efficiency: One can check how much fuel each vehicle is consuming by taking a certain route during a certain hour of the day. It can help owners predict the cost of pick-up and delivery for an entire week or even a month.

Minimising theft risk: Cargo/vehicle theft are real worries. With GPS trackers sending constant signals about vehicle location, the risk of theft decreases significantly. GPS tracking offers live location of each vehicle. Minimising risks to consignment can improve business reputation.

Increasing customer satisfaction: Timely delivery assisted with smart predictive data analysis from live tracking can help improve customer satisfaction levels.

Vehicle tracking is no longer a luxury. It is a necessity for all transport and logistics businesses that deal with fleets for delivery/pick-up or ride-hailing services. Live vehicle tracking is a long-term investment that allows a logistics business owner effectively manage the fleet.

(The author is founder & CEO, Letstrack, the GPS and mobile tracking provider. Views are personal.)

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First published on: 04-07-2020 at 10:29:00 am