Fleet management: 20% savings with vehicle GPS telematics

You can generate great savings and reach valuable benefits thanks to a vehicle tracking system, also called telematics. The return on investment is quick: Amatics, a key player in UK, reported that one of its customer, National Grid Gas plc, has saved the full five-year cost of the system within the first year and is targeting 20% savings of its overall running costs.

It is amazing all you can do with GPS-based telematics. Get a look at that article which describes what you can do with this kind of system.

Browsing the websites of different solution vendors I came to a converging and consistent saving estimate; According to my readings, GPS telematics can save following on average:

  • Reduction in operational fleet size of between 12% and 18%.
  • Reductions of over 30% in the number of spot-hire vehicles.
  • Fuel savings of between 12% and 20%

If you want to go into more details, I would suggest you to read the Vehicle Telematics Cost/Benefit Analysis article from Netistix which underlines how you can save more than 1M$ applying a telematics solution on a 650-vehicles fleet-size.

As far as I could understand, vehicle GPS telematics cost nowadays something like 500$-ish per vehicle per year and can generate 2500$ savings per year.

It’s a no brainer: “Interest in GPS-based telematics is running high” is the title of a recent article published on www.gpsworld.com.

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