Understanding the Benefits of IoT in GPS Fleet Tracking

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Understanding the Benefits of IoT in GPS Fleet Tracking

The transportation sector is like the nervous system for any economy. It is the medium that connects industries and facilitates the movement of people, goods, and products from one location to another. In fact, around 95% of all the manufactured products at one point in the supply chain are transported in a container.

Even though it is a crucial part of the industrial ecosystem, there are several challenges that transportation and logistics companies face. From inefficient fuel consumption to long-duration idling, these factors severely affect the operations of fleet management and wastes billions of dollars for the companies. For instance, truck congestion in traffic wastes more than $28 billion each year.

IoT driven GPS Fleet tracking enables fleet companies to counter these challenges. The integration of specially built sensors and onboard diagnostics systems transforms the conventional trucks we know into a moving data transmitting vehicle. The information shared by the truck allows a fleet manager or operator to remotely monitor trucks’ health and other parameters that can affect the smooth delivery of products.

This advanced telematics capabilities of IoT are an essential feature that a modern-day fleet must use. Let us see the benefits that GPS vehicle tracking offer to fleets:

  • Route Management:

It is undoubtedly the most common application of GPS. In our day to day lives we use GPS to reach the location we want to visit. However, its benefit far extends than simple route management for fleet.

These GPS solutions allow fleet managers to have a two-way interaction with their truck drivers. They can monitor their vehicles in real-time and guide truckers to reach their destination in the lowest time possible. Moreover, it also allows fleet managers to assign new pickup locations to truckers, reprogram routes, and send real-time notifications to drivers about the shortest routes.

  • Resource Optimization:

IoT based GPS system creates transparency among truck drivers and fleet operators. Based on the data collected from onboard systems in trucks, the fleet managers can guide the truckers to finish the delivery before the ETAs. Furthermore, they can also attain useful insights that result in a delay in delivery and subsequently reschedule the shipment. This eliminates any ambiguity or improbity among truck drivers and fleet operators that further increase the efficiency of fleet management.

  • Efficient Fleet Management:

The use of IoT in GPS fleet tracking empowers a fleet company to remotely monitor different variables associated with fleet management in real-time. Thus, the company can take immediate action and make quick decisions to facilitate timely cargo delivery.

Moreover, it alleviates the need for paperwork for both the managers and truckers, which allow fleet companies to focus more on other essential business duties. Also, drivers can take the shortest possible path that further saves time and fuel.

In case of an emergency (such as unexpected engine failure) during cargo shipping, the fleet managers can contact another nearby driver to take charge and deliver the goods on time.

  • Preventing accidents:

Drivers are the most important resource for any logistics or transportation business. It is hence paramount to ensure their safety and driving behavior. Modern-day on-board diagnostic systems are now embedded with behavior monitoring systems that allow fleet managers to track driving behavior, patterns, and habits of the truckers while they transport the goods.

This helps fleet managers to reduce the probability of accidents on the road and warn drivers if they drive rashly.

  • Cost Analysis:

The data collected from the trucks can be stored and analyzed via advanced analytics and data processing software respectively. Fleet companies can use this analyzed information to develop useful insights related to resource optimization and cost estimation. They can reduce fuel consumption, identify vehicles that require maintenance, eliminate bad habits of drivers, and cut down attributes that result in unwanted costs.

  • Mitigate Thefts:

Trucks are responsible for the movement of expensive and volatile compounds as well. Generally, the valuable the objects trucks carry, the more creative thieves become to steal it. Oil tankers that carry petroleum products are the most common target of thieves. In some cases, even the truck drivers are indulged in the robbery of these valuable products.

With the help of real-time monitoring of IoT based GPS system, the fleet companies can at all times track the location of the truck. With the help of various attached sensors on the trailers of the trucks, the companies can also distinctly measure the bulk of cargo being transported.

This allows companies to keep an eye on the location of the trucks and the route taken by them. Also, if this data is stored in a cloud drive, the companies can use it to trace back the path that the trucker took along with the duration of the visit, in case theft is suspected.

  • Reduced Desk Job:

The use of GPS vehicle tracking in the fleet not only helps a fleet company to reduce the cost associated with fleet management but also related to irrelevant administrative operations. The real-time alert system prevents the operators to remain on the screen 24*7 in order to monitor the live location of the trucks. This reduces the desk job for fleet handlers and allows them to focus on other essential tasks.

  • Improved Customer Service:

GPS fleet tracking allows companies to facilitate timely task delivery in a cost-effective manner. Moreover, they can also prepare strategic plans to include more shipments on a daily basis which results in quick services to the customers. Furthermore, they can also update the customers in case of delay or rescheduled cargo shipment that results in an increased rate of customer satisfaction.


The modern-day transportation and logistics sector heavily relies on GPS vehicle tracking for different fleet operations. The potpourri of benefits that this system offers allows fleet companies to optimize their cargo delivery operations and provide customer-oriented services on time.


Sanjeev VermaThis article was written by Sanjeev Verma, the founder and CEO of Biz4Group, based out of Orlando. He has conceptualized the idea of Biz4 Brand and founded Biz4Group and Biz4Intellia. He has 20+ years of experience in boosting IT-based start-ups to success. In the past, he has worked on leadership positions with Marriott Vacations, Disney, MasterCard, Statefarm, and Oracle.

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