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GPS/vehicle tracking

by Ian Thomson

Technological advances have turned GPS into a productive system, now accepted as the norm for many users. And, when the power of a GPS receiver is combined with the ubiquity of wireless communications, it is no surprise that manufacturers large and small are offering a range of devices with the ability to track anything from anywhere.

GPS keeps navigation simple and easy; managers can keep track of vehicle fleets, plot routes so that fleets travel the shortest distances to save on fuel consumption and companies can inform customers about delivery status.GPS works in a few ways, but primarily it is via a web-based interface, which is linked to a vehicle equipped with a GPS device manufactured specifically for fleet management.

"The system is there to increase efficiency and service levels to customers, rather than checking on an individual's performance or location"

This type of GPS differs significantly from automated GPS systems in that an automated GPS unit only collects, logs and displays information for the driver of the vehicle.

GPS for fleet management, on the other hand, does all the same things but it also transmits this information to a central processing station via radio or mobile phone tower waves. This central processing station then interprets the position of a fleet in real time. Generally, costs are based on an upfront charge to purchase the GPS unit with a monthly service fee.

Choosing GPS

GPS systems are relatively inexpensive compared to when they were first launched. The most popular systems can be fitted into vehicles in the transport sector. Handheld devices with GPS are also increasing in popularity as the mobile phone networks begin to incorporate them into phones as standard features.

The introduction of smartphones equipped with GPS raises the question of which is most appropriate for business users? In truth, both have their merits. GPS/navigation on mobile phones is boosting interest in pedestrian navigation, for example, which in turn is increasing awareness of in-car navigation.

Investing in GPS

The pros

Cost: you do not have to pay for support and carry two separate devices

Updating maps is easier as you can do it wirelessly

Tracking: managers can determine the geographical position of the device and an employee or a company vehicle

Local search to arrange meetings, for instance

Audible directions: GPS phones with integrated Bluetooth can provide step-by-step directions with a wireless headset, ideal when driving

The cons

Mobile phone-based GPS requires an ongoing monthly fee, which provides map updates, although you can use the service outside a vehicle

Limited space: a stand-alone GPS device has sufficient internal memory to store maps of an entire continent and more, unlike limited memory on phones

GPS phones often need a signal to determine the location, compared to stand-alone GPS devices that communicate directly with satellites

Phone repair - if one feature on the phone requires repair, the user is without the entire device; is one device with multiple functionality a compromise?

Visibility: small screen size - a 1 or 2 inch screen on a phone

In addition to portable navigation devices (PNDs) and TomTom Work solutions, TomTom also offers Navigator, a software solution for mobile and smart phones developed for the mobile industry. TomTom Work offers three solutions: Active, a fully connected navigation PND with a separate black box and 24/7 tracking; Work Active with track and trace, report and communicate with a workforce through Webfleet; and Compact, an all-in-one PND/tracking device with SIM. The choice of products allows for flexibility between vehicles. There is also track-only software, Link 300, which provides vehicle data viewable in Webfleet. The software costs depend on the application as the solution has a number of variables depending on how a company uses the product/service.

Business benefits

Global positioning system (GPS) technology can be a useful tool for small-to-mid-sized businesses, helping salespeople quickly navigate to appointments, or in some cases, allowing management to monitor a fleet of drivers or their deliveries. Driving with satellite navigation can improve efficiency and planning, saves costs, and subsequently provides better service to customers.

"It is safer and provides better conditions for drivers," said TomTom spokesperson Jenny Hodge. "With tracking and tracing systems for fleets, for example, the tracking element could be considered as a negative for drivers. "However, it helps to increase efficiency for the business involved, which can only be a good thing. Despite the initial cost of installation, the return on investment is high."

The safety aspect is one benefit for users. In a recent TomTom survey in Europe and the US, the overriding conclusion was the positive influence users felt about satellite navigation devices on driving and traffic safety. The study also showed that using a navigation device - compared to navigation by conventional means - reduces the number of miles that people drive when travelling through an unknown area to an unknown destination, which in turn has a positive effect on the environment and fuel costs.

Hodge added: "A navigation system will get you from A to B quickly and safely, reducing mileage as it takes you on the most direct and shortest route. Even when travelling the fastest route, you have the saving of less time on the road."

TomTom, armed with this knowledge, has launched IQ Routes technology to provide more accurate estimated time of arrival data, which is important for businesses keen on improving their service level agreements.

Weather proof

Another of the benefits of a GPS system is that it can be used in any weather. Furthermore, most are weatherproof, and small in size. Some systems can even be customised.

But, although known for their versatility, some models of GPS can only be mounted on the inside of a car. This loss of portability is one of the disadvantages associated with such products. Another set-back is that when it is used in a vehicle it can make the vehicle a target for theft. And there is always the possibility that the system will let you down on a winding country road.  

What to look out for

Make sure the GPS offers the services and features you require and do not over complicate the purchase. Choose a brand name that is known for being reliable and ‘good at what they do', for example satellite navigation/tracking

If you are considering introducing a business GPS solution, there are a number of issues to think about before implementing a company-wide system.

Hodge said: "Tracking often receives unnecessarily bad press (the ‘big brother' issue) and, therefore, education and managing integration with the workforce is of paramount importance.

"If staff understand the reason for implementing and all the benefits, they will be more accepting. The system is there to increase efficiency and service level to customers, rather than checking on an individual's performance or location.

Small fleets reap the benefits of GPS

A recent Aberdeen Group study on the impact of fleet management on small and large businesses found that small businesses benefit from GPS by a greater margin than larger businesses. The March 2008 report, Improving Productivity and Profitability through Service Fleet Management, assessed the pressures that businesses cited as reasons to increase their efficiency with GPS systems. Nearly three quarters (73 per cent) of businesses with small fleets said that they felt GPS would improve customer service through better response times.

They also felt that the implementation of some form of GPS technology would reduce service response times (57 per cent), reduce fleet-related operating costs (46 per cent), increase service-related productivity (41 per cent) and extend the life of service vehicles (16 per cent).

The most interesting finding of the report was that small businesses (fleets with 1-10 vehicles) tend to benefit more from implementing GPS technology than large businesses (fleets with more than 1,000 vehicles). According to the report, small fleets saw an increase of 25 per cent in the number of orders completed per day two years after installation. Large fleets only saw an increase of 8 per cent.

Aberdeen Group also suggested some recommendations for implementing a GPS fleet tracking system:

• GPS is relatively inexpensive to implement across any size fleet.
• Measure your process.
• Knowing the current status of your fleet tracking is important for viewing the impact that GPS technology will have once it is implemented
• Involve employees via training on improved fleet usage and maintenance.