Importance Of A Vehicle Fleet Tracking System In Supply Chain Management And Modern Logistics

As the logistics world continues to evolve, the demand for accurate and speedy deliveries increases, and supply chain businesses have to keep up. The uninterrupted coordination of staff, owners, and drivers is critical to ensure a successful distribution. Fortunately, with a vehicle fleet tracking system, this assurance is already made. 

In the following sections, we’ll learn how these systems offer cost-effective and agile ways to deal with unforeseen circumstances in modern logistics and why businesses ought to invest in them. 

Why Is Vehicle Fleet Tracking Indispensable? 

Fleet tracking is a technology that utilizes GPS, software applications, and cellular networks. It offers insightful reports that allow businesses to construct actionable strategies. In addition to real-time alerts that contribute to reduced accidents, tracking systems offer countless other perks. 

1. Route And Load Optimization

Road closures and weather are the two most uncertain occurrences you face as a supply chain manager. Although this was a no-escape situation in the early days, a modern-day vehicle fleet tracking system prevent drivers from crossing paths with such deadlock situations. 

Moreover, the load optimization features also prevent staff from poorly loading the vehicles, which ensures their smooth running and on-time delivery. Since both route and load optimizations ensure a seamless operation of vehicles, they, in turn, lead to reduced carbon emissions and a low carbon footprint. 

2. Fleet Protection

Vehicle thefts are a common happenstance in the logistics landscape. According to experts, every fleet organization loses two vehicles every year [1], and the figures are expected to rise in the future. There are undoubtedly various ways to ensure fleet safety, but GPS tracking is the most reliable. 

Installing a GPS tracker gives you insights into the driver’s behavior so you can monitor elements like harsh braking and speeding to prevent reputational and financial risks. Moreover, features like geofencing and real-time alerts help you pinpoint if your vehicle detours from its assigned path. A timely bulletin can help you place the right strategy before real damage. 

3. Fuel Cost Reduction

Opting for inappropriate routes and engine idling are some common ways that can lead you to wonder about the irreparable budget and fuel gap. Research shows that a vehicle idling for 60 minutes consumes about 0.8 gallons of oil, and 25 trucks idling for 2 hours every day are synonymous with burning 40 gallons of gas [2]. 

Fortunately, the alerting features in a vehicle fleet tracking system reduce fuel consumption and engine wear, leading to lower maintenance expenses. Additionally, certain driving patterns also result in more fuel consumption, which you can pinpoint with a GPS tracker and take appropriate action. 

4. Automation

It’s the 21st century, and you don’t have to sit in your office and maintain everything manually. Thanks to Artificial Intelligence and its integration into modern-day tracking systems, you can automate a lot of tasks at your logistics company. 

Present-day intelligent systems can automatically handle things like warehouse planning, staff allocations, and inventory management [3]. It leads to accurate capacity planning, reduced supply chain costs, and lower supply chain costs as there is efficient item retrieval, reduced complexity, and fewer errors.

5. Efficient Reporting 

It is important to play by the rules if you want a thriving supply chain business. However, navigating the complex dimensions of regulations is a complex task. Authorities can pop up at any minute and require data scrutiny. Automatic features incorporated in vehicle fleet tracking systems gather all these details automatically, saving loads of time. 

You don’t have to worry about securing important logs, as biometric security functions like fingerprints and facial identity are available. When the need comes, you can easily unlock the reports and logs for inquiring authorities.

6. Intuitiveness

Only ‘learned’ people could operate conventional technological solutions, but present-day manufacturers are working to break the tradition. Now, GPS tracking systems offer interactive dashboards and mobile application integrations so managers can manage their fleets from anywhere and without any technical knowledge. 

Access grant and revoke features, along with customizable reporting, ensure an efficient user experience. Such facilities promote the adoption of fleet tracking systems, leading to overall organizational improvement. 

Critical Considerations for Installing a Vehicle Fleet Tracking System

Deploying a GPS tracking system can help you get ahead of your market competition. However, like every new prospect, fleet tracking also comes with its set of challenges. Here is what requires your attention. 


The most fundamental thing is the cost of installing a GPS tracking system. Commonly, there are costs of software, hardware, installation, maintenance, and subscription fees included. But fleet organizations must evaluate the ROI.

Data Security 

Since all the logs will be digitized, it is important to scrutinize whether the deployed vehicle fleet tracking system has the necessary protection against modern-day cyberattacks. 

Change Management 

Everyone isn’t comfortable with a technology guardian hovering over them, and some employees may perceive this as a breach of privacy. To gain employees’ support, conduct workshops or seminars to communicate the changes’ needs and benefits. 


Investing in the latest system will not yield any benefits unless it is integrated with the existing systems. Ensure that it is compatible with your present warehouse and fleet management systems and that all the data is synchronized before the next batch initiates. 

Final Words of Advice

Vehicle fleet tracking systems are rapidly becoming an industrial inclination. There are countless benefits like reduction in fuel expense, automation, route optimizations, and low carbon footprint. However, some considerations are essential to ponder before investment because not all businesses receive the same ROI. 

A commendable navigating partner at your beck and call can help you achieve all the niceties of GPS tracking systems in no time. You are free to research around, but if you need a setup right away, we’ve got you covered!


  1. Which technologies can be integrated with a modern-day vehicle fleet tracking system?

Present-day GPS tracking systems incorporate various technologies, such as IoT devices, blockchain technology, AI-operated analytics, and biometric authentication systems. 

  1. How do GPS systems ensure customer satisfaction in modern logistics?

Effective tracking systems monitor the vehicle’s traveling activity. If there are unexpected issues, like road blockages or weather upheavals, you can communicate the situation to customers with an updated ETA. This way, there won’t be unnecessary waiting. 

  1. How is a vehicle fleet tracking system installed?

A GPS tracking system is installed by mounting a GPS device on a vehicle or shipment, connecting it to a power source, and configuring the device to communicate with a central monitoring system.

  1. What things should one consider when selecting a GPS tracking system?

When buying a vehicle fleet tracking system, consider factors like real-time tracking accuracy, cost, ease of integration, scalability, user-friendly interface, and data security. 


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