Satellite navigation can reduce distances driven by 16%, driving time by 18% and fuel consumption by 15%, by taking more direct routes and preventing drivers getting lost, according to a Traffic Master study.

Tracking systems have become more and more prominent in the fleet industry since they were first introduced in the late 1980s. 

One of their main uses, besides route planning, is as a management tool, says Masternaut marketing consultant Robert Peel.

He believes the key to getting the most from tracking systems is to study the results they throw up carefully and using the detailed history they provide to make future savings.

“For example, it gives managers everything they need to see how efficiently their business is running. You know where your staff are at all times and if you are running a service type business, then you can even eliminate timesheets because you know what job they are working on at all times,” said Mr Peel.

“Being able to route cars is just one small benefit, the real benefit lies in the performance indicators.”

Before starting to use a fleet tracking system, many companies will have no idea what kind of costs they are incurring through their cars or vans, and where there are savings to be made. 

Graham Mackie, managing director of Road Angel Fleet, said: “One of the easiest ways to save money is to reduce the idling time of vehicles.

“We did work with one coach company, Stotts, who have reduced their idling time by around one hour per vehicle per day. This lead to £20,000 in fuel cost savings over the year.”

Choose a provide with a track record

According to Jeremy Gould, sales manager UK, TomTom Work, fleets need to choose a provider with a track record, proven products and a reputation for product development.

“Many systems bombard you with a multitude of data in a raw format which is difficult to draw conclusions from,” he said.

Tom Tom uses information gathered from the vehicles to match against business key performance indicators. “These are displayed in a fully customisable ‘dashboard’, which shows the KPI charts at your finger tips. The result is a solution you can rely on to consistently deliver the right information in the right format,” Gould added.

Some systems can record the amount of idle time coming from an engine, and most can be configured to shut down the motor once the vehicle has been idle for more than five minutes. 

Another, less conventional, way of saving money through tracking systems is by using them to reduce unauthorised use of vehicles.

“Most companies don’t mind their workers using vehicles at weekends or after hours, but if that fuel money is being paid for by the firm, it can lead to significant costs,” explained Mr Mackie.

In-built authorisation system

Using an in-built authorisation system, such as those at ALD Automotive, the driver’s monthly declaration is approved by their line manager and uploaded to their employer’s pay roll team. This is then able to deduct an amount from the driver’s salary for their private usage. 

In doing so this offers employers a more robust and accurate method of controlling business and private mileage costs, and helping to prevent drivers from making costly mistakes. 

In the construction industry specialist groundwork contractor Glencroft is on track to make savings of more than £100,000 since implementing a web-based tracking service - the majority of the savings will come from fuel bills.

“By reducing unnecessary mileage we hope to reduce our annual fuel bill by half,” says John Duffy, Glencroft’s commercial director. “This is a projected year on year saving of £100,000 plus.

“The Masternaut service has also increased awareness of the environmental impact of our activities and drivers are more conscious of how and when they use their vehicles. We have also improved our maintenance programme as we can be pro-active, anticipating faults based on actual vehicle usage rather than waiting for a breakdown to happen. 

“Finally we have additional intelligence to support our Health and Safety and Lone Worker policies and, following changes to the regulations governing the private use of company vehicles, they have proof they need”.

Duty of care

The introduction of the Corporate Manslaughter and Corporate Homicide Act in 2007 also changed how firms use fleet tracking systems.

Minorplanet head of marketing Christian Payne says: “Companies need to ensure that their vehicles are being driven correctly, and that doesn’t just include the prevention of speeding.”

Fitting vehicles with accelerometers allows the breaking, acceleration and cornering of drivers to be measured. 

“Knowing how people drive allows companies to make decisions on where driver training is necessary,” says Mr Payne. 

Companies can make instant savings from lower fuel bills if vehicles are driven more efficiently, and help prevent any future incidents that could be liable under the corporate manslaughter act.

Pay-as-you-go option

Meanwhile, some firms may think that making investments such as tracking systems may not be ideal for this market. 

Quartix sales and marketing director Andy Kirk said he has seen a shift in how companies like to purchase tracking systems: “As companies are struggling to make ends meet, the days that they will tie themselves into a three or five year contract are over.”

Quartix has recently introduced a pay-as-you-go option, which Mr Kirk believes will take off over the next year: “By the end of the year I believe the company’s customers will be split equally between pay as you go and outright purchase.”

He estimates that Quartix’s customer base will increase to some 2,700 customers, totalling an addition of up to 700, which will be evenly split between the PAYG and lease options.