Return on Investment for GPS/AVL Technology

 

Return on Investment for GPS/AVL Technology

How do you/did you build a return on investment for GPS/AVL technology for your fleet?

Anonymous (not verified)
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I would also like to ask if anyone has implemented this technology on a large scale and has it been successful?

Anonymous (not verified)
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We have implemented GPS on most all our vehicles.  We have not been able to calculate a positive ROI on this system.  To justify you need to look at all benefits and stack them up against the cost.  These benefits are used by several users and departments.  It helps if you are going to implement other technology that requires the GPS data such as mobile dispatch, asset management, or crew management.  Between Fleet, the user department, safety, risk management, claims, and internal investigations, we were able to justify our system.  It helped that the system we chose is able to do real time smog checks on our vehicles.  Now we are working with the state to accept.

Anonymous (not verified)
Anonymous's picture

I was part of a team that implemented a GPS program with excellent success.  Joe Pellissier's response is completely accurate.  Every time that we tried to justify the expense from purely a fleet perspective, we struggled to show the ROI.  However, once we involved other departments it was relatively simple.  Improved route planning, customer response and vehicle control easily pay for the system in most cases, but those issues are typically managed outside of the fleet organization.  I would recommend that fleet managers look at their operation and work with their counterparts in the other departments to see if GPS/route planning would work for them.  The operational benefits to the fleet organization can be substantial, but the company needs to be prepared to execute the behavioral changes that the system identifies in order to gain those benefits.  GPS and route planning can give you great information to improve your operation, but you still have to act on that information. 

Anonymous (not verified)
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Anonymous (not verified)
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jpellissier said:

We have implemented GPS on most all our vehicles.  We have not been able to calculate a positive ROI on this system.  To justify you need to look at all benefits and stack them up against the cost.  These benefits are used by several users and departments.  It helps if you are going to implement other technology that requires the GPS data such as mobile dispatch, asset management, or crew management.  Between Fleet, the user department, safety, risk management, claims, and internal investigations, we were able to justify our system.  It helped that the system we chose is able to do real time smog checks on our vehicles.  Now we are working with the state to accept.


What company did you use on your GPS sytem?