Return on Investment Series: Article 1

Telematics & GPS ROI


Return on investment (ROI) is a performance measure used to evaluate the efficiency of an investment, or to compare different investments. ROI measures the amount of return on an investment relative to the investment. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage.

The telematics industry has come a long way since the days of downloading data when a vehicle returns to home base and providing dots on a map. Today, telematics can provide fleet managers instant reports on location, vehicle driving behavior, maintenance alerts and so much more, thus providing a significant ROI.


5 Pillars of Fleet Management for Return on Investment


Safety – Speeding, harsh driving behavior, reverse, seatbelt, accident reduction
Productivity – Stop duration, dispatch, route efficiency, sales/service calls, timely service
Optimization – Proactive maintenance, odometer readings, vehicle health, fuel consumption
Compliance – Company policies, State/Federal laws, HOS
Expandability – Integrate with 3rd party software, power of the IOX, marketplace

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Company Vehicle Abuse

Abuse Increases Risk & Expenses


Some things never change. One of the most basic applications of GPS tracking technology is stopping company vehicle abuse. Abuse comes in many forms but it always increases the fleet operator’s risk, liability and expenses. Over the years we have seen and heard many stories about company vehicle abuse.


Boat ramps are a great place to spot misuse of a company vehicle. Few employees seem to understand the risk and costs to an employer of hauling a boat, launching a boat and the added the wear and tear resulting from towing a boat. Don’t forget the immediate hard cost of fuel being consumed at twice the normal rate to go from home, to the boat storage facility, to the ramp and back. At a minimum half a tank of gas worth $20 is what was just stolen. YouTube has many examples of vehicles slipping into the water when trying to launch or recover a boat.


One of the worst examples of employee vehicle abuse is when an employee with a landscaping company was driving his company vehicle from Ft. Meyers to Ft. Lauderdale (150 miles one-way) to play golf. The employer naively allowed drivers to use the honor system to report personal miles verse company miles for payroll deductions and tax reductions. Strangely enough the driver failed to report this Sunday routine for several weeks. Even with a GPS tracking unit on his vehicle he continued to steal from his employer until he was caught.


Abuse is one behavior that can be prevented immediately with a vehicle tracking system. Speeding, after hours use, personal travel, towing, etc. are all behaviors easily identified through maps, alerts and reports. Almost any GPS system designed for vehicle tracking can provide this information. Asset trackers which provide less data may not give you the resolution needed to quickly address unwanted abuse.

Boat Ramp Failure