Managing Labor Costs With Asset Tracking

Managing Labor Costs With Asset Tracking

It can be costly for construction and business owners to manage their fleets. This type of management requires a lot of time, and it is crucial to the success of the business’s operations. In order to reduce the costs involved with managing labor, many business owners are utilizing asset tracking technology. This is a powerful tool that can offer many benefits to today’s companies, and it is often overlooked.

Labor Costs

Generally, additional labor costs are a result of two primary reasons. First, the equipment is not being used correctly. Second, drivers are not being productive. Traditional management tactics make it difficult to combat these added costs. However, with a GPS tracking system, you can tackle both of these issues.

Value of GPS Tracking

Companies that use GPS tracking systems know the exact location and performance of each asset and vehicle in their fleet. This knowledge provides a lot of insights, and it can add value when it comes to managing labor costs. The following are key benefits that come from GPS tracking:

  • Scheduling, vehicle utilization, and routing can be optimized so overtime is reduced and inefficient behaviors decrease.
  • The data gathered from the GPS system can be used to reward drivers for safe habits and to enforce company policies.
  • Processes like maintenance can be streamlined to decrease overhead costs.
  • As a result of improved productivity, revenue is likely to increase. This is because more jobs will be completed and customer service is usually higher.

Improve Equipment Utilization

Today’s GPS systems provide detailed reports of the activities of your drivers. If you review these reports regularly, you can learn the different driving patterns and behaviors of each team member. These behaviors influence how your equipment is used, and they can affect the overall productivity. When a problem arises, you can identify it through the data and make necessary changes. This can reduce your overall costs significantly in the long run.

Streamline Vehicle Routing

Another way to reduce labor costs is to streamline vehicle routing. When your routing is better, your drivers are more productive and your fuel costs are lower. In addition, workers have the ability to complete more jobs throughout the day so that your revenue increases. Furthermore, with streamlined routing, your dispatchers will not waste time tracking down drivers.

Increase Driver Productivity

A GPS system also allows many companies to get more work done in less time. Since the drivers are monitored, they are usually more productive. In many instances, overtime costs are eliminated because drivers do not take long and unnecessary breaks.

Streamline Maintenance

Maintenance can also be an expensive part of running a fleet. In particular, there is nothing more frustrating than a stalled vehicle. This vehicle is expensive to repair and unavailable to work. When a GPS tracking system is used, many breakdowns are prevented. Warning notifications are given so that preventative maintenance can be performed to eliminate unwanted trouble on the road.

If you have a fleet, then your most important assets are probably your vehicles and your drivers. Sometimes the cost of managing a fleet can be astronomical. Fortunately, it is easy to reduce some of the expenses involved with a simple tracking system.

Back to Top