How Do Fleet Tracking Devices Work?

Do you believe that access to real-time data and analytics can significantly enhance the efficiency and scalability of your fleet business? If your operations involve managing a fleet of vehicles and you have yet to adopt a fleet tracking system, you may be missing substantial opportunities for operational improvements and financial savings. Why postpone the decision?

The GPS tracking device market, valued at over $2.9 billion in 2022, is projected to grow at a compound annual growth rate exceeding 12.5% between 2023 and 2032. This growth highlights the increasing demand for fleet management solutions as businesses focus on optimizing processes and cutting expenses.

Few technologies have reshaped fleet operations as effectively as GPS tracking devices. These tools offer advanced features and integrate seamlessly with existing systems, enabling businesses to refine workflows and achieve better results.

In this blog post, we will discuss the functionality of fleet tracking devices and examine their role in helping businesses meet key operational objectives, delivering measurable benefits in efficiency, cost savings, and overall growth.

How does the Global Positioning System (GPS) Work?

The Global Positioning System (GPS) is a satellite-based navigation system that provides precise location and tracking data. It operates using a network of 27 satellites orbiting the Earth, each following fixed paths and monitored by ground stations to ensure accuracy.

When a GPS tracking device is installed in a vehicle, it communicates with at least four satellites within range. The device transmits signals containing information such as speed, time, and position.

The system calculates the vehicle’s exact location by analyzing these signals and delivers real-time tracking data. This advanced technology has revolutionized navigation and fleet management by providing reliable, accurate, and easily accessible location insights.

Read more: 8 Best Truck Tracking Devices

How Does GPS Technology Fit Into Fleet Tracking?

To make GPS tracking work for your business, you must understand how it fits into the fleet tracking system. GPS tracking combines three key location technologies that work together seamlessly to collect, transmit, and transform data into actionable insights, making fleet management smarter, more efficient, and highly reliable. Let’s find out how it works and delivers valuable insights:

Connected Devices

Connected devices are the heart of GPS fleet tracking and act as smart tools that deliver real-time data. These GPS-enabled devices capture the vehicle status, such as live location, trip routes, maintenance needs, etc. Using satellite or cellular networks, these devices maintain seamless communication and valuable insights to keep fleet managers informed and operations efficient.

Central Server

Once the GPS device pinpoints a vehicle’s location and accesses other details, it transmits the information to a central server via a wireless or cellular network. In areas even with poor network connectivity, GPS transmission works efficiently. The server allows you to access the information anywhere on your computer, tablet, or smartphone.

Software Platforms

The transmitted data arrives at a software platform that handles the data for processing and analytics and presents everything intuitively and usefully. With just a few clicks, you can view real-time locations, analyze routes, monitor speed, and get valuable insights into the fleet’s operational status for making informed decisions.

Types of Fleet Tracking Devices

Fleet tracking devices come in two main types, designed to suit different vehicles and specific needs. Here’s a quick look at the two options:

Installed GPS Devices

These devices are hardwired directly into vehicles, offering a tamper-proof solution ideal for large fleets comprising semi-trucks and big rigs. While they provide a permanent option, switching them between vehicles is impossible. So, these are best suited for long-term fleet setups.

OBD Trackers

These compact and easy-to-use devices plug directly into a vehicle’s OBD port, available in most cars manufactured after 1996. These trackers access the vehicle’s onboard system, record useful data, and offer a simple yet powerful truck-tracking option.

Portable GPS Trackers

Portable GPS trackers are compact devices securely fixed to the vehicle using strong magnetic mounting or other attachments. The convenient design and installation allow you to keep the tracker hidden and secure, providing efficient tracking without drawing attention.

How Fleet Tracking Devices Work?

Fleet tracking devices simplify vehicle management by combining advanced technology with user-friendly tools. To understand how they work, let’s break down the process step-by-step, as given below.

Step 1: Installing the Device

The journey begins with installing the fleet tracking device into your vehicle. Three types of tracking devices fit into your vehicle. These are:

A simple plug-and-play device connecting directly to the onboard diagnostics (OBD-II) port.
Devices that require hardwiring into the vehicle’s electrical system for a more permanent setup.
Portable trackers that are securely fixed in a suitable position inside the vehicle, even within a compact space.

Step 2: Pairing with the Tracking App

A GPS tracking app often comes paired with a GPS device. Installing the app on your smartphone or other digital device allows you to track vehicle locations and receive updates in a convenient and user-friendly way. With easy-to-access features like route optimization, geofencing, and detailed trip history, the app complements GPS devices and enables you to manage fleets anytime, anywhere, with precision and control.

Step 2: Set up for Collecting Data

Once in place, the device begins to work, collecting useful information. It tracks GPS coordinates, speed, engine health, fuel usage, and more. Advanced devices have higher capabilities and monitor driver behavior like sudden braking, rapid acceleration, or unnecessary idling. This updated information flow provides a comprehensive picture of your fleet’s activity and health.

Step 3: Transmitting the Information

The collected data is sent to the central server in near real-time via cellular or satellite networks. Whether your vehicles travel through busy highways or navigate remote regions, the technology allows seamless and uninterrupted communication for necessary tracking.

Step 4: Data Processing for Smarter Decisions

The central server processes the raw data and generates meaningful information. You get insights about routes, fuel efficiency, and maintenance needs, guiding you to appropriate actions. Fleet managers can identify inefficiencies or potential issues, enabling them to make smarter, faster decisions.

Step 5: Visualizing and Reporting

The final step is where you get everything at your fingertips. Fleet managers use a web-based platform or mobile app to access all the processed data organizationally. From monitoring trip histories to analyzing efficiency trends and reviewing vehicle performance, the platform puts every detail in a ready-to-use format, making fleet management effective and effortless.

Features of Fleet Tracking Devices That Make the Difference

Fleet tracking devices have features that enhance fleet management by optimizing operations, improving safety, and keeping vehicles running efficiently. Here are some highlights:

Real-Time Location Tracking

The most significant feature is real-time tracking, providing instant visibility into vehicle locations and enhancing smooth operations. For instance, if a new order comes through, it helps you find the nearest vehicle instantly and reroute it to the customer’s point, saving time and fuel.

Geofencing

Tracking your vehicle’s arrival and departure at a warehouse becomes convenient by creating a virtual boundary or geofence around the location. You get instant alerts when the vehicle enters or exits the zone. Any schedule deviations allow you to take prompt action.

Learn the benefits of using Geofencing for your fleet business here.

Driver Behavior Monitoring

The pattern of harsh braking or aggressive acceleration during trips can lead to increased risks of accidents, higher fuel consumption, and unnecessary vehicle wear. GPS trackers with driver behavior monitoring capabilities provide real-time insights into such unsafe habits, allowing fleet managers to identify and address them immediately.

Alerts from these devices enable targeted coaching for drivers, promoting safer and more responsible practices on the road. This minimizes risks and ensures compliance with safety standards, reduces costs and enhances operational efficiency.

Fuel Usage Tracking

Long routes with many stops can quickly drain fuel. Analyzing engine data through GPS tracking reveals issues like excessive idling or inefficient routing that consumes more fuel. It helps you take further actions to cut costs, improve route efficiency, and boost overall productivity without wasting resources.

Maintenance Alerts

An overheated vehicle engine during a trip indicates a risk of potential failures. A fleet tracking device connected to the OBD port sends a prompt alert to inform you about technical issues. Resolving the problem proactively helps you avoid any unexpected failures and downtime.

Reporting and Analytics

The fleet tracking system provides you with detailed vehicle-wise reports that analyze which drivers excelled or where mileage can be improved. These analytics enable you to plan operations and utilize resources more effectively and efficiently.

Benefits of Using Fleet Tracking Devices

Fleet tracking devices deliver valuable and measurable benefits for businesses of all sizes, as discussed below.

Faster Response

Real-time data allows fleets to keep moving without unnecessary roadblocks. When delivery vans encounter traffic congestion, dispatchers can quickly reroute vehicles to reduce delays. This approach helps maintain on-time deliveries and keeps customers satisfied with timely responses.

Enhanced Safety

GPS tracking and geofencing provide complete visibility into vehicle movements. In cases of theft or unauthorized use, instant alerts enable rapid intervention before minor incidents develop into significant issues. Monitoring vehicles outside designated safe zones helps reduce risks and strengthens overall safety measures.

Operational Efficiency

Tracking driver behavior, such as prolonged breaks or unnecessary detours, was once challenging. With live and recorded trip data, inefficiencies become more accessible to identify and address. Businesses can improve resource management and create more streamlined operations by implementing proactive measures and coaching drivers.

Cost Savings

Identifying patterns like prolonged idling during deliveries is possible through GPS tracking. Addressing such habits minimizes fuel consumption and reduces costs. Responding to maintenance alerts promptly prevents minor problems from escalating into expensive repairs. These actions support better budget management and higher productivity.

Scalable Solutions

GPS tracking systems provide scalable options that adapt to the growth of your fleet. As businesses expand operations or add vehicles across multiple locations, these tools manage increasing complexities with reliability. Whether overseeing a few vehicles or a large nationwide fleet, they adapt seamlessly to evolving needs.

Sharing Location Data

Consumers appreciate real-time delivery tracking rather than vague time estimates. Sharing live tracking links allows customers to monitor delivery vehicles and calculate accurate arrival times. With each stop time-stamped by the GPS, transparency is enhanced, building trust and improving the overall experience.

Better Accountability

With GPS tracking, driver behavior becomes more transparent, promoting greater accountability. Drivers are less likely to engage in idling, traffic violations, or unsafe practices when their activities are monitored. GPS data also provides evidence to address customer concerns, such as late or missed deliveries, allowing businesses to resolve issues effectively and maintain service quality.

Conclusion

Fleet tracking devices combine powerful technology with user-friendly interfaces to deliver real-time insights and actionable data. They are indispensable for modern fleet management, from timely deliveries to promoting safe driving habits.

An understanding of how these devices work helps businesses utilize their full potential to make operations smoother and safer, making customers more satisfied. Whether managing a small fleet or a large operation, fleet tracking devices keep you ahead, streamlining logistics and transportation with smart, efficient solutions tailored to your business needs. Transform the way you manage your fleet with Matrack’s GPS tracker for commercial vehicles. Gain real-time insights, cut fuel costs, and streamline operations effortlessly. Ready to drive smarter decisions and elevate fleet efficiency? Discover more at Matrack GPS Tracker and take control today.