During a time of economic recession, every business is looking to reduce overheads and cut costs. Although spending money and investing in a vehicle tracking system may seem counter to this statement, in the long term it can prove to be a shrewd move by companies who rely on a fleet of field agents to run their business.

GPS tracking systems are designed for tracking both vehicles and people and used as part of a fleet management strategy they can both improve the efficiency of the fleet and cut costs. GPS tracking uses a system adapted from full cellular (GSM CDMA) and location-specific (GPS) systems. GPS tracking uses a triangulation algorithm to relay an exact location of each vehicle on the system back to a central point, allowing the fleet manager to constantly monitor the positions of all fleet vehicles, their movements and any deviations from best or set routes.

If your fleet carries out regular set runs, a GPS tracking system can optimise and select the most efficient routes for your vehicles to take. A good system can also allow you to redirect vehicles to pick-up or collection points, reducing waiting times for clients and improving customer relations. Previously, this system was carried out using a large map and coloured pins. But the advent of modern technology and the use of algorithms to find the most efficient routes between collection or delivery points has enabled fleet managers to move away from this rather archaic method and utilise far more accurate information.

GPS tracking can also instantly alert a fleet manager to an emergency situation (a vehicle breaking down or being involved in a road traffic accident, for example). Using a vehicle tracking system the manager can then redirect other vehicles within the area to cover the collections or picks ups and again reduce customer waiting time. This ensures that the business continues to run smoothly no matter what situation arises during a working day.

Software packages included with GPS tracking can also notify fleet managers of the use of excess speed, which wastes fuel and can also damage the reputation of the company particularly if the vehicles are carrying the company's livery. Persistent speeders can be identified by the use of ‘Overspeeding' reports and subsequently spoken to or reprimanded. One major pharmaceutical company was able to reduce their fuel consumption in one depot by 500 litres a month just by reducing the speed of some of its drivers. So the system doesn't just improve your company's image and road safety record – it can make a real difference to the monthly fuel costs incurred by the fleet.

The safety and security benefits of GPS tracking may be obvious – rapid recovery of stolen vehicles and the ability to respond to emergency situations particularly if your fleet regularly drive in remote areas – but there are also financial benefits as well. Insurance companies pay out millions of pounds in claims every year and premiums for fleets can be particularly high. The installation of a GPS tracking system is seen as a proactive theft-prevention method and as such can considerably reduce the premiums on fleet insurance.

Modern fleet management has to take into account a range of responsibilities to the vehicles, a duty of care to drivers and operatives and to the general public. Incorporating a vehicle tracking system into fleet management strategy gives managers a wealth of information that was previously unavailable to them and as a result fleet efficiency is increased and costs can be significantly reduced. It makes sense to use every available piece of technology to make the difficult job of fleet management just that little bit easier.