Strategic Fleet Control: The tool to honor contracts, increase trust and optimize your operations.
62% of fleets use GPS, but only 28% leverage IoT (Internet of Things). Do you know the difference and how it impacts your operation? Here’s how to choose based on your goals, with real-world examples and cost comparisons.
1. What Each Technology Can Do
Traditional GPS Systems
- Basic features:
- Real-time location.
- Route history.
- Speed and driving times.
- Pros:
✔ Low implementation cost (10−10−20/vehicle/month).
✔ Ideal for small fleets with simple needs. - Cons:
❌ No vehicle health monitoring (engine, fuel, etc.).
❌ Limited data for predictive maintenance.
IoT Fleet Systems
- Advanced features:
- Real-time fuel monitoring.
- Engine diagnostics (fault codes, temperature).
- Weight/temperature sensors (for refrigerated transport).
- Pros:
✔ Cuts fuel costs by up to 15% (live optimization).
✔ Early maintenance alerts (e.g., low tire pressure). - Cons:
❌ Higher cost (30−30−60/vehicle/month).
❌ Requires training to interpret data.
2. Head-to-Head Comparison: GPS vs. IoT
| Parameter | GPS | IoT |
| Avg. monthly cost | $15/vehicle | $45/vehicle |
| Data collected | Location, speed | Fuel, engine, cargo |
| Potential savings | 5-10% (routes) | 10-20% (fuel + maintenance) |
| Best for | Small fleets (<20 vehicles) | Medium/large fleets with high operational costs |
3. Which to Choose? 3 Key Scenarios
Scenario 1: “I just need to know where my vehicles are”
- Ideal solution: Basic GPS.
- Example: Urban delivery company with 10 motorcycles.
Scenario 2: “I want to reduce fuel and maintenance costs”
- Ideal solution: IoT + sensors.
- Real case: Chemical transporter that reduced diesel spend by 18% with RPM monitoring.
Scenario 3: “I need both due to regulations”
- Hybrid solution: GPS for location + IoT for temperature (e.g., refrigerated fleets).
- Example: Pharma company complying with FDA 21 CFR Part 11.
4. Steps to Implement the Right Technology
- Diagnose:
- Is your main pain point lost time (GPS) or hidden costs (IoT)?
- Pilot test:
- Install IoT in 2-3 vehicles for 3 months. Measure ROI.
- Integrate:
- Connect data to your ERP/CRM (e.g., Salesforce, SAP).
ROI example:
- IoT investment: $2,000/year for 10 vehicles.
Annual savings: 6,000(fuel)+6,000(fuel)+3,000 (maintenance).
✅ Payback in 4 months.