The Basics, What Is It?

GPS tracking systems integrate a gps receiver, a mobile phone modem and some firmware that is packaged into what is known as a gps tracking device. This device is then connected via the cellular network to a backend server system. This system, often internet based, but can also be installed at a users' facility, is then used to manage each tracking device. The server system is commonly known as a tracking platform and contains the main user interface between the user and the tracking device.

The interface itself is a combination of software comprising mapping, databases and other software programs that manage the communication between the device and the tracking platform.

The key component in the entire system are the U.S. Government's constellation of Global Positioning System satellites that are managed by the Department of Defence. Europe is also developing its own GPS satellite network which is known as Galileo. Russia also has a system called GLONASS.

Why Do Companies Use GPS Tracking Systems?

My research has discovered many reasons as to why businesses are installing and utilizing GPS tracking systems:

1. It is increasingly observed that vehicle tracking systems can reduce vehicle fleet costs by identifying excessive speeding, irregular vehicle use, hard braking and general vehicle wear and tear.

2. Companies see significant increases in mobile workforce productivity. Areas where this is seen is in improving the efficiencies in hours worked by employees by identifying excessive lunch breaks, time spent on a customer's location compared with the employee's own report and using the company's vehicle for personal use.

3. When combined with a CRM program, GPS tracking systems are able to improve customer service. Examples are being able identify the closest support engineer to a customer call, telling the customer how far away the support engineer is and giving accurate time of arrival estimates.

4. Companies have been able to reduce their overheads in a number of ways. These include being able to identify unnecessary vehicle in the fleet which are underutilized as well as being able to evaluate employee performance to target employees who are unreliable or breaking company rules and replace them with more efficient employees.

5. Company managers have been able to simplify their reporting and asset management through enabling realtime reporting and utilizing the mapping and reporting features of gps tracking platforms to give a common operating picture of all the company's assets.

Businesses are seeing very quick return on investment after the purchase and implementation of a gps tracking system. ROI is usually within a six to twelve month time-frame thereafter the system has paid for itself and actually begins to contribute to increasing the bottom line finances.

Matt Holland has been involved in gps tracking systems since 2002 and works with a number of gps tracking solutions providers. He is a consultant with GoandTrack.com a gps tracking marketplace.

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