10 Reasons Why Logistic Companies Are Using Fleet Tracking Systems

As an underpinning consideration for successful operations, logistics companies rely heavily on fleet tracking systems. Without a proper fleet management system (a method for companies to manage and coordinate delivery vehicles to maximize efficiency, improve reliability, and cut expenses), any logistics company will sooner or later close down or significantly prove unprofitable and head to bankruptcy. And just doing anything in the name of fleet management or tracking is not a solution. For good results or to achieve the desired results, such as driver safety, and real-time updates, you must go for a top-notch tracking system to ensure you are on the thriving side of tracking technology. 

You must also keep your eyes fixed on the primary goal of the fleet tracking system—to increase efficiency and productivity while lowering costs and increasing customer satisfaction—and ensure you achieve the exact target you had in mind. The reasons why a  logistics company need a fleet tracking system are as many as you can think of and correctly applying for efficiency enhancement. Here are the top reasons logistics companies use a fleet tracking system. 

1. Enhanced Fleet Management

Enhanced Fleet Management

Fleet management is crucial and stands at the core of operational efficiency for any logistics company. Instead of making constant calls and using guesswork to know where your fleets are their conditions, and availability for the next consignment, you can significantly revolutionize your fleet management capabilities by employing a tracking system. Installing a top-rated vehicle tracker can enhance your fleet management.  RAM Tracking fleet solutions, an award-winning vehicle tracking and fleet management software, has been rated highly by many users for excellence in fleet management.

2. Improved Cost-benefit Assessment

No one engages in logistics just to see vehicles traversing lands and conquering routes just for the sake of it. Hidden behind the big fleet and cargo transportation is the need to make profits and reduce costs and losses. Without this, a logistics company will soon close down. One area of costs to logistic solutions is fuel consumption. A fleet tracking system will help you know how the vehicles are used and discover if the fuel costs registered by drivers reflect requisite costs for consigned business tasks or irrelevant personal issues. You can also track vehicles that are more profitable to use.

3. Real-time Delivery of Notifications and Information Updates

Nothing affects logistics as a communication breakdown between the management and drivers. Constant real-time communication assures management that the drivers are true to their job description and can help to enhance drivers’ safety by making the management aware of any eventualities while in transit and arranging for timely solutions. RAM trackers are great with real-time updates that keep fleet managers abreast with all vital information regarding fleet progress and safety. Suppose fleet drivers need to make emergency decisions like re-routing. In that case, they can easily and quickly reach out to the managers for advice and proactive consultations to limit undesirable costs. 

4. Excellent Management of Vendors

Logistics involves working with vendors who avail and stock various items and products involved in the business. Managing vendors and the inventory owned by them, including the payment, performance, usage, quality, and other variables, is easily accomplished using the fleet tracking platform. This ensures the vendors always meet the requirements without over or under-estimating, which obviously enhances work efficiency.

5. Automated Billing and Reporting

Billing and keeping of related reports are at the heart of successful transactions in the logistics business. Any loopholes in the bills may create room for misappropriation and tempt those closing sales to exercise human vices. With fleet tracking systems, these undesirable narratives change for the better. The difference is simple with trackers; when the company makes purchases, the bills received can be automatically entered into the database, limiting human actions and interference. With automated billing comes automated reporting that can help management make decisions and recognize areas that need improvement. 

6. Feedback Gathering and Analysis

Every company values feedback from its stakeholders and continuous analyses to help in continuous improvements. Feedbacks are especially important for logistics companies because their operations involve multiple agencies, increasing the chances of concerns that need attention and improvement. Feedback gathering and analysis help the business to understand the changes they need to make to improve customer experience. The data gathered from feedback can be analyzed to help with areas of improvement to aid in day-to-day operations. A top-notch fleet tracking system will gather feedback and analyze them to help you determine how to improve the experience.

7. Increased Vehicle Lifespan

Increased Vehicle Lifespan

Vehicles have an expected useful lifespan, which is very dear to every logistics company. Yet, some vehicles become unroadworthy too soon or before they are expected to do so. While many issues can contribute to this, mismanagement and misuse are at the heart. With fleet tracking systems, fleet managers can stay informed by tracking every vehicle and monitoring performance and potential management issues. Staying on top of factors like mileage, tire wear, braking habits, and oil changes means the vehicle’s lifespan can be increased.

8. Scaling Productivity

The productivity of logistics companies is directly tied to the productivity of their fleet drivers. When no one is watching, drivers can engage in activities outside the scope of business and incur additional and usually unnecessary and unaccounted-for costs to the company. A fleet tracking system makes a significant difference in this respect. With the knowledge that their activities are monitored, drivers will have more incentive for compliance. They will do their best to secure their jobs by avoiding messes and undesirable and costly moves. The fleet managers can also assign duties to any idling drivers, ensuring productivity remains at the top.

9. Route optimization

Route optimization

A fleet management system lets fleet managers plan effective and efficient routes. Various factors like fuel consumption, distance, terrain, and much more help managers decide on the best routes for more productivity and the creation of geofencing. 

10. Increased Customer Satisfaction

Customer satisfaction is the lifeline of a logistics company, and nothing can send a logistics company crumbling like a backlash of dissatisfaction. Because every customer loves to know about the progress of their deliveries, real-time updates will keep them informed and help them understand any cases of delay. Also, because tracking systems help takes care of their feedback, customer satisfaction will be greatly enhanced when fleet tracking systems are employed. 


Logistic companies are enjoying better days with the use of fleet tracking systems. Fleet managers can keep flowing information on the conditions of their fleet and give useful directions and necessary assistance to their drivers to enhance efficiency and productivity. This article provides ten reasons logistics companies must install fleet tracking systems to aid them in their work.