GPS Technology Helps Position Industry for Success

by PJ Heller

GPS — global positioning systems — are helping document destruction companies position themselves for success. The satellite navigation system, which allows users to pinpoint everything from location, speed, direction and more, is finding popularity within the data destruction industry as companies strive to increase efficiency, productivity and accountability of their outside workers.

And with fuel prices hitting record levels — and likely to keep on climbing and in some instances already exceeding employee costs — being able to efficiently manage a fleet of vehicles can have a major impact on the bottom line. The American Trucking Association has projected that companies will spend $135 billion on diesel fuel in 2008, an increase of $22 billion over the $112.6 billion spent in 2007.

By utilizing a GPS fleet tracking system to monitor vehicle speed, managers can work with employees to slow their top-end speed. The result: reduced fuel and maintenance costs, improved safety, decreased tire wear and in some cases lowered insurance costs.

Fuel consumption, for instance, increases 1.5 percent for each mile per hour above 50 mph, according to a Department of Energy study by Argonne National Laboratory. The agency also reported that maintenance costs jump 80 percent when speed is increased between 60 mph and 70 mph. And tire wear nearly doubles at 70 mph or greater.

Other published studies have calculated that it costs an extra 21-cents a gallon of gas for every 5 mph over 60 mph a vehicle travels.

Enter GPS technology, which can help managers put the brakes on some of those costs.

There are generally two types of GPS technology available today: passive and active (real-time). Passive GPS systems receive information from satellites and store the data for later retrieval when a vehicle returns to a central location. The advantage of passive GPS technology is the lower long-term cost because after the initial investment there are no ongoing payments.

Real-time GPS systems receive the same information from the satellites but then transmit the data using a communications network, such as a cell phone network. This real-time information allows managers to make rapid decisions and take immediate corrective action. Some real-time systems also facilitate dispatching vehicles in the most efficient manner possible.

Utilizing a real-time GPS system has been compared to managers checking on the productivity of employees in an office environment. A GPS system can provide managers not only with details on the location of their mobile work force, but the time they arrived at a customer location, how long they remained at the site and the exact time they departed. Such details can, among other things, help identify ways to smooth workflow and boost productivity.

Every stop can be compared against the scheduled stops along a driver’s route. This comparison highlights unscheduled stops that can be reviewed by the driver. This level of accountability can greatly reduce non-work related activities and lead to increased productivity. According to one GPS system vendor, utilizing such GPS data has slashed overtime by 10 percent or more.

GPS systems can also measure vehicle start and stop times, identify when a pump is running or even when a door is opened. Such information help ensure delivery of quality services.

Customer service can also be enhanced by utilizing GPS. If there are delays in customer delivery, fleet management software can alert managers to it immediately so customers can be informed.

The most common use of GPS is getting from point A to point B. With a real-time system, managers can help employees get to unknown locations by viewing their current position on a map and then instructing them where to go. Some real-time systems require the use of a cell phone or radio to act as a modem; other systems can be covertly installed and require no driver intervention.

There are numerous vendors offering GPS technology and it pays to shop carefully for a system that best fits a company’s needs — and can grow should those needs expand.

All GPS technology is not equal, according to Harold Gardner, vice president of sales for GPS Fleet Solutions, headquartered in Tampa, Fla.

“GPS data, both in terms of both the quality of the GPS data which is collected — remember we’re taking weak radio signals out of the air and then using that to do arithmetic back — there is an overwhelming range of hardware that can do that and the quality associated with that is wide,” Gardner says. “Also, the way the GPS data is collected, whether coordinates are collected every 10 to 15 minutes, every two to five minutes or collected every second will have a huge impact on the quality of data.”

A data destruction company with a small fleet of vehicles may only require a system that allows it to know where its vehicles are at all times. Such a system should be inexpensive and easy to use. Larger companies that may require a more sophisticated system, providing a constant stream of data that can be analyzed in a variety of ways. Such a system can provide information on everything from times per stop to details on engine diagnostic information in order to perform preventative maintenance on a regular basis.

The cost of GPS technology can range between $300 and $700 for the vehicle hardware plus $25 to $40 per month for real-time systems. An initial investment is typically recovered within the first 90 days — and in some cases within the first 30 days. After that, the money saved, or the increase in earnings, goes straight to the bottom line.

“If you haven’t got it paid back in 90 days, you’re doing something wrong,” Gardner says. “The largest piece of the recovery is in employee productivity. The only time people don’t get a return on investment is if they don’t manage the data.”

Gardner has predicted that within five years, every business will be required to have GPS technology in order to remain competitive. Data destruction companies that get on the GPS technology bandwagon now should find themselves well-positioned for the future.

Benefits of GPS Technology

Reduced driving speeds.
Decreased overtime.
Lower fuel usage.
Reduced vehicle maintenance costs.
Increased productivity.
Reduced insurance costs (reduced accidents, aid in recovery in event of theft).
Improved customer service with on-time service.
Fast payback (ROI).
Employee accountability.
Data for employee bonus and incentive programs.
Ability to use data to resolve customer service questions/disputes.
Security of vehicles and equipment.
More accurate billing information.