Geofencing vs traditional fleet management: a comparative analysis

Fleet management has evolved with the advent of different technologies. In this article, we will look more closely at geofencing technology and look at the benefits it can provide.

Traditional fleet management systems

In traditional fleet management, fleet managers use manual tracking to monitor their vehicles. This system relies heavily on the experience and intuition of fleet managers to make decisions about routes, maintenance and vehicle assignments. 

Geofencing fleet management technology

Geofencing technology is a significant advancement in fleet management. It utilises GPS technology to draw virtual boundaries around specific geographical areas. When a vehicle equipped with a GPS device enters or leaves a geofenced area, the system notifies the fleet manager. 

The main advantages are:

1. Automatic notifications and reports: Geofencing enables automatic notifications when vehicles enter or leave predefined zones.
2. Improved Security: Geofencing adds an extra layer of security to fleet management by notifying fleet managers if a vehicle deviates from its predefined route or enters an unauthorised area. 
3. Enhanced Compliance Monitoring: Geofencing in fleet management allows for better compliance with regulatory requirements.
4. Increased Customer Satisfaction: Utilising geofencing technology can significantly boost customer satisfaction. By setting geofences around customer locations, fleet managers can provide accurate updates on delivery statuses. This leads to more precise delivery time predictions, improving the overall customer service experience.

If we compare traditional fleet management with geofencing, several advantages of the latter become clear:

1. Efficiency: Geofencing enables more efficient utilisation of vehicles.
2. Cost savings: Traditional methods often lead to unnecessary fuel consumption costs. Geofencing optimises routes, which can significantly reduce fuel costs.
3. Accountability and safety: Geofencing increases safety by alerting managers when a vehicle deviates from its route or is being used outside of working hours, resulting in better asset protection.
4. Data-driven decisions: Geofencing provides a wealth of data that allows managers to make data-based decisions.

The advantage of geofencing

While traditional fleet management has its place, the benefits of geofencing in terms of efficiency, cost savings and overall control are clear. As the industry evolves, technologies such as geofencing are not just optional, but are becoming essential tools for competitive and efficient fleet management. Movolytics is at the forefront of the future of fleet management, providing geofencing capabilities that help organisations to improve their fleet management.