• Alex Carter

7 Ways How Geofencing Can Save Your Fleet and Money

Updated: Jun 16

Geofencing is a dynamic and modern technology tool to create virtual boundaries or fence of specific area on the maps made possible by GPS tracking. It can be created in different shapes like circle, polygon, or route base, ensure that fleet management involved businesses will have complete control over their fleet of vehicles as well as the personnel. Dedicated fleet management software with GPS technology can help you track your fleet assets by enabling software to trigger an action when enter or exit a geofenced area, and the system will send an automatic alert or notification to keep you updated on the latest information about the assets that they’re tracking.



The logistics industry is a huge part of US economy, growing at 7.5% rate of GDP in 2016. The Thousands of trucks transport goods, from precious metals to vegetables, the length and breadth of the country every day; and for those in the distribution and transportation industries, it is vital to know the location of their goods at all times. Cargo theft alone costs US businesses up to $30 billion each year, according to the FBI. And just one stolen trailer or piece of equipment can cost a business hundreds of thousands of dollars and cause insurance premiums to skyrocket. Geo-fencing is most essential in high-security transports and functions as an effective deterrent against cargo theft.


This technology offers a number of advantages that can help you improve safety, reduce costs, and increase productivity throughout your fleet. For those reasons, it’s a technology that is worth learning about and understanding how it benefits to your fleet & organization.


1. Geofencing can prevent vehicle Theft: Securing company assets is very important since they require a lot of investment. Company vehicles being used without permission, or during non-operating hours can result in increased expenses. It can also produce expensive downtime and, in some cases, damaged company property. Geofencing feature help you protect your assets by keeping you notified with alerts.


The FBI’s latest update on motor vehicle theft, In 2015 it has been increased by 3.1%, it means each forty five seconds a vehicle theft incidents has been reported. In fact, the prevention of fuel theft through geofences could even save you as much as $400,000, as one incredulous company discovered. If you aware where your vehicle travel most of the time, you can put geofence around those location. When vehicle stolen or leaving the geofenced area without prior authorization, you’ll be alerted by email and text. This will make you immediately identify of any vehicle theft attempts and report it much faster.


2. Save Money: Geo fencing is one of the best cost saving techniques for the truck rental companies. Drivers often travel in unnecessary areas and misuse the vehicle for personal use, which is very harmful for the company and wastes time and money. By using fleet management software with Geo fencing feature it can be easily prevented. Fleet managers can set alerts if a driver goes in or out of a geofence he can curb inappropriate vehicle use and save money on fuel costs. Know more about the top 5 responsibilities of a fleet manager.


With our vehicle tracking system, fleet managers will get detailed reports and analytics by just logging into our system, which he cannot get through the phone from a driver. So he doesn’t have to keep calling driver to know his location. Fleet manager can track & monitor all vehicles location by creating a multiple geofence in a single platform of fleet management software. Unnecessary idling and usage of diverse routes will alert fleet manager to monitor their fleets. Ensuring proper asset use helps fleet companies save money. Discover 7 ways to save money using a fleet management software.


3. More Safety: For a transport company, it is very important to track the vehicle at every point. It is not necessary that driver is misusing the vehicle deliberately; but there can be chances of some misshapen or unwanted situations. Being able to see you know when and where your drivers have been at all times of the day. This knowledge adds to more safety on the road because if a driver is stuck outside of a geofenced area, it enables fleet managers to quickly locate them and contact driver to send the required assistance immediately in case of an emergency. Geo-fencing allows you to set up email and text alerts that’ll inform you as soon as any one of your fleet vehicles leaves the preset boundaries. This will make you immediately aware of any vehicle theft attempts. You raise your visibility levels and improve safety in the process. Find out about 3 ways to prevent vehicle theft.


4. Better Data: The Geo fencing technology helps get access to plenty of valuable data that you can use to improve your fleet also for fleet managers in updating the report complete with time stamps and validations. Reports can be generated for all geofences or for specific geofences. These reports can be compiled to be used as a basis for end-of-the-day evaluations and the company can know how many times the vehicle went outside of the area and which location is more involving for the company, which allows fleet manager where vehicle runs for maximum time and where business can be improved. With this data the ROI from optimized route planning, stronger organizational and labor workflows, increased driver accountability and integrated delivery management is infinite in this sense. So, Geo fencing helps companies operate a hassle-free business with constant data about particular locations and to think of more effective methods of delivering goods to clients. Read more about effective data security measures in fleet management and connected cars.


5. Simplify Scheduling: Schedule adherence, this technique is especially designed to enhance route monitoring and schedule adherence. For example, it is used when there is a preset route for a trip and it is divided into various stages or checkpoints which require stoppage time. This type of geofencing ensures that the vehicle or the fleet is adhering to the prescribed time slot for each stage. In order to optimize level of quality, you should make sure that your vehicle arrives on time to site. With geofencing, you can set an alert to get notify when a vehicle enters the site and get accurate information about when the service was provided and how much time did it take. Setting up a geofence around the area where company vehicles are kept will help you to keep an eye on vehicle’s availability and you will always know which vehicles are in the field and which ones are not. This will eliminates the need of using a time card for recording arrival and departure time and it has been simplified by using geofencing technology.


6. Improves the Quality of Communication: To improve the quality of communication between fleet manager and driver you can use the fleet management software with geofence feature. You no longer have to follow up with wasted phone calls for manual confirmation where your driver may or may not be telling the truth. Instead an automated alert gets transmitted straight to your phone when vehicle reaches the area, and leaves, so you can take action based on what you see. It gives accountability of driver and ensures they are on schedule. You can always use this data as a reference for the real time location with the map.


With Geo-fencing fleet manager can get details about their drivers, whether they stick to the authorized route or engaged in unauthorized/ personal jobs. You can setup a geofencing around the location where driver is going to be, and activate alerts if they take an unauthorized route. You can also set up a particular report for geofence violation with our vehicle tracking system which makes your task even easier.


7. Monitoring Vehicle Movement with Instant Updates: Movement of vehicles within and outside the geofence will help you to look at the proper and improper use of your vehicles. You can track the vehicle in which the goods are being transported and apply safety measures to the vehicle and goods appropriately. But on the other side sometimes drivers will spend a large fraction of their time idling outside of the geofence, or they will take a non-customized route that could be making use out of your fleet assets for personal use. You can identify and eliminate these costly wastes from personal trips and fleet expenses by using a geofencing technology. Here are 8 ways to improve driver behavior using a fleet management software. With our state of the art technology that way as a business owner you are always ahead when it comes to monitoring your fleet vehicles and getting detailed reports generated and delivered to you. Learn more about how instant updates helps companies using a real time field service management software.


Feel free to contact us for a quick demo of Traxroot Fleet management software or Field service management software.