How much does a vehicle geolocation system cost?
Lhe geolocation of vehicles is an essential management tool for any company seeking to improve performance and optimize costs.
Before talking about the actual cost of a vehicle geolocation system, it's important to recall how such equipment works and, above all, the services it can provide. In practical terms, this involves placing a GPS box inside the vehicle, fitted with a SIM card (to transmit data) and possible peripheral accessories such as an immobilizer or a driver identification system.
The principle is simple: the GPS box collects vehicle and driver data and transmits it to a server. The data is then centralized, analyzed and returned to the fleet manager via a management platform and mobile applications. According to the supplier, the management platform is itself connected to the company's ecosystem to centralize, analyze and manage all fleet parameters on a single management tool.
Optimum has developed an exclusive Data Hub. It provides fleet managers with all the information they need to make informed decisions.
Features of a vehicle geolocation system
Functionality may vary from one supplier to another. It is therefore not possible to define standard functionalities for all. Let's take the example of Optimum, the European specialist in connected vehicles:
- GEOLOCATION of vehicles
- HISTORY of journeys made
- GEOFENCING and CORRIDORING alerts on entering/leaving configurable zones
- PROXIMITY SEARCH vehicles or agents
- POI MANAGEMENT AND DISPLAY and address book
- VEHICLE and DRIVER MANAGEMENT administrative data sheets and group tree structure
- VEHICLE ASSIGNMENT to drivers
- PRIVACY : management of private journeys in several ways
- ACCESS RIGHTS MANAGEMENT managers, supervisors, collaborators...
- FREE, UNLIMITED and HISTORIZED SMS SENDING from the platform
- ALERT CENTER more than 20 customizable alerts
- REPORT CENTER more than 20 configurable periodic or instant reports
- VEHICLE PROTECTION Immobilizer relay (hardware option)
- IDENTIFICATION drivers (hardware option)
- PRIVACY AND/OR SOS BUTTONS in vehicles (hardware option)
- SPEED ANALYSIS BY SECTION (option)
What are the expected benefits of a vehicle geolocation system?
Each company has its own needs, of course! However, companies and public authorities that have equipped their fleets with GPS units often see the same benefits:
SAVINGS :
Reduced mileage, lower running costs (fuel, maintenance, tires, etc.), reduction/elimination of non-business use, lower claims, longer vehicle life, etc.
PERFECT VISIBILITY OF FIELD ACTIVITY
Time of departure, time of arrival on site, time spent on site
INCREASED PRODUCTIVITY
Tools to do more in the same time (route optimization, proximity search, alerts on delays and/or absences)
CUSTOMER SERVICE OPTIMIZATION
Improved reactivity thanks to real-time alerts, traceability and history of interventions
SECURING VEHICLES AND EQUIPMENT
Instant alerts for easier vehicle recovery (reduced insurance premiums and downtime)
How much does it cost to geolocate a vehicle?
The answer may surprise you, but the important thing is not what it costs. The important thing is to know what it brings in! Because yes, equipping vehicles with a geolocation system is first and foremost an act of management designed to optimize fleet management and overall costs.
It's fair to say that it generally costs less than 20 Euros per month per vehicle. However, the expected savings can vary significantly from one supplier to another, depending on the features offered. Optimum customers find, for example, average savings of €125* per month per vehiclefrom 1er months of commissioning. With such a high return on investment, vehicle geolocation is not a new cost, but a real new source of savings!
Beyond the expected savings, be sure to read between the lines to appreciate the true value of a price. Behind the price you'll find equipment, services and support. So, before making your decision and selecting a supplier, be sure to analyze the services provided in detail. Analyze the parts and labor warranties offered during the contract, frequency of data transmission (full data), roaming possibilities, drop-off/drop-off costs when changing vehicles.
To help you make the right choice, some service providers, such as Optimum, offer an audit of your vehicle fleet. This enables you to assess the current cost of your fleet, identify levers for optimization and estimate the amount of savings you can expect.
The last important point: scalability of servicess ! Today, your needs are focused on vehicle geolocation. But what about tomorrow? As your company grows, new needs may emerge. For example, with driving analysis, mission management, fleet management, car-sharing/car-pooling...
The supplier offering the widest range of services will be the one best able to support you over the long term, without forcing you to multiply management tools and suppliers.
In conclusionEquipping your vehicles with a geolocation system is a genuine management initiative designed to optimize costs, boost the productivity of mobile teams, secure vehicles and optimize fleet management. While cost may seem essential at the outset, the key to choosing a supplier is to focus on the services offered (a price necessarily corresponds to a given service), the expected savings and the supplier's ability to support you over the long term.
* Study carried out in 2020 on a representative sample of Optimum Automotive customers.