By RAM Tracking on 14 Feb 2023

Have you been thinking about bringing fleet-tracking software into your business, but you're being put off due to the upfront cost? It's important to remember to consider not just the initial investment that is involved, but also the hidden costs that are there when you are not using fleet tracking. These costs quickly add up and will significantly impact your business's bottom line. We want to show some of the hidden costs of not using fleet tracking within this blog post, as well as how these costs could be avoided through the implementation of a fleet-tracking solution. 


Using a fleet tracking software allows you to monitor the location and status of your fleet vehicles in real-time. This helps a range of people within your business; logistics management, dispatch, customer service and more. This is due to the real-time information being the best way to deal with any issues that may arise. It can also help you to optimise routes, reduce your fuel costs, and improve your overall fleet efficiency. 

Whilst there are clear benefits of fleet tracking, some businesses might be hesitant to invest in this software as there is that upfront cost that must be dealt with first. We want to help you understand that the hidden costs of not utilising a fleet management system do far outweigh your initial investment.

The Hidden Costs of Not Using Fleet Tracking

You will have to deal with various hidden costs if you choose not to use fleet tracking software, and these costs can be easily divided whether they are a direct cost or an indirect cost.

Direct Costs

When we talk about "direct costs" we are referring to the expenses that must be dealt with that are directly related to the operation of a fleet. These include a variety of things, such as your fuel costs, your vehicle maintenance and your vehicle repairs. When you do not have a fleet tracking system, it is quite difficult for your business to accurately track these various costs which not only leads to inefficiencies, plus, there will also be a lot of wasted resources.

Fuel Costs

Fuel is one of the largest expenses for a business that has a fleet of vehicles. Without fleet tracking, you might find it more difficult to accurately track your fleet's fuel usage which will lead to an overall higher fuel cost. By utilising a fleet tracking software you can take the time to optimise your routes to help reduce unnecessary mileage. This alone will result in significant savings on your fuel expenditure.

Tracking your fuel usage can save you as much as 15% on your overall fuel costs! By taking this cost into account, fuel savings alone will show you an impressive recovery to your bottom line! 

Maintenance and Repair Costs

Ensuring you keep your fleet of vehicles properly maintained is essential so they not only run the best that they can but you will also prolong their lifespan, meaning you don't have to keep replacing vehicles (which will end up being a much higher cost). But, without the benefits of fleet tracking, your business may struggle to accurately track when each vehicle is due for a checkup which leads to missing out on preventative maintenance which will cost your business later down the line.

When your business utilises fleet tracking software, you can track maintenance to ensure that maintenance is scheduled to be completed in a timely manner, this will help you prevent costly repairs and extend your vehicle's lifespan. No one want s to be stranded on the side of the road because their vehicle needs an oil change! 

Indirect Costs

You also have to think about the various indirect costs that your business will be hit with if you choose not to use fleet tracking software. You must think of the costs around lost productivity, customer dissatisfaction as well as missed opportunities.

Lost Productivity

When you are not using fleet tracking, it can be a difficult task for a business to accurately understand the current location and status of all of their vehicles. Your driver may be behind schedule but still en route, but you will experience lost productivity from the main office as dispatchers and fleet managers try to communicate with drivers so they can understand whereabouts they are and why they haven't arrived on site. Additionally, how are you meant to understand situations where the driver has had an extended break or has been caught in traffic? Understanding driver idling time allows you to understand why a driver has not completed their scheduled jobs for the day with accurate data.

Utilising fleet tracking software allows your business to track location and status in real-time, which enables dispatchers to assign tasks which are behind schedule to the closest driver as well as optimise the routes of drivers with accuracy to get drivers to their jobs on time. They no longer have to cause distracted driving by calling the driver, whilst also ensuring that productivity and efficiency rises.

Customer Dissatisfaction

Ensuring that goods are delivered and jobs are completed on time is a cornerstone for customer satisfaction. Without the implementation of fleet tracking, it can be very difficult for a business to understand where a driver is and their current status - is their vehicle off? Are they still travelling? Is their vehicle idle? These are all questions which must be asked, but these issues cause delays to the current job as well as the jobs later in the day. This can lead to not only unhappy customers, but it may even mean you lose them as a customer.

Fleet tracking can also allow you to give your customers an accurate estimated time of arrival based upon the current location and status of the vehicle that is heading to that job. This can help to improve customer satisfaction as well as helping you to retain your customers.

Missed Opportunities

Not having a fleet tracking solution in place can make it difficult for the main office to understand the current location of your vehicles as well as if these vehicles are available to take on the next job. This can lead to you missing opportunities for new business when ad-hoc jobs come in, as you can't efficiently complete these tasks when you don't have the resources to take on new work.


In conclusion, there are several hidden costs that you may incur if you decide not to implement fleet tracking software and it is important to remember that these costs quickly add up quickly which can significantly impact your bottom line. By using fleet tracking software, you will be able to avoid these hidden costs helping your business to significantly improve your bottom line. 

Overall, whilst the initial investment that comes with implementing a fleet tracking system is a large cost, the savings that will be made short and long-term will more than make up for this initial cost.

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