Machine 2 Machine Solutions, GPS FleetvManagement, Machine to Machine Communications
Cut Costs with Carrier-Grade Location Data
The M2M market is exploding. According to an Ericsson study 50 billion devices will be interconnected by 2020, with the M2M market growing to $57 billion by 2014.
Many tracking devices cannot be located via GPS or Wi-Fi technologies. But all mobile devices can be located via network location without hardware modifications, application downloads, user interaction, service calls, or software. What does this mean for the M2M market? Tens of millions saved each year in operating and service costs.
Reduce Fuel, Labor, and Insurance Costs
According to the Aberdeen Group study, businesses that implement fleet tracking experience a 14.8% reduction in average travel time per job, a 9.9% decrease in overtime pay, a 27.9% increase in operator compliance, and a 13.2% reduction in fuel costs. This adds up to $5,848 less spent per employee per year. How does it happen? Knowing where your trucks are all the time enables better routing decisions with fewer miles traveled. Monitoring driver behavior reduces unauthorized side trips, dangerous driving habits, unnecessary overtime and fraud.
Once again, don’t think of these benefits as being limited to fleet tracking. Knowing where your products are at any given time is valuable for any business. For example, another customer used Locaid location information to track the exact locations of 350 cleaning machines. Their bank recognized the additional verification quality and knocked 25 basis points off the customer’s multi-million dollar equipment loan. Real operating savings.
That same Aberdeen study also documents large increases in productivity. After a location tracking system is in place, the average business experiences a 23% increase in service calls completed per day per technician, a 12.2% increase in service profitability, and a 46% increase in on time performance. And all of this was accomplished while reducing costs.
Installing a tracking device on an object decreases the instances of theft and also makes recovery much simpler. This technology has been in place for years in trucks and automobiles, but new technology makes it possible to track ever smaller objects.
IT organizations, for example, have begun to track laptops. They’re portable, expensive and chock full of confidential information. According to the FBI, one out of every ten laptops will be stolen in its lifetime. Tracking devices make them easier to recover or to wipe their memories when they are activated remotely.