GPS Tracking Brings In The ROI For Service

Proof that there is money in service and GPS tracking can bring it to the bottom line.

OK, Quick, don;t look up at the top of the page … what’s the title of this blog?  GPS ROI, right?  I’ve written a lot of times how much money you can bring to the bottom line by treating your necessary service work not as an ‘evil" that must be minimized but as a bona fide business asset that can give you a real rate of return (ROI) on your investment.  here’s a nice piece from a major UK company who has found their profit proof:

Masternaut has won a five year GBP 1million contract with Barloworld Handling to provide web-based vehicle tracking for 550 service vehicles. Barloworld is the largest independent distributor of fork lift trucks in the world and manages a fleet of over 30,000 fork lifts for customers in the UK alone. With fork lifts critical to many manufacturing, warehousing and other industrial operations, the company offers round-the-clock maintenance services through 23 regional support centres.
Masternaut is being fitted to Barloworld’s entire UK service fleet in order to boost customer service and improve efficiency. With live tracking over the web, despatchers are able to immediately assign the nearest engineer according to skills required and improve planning so that routes and schedules are optimised. Full Lift Truck Service Profit article here.

I have to admit I was a little mystified by the headline on this one.  I don’t think the contract is about installing GPS tracking on 30,000 lift trucks (forklifts), I think it is about the efficiencies and thus profits gained by Barloworld handling equipping their 500-odd field service engineers with GPS tracking on the service vehicles.  Savings?  You betcha:



 

  • Fuel consumption
  • Labor hours
  • Wasted trips
  • Intelligent dispatch (letting the service dispatcher assign the vehicle and technician best equipped to do the job, something that specifying only the "assigned route man" will often not do best.

Will they make money?  You betcha.  Look at the numbers we have to go on.  GBP 1,000,000 five year contract.  That’s GBP 200,000 per year, divided by 500 work vehciles, or GBP 400 per vehicle per year … about $60 USD per month, all in, 2 bucks per day.

Based on the kind of labor saving alone I know they will find, you are looking at $15 or $20 per _DAY_.  That’s a pretty nice ROI in itself, don’t you think?  But suppose a service call is worth GBP 50 to Barloworld.  I’d be highly surprised if it isn’t.  They will net at least 1 extra service call per _WEEK_ … easy to do with GPS tracking.  Where I learned my math that comes up to GBP 1,300,00 per year in added profit from their GBP 200,000 per year investment.  In the neighborhood of GBP 8 per truck per  _DAY_ after deducting the fixed GPS costs.What’s the ROI on that, sports fans?  GPS Tracking doesn’t cost, it pays and it pays _BIG_.

You can’t manage what you can’t measure, folks.

As always, I welcome comments, compliments, disagreements or clarifications. You can leave a comment or email me direct at: davestarr (at) gmail (dot) com or call me on 1-719-423-8872. If you liked this article, please subscribe to my RSS feed so you get all my news and views.

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