A Complete Guide on Vehicle Tracking: ROI vs COI

It is a challenge for fleet managers to keep utilizing new ideas and enhancing profitability. They achieve their goals by setting a few measurements. They take care of the availability of the workforce, business interests, cost fluctuations, and time constraints. It means they have to implement the right policies to reach desired fleet management efficiency. In this article, we will discuss the two crucial concepts on - Return on Investment (ROI) and Cost of Ignoring (COI) – concerning vehicle tracking.

vehicle tracking

What Is ROI?

Many fleet managers are familiar with the Vehicle Tracking ROI. It measures the returns contributed by a business for the invested amount. The reason behind applying ROI is to increase profitability. It focuses on maximizing revenue by utilizing the accurate investment option. 

However, it is crucial to determine Net Present Value while computing the ROI for long-term investments.

What Is COI?

The full form of COI is Cost of Ignoring. When the organization fails to make a strategic investment, it loses its overall savings. The economic climate worldwide is getting more challenging for organizations. The declining profit margins and loss of interest in the company are pushing the managers away. Hence, it is necessary to utilize the power of GPS tracking devices in business.

ROI VS COI in Vehicle Tracking

Vehicle Tracking ROI and COI have the same objective - it is to maximize the profit in business. However, the similarity between them ends here.

  • ROI maximizes revenue by recognizing the perfect opportunity for investing money in business.
  • COI tries to save and minimize the operation cost. An individual can regulate fleet management system reports and driver performance with vehicle tracking devices.

Identifying Key Cost-Saving Possibilities with Vehicle Tracking Devices

1. Safety

The vehicle trackers are valuable in providing safety. The COI depends on that. Due to vehicle crashes, the company faces an immense financial loss. Therefore, fleet managers must monitor their drivers by using real-time audible alerts.

2. Fuel

Fuel expenses contribute a more considerable portion to the fleet operational costs. It gets hard to manage the fuel cost due to the involvement of the variables. Idling, speeding, heavy braking, rapid acceleration are the reasons behind higher fuel needs. Hence, driver training is crucial to reduce fuel costs. Fuel monitoring devices are also helpful here.

3. Maintenance

Misuse of the vehicle, aggressive and rough driving speeds adds unnecessary expenses. The wear and tear minimize tire and brake life. Another scheduled and non-scheduled maintenance adds the variable cost per mile.

The vehicle tracking technologies assist the business in reducing maintenance and repair costs by up to 14%. Hence, it is crucial to install real-time tools to enable driver management and in-cab alerts.

Visit the Website

Easytrax LTD is one of the reputable companies in Bangladesh. You can trust them with their vehicle tracking devices at a reasonable price. They will guide you and will permit their customer for a demo ride. Visit the website easytrax.com.bd to gain more concepts about the company today!

Location: Bangladesh

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