FleetBoss Report

January 2006

2006 Ushers in the Age of GPS
Higher efficiency, savings and revenue from GPS now commonplace

The GPS marketplace has evolved into a billion dollar industry. Today, nearly 2 million GPS-based Mobile Resource Management (MRM) applications and devices monitor fleets and workers around the U.S. That number is predicted to grow to almost 6 million in 2009.*

While this spectacular growth has been good for GPS suppliers and solutions providers, it has been an even bigger boon for the companies that use GPS to manage their vehicles. The higher efficiency, productivity and savings typically generated from a GPS solution have been magnified by the fact that the costs of such systems have dropped dramatically.

Never A Better Time For A GPS Solution
The number of U.S. fleet vehicles that are equipped with Automatic Vehicle Location (AVL) GPS systems is almost 1.3 million and growing.* When you consider that such AVL systems reduce fuel expenses by an average of 10% per vehicle annually, the collective fuel costs savings alone reaches into the billions of dollars.

Like savvy investors who got in on the ground floor of such stocks as IBM, Walmart and Google, those businesses that took the plunge and purchased a GPS solution in years past have already experienced a windfall in the form of annual savings, competitive edge and improved bottom lines. In the case of the 4,000+ clients using a FleetBoss system, approximately $25 million in fuel costs has been saved by these customers since FleetBoss's founding in 1998. This number is multiplied several times over when reduced overtime, increased service calls and lower maintenance costs are factored into the overall savings equation.

For example:

AAA Auto Club South of Orlando used its FleetBoss GPS solution to lower its fuel costs by 15%, saving over $11,000 in 2004 alone.
L&S Air Conditioning has saved over $60,000 annually from lower fuel costs, reduced overtime and increased service calls.
B&L Wholesale Supply, Inc. has saved over $25,000 annually in diesel fuel costs; and
Owens&Minor, Inc. has saved over $18,000 annually in increased driver productivity and lower fuel costs.

The Cost Of Waiting
The cost of waiting to buy a GPS solution can come with a huge price tag in lost opportunity. Consider the following businesses that immediately generated higher profitability and savings when they finally obtained their GPS system:

A building maintenance company discovered unnecessary payroll expenses of more than 65 hours per week as a result of night crews taking one-hour lunches and billing the company for it. Upon further review of their FleetBoss GPS productivity report, the company discovered unauthorized trips that resulted in three hours of lost productivity per week.

COST OF WAITING: $985 in payroll overpayments weekly; Over $50,000
wasted annually.
TCK Air Conditioning of Arizona realized immediate savings in fuel (reduced speeding/idling), confirming driver timecards and elimination of unauthorized use of vehicles after hours. This company is averaging $300 - $500 per vehicle in bottom line savings a month as a result.

COST OF WAITING: $4,500 monthly; Over $54,000 annually.

Let 2006 Be Your Year To Embrace GPS
Despite concrete examples of huge returns on a GPS solutions purchase, many business owners still can't seem to overcome their psychological objections to investing in this technology.

But owners who have harnessed the power of GPS and made it a critical part of their business operations are reaping rich rewards. With the greater accessibility and lower cost of GPS solutions in 2006, there is no better time to embrace this profitable technology.

Contact a FleetBoss representative to learn more.

*C.J. Driscoll & Associates' 2005-06 Mobile Resource Management Systems Market Study, September 2005, cited in "U.S. Mobile Resource Management Systems Market Shows Strong Growth in Subscribers and Revenues," by Clement Driscolll (January 3, 2006).