Motorola study reveals hefty savings with GPS-enabled technologies

July 8, 2008
GPS-enabled technologies are helping to increase mobile workforce productivity and enabling enterprises to become more efficient via a reduction in annual labor and fuel operating costs

North American Information Technology (IT) decision makers within the transportation, manufacturing and trucking/warehousing industries stated that global positioning system (GPS) technologies are an essential tool for their mobile workforce, according to a recent survey commissioned by Motorola Inc. GPS-enabled technologies are helping to increase mobile workforce productivity and enabling enterprises to become more efficient via a reduction in annual labor and fuel operating costs.

According to the research study, the main cited benefit in the nearly 50 percent of enterprises currently using GPS-enabled technologies was a significant reduction in fuel consumption, which was reflected in a reduction in travel distance by an average of 231.2 miles per week and recording $51,582 in annual fuel savings. With more than a million trucking companies in the United States the potential industry-wide annual fuel savings could reach $53 billion.

The study also revealed enterprises deploying GPS-enabled technologies saved approximately 54 minutes per day – translating into an annual recouped labor savings of $5,484 per employee or $5.4 million per surveyed enterprise. In addition to the cost savings, locationing applications were credited with improving the organization of employee routes, giving companies the ability to know precisely where their employees are at any given time and allowing them to examine routing scenarios before implementation.

Surveyed enterprises indicated GPS solutions enable the mobile workforce to spend less time in traffic or finding routes, while increasing the amount of time spent with new or existing customers. In fact, when asked why they would consider investing in GPS or other new technologies those surveyed cited customer service as the number one priority.

The survey identified other key applications-- navigation for improved on-time performance and route optimization. Navigation and route optimization are responding to the difficulties field mobility workers often have locating new stops during the course of their shift and streamlining deliveries.