tracking devicesTechnology continues to be a catalyst for change in many industries and businesses, and the logistics industry is no exception.

The industry has witnessed massive changes and disruptions thanks to telematics technology and the Internet of Things. Many shipping and logistics companies are now using vehicle telematics to monitor their fleets and ensure the safety and efficiency of the delivery process.

The widespread adoption of GPS tracking devices and vehicle telematics has seen the industry grow at a frenetic pace. Experts predict that the global vehicle tracking market will reach $11 billion by 2024. 

And this begs the question: Why are GPS tracking devices gaining so much traction in the transportation and logistics industry? We’ll expound on this topic by explaining how vehicle tracking devices are improving the logistics industry in 2024.

1.Reduced Risk of Theft

In transportation and logistics businesses, there’s a lot at risk. For instance, if a vehicle with costly consignments is stolen, your company will incur losses that go beyond the cost of the vehicle and the monetary value of the goods.

Your business reputation will suffer, your customers’ trust will dwindle, and even your drivers’ safety will not be guaranteed.

However, all of these problems can be mitigated with the use of a GPS tracker. If a vehicle goes missing, the GPS tracking device installed on the vehicle can help you locate and recover the stolen or misplaced asset faster.

Additionally, some advanced GPS tracking devices will automatically alert the dispatch if the vehicle is used off-hours or leaves a pre-designated area.

2. Cost Reduction

Running a logistics business can be very expensive.

You have to pay all the employees who will help you optimize routes, manage drivers, perform admin tasks, and pass delivery info to drivers. These expenses can add up significantly if you’re handling hundreds or thousands of orders daily.

But with the help of a GPS tracking device, you can drastically reduce the costs. You won’t need to hire specialists to monitor and optimize the routes, as a smart GPS tracker will handle everything with no human intervention.

3. Improved Customer Service

Quality customer service is critical for the success and growth of any business.

In transportation and logistics, excellent customer service can be achieved using technology that facilitates efficiency of operations and on-time delivery. Companies like offers high-quality shipping services, incredible insurance, and excellent customer support.

Such technology includes truck GPS tracking software that keeps customers informed with real-time ETAs of their shipments. And because a GPS tracker provides the exact location of each vehicle, customers can see where a delivery truck is located at any time and on any device.  

4. Enhanced Driver Safety

Drivers are the backbone of any transportation and logistics business.

As a business owner, you have to ensure the safety and security of your drivers. To achieve this, you’ll want to keep a tab on your drivers on and off-the-road. However, doing so can be difficult if you don’t have a reliable vehicle tracking device.

The best thing about GPS tracking software is that it allows you to monitor your driver’s driving behavior and know their whereabouts all the time. If your drivers are overspeeding or exhibiting high-risk driving behavior, you’ll be able to tell through monitoring. You can then warn them or notify them about such incidents.

5. Improved Fleet Management

Telematics systems play a critical role in keeping dispatch managers and business owners updated about their assets’ whereabouts.

A smart GPS, for instance, allows business owners to connect with their fleet via constant two-way communication. It helps dispatch plan and optimize the routes and notifies the drivers of any last-minute changes.

For example, if you need to reroute any of your delivery vehicles or assign a new stop on the same route, you can do so easily with smart GPS software. The GPS software will then notify the drivers about the updates within minutes.

What are your thoughts on the role GPS tracking plays in improving efficiency in the logistics industry? Please share with us in the comments section below.