The principle technology behind these systems has been adapted from full cellular (GSM CDMA) systems and location specific (GPS) systems. GPS tracking uses a triangulation algorithm between the source of the signal (the GPS vehicle tracking system installed into the fleet vehicles) and Low Earth orbit satellites to pinpoint a vehicle's position to within 12 inches.

The benefits of using vehicle tracking as a fleet management technique are numerous. Vehicle thefts cost insurance companies and businesses millions of pounds every year. GPS tracking systems are specifically designed to detect the vehicle's movement and so can lead to a quick response and speedy recovery of the vehicle, minimising financial costs and possibly reducing the vehicle insurance premiums paid by the business. Some vehicle insurance companies offer insurance discounts for vehicles fitted with GPS tracking systems, so the savings could amount to a considerable sum.

Fleet management is all about maximising efficiency, reducing costs and maintaining excellent customer relationships. It is also about your visible reputation out on the road, particularly if your vehicles carry your company's insignia or display your company name. Vehicle tracking systems can help in all these areas by ensuring that your drivers are taking the most efficient routes, are not wasting fuel by speeding excessively and are not damaging your company's reputation by driving in a manner that portrays your company in a bad light. There is also a strong safety element attached to GPS systems, particularly in remote or hazardous locations.

GPS tracking can instantly alert a business to any problems or emergency situations. If a vehicle is involved in a road traffic accident, some GPS systems will alert the control centre immediately, meaning that emergency services can be mobilised quickly, even to the most remote locations. They can also act as a beacon for search and rescue teams if the vehicle has left the road and is hidden from plain sight. This gives your drivers the assurance that their personal safety is being looked after by the company, building a greater level of trust between drivers and management. This is also more likely to promote a healthier attitude to on-road use and a more responsible approach to the job – not to mention contributing to your health and safety obligations.

Vehicle tracking systems are easy to install and cost effective, making them simple to include in an overall fleet management strategy. Because the technology is now commonplace, there are systems that are suitable for fleets of any size – from a small business running only a couple of vans to a large fleet with different types of vehicles.

Modern technology, including GPS tracking systems, have been designed to make driving more efficient and much safer. It is particularly relevant to fleet management and can help a company run its fleet far more efficiently than in previous years. From safety issues through to helping a new driver become familiar with the most efficient routes and vehicle security, GPS tracking should be considered to be an essential part of fleet management.