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What is with the Trend of GPS Technology in Logistics?

Alex Lowe by Alex Lowe
May 27, 2025
in Logistics
0

FintechZoom > Business > Logistics > What is with the Trend of GPS Technology in Logistics?

You might wonder why GPS technology has been getting more popular in the logistics business lately. The reasons are relatively simple. GPS tech allows business owners and workers to track data and make data-driven decisions.

For anyone involved in the logistics industry, you’re sure to have encountered GPS locator technology being liberally employed in the last couple of years. Not just by global companies, but small freight and delivery companies are also making use of GPS tech. So what exactly is the benefit of all this tracking?

To be very brief, GPS tech has become an absolute must for anyone wanting to run a successful logistics or freight company. But you don’t have to just believe us in the preamble; let’s break it down and expand on why it’s so useful.

You Can’t Improve What You Can’t See

Imagine trying to manage 50 delivery vehicles without knowing where they are. It’s like trying to conduct an orchestra blindfolded. That’s the reality many logistics managers faced before GPS tracking became mainstream.

Now, with real-time GPS tracking, you can see every truck, van, or bike in motion, along with their exact location, speed and estimated arrival time. It gives you visibility, and visibility means control.

This level of oversight reduces delays, reroutes drivers around traffic in real-time, and dramatically improves decision-making.

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GPS Tech is Useful for More than Just Trucks

It’s possible that you have a too-linear view of what GPS tech can be used for. We’re sure you know that it’s useful for tracking trucks and other vehicles, but modern and reliable GPS tracking solutions for equipment can track just about any-sized important item you care to name. From expensive electronic equipment to heavy plant and machinery on worksites to medical supplies and food.

With GPS and IoT-enabled tags, you’ll know if something’s been dropped, opened, or left outside the required temperature range. That kind of intelligence protects your brand and your bottom line.

GPS Is Driving Customer Satisfaction

You’ve probably been on the receiving end of vague delivery windows. “Your item will arrive between 9 AM and 7 PM.” Not helpful, right?

GPS technology does away with these frustrating vagaries and allows customers to view accurate information about when an item will arrive. That reduces missed deliveries and boosts satisfaction. Some systems even allow recipients to track their driver on a live map, like ordering a pizza, but with precision logistics.

That level of service isn’t just impressive, it’s becoming expected.

Protecting Assets with Geo-Fencing

Here’s a clever feature you may not have considered: Geo-fencing. It’s like drawing an invisible boundary around a location and setting an alert if a vehicle or asset enters or exits it.

Let’s say a truck leaves the depot in the middle of the night without authorisation. You’ll get a ping immediately. That’s real-time theft prevention.

Companies have started using this to monitor contractor work zones, ensure cold chain compliance and even improve driver accountability.

Drivers Perform Better When They Know They’re Visible

When drivers know their routes, speeds, stops and starts are monitored, they naturally drive more safely and efficiently. It’s not about mistrust, it’s about mutual accountability.

Think of it like having a fitness tracker. When you can see your steps, you’re more likely to walk a bit further. When drivers know their stats are logged, they take fewer detours, idle less and avoid harsh braking. That translates to lower fuel costs and fewer accidents.

Some systems even gamify driver performance, offering weekly reports and friendly competitions. It’s like turning your fleet into a team of safe-driving MVPs.

GPS Lets You Grow But Stay in Control

Often, as logistics businesses grow, they become unwieldy and difficult to manage without a certain amount of administrative bloating.

GPS systems can fix this problem. By allowing a minimal amount of command staff to oversee larger numbers of vehicles and operations, these systems can let a business scale only in the important aspect of being able to deliver more things.

The data that these devices provide can also let a small team make data-driven decisions, rather than having to rely on guesswork as to why certain things are or aren’t working.

Why It’s More Affordable Than You Think

In the past, GPS locator systems were expensive, clunky and hard to implement. That’s changed. In 2025, cloud-based platforms, affordable hardware and mobile integration mean even small businesses can get started for a few hundred pounds.

Many services charge per asset or vehicle, and offer plug-and-play solutions that require no IT team to install.

Frequently Asked GPS in Logistics Questions, Answered

Can I use GPS tracking on individual packages, not just vehicles?

Absolutely. Many logistics companies now use GPS-enabled smart tags for pallets, crates and even individual parcels. These tags often include sensors for temperature, movement and tampering.

Will my drivers resist being tracked?

Some may feel wary at first, but most appreciate how GPS makes their jobs easier. With clear communication and performance incentives, GPS strengthens team morale and accountability.

Is GPS tracking compatible with my current systems?

Most modern GPS platforms offer API integration with popular logistics, warehouse and inventory software. Look for providers that support flexible integration.

What if my delivery zones are rural or off-grid?

Many GPS systems use cellular and satellite hybrid coverage to track vehicles and assets even in remote areas. Just make sure to choose a provider with strong coverage where you operate.

GPS Tech Puts Your Finger on the Pulse

GPS locator technology gives you clarity, control and a competitive edge, all in real-time. Whether you’re shipping pharmaceuticals, groceries, furniture or fragile goods, there’s no reason not to know where your assets are and how efficiently they’re moving.

And honestly, once you experience that level of insight, you won’t want to run your business without it.

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Alex Lowe

Alex Lowe

Alex is a financial writer covering forex. He is a expert financial journalist whose credits include Bloomberg, FT of London, Chicago Tribune. Contact: [email protected]

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