Vehicle Tracking Solutions and ERP Explained

In today’s fast-paced world, vehicle tracking solutions are becoming increasingly important for businesses to stay on top of their operations.

Vehicle tracking systems allow companies to monitor and analyze the location and movement of their vehicles in real time, enabling them to make better decisions about how they manage their fleets.

With advancements in technology, ERP (Enterprise Resource Planning) integration has become a common way for organizations to enhance the capabilities of these systems and maximize efficiency.

In this in-depth guide, we will explore what Vehicle Tracking Solutions (VTS) are, their benefits, different types available, and how ERP can be used in tandem with VTS for better results.

Let’s get started!

What are Vehicle Tracking Solutions?

Vehicle tracking solutions, also known as fleet management systems, are technologies that allow the real-time tracking and management of vehicles.

These solutions provide invaluable insights about vehicle location, speed, idle time, start and stop reports, and more.

The primary aim of these solutions is to ensure the security of the vehicles and enhance operational efficiency.

They use GPS technology combined with mobile and software applications to provide a comprehensive solution for managing a fleet of vehicles, whether they’re delivery vans, service trucks, or personal cars.

Below are some modules that any strong fleet management ERP method typically includes –

  • Dispute resolution and management
  • Fleet operations
  • Chauffeur and fuel management
  • Vehicle sales and acquisition
  • Procurement, sales, and inventory
  • Lease and rental agreement
  • Non-revenue movement
  • Accident management
  • Finance
  • Workshop
  • Reservation management
  • Rate management

The Role of ERP in Vehicle Tracking

Enterprise Resource Planning (ERP) is a business process management software. It allows an organization to use a system of integrated applications to manage the business and automate many back-office functions related to technology, services, and human resources.

When it comes to vehicle tracking, ERP plays a significant role. It integrates all the data from the vehicle tracking solution into one system, giving a holistic view of the entire operation.

With ERP, managers can monitor vehicle movements, fuel consumption, driver behavior, and maintenance schedules all in one place.

Types of Vehicle Tracking Systems and Their Features

Vehicle Tracking Systems (VTS) have become a necessity for businesses that rely on fleets of vehicles.

However, choosing one system may depend on your business requirements and hence it is very essential to understand different types of VTS.

Below are four key types of Vehicle Tracking systems –

1. Global Positioning System (GPS) Based VTS

GPS-based vehicle tracking systems are the most common type. They use satellites to get real-time information on the location, speed, direction, and time details of the vehicle.

Key Features:

  • Real-time tracking: Provides live updates on the vehicle’s location.
  • Route history: Allows you to view the routes taken by the vehicle.
  • Geo-fencing: Sends alerts when a vehicle enters or leaves a predefined area.

2. Cellular Based VTS

Cellular-based VTS uses mobile data to send the vehicle’s location and other information to the server. They are usually cheaper than GPS systems but depend on the availability of cellular service.

Key Features:

  • Cost-effective: Lower initial investment compared to GPS systems.
  • Easy to install: Can be plugged into the vehicle’s OBD-II port.
  • Dependent on cellular coverage: The tracking ability may be limited in areas without cellular service.

3. Radio Frequency Identification (RFID) Based VTS

RFID-based systems use radio waves to track vehicles. They are most commonly used in closed environments like large construction sites or warehouses.

Key Features:

  • High accuracy: Can pinpoint the exact location of a vehicle within a confined area.
  • Works in rugged environments: Effective in areas with obstacles that might disrupt GPS or cellular signals.
  • Limited range: Not suitable for tracking vehicles over long distances.

4. Wi-Fi Based VTS

Wi-Fi based systems use wireless networks to track vehicle movements within a certain radius. They are often used in combination with other tracking systems to provide extra coverage in areas with strong Wi-Fi signals.

Key Features:

  • Indoor tracking: Can track vehicles in indoor locations such as garages or warehouses.
  • Complementary to other systems: Often used alongside GPS or cellular systems for added coverage.

Each type of Vehicle Tracking System has its unique features and is suitable for specific applications. The choice of system depends on your specific needs, including the size and nature of your fleet, the environment in which it operates, and your budget.

By understanding these different types and their features, you can make an informed decision that best suits your business requirements.

Benefits of Vehicle Tracking Solutions Integrated with ERP

Real-Time Monitoring

One of the main advantages of integrating vehicle tracking solutions with ERP is real-time monitoring.

You can track your fleet’s location at any given moment, which is particularly useful in case of theft or in ensuring timely deliveries.

Enhanced Operational Efficiency

With all the data in one place, it becomes easier to analyze and make decisions.

For example, by analyzing the routes taken by drivers, managers can identify the most efficient paths and save on fuel costs.

Improved Customer Service

With real-time tracking, businesses can provide customers with accurate delivery times.

In addition, the data from the ERP system can be used to improve scheduling and reduce wait times, leading to improved customer service.

Reduced Costs

Through the efficient management of routes and reduction of idle times, businesses can significantly reduce their operational costs.

Plus, timely maintenance as per the data can help prevent major repairs, saving on expenses.

Automated Scheduling

Through ERP systems progress and long-term scheduling of devices can be arranged quickly.

Motorists can be placed on record and breakpoints can be measured, increasing overall productivity and diminishing cycle events.

With high-level ERP tools, automated scheduling of carriers can be made.

Improved Performance of Assets

Asset utilization can be optimized by controlling the production of carriers. By registering the timely continuance of the fleet within ERP operations, one can reduce repair costs and expenses.

Loss of fruitful time due to unexpected breakdowns can further be decreased and labor prices of mechanics, technicians, and drivers can be checked.

Another advantage of timely replacement and upgrade of transports is meeting the agreement management and restriction of legal costs.

Parcel and Courier Tracking Apps

Parcel or Courier Tracking Application Development

The need for fast and dependable parcel and courier services is high in today’s world.

Customers expect to receive updates on their shipments throughout the delivery process.

To meet these expectations, parcel and courier tracking apps work together with vehicle tracking solutions for a smooth delivery experience.

These apps are designed to provide end-to-end visibility of the delivery process. They allow customers to monitor their packages in real-time, offering details such as current location, estimated delivery time, and any delays that might occur.

From the perspective of courier companies, these apps offer numerous benefits. They can streamline operations, improve customer service, and increase overall efficiency.

By providing real-time data, they enable companies to react promptly to any issues that may arise, such as a vehicle breakdown or delay due to traffic congestion.

Challenges in Integrating ERP with Vehicle Tracking Systems

While integrating Enterprise Resource Planning (ERP) with Vehicle Tracking Systems (VTS) can streamline operations and enhance efficiency, it’s not without its challenges.

Here are some of the most common issues businesses often face during this process:

1. Data Compatibility and Integration

One of the major challenges is ensuring that the VTS and ERP can effectively communicate and share data.

There might be compatibility issues, especially if they’re from different vendors or if one system is significantly older than the other.

2. Staff Training

Both ERP and VTS can be complex systems. Thus, training staff to use them effectively can be a time-consuming and costly process.

Employees may resist the change, complicating the transition further.

3. Cost Implications

The integration of ERP with VTS can be expensive. Costs can include software licensing, hardware upgrades, staff training, and ongoing maintenance.

These expenses can be a significant barrier for small to medium-sized businesses.

4. Time-Consuming Implementation

Implementing and integrating these systems can take considerable time, depending on the complexity of the systems and the size of the organization.

During this period, some business operations may be disrupted, which can affect productivity.

5. Data Security and Privacy Concerns

With the integration of systems, there’s an increased risk of data breaches. Ensuring that all data is secure and that privacy regulations are complied with can be a complex task.

6. System Updates and Maintenance

Regular updates and maintenance are crucial to keep the integrated system running smoothly.

However, these updates can sometimes cause downtime, and there’s always the risk that an update to one system could cause compatibility issues with the other.

Thus, it’s important to plan the integration process carefully, considering these potential challenges and how to mitigate them.

Consulting with a fleet management software development company and choosing compatible, user-friendly systems can go a long way in ensuring a smooth integration process.

Choosing the Right Vehicle Tracking Solution and ERP

Choosing the right vehicle tracking solution and ERP system depends on your specific needs.

Here are some factors to consider:

  • Scalability: As your fleet grows, your vehicle tracking solution should be able to grow with it. Choose a solution that can easily scale up.
  • Real-time updates: The system should provide real-time updates for accurate tracking and management.
  • User-friendly Interface: A system with a complex interface can become a headache. Choose a solution that is easy to use and understand.
  • Cost: While you want the best solution, it should also be cost-effective. Compare different options and choose the one that offers the best value for money.

Wrapping Up

In brief, integrating vehicle tracking solutions with ERP systems can drastically transform your fleet management. It enables real-time monitoring, enhances operational efficiency, improves customer service, and reduces costs.

This streamlined approach provides a comprehensive view of your operations, enabling you to make data-driven decisions that can positively impact your business.

It’s a strategic move that combines technology and management to optimize resources and services.

Remember, the right solution depends on your specific requirements, so take the time to understand your needs and evaluate different options before making a decision.


By Ashok Rathod

Life is all about solving problems. Ashok is a software developer, technology enthusiast, founder, and director of a reputed software development company. Eager to help brilliant minds, and entrepreneurs with MVP ( Minimum Viable Product ) development, and technology consultation. Ashok is an engineer, a strategist, an investor, an architect, and a blogger who love to share about technology.

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