It is a challenging task for fleet managers to keep breaking new grounds and improving an organization’s profitability. A fleet manager has to achieve the profitability goals set by the organization, keeping in mind the cost fluctuations, availability of workforce, time constraints, and business interests.

Vehicle Tracking ROI vs COI: A Complete Guide

Monday April 20, 2020

It is a challenging task for fleet managers to keep breaking new grounds and improving an organization’s profitability. A fleet manager has to achieve the profitability goals set by the organization, keeping in mind the cost fluctuations, availability of workforce, time constraints, and business interests.

This means that fleet managers have to implement the right strategies to achieve desired fleet management efficiencies. The aim of this post is to discuss two important concepts – Return on Investment (ROI) and Cost of Ignoring (COI) – with respect to vehicle tracking.

This guide should provide fleet managers with the information they need to focus on effectively managing their fleets.     

What Is ROI ?

Most fleet managers are familiar with the term Vehicle Tracking ROI. It is a performance metric that evaluates the effectiveness of an investment. It can also be used to compare the efficiencies of multiple investments. ROI directly measures the returns provided by a business with respect to the amount invested.

It is expressed as a ratio, or in percentage terms, and is arrived at by dividing the difference between the Current Value of Investment and Cost of Investment by the Cost of Investment. Multiplying the ratio by 100 represents ROI in percentage terms.

The Current Value of an Investment represents the proceeds that an organization can receive from the sale of interest in the investment.