What is a Vehicle Tracking System? Definition, Key Metrics & How It Works
How vehicle tracking works in Indian manufacturing logistics. GPS, SIM-based, and FASTag tracking compared. 95%+ real-time visibility.
Definition
A Vehicle Tracking System (VTS) in logistics provides real-time location and status information for vehicles carrying freight. In Indian manufacturing, vehicle tracking replaces the traditional method of calling drivers and carriers for status updates, providing automated location data, ETA predictions, and exception alerts.
Why It Matters for Manufacturing
The average dispatch team at a 200-shipment/day manufacturer makes 400-600 tracking calls daily. Each call takes 2-3 minutes - consuming 13-30 person-hours per day on a task that adds zero value to the shipment. Purely information gathering. Zero value added.
Vehicle tracking eliminates this burden. But the real value isn’t just knowing where the truck is - it’s connecting that location data to delivery SLAs, detention tracking, and invoice reconciliation.
Tracking Technologies in India
| Technology | How It Works | Accuracy | Coverage | Cost |
|---|---|---|---|---|
| GPS devices | Hardware installed in vehicle | High (5-10m) | Nationwide | Rs 5,000-15,000 per device |
| SIM-based | Mobile network triangulation | Medium (100-500m) | Urban/semi-urban | Low (per-query) |
| FASTag | Highway toll checkpoint data | Location at toll points only | National highways | Free (toll data) |
| Driver app | Smartphone GPS via app | High when active | Depends on phone/network | Free (app-based) |
Best practice: Layer multiple technologies. SIM-based for broad coverage, GPS for own-fleet vehicles, FASTag for highway corridor tracking, driver app as supplement.
Key Metrics
- Tracking update frequency: Every 15 minutes (best practice) vs hourly (basic)
- ETA accuracy: 95%+ with dynamic calculation vs 60-70% with static estimates
- Tracking coverage: 95%+ of fleet (target) vs 40-60% (typical before implementation)
- Tracking call reduction: 85% fewer calls within first 2 weeks