By Karan Shaha, Co-founder and CEO, Vahak
GPS technology has revolutionised the logistics industry, allowing businesses to optimise their routes, reduce fuel consumption, and improve their operations’ efficiency. Governments worldwide have been implementing policies to regulate the use of GPS technology in the logistics industry, ensuring its safe and efficient use. However, the policies related to GPS technology in India are relatively relaxed, and the adoption of GPS technology in logistics is still in its early stages. Let’s dive into the GPS-related policies implemented globally to those present in India.
Europe and the US are leading GPS adoption
In these regions, the use of GPS technology is heavily regulated to ensure its safe and efficient use. The European Union has set regulations that govern the use of tachographs in commercial vehicles. Tachographs are electronic devices that record driver activity, including driving time, rest periods, and breaks. The use of tachographs is mandatory in commercial vehicles that operate within the European Union. Similarly, the US has implemented Electronic Logging Device (ELD) regulations that require commercial drivers to use electronic devices to record their driving hours and duty status.
Moreover, in Europe and the US, the use of GPS technology in logistics is also regulated to comply with safety and environmental regulations. For instance, in the US, the Environmental Protection Agency (EPA) has set regulations related to emissions control in commercial vehicles. The regulations require the use of GPS technology to monitor and control vehicle emissions. Similarly, the European Union has set regulations related to carbon emissions in commercial vehicles. The regulations require the use of GPS technology to track carbon emissions and promote environmental sustainability.
Early stage adoption: An emerging opportunity in India
In comparison to Europe and the US, the regulations related to GPS technology in the logistics industry are relatively relaxed in India. While there are some regulations related to driver safety and vehicle tracking, there are no specific regulations governing the use of GPS technology in the logistics industry. The absence of specific regulations related to GPS technology has led to some concerns related to privacy and data security.
However, the Indian government has been taking steps to regulate the use of GPS technology in the logistics industry. The government’s initiatives aim to improve the efficiency and safety of the logistics industry in India. One such initiative is the implementation of the Goods and Services Tax (GST), which has simplified the tax structure and improved the movement of goods across state borders.
Additionally, in 2018, the Indian government launched the E-Way Bill system, which is an electronic document that tracks the movement of goods across state borders. The system uses GPS technology to track the location of goods and ensure compliance with tax regulations. The E-Way Bill system has significantly improved the efficiency of the logistics industry in India, reducing transportation costs and promoting transparency.
In 2020, the Ministry of Road Transport and Highways (MoRTH) proposed a new rule that requires all commercial vehicles to have a GPS-enabled tracking device. The proposed rule aims to improve road safety and reduce transportation costs by enabling real-time monitoring of vehicle movements.
In August 2022, the MoRTH mandated that all goods vehicles used for transporting dangerous or hazardous products must be equipped with a location tracking device, effective for any vehicles constructed on or after September 1, 2022, as per Automotive Industry Standard (AIS) 140.
According to Union Road Transport and Highway Minister Nitin Gadkari, a law is also likely to be introduced to determine the working hours for truck drivers and efforts are being made to reduce road accidents by 50 per cent before the end of 2025. GPS technology is likely to play a key role in the implementation of this law.
While the adoption of GPS technology in logistics is still in its early stages in India, businesses are beginning to realise its benefits. The technology can help businesses to optimise their routes, reduce fuel consumption, and improve their operations’ efficiency. Additionally, the use of GPS technology can help businesses to comply with regulations related to driver safety and hours of service. However, as the use of GPS technology in logistics becomes more prevalent in India, it will be essential to ensure the safe and secure use of GPS technology, especially for commercial vehicles, through appropriate regulations.
Importance of GPS Location Tracker
This innovative tool has revolutionised the way businesses manage their delivery processes, and its impact on the logistics industry is undeniable.
Fleet Management: GPS location tracking technology is a game-changer for fleet management. Fleet managers can track their vehicles in real-time, which allows them to know the exact location of their vehicles at any given time. They can also monitor the speed of the vehicles, the distance travelled, and the fuel consumption. With this information, fleet managers can make informed decisions about their fleet, such as identifying inefficient routes or driving behaviour that may cause increased wear and tear on the vehicles.
Resource Optimisation: GPS location tracking technology also helps businesses optimise their resources. With real-time tracking of vehicles, businesses can make better decisions about the allocation of their resources. For example, they can dispatch vehicles to the nearest location to reduce transportation time and costs. Additionally, they can identify underutilised resources and make changes to improve their efficiency.
Driver Safety and Performance: GPS location tracking technology plays a critical role in driver safety and performance. With real-time tracking, businesses can monitor driver behaviour, such as speed, braking, and acceleration. They can also identify unsafe driving practices and take corrective actions, such as providing additional training or coaching. This helps to reduce the risk of accidents and improves driver performance, leading to a safer and more efficient operation.
Unmatched Efficiency: The use of GPS location tracker can significantly improve the efficiency of logistics operations. With real-time tracking, businesses can make quick decisions and take corrective actions as needed. They can also provide accurate delivery times to customers, reducing waiting times and improving customer satisfaction. Additionally, businesses can optimise their routes to reduce transportation time and fuel consumption, leading to cost savings.
Visible Savings and Increased Competitiveness: The introduction of GPS location tracker in the logistics industry can bring visible savings to the company. The technology helps businesses to reduce fuel consumption, improve resource utilisation, and optimise routes, resulting in cost savings. With real-time vehicle tracking, businesses can optimise their maintenance costs, and other operational expenses. Additionally, businesses can provide more accurate delivery times to customers, leading to increased customer satisfaction and loyalty.
Moreover, the use of GPS technology in logistics can also help businesses to be more competitive in the industry. With real-time tracking, businesses can provide more efficient and reliable services to their customers, leading to increased market share and customer loyalty. This can help businesses to differentiate themselves from their competitors and gain a competitive advantage.
Technological Advances: The use of GPS location tracking technology in the logistics industry has been a game-changer, but there is still room for technological advancements. For example, the integration of AI and ML can help businesses to make more accurate predictions about their operations based on data analytics and trend forecasting. This can help businesses to make better decisions about their fleet, resources, and routes, leading to increased efficiency and cost savings.
Conclusion
GPS technology has become an essential tool for the logistics industry globally, and India is slowly catching up. While GPS-related regulations in India are still in their early stages, the government has taken steps to improve the safety and efficiency of the logistics industry. The adoption of GPS technology can help businesses optimise their resources, comply with regulations, and improve their operations’ efficiency. Logistics aggregators such as Vahak can help businesses leverage the benefits of GPS technology without the hassle of managing it themselves. Therefore, it is highly recommended for businesses to use logistics tech aggregators like Vahak to enjoy the benefits of GPS technology and improve their operations’ efficiency.
(The author is Karan Shaha, Co-founder and CEO, Vahak, and the views expressed in this article are his own)
