What is geofencing?

A geofence can be defined as a virtual fence around a delimited geographical location. Geofencing is the use of this digital fence to trigger an action when entering or leaving this perimeter.

Geofencing is used by companies in multiple industries. Have you ever seen ads regarding something specific to your neighborhood? Or, perhaps, the weather in your city? Well, these are a few examples of how modern geofencing is used in the marketing business.

However, geofencing also has extremely valuable usages for fleet managers.

What is geofencing in fleet management?

In fleet management, geofencing is a GPS-based feature that allows you to digitally draw geofences in key locations to trigger a pre-defined action. These key locations can be your main office, secondary offices, customer’s locations, secure areas or even cities, to name just a few.

How can geofencing improve your fleet efficiency?

As mentioned above, a geofence can be drawn in key places like your main parking lot. With GPS-based geofencing, you can monitor fleets whenever they enter or exit this pre-defined area.

Geofencing can help you to easily keep track of important events, like entering a country, with real-time notifications, which are also referred to as Geofence Alerts. These alerts can also ensure you get immediate notification if a serious incident of some kind occurs. For example, if one of your vehicles exits an area that it is not supposed to leave or at a time that was not planned, you get notified in real-time and can quickly act on the information.

The benefits of geofencing in fleet management

Geofencing is highly valuable for organisations with mobile workforces and fleets, as it gives you greater visibility over your operation and productivity. This positively impacts your planning and helps you improve resource allocation.

Geofencing also helps you to:

Simplify communications. Receive notifications when fleets reach a certain location or checkpoint.
Analyse operations. Keep track of location visits, average time spent with customer and detention details.
Reduce detention times. You can improve detention times thanks to automated alerts that can be sent to facilities and receivers to notify them the vehicle is about to reach them.

When integrated with telematics software like Webfleet, geofencing can give you full visibility over your operations, increasing safety and transparency in your organisation. If you want to learn more about geofencing, get in contact with one of our experts today.

Frequently asked questions

What is geofencing?

Geofencing is a location-based service that defines a virtual perimeter using GPS. It allows fleet managers to create zones for secure areas, construction sites, customer locations and specific routes. Beyond these uses, geofencing helps prevent theft, maintain schedules and manage time effectively.

How does geofencing work?

Geofencing utilises GPS, RFID, wifi or cellular data to establish a virtual boundary around a geographic area. Software is used to draw this boundary on a map, which can be circular or custom-shaped. When a vehicle equipped with a GPS device crosses this boundary, the geofencing system triggers a predefined action, such as sending a notification or recording the event in fleet management software.

Does geofencing prevent theft?

According to the Transport Asset Protection Association (TAPA), cargo thefts in the EMEA region increased by nearly 700% in 2023, resulting in losses totaling €552,199,741. Geofencing acts as a preventive measure against theft. Fleet managers can set up geofences around specific areas where assets are located. If a vehicle or asset leaves the defined area, an instant notification is sent, allowing for immediate action to prevent theft and save costs.

What are the benefits of using a geofencing time clock?

Geofencing automates the tracking of employee working hours. For hourly-paid technicians, it helps monitor their time on job sites by creating virtual timecards. When a worker leaves a job site, the virtual timecard records the time spent, automatically logging hours into payroll. This saves time and allows businesses to focus on core activities.

How does geofencing help monitor driver performance?

Geofencing enhances driver accountability and helps them stay on schedule. When a driver enters a designated area, recipients can prepare for the vehicle's arrival. Instead of contacting a field technician, geofencing alerts you when they reach the site, fostering trust, boosting efficiency and saving time. Time saved translates to cost savings.

How does Webfleet use geofencing to improve fleet management?

Webfleet helps fleets track assets and reduce costs. In addition to the benefits mentioned, it provides data on asset usage, including current position, trip details, maintenance and automated reporting. This means you can monitor your entire operation from a user-friendly interface.

Is implementing geofencing complicated?

With the right setup, geofencing is easy to implement if broken into clear steps:

Define the locations where geofencing will be applied. These may include customer delivery points, distribution centers, fuel stations or restricted areas where fleet vehicles should not enter.
Set rules for when an asset enters or exits the chosen location. These can include sending alerts, logging events or automating tasks.
Check if the geofencing system works properly. Adjust boundaries or notifications if needed.
Activate geofencing and track performance. Use data to improve accuracy and efficiency.

How does geofencing integrate with existing fleet management systems?

Geofencing integrates with existing fleet management systems by tracking vehicle whereabouts via GPS, wifi, cellular or RFID data. When a fleet reaches or leaves the boundaries defined on the system’s digital map, the software immediately sends an alert.