TL;DR: Inaccurate location data can increase fuel, time, and labor costs; GPS errors lead drivers to the wrong locations, causing delays and rerouting; extended driving routes increase emissions; late or failed deliveries frustrate customers; manual corrections introduce the risk of more errors, such as mistyping an address.
Increased operational costs
Fuel, time, and labor costs increase when drivers need to make multiple attempts or travel extra distances due to inaccurate data. Recently, the IRS announced that the cent-per-mile rate for commercial use of a pickup or panel truck, car, or van is 70 cents in 2025, up from 67 cents per mile in 2024. The rate applies to diesel and gasoline-powered vehicles as well as electric and hybrid-electric vehicles. The recent gas price increase goes along with the 3-cent increase from last year. A gallon of gas cost $3.11 on average nationwide on January 17, 2025, up from $3.08 a year earlier. However, one calculates the standard mileage rate based on all the expenses associated with driving a vehicle, and the gas price is just one of them.
Delayed deliveries
A recent survey revealed that almost half (44%) of consumers would not wait more than two days for their orders, showing a significant demand for fast deliveries. More than 40% of US consumers prioritize reliable and quick delivery when shopping online.
Incorrect addresses or GPS errors can lead drivers to the wrong locations, causing delays and rerouting. To avoid these, small businesses should invest in mapping software, validate customer address data, and use real-time tracking systems. When choosing a mapping tool, look for a web-based solution that makes creating interactive maps from a variety of data sources possible. Your software of choice should offer a wide range of customization options. Helpful features include geographic boundary mapping, territory creation tools, color coding of maps, demographics data, heat maps, reliable route planning, and distance and drive time tools.
Adverse environmental impact
Extended driving routes increase emissions, undermining sustainability efforts. The findings of a study suggest that it’s far more effective to optimize traffic for emissions and energy than to apply the standard user equilibrium formulations. The study showed that air quality can improve significantly by minimizing high-emitting driving behavior.
Reduced productivity and unhappy customers
Time spent resolving location errors reduces the capacity for handling additional deliveries, limiting scalability. Late or failed deliveries frustrate customers, potentially leading to negative reviews and reduced loyalty. Surveys show that 60% of consumers often or always check reviews before visiting a business.
A business lives and dies on revenue, and revenue depends on the price, customer support and services, and the customer’s perceptions of the product’s quality. The company’s reputation is the collective effect of all of those touch points in the customer’s mind. People will switch to a competitor if those perceptions begin to change for the worse. Ultimately, the business will suffer. This practice is not uncommon, as 49% of consumers are unlikely to return to a company after a bad experience.
Increased risk of errors
Manual corrections of location data introduce further opportunities for mistakes, compounding inefficiencies. These can be mistakes in address entry, such as misspelled street names or incorrect ZIP/postal codes. One might misread or misunderstand unclear address details. Using inconsistent address formats can lead to discrepancies in databases. If an employee enters corrected data without removing outdated or incorrect records, it creates duplicate records.
Guessing or making assumptions without verification can result in inaccurate location data. One final risk involves assigning the wrong GPS coordinates to an address due to a lack of geospatial knowledge.
Recap
- Increased operational costs
- Delayed deliveries
- Adverse environmental impact
- Reduced productivity and unhappy customers
- Increased risk of errors
