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Geofencing

Lachlan McRitchie

Lachlan McRitchie

GM of Operations

Published 10 February 2026

A geofence is a virtual perimeter set around a real-world location using GPS coordinates. When a tracked asset crosses the boundary, the system automatically triggers an alert, status change or report.

Geofencing is the use of GPS, RFID, or other location technologies to create virtual geographic boundaries around a defined area. When a tracked asset enters or exits a geofence, the system triggers an automated action such as an alert, notification, or status change. Geofences can be drawn around job sites, depots, restricted zones, client premises, or any area relevant to asset management.

Why it matters

Geofencing automates asset accountability by detecting when equipment leaves a site without authorisation, arrives at a new location, or enters a restricted zone. It reduces theft and loss, supports automated time-on-site reporting for billing and utilisation analysis, and enables compliance monitoring for assets that must remain within certain boundaries. Geofencing replaces manual check-in processes with reliable automated tracking.

How MapTrack helps

MapTrack allows users to draw geofences around any site or zone and automatically receive alerts when GPS-tracked assets cross boundaries, with full entry/exit logs for reporting.

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Frequently asked questions

What are common uses of geofencing in asset management?

Common uses include theft prevention alerts when assets leave a site unexpectedly, automated time-on-site logging for utilisation and billing, arrival/departure notifications for delivery or collection scheduling, and enforcing restricted zone boundaries for safety-critical areas. Geofencing can also trigger automated status updates, such as marking an asset as ‘on-site’ when it enters a project location.

How accurate are geofences?

GPS-based geofences are typically accurate to within 3–10 metres under open sky conditions, which is sufficient for site-level tracking. Accuracy can decrease in urban canyons, dense vegetation, or underground environments. For tighter accuracy in indoor or constrained areas, Bluetooth or UWB-based geofencing solutions can achieve sub-metre precision.

Related terms

GPS Tracking

GPS (Global Positioning System) tracking uses satellite signals to determine and record the real-time geographic location of assets, vehicles, or equipment fitted with GPS receivers. Tracking data is transmitted to a central platform via cellular or satellite networks, providing continuous visibility of asset movements, routes, and dwell times. GPS tracking is fundamental to fleet management and high-value mobile asset monitoring.

Asset Tracking

Asset tracking is the process of monitoring the location, status, custody, and condition of physical assets throughout their lifecycle. It combines identification technologies (QR codes, barcodes, RFID, GPS) with software to maintain a real-time or near-real-time record of where assets are and who is responsible for them. Asset tracking applies to tools, equipment, plant, fleet, IT hardware, and any other tangible items of value.

Fleet Management

Fleet management is the administration of an organisation’s vehicles and mobile plant, including acquisition, maintenance, fuel management, driver compliance, GPS tracking, and disposal. It covers light vehicles, heavy vehicles, trailers, mobile plant, and any other registered or unregistered mobile assets. Modern fleet management relies on telematics, GPS tracking, and software platforms to optimise operations and reduce costs.

Equipment Utilisation

Equipment utilisation measures the extent to which available equipment is being productively used, typically expressed as a percentage of available time or capacity. It is calculated by dividing actual usage time (or output) by total available time (or maximum capacity). Utilisation data can come from meter readings, operator logs, GPS tracking, or telematics systems. It is a key operational efficiency metric in asset-intensive industries.

OEM Telematics

OEM telematics refers to the factory-installed tracking and diagnostic systems built into vehicles, plant, and heavy equipment by the original equipment manufacturer. These systems collect and transmit data including GPS location, engine hours, fuel consumption, fault codes, idle time, and operating parameters. Major OEMs such as Caterpillar, Komatsu, John Deere, Volvo, and Hitachi each offer proprietary telematics platforms.

Geofence

A geofence is a virtual perimeter drawn around a real-world location, typically defined by a set of GPS coordinates that form a circle or polygon on a map. Each geofence has a boundary and rules attached to it: when a tracked asset, vehicle or worker crosses the boundary, the tracking platform compares the current position against the perimeter and triggers the rule (an alert, a status change, a time stamp or a webhook). Geofences are most commonly drawn around job sites, depots, client premises, restricted zones, customer addresses or any area an operations team needs to monitor. They turn passive location data into automated business rules without anyone needing to watch a map.

Last Known Location

Last known location (LKL) is the most recent recorded geographic position or zone of an asset, determined by the latest GPS fix, beacon detection, QR code scan, NFC tap, or manual update in the asset management system. Unlike real-time tracking, which provides continuous position updates, LKL represents a point-in-time snapshot that is updated each time the asset communicates its position or is interacted with. For GPS-tracked assets, the LKL is typically refreshed at intervals ranging from minutes to hours depending on the tracking device configuration and power mode. For assets tracked by QR code or NFC, the LKL is updated each time someone scans the tag. LKL is a foundational concept in asset tracking because it provides a starting point for locating any asset in the fleet, even if real-time tracking is not active, and serves as a key data point for utilisation analysis, loss investigation, and custody accountability. The age of the LKL, meaning how long ago the position was recorded, is an important indicator of confidence: a GPS fix from five minutes ago is highly reliable, while a QR scan from two weeks ago indicates the asset may have moved since.

Cite this definition

Writing about this topic? You’re welcome to quote this definition. Here’s the wording to use so your readers can find the original.

Geofencing is the use of GPS, RFID, or other location technologies to create virtual geographic boundaries around a defined area.

Short attribution
MapTrack Glossary: Geofencing, https://www.maptrack.com/glossary/geofencing
Reference list
MapTrack. (2026). Geofencing [Glossary definition]. Retrieved from https://www.maptrack.com/glossary/geofencing

Free to reuse with credit under a Creative Commons Attribution 4.0 licence. If you’d rather link straight to it, the page is https://www.maptrack.com/glossary/geofencing.

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