Geofencing is creation of a virtual perimeter that is set around a particular geographical area. The boundary is set such that as and when the vehicle, or personnel, enters or exits the location, instant alerts are triggered. This will enable the user to discern the exact location the device is at, along with an accurate log of movements made.
A geofence is curated with the help of GPS, which provides precise location coordinates. In order to set the “fence” around a particular region, you can specify the distance and the diameter as per your business needs.