The global fleet management market is one of the fastest-growing in the world.
Despite being worth less than $8 billion a few years ago, the industry is expected to reach $34.6 billion by 2022, with heavy and light commercial vehicles contributing significantly to the growth.
Fleet management is important for businesses to smoothly coordinate their logistics and assets. However, it is more than just tracking vehicles. Modern fleet management solutions are also expected to handle multiple processes for companies to improve their operational competency.
Read on to understand what fleet management is and how exactly does it benefit fleet-owning companies.
What is fleet management?
Fleet management refers to the applications and technologies used by businesses to maintain optimal use of their work vehicles. At Fleet Complete, this includes a platform that also connects your mobile workers, cargo, and stationary assets.
The end goal of fleet management is to optimize the factors that affect the efficiency of logistics such as:
- Tracking the status of work vehicles
- Maintaining fuel and performance efficiency
- Reducing operational costs
- Complying with government regulations
Without a complete fleet management solution, companies have to rely on manual work to accomplish these tasks. This is not a good use of company resources, as it requires high levels of coordination due to the complexity of logistics in medium to large businesses.
Not only are software-based systems more accurate than human workers, but they’re also cost-effective to implement in the long run. As fleet management solutions streamline many of the processes in the supply chain, companies can accept and do more business, thereby increasing their revenue.
Technology that combines automation and machine learning further increases work efficiency by reducing the need for manual input from workers. These benefits are just a glimpse of what a fleet management system can bring to your business.
How fleet-owning companies can benefit from a comprehensive fleet management solution
Companies can reduce operating costs to improve their bottom line and invest more in their fleet
For enterprises, being cost-efficient is key to maintaining a healthy bottom line. This applies to fleet management as well. Fleet management systems minimize costs by identifying inefficient fuel usage and poor driving behavior in work vehicles.
For example, a study by the US Department of Energy showed heavy vehicles use up roughly half a gallon of gas for every hour spent idling. While it may not seem much at first glance, the idling time quickly adds up, especially for businesses with multiple vehicles (10 or more). This results in wasting dozens of gallons of fuel every day.
Fuel use while idling in different vehicle categories (image source)
A fleet management system can help your company reduce fuel consumption by tracking how your vehicles are being used by drivers. For example, businesses can monitor if drivers are moving too slow, too fast, or idling unnecessarily during trips. This allows you to make informed driver management decisions.
Fleet management systems allow routes to be completed smoothly. Companies can plan ahead to identify the most efficient route for lower fuel consumption, so drivers can reach their destinations quickly and safely.
Drivers are also able to get real-time updates about traffic from their smart devices, allowing them to possibly avoid heavy traffic and accident areas to complete deliveries sooner.
Improved vehicle and driver safety
Safety is a huge concern for fleet-owning companies. On average, 20% of a company’s fleet will be involved in at least one accident every year, with each incident costing $16,500 in damages. If there are fatalities, businesses can expect to pay over half a million in settlements alone.
Fleet management solutions drastically reduce the possibility of your company losing money due to accidents by monitoring your drivers’ driving patterns. Monitored drivers tend to drive more safely and adhere to company standards, which significantly reduces the likelihood of accidents occurring.
The monitored data can also be analyzed and utilized to make informed decisions about a company’s drivers and vehicles. Let’s say an organization discovers that most of its drivers constantly transport just below the speed limit. The organization can use this finding to reduce the allowed speed threshold to help minimize the possibility of an accident.
The connected device provided with fleet management systems also acts as tracker to prevent theft or loss. The tracker allows you to check the status of the tracked vehicle in real-time. In case of an emergency or theft, this will help find the vehicle quickly and alert the officials in a matter of minutes.
Ensuring compliance with regulations
Maintaining compliance is important for fleet-owning companies to stay operational and avoid incurring unnecessary hefty fines.
In the US, and soon in Canada, companies are required by law to install ELDs (Electronic Logging Device) in their vehicles as per the FMCSA mandate. This mandate sees businesses transitioning from paper-based records to electronic logs, which are a lot more accurate and easier to work with.
Fleet management software can help your company comply with all of the necessary ELD requirements, while improving the safety of drivers and company vehicles. The information collected can also benefit audits or claims in the event of an accident or lawsuit involving a company’s fleet.
Businesses must invest in a complete fleet management solution
It’s clear that a comprehensive fleet management solution is required for companies today to operate their logistics efficiently. Tracking vehicles, saving on fuel costs, improving driver and vehicle safety, and ensuring compliance are just some of the benefits of a fleet management solution.
Fleet Complete is the industry’s most comprehensive telematics and IoT-powered solutions provider for ELD-compliant, tailor-made fleet management to enterprises across multiple industries and countries. Fleet Complete’s web platform allows you to keep track of your business’ fleet—from tracking vehicles to accessing vehicle metrics—even on smartphones and other mobile devices.
Get in touch with us today to receive a free demo and discover how Fleet Complete can help transform your fleet management for the better.
Aug 27, 2019 Marketing