What Is Fleet Management and Why Does My Business Need It?
Are you not entirely convinced whether your business needs a dedicated fleet management software? Not 100% sure what it does or how it works?
Fleet management is the umbrella term for how you optimize your day-to-day operations across your fleet of vans, trucks, buses or cars.
There are several important processes involved in a GPS fleet management system. First, there's the capture of important data. This might include location, driver performance, or vehicle health, for example. Then there’s the analysis and interpretation of that data which enables both drivers and fleet managers alike to make meaningful decisions for improvement.
Ultimately, fleet management systems give managers the insight and the tools they need to improve operations. That’s why fleet management systems can satisfy a whole range of objectives—whether you need to reduce costs, minimize emissions, improve safety, or improve customer experience.
There are several key components that come together to form a fleet management system.
- Hardware: A black box device covertly fitted into the vehicle, connecting to the Engine Control Module (ECM).
- Vehicle software: Vehicle’s ECM gathers different data points about the vehicle’s performance, like ignition time and idling, and about driver behaviour on the road, like aggressive driving.
- Management software: A cloud-based platform that interprets all the data collected to produce meaningful, actionable insights about your fleet and your drivers. You can use this data to drive improvements that are based on hardboiled statistics from the field.
A nation-wide repair and installation business chooses to install a fleet management system across their 400-van fleet. Particularly, they’re aiming to improve accountability for safety on the roads during remote jobs, boost customer satisfaction by getting a technician onsite quicker, and minimize overall costs associated with poor workflow management.
Each van is fitted with Fleet Complete’s Fleet Tracker solution, including vehicle sensors, cabin hardware, and an interface for managers to see all tracked activity in real time.
Now when drivers are out on the road, they are alerted to any poor driving behaviour and can correct it immediately. Speeding drops by 35%, protecting company’s property and reputation, as well as ensuring the fleet is best represented on the road.
While in the office, by being able to see where vehicles are at all times from one interface, the fleet manager is able to better allocate available resources to new jobs, minimizing travel time and ultimately fitting more jobs into a single day. Positive customer feedback suddenly spikes.
And the cost savings stack up. In four years, the Procurement and Property Manager estimates that the system has saved the business in excess of $800,000 by cutting down on costly practices like excessive idling and inconsistent maintenance schedules.
This example is just scratching the surface of what is possible with GPS fleet management software. Every business is unique, and their ideal solution needs to be too.
Let’s look at some key benefits that are possible with a customized fleet management system.
- Increase visibility
Managers are able to access their account at any time and from any mobile device to see what their drivers and vehicles are doing in real time. They can check where they are, how much fuel they’re using, whether the driver is speeding, whether the vehicle needs a service, and so much more. Historical reporting is also easy, and allows mangers to identify big-picture trends or problems.
- Improve customer service
When your entire fleet is in front of your eyes, it’s easy to streamline your processes and leave customers happy. It means reduced miscommunication, less delays because of drivers getting lost, and increased ability to keep customers in the loop.
- Improve safety
It’s your duty of care to protect your drivers and other road users. A fleet management system can do everything from sounding an in-cabin alert if your driver goes over the speed limit with a dedicated , to telling them when it’s time to take a rest stop. You can also receive alerts when it’s time for a service, and minimize behaviours known to cause increased wear and tear, like harsh braking.
- Reduce costs
It’s hard to deny the many ways in which a GPS fleet management system will save you money. From reducing fuel usage to preventing unauthorized use after hours, to right-sizing your fleet—most businesses save 15% of their total costs on average through installing a fleet management system.
May 14, 2019 | Author: Alice McKenzie