What is fleet management software?

 

Let’s begin by identifying what is fleet management software and what benefits of fleet management automation can boost your company's performance and profitability.

A fleet management system is customized for controlling various kinds of motor vehicles, like cars, trucks, vans, planes, ships, etc. It performs such functions as:

 

• vehicle tracking and diagnostics,
• fuel management,
• vehicle maintenance,
• field service management,
• routing and route optimization,
• asset and equipment tracking,
• deliveries management,
• and driver management.

Fleet management software is becoming indispensable for businesses that rely on transportation especially with the growing number of businesses' converting to online and increased demand for advanced delivery services. Telematics allows getting actionable insights into various areas of fleet management and to improve efficiency, productivity, cost savings as well as extend the lives of the vehicles.

With the help of fleet management software, dispatchers can live track all vehicles from a single location. Tracking systems allow controlling the way a vehicle is used, its safety, as well as the driver’s behavior. Some fleet management software solutions also include remote control facilities (e.g. speed limiting or stolen vehicle recovery).

GPS (Global Positioning System) fleet trackers use a satellite-based navigation system with the help of a GPS receiver that can define vehicle positions anywhere in the country. Using data in several areas for transmitting information, you can connect your vehicles with your office in order to receive processed information about the state and location of the vehicles. Advanced GPS tracking devices use additional satellite systems to ensure the location is even more accurate for your needs.

FLEET MANAGEMENT SOFTWARE MARKET: STATISTICS AND MAIN CHALLENGES

The global fleet management software market is expected to reach $43.5 billion by 2024, at a compound annual growth rate of around 20.3% between 2018-2024.

The North American and European regions will dominate the market due to their growing innovations in fleet management software development. The Asia-Pacific region will be the fastest-growing region.

The rapid adoption of web and mobile-based business services in China and India is considered to be the key driver in this region.

The key factors that push the growth of the fleet solutions market are:

• Increase in international trade.
• The wide adoption of wireless technology.

CHALLENGES THAT FLEET MANAGERS DEAL WITH

Fleet managers face the same problems that all managers do, including managing staff effectively, saving on costs, streamlining the processes, and increasing results. However, along with these big-picture problems, fleet managers have to deal with the following real-time issues:

1. DRIVER SAFETY AND PRODUCTIVITY

When it comes to fleet management, driver safety should be a priority. It is crucial to organize regular safety training programs and regulation updates to ensure the safety of drivers, vehicles, and cargo. Preventing accidents also helps keep down costs for repairs or downtime. Fleet management software helps monitor speed and driving habits. Using GPS or speak-to-call technology helps drivers work in a more efficient manner.

2. COST EFFICIENCY

Costs naturally increase every year, so managing a fleet is becoming more expensive. While new tools or resources may account for some of these costs, unpredictable factors like an increase in fuel prices may significantly affect the financial aspect of the business. The more vehicles that are in the fleet, the higher the expenses. Other expenses such as insurance, tires, labor expenses, training staff, etc, grow exponentially with fleet size.

3. FUEL COSTS INSTABILITY

Prices for fuel are usually volatile and are difficult to forecast. Fuel constitutes almost 35% of costs for companies with large fleets.

Many companies constantly struggle between predicting the price of fuel as well as how to reduce fuel costs. The best solution will be to reduce fuel consumption. But how can you do this? There are several ways:

• Track drivers’ performance by using fleet management software.
• Train drivers on how to drive in a way that preserves fuel.
• Keep your fleet modernized, monitor the vehicles' conditions, and do the maintenance regularly.

Very often fleet managers underestimate fuel costs and can’t forecast future prices for fuel. Instead, it is possible to refer to a GPS vehicle tracking system that can predict the driver’s behavior and route, and therefore the fuel required.

MAIN FEATURES OF A FLEET MANAGEMENT SYSTEM

There are dozens of ready-made solutions for fleet management on the market, but the problem with any kind of off-the-shelf functionality is that it is rarely fulfilling all the needs of a specific company as it was built to cover the common process for the market. As a result, these companies do not simplify fleet management, but rather have to fine-tune their existing processes to the ones which are out-of-the-box. While designing your own proprietary system allows to leverage the competitive advantages, here to name a few: 

• customize dashboards and analytics to generate actionable insights into points of growth specific to the company;
• increase vehicle utilization and install the framework for ongoing process optimization;
• monitoring driving behavior provides the grounds for a purpose-built staff management system;
• bespoke system of monitoring the vehicles' technical conditions allows keeping the fleet costs at the lowest level.

Let's discuss a few of the key features that a good fleet management solution should have:

GPS VEHICLE TRACKING

One of the primary features to consider is GPS vehicle tracking. With this feature, it is easier to track information about the vehicle state, mileage, and fuel consumption, as well as the vehicle’s route, stops, and speed. Logging is a powerful feature helping to reveal efficient and damaging trends both from the business and technological standpoint.

GPS technology can definitely improve service and accountability, and reduce fuel and labor costs as well as improve overall vehicle maintenance. However, to avoid micromanagement, it’s worth establishing guidelines and policies regarding technology and tracking data usage.

FLEET MAINTENANCE

Fleet maintenance helps to keep vehicles in good condition, meaning they are safe and serve longer. Fleet maintenance software usually incorporates the OBD devices, vehicle diagnostics features, and fleet telematics extensions that together work as a tool for scheduling preventative maintenance rather than repairing the broken vehicles causing a significant downtime. In a nutshell, it allows businesses to improve fleet utilization, the results of vehicle inspection, and increase the predictability of vehicle management.