Fleet management is the process of keeping all vehicles within your organization running and operating at their best. Not only does it involve basic maintenance like oil changes and tire rotations, but it also helps with the management of routes. A good fleet manager will create safe and efficient routes for drivers to streamline operations while extending the life of the vehicles used. More companies than ever need vehicle fleet management as they invest in their own cars and trucks to handle business operations, so the market is growing. Worth around $19.5 billion in 2020, the global fleet management market is expected to reach $52.5 billion by 2030. Whether you run a small business with a few company vehicles or manage a large enterprise with several trucks, you can benefit from good fleet management. Learn more about this process and how to implement it for your operations.
Understanding fleet management
Companies use fleet management to track the movements of their vehicles while monitoring wear and tear. While you can do this manually with driver logs and mechanic reports, companies increasingly use telematics to make their fleet management systems more reliable. A telematics system transmits data about a vehicle throughout the driving process. It can tell a fleet manager at the company headquarters when a truck makes an abrupt stop or when a driver is speeding. Here are a few components of enterprise fleet management that allow managers to keep track of their drivers and the equipment they use.
- GPS tracking systems: With GPS fleet tracking, companies can see exactly where various cars and trucks are at any given time.
- Maintenance notifications: Fleet management tools alert teams to maintenance needs, like when a check engine light turns on or a truck reaches enough miles to need an oil change.
- Fuel management: Optimizing fuel usage helps companies save money. The right tools track driver speed while recommending fuel-optimized roads.
- Personnel management: Keep up with driver logs and the number of hours your team spends behind the wheel. Drowsy driving is one of the top threats to road safety, so careful management can reduce burnout and help keep drivers out of unsafe situations.
- Asset management: Besides highway vehicles, a company may want to track other valuable assets like trailers and heavy machinery. GPS asset tracking for enterprise fleet management can keep up with all this information in one system. Fleet management does so much more than map routes and alerts you to out-of-work vehicles. It can help boost your safety, lower costs and improve your overall operations.
What companies need fleet management?
Companies across a wide variety of industries can benefit from fleet management. These systems aren't limited to large enterprises. Mid-size companies can also benefit from fleet tracking if they have multiple cars and trucks on the road. Here are just a few examples of companies using fleet management systems.
- A delivery company can track driver speeds and use route optimization to save gas.
- A construction business can track equipment to see which assets are located at each job site.
- A tourism company can manage a fleet of vans and keep an eye on maintenance tasks.
- A hospital can manage its fleet of ambulances to make sure they are fully stocked and ready for use.
- A school can use fleet management to keep up with its buses that are transporting kids. If your company has more than one vehicle, it can benefit from fleet management. This includes companies with trucks, vans, cars, heavy equipment and even golf carts.
The benefits of fleet management systems
Adding a fleet management system can benefit your vehicles, employees, customers and profits. There are several reasons to invest in a fleet management telematics system across the board. Here are just a few things to consider as you explore these tools.
Efficiency and cost reduction
The first benefit of fleet management is cost reduction. There are multiple ways to save on operational costs while improving efficiency. Here are a few examples of how fleet management software drives return on your investment.
- Fleet management can help to reduce gas waste by addressing aggressive driving and speeding behavior.
- Address costly unauthorized out-of-area use with geofencing.
- Maintenance alerts help prevent costly breakdowns that are expensive to repair.
- Regular maintenance also saves gas by helping your fleet runs at its best. When gas prices increase, your profits decrease. Fleet management optimizations can help keep fuel costs low.
Enhanced safety and security
Your drivers and vehicles are two important assets to your organization. Your cars and trucks are difficult to replace while employee safety should always be a top priority. Here are a few ways that fleet management promotes safety and security.
- Driver monitoring systems can detect when drivers are too tired, talking on the phone, smoking or engaging in otherwise unsafe behaviors.
- Fleet dashboard cameras can help document accidents and prove fault, lowering your insurance costs.
- Asset management systems help you track where your vehicles are and who is driving them. With fleet management, you should never wonder where a truck is, who is driving it or why they are behind the wheel. These tools increase security but also accountability.
Streamlined compliance
Depending on your industry and region, fleet management might not be optional. These tools can help you follow compliance guidelines so it is easier for you to keep up with legal requirements in your state. Not only will this help to keep your drivers safe, but you will be able to collect data that proves you kept up with industry standards. This is another way to potentially save money in your organization because staying compliant can help you avoid costly fines.
Higher driver satisfaction
When drivers have better routes, reliable vehicles and a strong support system, they can do their jobs effectively. Your fleet management system can help with retention and satisfaction because drivers will know that you aren't putting them in unsafe situations or overworking them because of poor scheduling. Turnover is costly to companies. It takes time to hire and train replacement drivers when others quit while your remaining employees have to fill in the gaps they left. Reducing turnover can help keep your operations moving while reducing costs. There is already a significant truck driver shortage in the United States. By creating a healthy work environment for your drivers, you can keep enough employees on staff to meet your needs.
Challenges of fleet management
Despite the benefits of fleet management, there are still some challenges to implementing these tools. Your company will likely experience a learning phase where you develop new processes based on the information you collect. Here are a few things to look out for as you explore fleet management.
- Information overload: The sheer amount of data can be overwhelming. Focus on the most important points first and then look at other key metrics.
- Implementing response systems: You need a strong team of mechanics to respond to repair issues and maintenance alerts promptly.
- Employee training: Your drivers need to know how to use the system and what it means for them. It might take time to eliminate bad behaviors like distracted driving.
- Connecting fleet management tools to existing software: Make sure your systems work together so your employees don't need to juggle multiple apps. All of these fleet management challenges can be overcome with a capable software system and thoughtful implementation. Focus on a few key problems at a time and repeatedly train your staff. Then you can expand the role of the fleet management tools to further improve your operations.
What does a fleet manager do?
Quality fleet management software can improve your operations, but these tools usually need a human guiding their implementation and use. A fleet manager keeps up with the company's cars, trucks and equipment. For example, a manager might assign a specific route to a delivery driver. They might track which cars are checked out by specific departments. Depending on the size of your organization and your industry, you might have a single employee who handles fleet management or an entire department keeping your trucks on the road. Even if this is a one-person job right now, you might need additional fleet management resources and staff as your business grows.
What are fleet management services?
If you aren't sure about staffing for fleet management, consider outsourcing the work to a fleet management services firm. With this option, an outside organization manages your vehicles for you. They can help you set routes and scale your operations as they grow. Here are a few reasons to consider managed services.
- You can scale your work without hiring additional staff.
- You don't need to be a fleet management expert, the service provider will take care of it for you.
- You can better manage your fleet management costs by establishing contracts with your service provider. Furthermore, as technology evolves, your service provider can recommend new tools and resources. You don't have to keep up with the latest trends and opportunities.
The role of fleet management software
Whether you develop a fleet management system in-house or work with an outside service provider, make sure you have a trusted software system you can rely on. This software will create transparency within your operations and allow key stakeholders to keep up with your fleet. A system like Verizon Connect is easy to implement and use day-to-day. A few key features to look out for in your fleet management software include:
- Asset tracking
- Gas and electric vehicle management
- Scalability of fleet management
- Compliance knowledge
- Maintenance tracking
- Video and photo collection Know which features are essential for your organization when looking at fleet management tools. This will help you choose the right ones for your operations.
The future of fleet management
Fleet management has come a long way over the past decade with the advancement of smartphones and GPS tracking. However, there is still room for growth as fleet management evolves. Software teams are using artificial intelligence to support drivers and improve routes. The Internet of Things allows for greater data collection that provides better insights. Even the use of semi autonomous trucks in the future could impact fleet management as teams learn how to handle driverless vehicles. You don't necessarily need the most advanced fleet management tools for your organization. However, you do need reliable and adaptable solutions that can help you grow. Make sure your fleet management systems can support you now and in the future so your drivers stay safe no matter how technology changes.
