Fleet Management

What is Fleet Management?

Fleet management is a broad term that encompasses a variety of processes that fleet managers use to oversee and manage different fleet operations.

The main purpose of fleet management is to manage a fleet of commercial motor vehicles and ensure that everything works properly. Fleet management can also help with increasing efficiency, productivity, and fleet safety.

Key areas of fleet management

Fleet managers are responsible for many important aspects of fleet operations. Here are some of the key areas that can be managed with fleet management.

  1. Proactive vehicle maintenance
  2. Overseeing fuel consumption
  3. Reducing fuel costs and wastage
  4. Route planning and optimization
  5. Asset utilization
  6. Driver management
  7. Fleet safety
  8. Driver coaching
  9. IFTA calculation
  10. Compliance with different regulations

The benefits of fleet management

With the right fleet management software and strategies, fleets of all types and sizes can benefit from fleet management.

Here are some of the big benefits of fleet management:

1. Cost reduction

A feature-rich fleet management software can help you identify areas where waste is common, e.g., low vehicle utilization rates, fuel wastage, frequent vehicle breakdowns, etc.

By focusing on these areas, a fleet manager can significantly reduce the cost of operations.

2. A holistic view of your operations

With a proper fleet management system in place, you get real-time visibility into your fleet’s performance.

You get valuable data and insights about fuel expenditures, violations, vehicle maintenance, GPS data, average detention time, driver behavior, fleet safety, and more.

3. Better driver management and increased productivity

Driver management is a crucial component of fleet management. As drivers are effectively managed and cared for, they become more productive, skillful, and responsible. 

A fleet management solution helps you gather and disseminate important information, such as driver performance data, route information, common violations, etc. This organization-wide spread of information can help increase productivity across the fleet.

4. Regulatory compliance

A robust and easy-to-use fleet management solution can also help you stay ahead of any regulation violations, such as Hours of Service violations, by giving you the right information at the right time.

Biggest challenges in fleet management

Following are some of the biggest fleet management challenges that administrators and managers spend a lot of time on:

  1. High fuel prices.  Fuel is one of the biggest expenditures for most fleets. Keeping fuel costs in check is a big fleet management challenge.
  2. Vehicle breakdown and maintenance.  Frequent vehicle breakdowns directly affect fleet productivity.  It is a challenge for most fleets to stay on top of vehicle health.
  3. Fleet safety.  Safety is the #1 priority for fleets of all types and sizes because even a single incident can financially cripple a transportation business.
  4. Administrative burden.  As fleets grow, so does administrative burden. How fleet managers stay efficient when the organization scales up is a big fleet management challenge.
  5. Detention time.  Detention can cost up to $1,280 per year per driver. Keeping detention time in check is a priority and a challenge for many in the logistics industry.
  6. Driver shortage.  Driver shortage was ranked as the biggest issue in 2019 by ATRI

A modern, integrated, and feature-rich fleet management software can help solve most of these fleet management problems.

Learn what is a fleet management software and how it works.