Overseeing a fleet of vehicles can feel like a juggling act, which is why there’s an entire industry built around its effective management. Fleet management, broadly, refers to all the tools and processes used to keep a company’s fleet running smoothly.
Here’s everything growing businesses need to know about fleet management.
What is fleet management?
Jeffery Benore, President and CEO of Benore Logistic Systems, Inc., defines fleet management as "the strategic oversight of a company’s vehicle operations.”
“[Fleet management encompasses] everything from maintenance scheduling and route optimization to driver performance monitoring and compliance management,” Benore said. “It involves utilizing tools and processes to ensure vehicles are running efficiently, safely, and cost-effectively while supporting the broader goals of the organization.”
In short, it’s about maximizing value and minimizing the headaches associated with running a fleet of vehicles.
“For businesses, particularly those in logistics and service industries, an effective fleet management solution can mean the difference between operational success and costly inefficiencies,” emphasized Sherry Calkins, Senior Vice President of Global Strategic Accounts at Geotab.
[Read more: How to Track Company Vehicle Use as a Small Business]
What does GPS fleet management software do?
GPS fleet management software offers a range of powerful tools to optimize fleet operations. Here are some key functions and benefits.
Improves safety
GPS tracking allows managers to monitor driver behavior, such as speeding, harsh braking, and excessive idling. This data can be used to coach drivers, improve safety records, and potentially reduce accident rates.
Automates tasks
Fleet management software automates routine tasks like scheduling maintenance and reporting. This saves time and reduces administrative overhead, allowing managers to focus on more strategic initiatives.
Reduces costs
By optimizing routes, reducing fuel consumption, and minimizing vehicle downtime, GPS fleet management software can significantly reduce operational expenses. This method also allows managers to identify areas of improvement to further drive down costs.
Manages compliance
GPS fleet management software helps automate compliance tasks, reducing the risk of fines and penalties. With management software, compliance with regulations like hours-of-service rules and vehicle inspection requirements becomes an automated task rather than a manual one, reducing the risk of human error.
[Read more: Have Company Vehicles? This Is What You Need to Know About Commercial Auto Insurance]
The success of any platform comes down to it coexisting in harmony with existing technology, infrastructure, and operations.
Jim Donaldson, Chief Technology Officer at Hitachi Zero Carbon
How to choose the right fleet tracking software for your business
Tracking software can take your fleet to new heights, and there are plenty of options for business owners to choose from. While there are many factors to consider, here are a few key considerations to guide your selection process.
Consider your business’ specific needs
Marcus Newbury, Co-founder and COO of Driver Technologies, recommends looking at a solution’s scalability and available features, including the following:
- Video telematics.
- Real-time tracking.
- Route optimization.
- Maintenance alerts.
- Compatibility with existing systems (e.g., route planning, payroll).
- User-friendliness (for drivers and managers).
- Coaching and training.
- Support for regulatory requirements (e.g., ELD mandates).
- Overall price, including insurance benefits and/or discounts.
Newbury emphasizes that "one size doesn’t fit all," and the best solution is one that aligns with your business's specific goals.
Ask for a demo
Jennifer Fink, Freight Factoring Operations Manager at altLINE, stressed the importance of experiencing the software firsthand.
"Before investing in any sort of software, talk with a customer service representative on the phone and get a demo of the program to gain an understanding of how one solution differs from the next,” Fink advised. “Then, you can more effectively evaluate your options and compare them against your budget.”
Determine the software’s scalability and usability
Calkins highlighted the importance of scalability, compliance, and overall usability.
“A system must grow with the business, provide precise real-time data for informed decision-making, and support regulatory requirements,” she said. “Equally important is ensuring the platform is user-friendly, reducing training time and increasing adoption across the organization.”
To ensure alignment with operational needs, Calkins suggests defining business goals upfront. From there, it will be easier to identify solutions that will offer visibility and actionable insights into these long-term objectives.
Prioritize easy integration with your current tech stack
Jim Donaldson, Chief Technology Officer at Hitachi Zero Carbon, emphasized the importance of interoperability, especially for EV fleets.
“The success of any platform comes down to it coexisting in harmony with existing technology, infrastructure, and operations,” said Donaldson.
Ensure your fleet tracking solution is compatible with the systems that your business already has in place. You might also consider software that offers integrations with platforms you may consider down the line, particularly as the business grows.
[Read more: How to Manage Company Vehicle Usage and Maintenance]
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