Did you know that the fleet management business is projected to grow to $34.6 billion in revenue by 2022? This is as a result of heavy and light commercial vehicles contributing significantly to the growth.
Fleet management is critical for companies. Why? It ensures that companies coordinate their operations and assets effectively.
It is, however, more than simply a means of tracking cars. This is where fleet management software is important.
Modern fleet management software helps in the ability to handle a variety of procedures. That allows businesses to enhance their overall operational competence and efficiency.
Are you curious as to why you may need fleet management software? Then please continue reading to discover the five reasons why it is essential to have it.
What Is Fleet Management?
Fleet management refers to the tools and technology that companies employ to ensure that they use their work vehicles as efficiently as possible. Among the features of this platform is the ability to link mobile employees with freight and permanent assets.
The ultimate aim of fleet management is to maximize the variables that influence the performance of logistics. Below are some of the influencing variables:
- Viewing real-time location information
- Accessing driving and operator behavior data
- Accessing electronic driver logs that are available
- Recognizing when assets depart from designated areas
- Tracking when your vehicles need maintenance
This will enable you to quickly monitor pieces of information that can assist you in improving fleet performance (for instance, providing better service to your clients or just improving your peace of mind).
The lack of a complete fleet management solution forces companies to rely on human labor to carry out these responsibilities on their own time. Given the complication of logistics in mid-sized to large businesses, the reality is that it is very time-consuming. This in itself is a red flag that this is not a smart use of existing company resources.
Why Is Fleet Management Software a Must?
Fleet management is a time-consuming task that requires attention to detail on the part of both management and drivers. Therefore, it is critical to keep track of statistics such as hours worked, gasoline used, and task progress throughout the day, every day of the week.
Keeping track of all of this data, on the other hand, may consume a significant lot of time and cost.
For this reason, you must use the best fleet management software available. Managers can stay on top of their fleet's whereabouts at all times when they use the proper technology.
With fleet management software, you can discover more about each vehicle's position. Additionally, you can follow fuel consumption at a push of a button and at a moment's notice.
This software program can even monitor driving behaviors such as excessive speeding and hard braking as well. On the other hand, drivers can also rest easy knowing that their data is automatically logged.
Software-based solutions are more precise than human employees. They are also more cost-effective to put into place over time.
Fleet management systems simplify many of the procedures in the supply network. Therefore, businesses are able to accept and complete more transactions, resulting in an increase in profits.
The program increases productivity even further, as it helps automate and adds visibility. That reduces the need for human intervention from employees. These are just a few of the many advantages that a fleet management system may provide to your company's operations.
1. Fleet Management Software Increases Fuel Efficiency
According to the Environmental Defense Fund, fuel costs are among the biggest expenses a fleet can incur. Fuel expenditure accounts for as much as 40% of a trucking fleet's budget. As a consequence, lowering fuel costs can result in significant savings.
The real cost of fuel per gallon is out of anyone's control. However, you can reduce the number of gallons used on each journey in various ways.
How? Well, by making full use of fleet management software to its fullest extent.
How Does Route Planning and Dispatch in Real-Time Save You on Costs?
Fleet management software that handles route planning and dispatching can assist in determining the quickest route in real-time. In addition, the fleet management software can find the closest driver to the pick-up point and dispatch them immediately. This immediate dispatch saves on traveling distances.
Furthermore, the fleet management software takes into consideration traffic and weather conditions. These conditions can result in extra fuel usage.
Save Costs on Excessive Idling and Wear and Tear on Your Engine
It is a known fact that idling wastes fuel and increases the wear and tear on an engine. The majority of fleet management systems are capable of logging drivers that have high idle time as well. That allows managers to reduce unnecessary idling.
According to research conducted by the Argonne National Laboratory in 2015, rest-stop idling alone amounts to up to 1 billion gallons of fuel each year.
Save costs on Aerodynamics and Wind Resistance
Finally, did you know that managing air resistance accounts for about 10% of the total fuel usage of a typical long-haul truck? That being said, there are measures you can take to reduce the impacts of wind resistance by controlling speeding.
Even more fuel and money may be saved by using fleet management software that records incidents of speeding, as well as driver performance metrics that can assist in the process.
2. Fleet Management Software Increases Driver Safety
By using fleet management software, you can track a drivers' behavior like speeding and hard braking. By tracking this behavior, you will not only save fuel but will also improve safety. In addition, you will make the fleet's environment a healthier one and reduce the likelihood of a catastrophic accident.
Fleet management software can also monitor the following:
- Seatbelt usage
- Rate of acceleration
- The sharpness with which the vehicle takes a bend
Managers may simply create a weekly or monthly report of driving patterns. These reports will give a better understanding of the fleet's and drivers' strengths and shortcomings over time. Thereafter, they can address the issues with concerned drivers to correct their behavior.
The use of fleet management software to monitor driving habits is not the only method to improve safety. Additionally, the majority of systems have the ability to send automatic alerts through SMS or email. These notifications will alert management when each vehicle requires preventive maintenance.
Some fleet management systems can even automatically inform managers of recent safety recalls. This ensures that the fleet reduces equipment failure and possible dangers.
3. Savings On Insurance
Naturally, having all of this fleet data helps make the process of filing insurance claims much smoother.
The Federal Motor Carrier Safety Administration advises that the average cost of a big truck collision that results in a death is $3.6 million per accident. In addition, an accident resulting in injuries averages almost $200,000. Finally, the average value of all big truck collisions is about $91,000 per collision.
A fleet can demonstrate that its driver was following procedure. This is, of course, if it has data on the vehicle speeds and driving patterns at the time of the accident on hand.
Some companies even provide connections to dash cameras. This allows you to film the incident itself and use it to show that your driver was not at fault in the accident.
Not only is the information helpful when purchasing insurance, but it is also useful when dealing with a claim itself. For example, let's say a fleet has developed a year-long safety profile of each driver based on previous data gathered by fleet management software. You can use this data to persuade an insurance company to provide cheaper rates than it would otherwise impose on the drivers in question.
4. Fleet Management Software Deters Theft
In 2019, approximately $6.4 billion was spent on motor vehicle theft in the United States. The loss of even a single vehicle may result in a significant reduction in revenue for commercial fleets, making it a major source of worry.
Using fleet management software, a business may set up geofences. Then, if any vehicle departs from a predetermined geographic area, the vehicle will send an alert to the fleet manager. It's a simple method to discover straight away whether a car is in an illegal location and identifies vehicle theft right away.
Furthermore, with GPS tracker-enabled position monitoring, the car may be promptly retrieved, resulting in the smallest amount of inefficiency.
You can also discover fuel theft because of the system's ability to monitor the quantity of fuel bought and compare it to the amount of fuel consumed.
Anybody who learns about the system's capabilities will know not to bother taking any cars or fuel. This shows the advantages of a fleet management system to combat theft.
You can monitor the usage of cars after hours via fleet management software. That allows alerts to operations if a driver is driving without permission.
Despite the fact that it is not tangible theft, this kind of abuse is nonetheless considered resource theft. Therefore, it is definitely not to be ignored. Still, it is difficult to track down without a system that can provide real-time information on the engine condition of a vehicle.
5. Lawful ELD Compliance
Since December 2017, all commercial vehicle fleets in the US must monitor their drivers' hours of duty. They can do this by using an electronic logging device (ELD).
While companies may have previously relied on paper tracking, they have to switch to an ELD-compliant software solution to remain compliant with the law. Fortunately, any large fleet management company will be able to supply ELD compliance services as well.
It is for a good reason why ELDs are now needed. They are better than prior options and are straightforward to use. In addition, everything that you need to automate is immediately automated. This results in a reduction in the number of human mistakes.
Each vehicle has a hardware unit that tracks everything else. This includes dates, times, miles traveled, and places. To have a track record, the driver just has to check in and out when the vehicle begins and ends its workday.
Upon collection, all of this information is immediately put into a report for each driver. This report can then be readily available in case the motorist is stopped for a roadside inspection.
Driving with little effort means that drivers will be able to pass inspections easily and remain on the road. In addition, those reports will spare fleet management companies from any loss in revenue that would result from a vehicle being out of service for Hours of Service violations.
Fleet Management Software Is an All In One Solution
It is undeniable that businesses nowadays need a complete fleet management software solution in order to run their logistics operations effectively. Among the many advantages of a fleet management system are the way of tracking vehicles, saving money on fuel, improving vehicle and driver safety, and ensuring lawful compliance.
Before embarking on the first fleet management software program you see, you should do your research. Find a vendor with a track record of successful software solutions in which the complexity is reduced and the advantages are realized immediately.
After considering all of the financial advantages of fleet management software mentioned above and the safety procedures and respect for excellence you will earn, the conclusion is clear. Investing in fleet management software now will give you a return on itself many times over in the long run.
If you are in need of a new fleet management software program or want to integrate it into your existing program, don't hesitate to contact us. We can assist you in improving the efficiency of your fleet management operations.