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What is Fleet Management, Functions and Solutions?

fleet management

What is fleet management?

Fleet management is the optimization of commercial vehicle operations, usually with software that utilizes GPS tracking. Fleet management allows companies to maximize use of vehicles including trucks, vans, and construction equipment by streamlining routes, improving driver behavior and safety, enabling compliance with government regulations, recovering stolen vehicles, trailers or equipment, and optimizing vehicle maintenance.

You probably searched in Google “what is fleet management” because you may be new to the industry. Well, this is the optimization of costs, risks and efficiency in fleet operations. Many organizations rely on their logistics managers to control costs, maximize profitability, and mitigate risks of their fleet vehicles. Fleet managers touch many aspects of fleet operations, but fleet management can be summarized into five main fields :

  • Operational Cost-Effectiveness
  • Vehicle Maintenance
  • Driver/Workforce Management
  • Vehicle Safety & Compliance and
  • Operational Efficiency

You cannot think about improving one field without improving others. For example, you cannot think about vehicle maintenance without thinking about the total costs of maintaining a vehicle, to how a driver currently handles the vehicle and to how vehicle safety can be improved (and thus reducing the number of accidents).

Since these fields are all interrelated, that gives us the opportunity to create a single rich-data solution for tackling all areas of fleet management. With GPS fleet management software, you can address multiple issues and tasks at once.

Here are some smart ways that GPS asset tracking and vehicle really help it.

Operational cost-effectiveness

  • Fuel Management

Fleet managers must be able to eliminate any possibility for drivers to abuse company fuel spend. Some fleet management solutions integrate a company’s fleet fuel purchases and match it with real-time vehicle locations so fleet managers can verify fuel usage.

  • Theft & Loss

GPS tracking drastically reduces the number of stolen vehicles. And for many businesses, one stolen vehicle can mean at least $25,000 in loss profits. And if you’re a fleet manager operating on an enterprise-level with 400+ assets, the possibility of losing several trailers or assets can be absolutely devastating.

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