What is Fleet Management and Why is it Necessary

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Updated on September 29th, 2021

Running successful logistics and transportation operations depends on various factors, including efficient fleet management. It helps businesses manage their commercial vehicles effortlessly, ensure their drivers’ safety, and increase fleet productivity. Any business with a countable number of vehicles can manage its fleet with no difficulty. However, for third-party logistics providers that cater to multiple e-commerce companies, it is not feasible to manage their fleet without relying on technology. Tech platforms like fleet management software automate most fleet operations resulting in seamless management of commercial vehicles. That’s one of the biggest reasons why there is a spike in the number of businesses adopting automated fleet management systems. Before we list down the other reasons behind this rapid adoption of fleet management solutions, let’s check out what fleet management is.

Fleet Management Definition

Fleet management is the process of managing and monitoring commercial vehicles to increase fleet performance and productivity and ensure compliance with government regulations. It includes managing all information related to the vehicle, from purchase till the end of life. In simple words, fleet management includes-

  •  Vehicle maintenance
  • Driver safety
  • Monitoring fuel consumption
  • Route planning
  • Maximizing fleet productivity and efficiency
  • Asset utilization

 A fleet manager is the one who is responsible for managing field operations and fleet performance. They take care of fleet tracking, electronic logging device compliance, driver safety, and various other fleet-related tasks.

Fleet management software

Advantages of Fleet Management

Using a fleet management system renders a plethora of benefits, including-

  • Real-time updates and alerts about the vehicles
  • Quick and accurate route planning
  • Improved vehicle maintenance
  • Effortless inventory analysis and management
  • Seamless legal and compliance processes
  • Improved driver safety

You May Like To Read- 6 Advantages of Fleet Management Automation

Common Fleet Management Challenges

No matter if it is five or five hundred, a business might face several challenges with fleet management. Some of the common challenges include-

Timely Vehicle maintenance

Every vehicle requires maintenance to ensure it runs efficiently on the road. It’s the responsibility of the fleet managers to look after the preventive maintenance of the fleet. Timely maintenance helps avoid unexpected problems such as vehicle breakdown, problems with the vehicle’s engine, and high fuel consumption. However, maintaining a large fleet with traditional practices could be a time-consuming and expensive task.

Determining the number and type of vehicle required

Deciding on the number and type of vehicle needed to transport goods can be challenging for fleet managers. They have to consider several factors, including the budget, vehicle’s life & resale value, to decide and purchase a vehicle.

Ensuring that each vehicle meets compliance requirements

Abiding laws is a must for every business. It is the duty of fleet managers to ensure proper documentation is required for owning vehicles and running field operations. It is one of the major roadblocks as it requires storing and analyzing rules and regulations regularly.

Ensuring driver safety

Fleet managers who are responsible for fleet management can’t afford to overlook driver safety. However, manually managing a large fleet and drivers can increase the intensity of this challenge.

Apart from the aforementioned ones, controlling fuel consumption and cost, planning delivery routes, measuring vehicle & driver’s performance are a few other challenges associated with fleet management.

How to overcome fleet management challenges?

The simplest solution to eliminate fleet monitoring and management challenges is to invest in an automated fleet management system. A fleet monitoring system will digitize almost every task associated with fleet management. It will make tracking, financing, purchasing, routing, and other management jobs a cakewalk for the fleet managers.

Why is fleet management important?

Fleet management is essential for both the businesses with in-house logistics management and the 3PL providers that offer logistics management services. Efficient management and optimization of the fleet can lead to timely deliveries, reduced fuel cost, and improved productivity & business profitability. Once you get vehicle fleet management software, you don’t need to invest separately in a fleet tracking system or fleet monitoring system. The fleet management solution comes up with both the tracking and monitoring features.

Which is the best software for fleet management?

The best software for fleet management provides the means to manage everything associated with vehicles. It should come up with a dashboard for vehicle management, driver management, fuel management, vehicle inspection, and vehicle service and maintenance management. Besides, the software should also have a feature to send you alerts and reminders for overdue services, contract renewals, registration & license renewals, and other important detections.

Managing commercial vehicles becomes easier with fleet management software. It not only helps to improve productivity but also contributes to cutting down a significant fuel and operational cost. Fleet management software is a one-time investment that can render a plethora of benefits to a business. The only thing that needs attention is to find a reliable fleet management software provider. 

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