The maintenance of a modern fleet requires a lot of effort and investment. Even if your fleet is small, the integral management duties include such activities as financing, formation, control, and maintenance of vehicles. No matter the size of the fleet, you want to increase productivity and run your business as smoothly as possible.
What is fleet management software and how does the automotive industry benefit from it?
Productivity is a key factor here, and here’s why. A fleet manager has many daily responsibilities: from devising a management strategy to drawing up policies for the use of cars and fuel, not to mention keeping a close eye on repairs, safety, insurance, maintenance, asset management, and various expenses. Transport as a whole is changing rapidly across the globe. Cities are creating emission-restricted zones, the fuel prices are fluctuating, and the needs of both business and employees are evolving. Therefore, to effectively keep up with the pace of the industry and grow the business, it seems logical to manage your fleet using the latest technology.
Fleet management software is exactly the right technology for the transportation domain. According to Wikipedia, such software derived from legacy programs on mainframe computers in the 1970s to become generally available in the 1980s due to the rise of personal computing. Such solutions help companies to tackle specific tasks related to the management of a fleet. Fleet management software can be developed in-house, purchased in the market, or developed by a third party. Consequently, its complexity and costs vary based on functionality and features.
So what does the implementation of a fleet management system bring to the table?
- First of all, it’s all about efficient transport management: freight forwarding by optimizing routes / number of stops / empty runs;
- Improved control of the company's transport traffic;
- Idle driving control;
- Speed control: managers can introduce a correct driving incentive system;
- Checking fixed points (baseline, clients, boundaries, etc.);
- Control of the current location of the vehicle (country, state, city, etc.);
Effective fleet management software will not only help you take control of your fleet management but will also provide clear guidance for every employee of the company. Eventually, the use of fleet management software results in an improved bottom line for T&L businesses of all sizes.
Why is small fleet management important?
In 2018, small fleets (fewer than 500 vehicles) made up 44 percent of all fleets in the US, according to the report by the Government Fleet magazine.
You may think to yourself: “Why do I need a fleet management system in the first place? I mean, my fleet ain’t that big. Is there something to manage?” Actually, yes, and you need a plan anyway. A proper fleet management system is all about the creation of a centralized transportation plan: based on both internal and external data on orders, the system can select the required mode of transport, or a specific vehicle, taking into account the characteristics of a vehicle.
How to make small fleet management more effective
More often than not, when tracking and managing their company's assets, fleet managers process data manually. In the era of digitality, the use of spreadsheets is both cumbersome and ineffective. The answer lies in automatization.
Fleet management software is the perfect way to automate processes within a fleet. Using streamlined data saves a lot of time, improves the fleet's efficiency, and allows fleet managers to concentrate on other vital tasks.
Using fleet management software, fleet managers can check TCO (total cost of ownership) via structured reports. Why is it important? TCO correlates with metrics on return on investment (ROI). With such reports at hand, managers can make the best strategic decisions here and now.
Conducting maintenance with a fleet management solution allows managers to introduce effective maintenance workflows. Such practice streamlines processes and maximizes fleet uptime. In other words, you will proactively manage maintenance.
The benefits of a FMS solution
- Communication is critical to any business. Stay connected with drivers using a mobile device. No matter what happens on the road, your communication line is on.
- Get visibility into the location and status of your assets in real-time to reduce downtime and increase productivity. In case your vehicle breaks down, you can react quickly and notify the client.
Safety and Compliance
- Detect violations before they happen, based on data from drivers and vehicles. This approach ensures compliance with both external requirements and internal company policies.
Running a small fleet usually means that the resources are limited, so as an effective manager with a busy schedule, you have to maximize them as much as possible. In case you’ve been wondering, even a small fleet produces mind-boggling volumes of data, and the key to cost savings lies in proper collection and analysis of this data. The question boils down to what software system to choose as there's a lot of options in the market. Finding the right software is challenging, but the good news is when the right software is found, the ROI will be generous.
When looking up for a fleet management tool, keep in mind its scalability. There are solutions that work best for large fleets, the ones with high subscription costs, or the ones that charge you per number of vehicles. If you consider growing your fleet, these options may not be your ideal choice. Start small with a clear goal in mind. For instance, it could be the reduction of fuel consumption as according to statistics, fuel consumption makes up for nearly 40% of fleet ownership expenses.
How can Akveo help to effectively manage your small fleet?
Targeted at small and medium-sized T&L companies, the Fleet Management Dashboard is a feature-rich software with a wide array of functionality and integration possibilities. The dashboard comes with a set of integral features for the logistics sector and offers a lot of room for future customizations. Used either as a front or a backend, FTD isn’t an out-of-the-box solution but it allows developing a custom fleet management system in a matter of weeks.
The benefits of Akveo fleet management dashboard
First and foremost, the Fleet Management Dashboard is open source and free of charge. If you choose the Standard Plan edition of the dashboard, you get the code for further implementation to your backend. In its turn, the Enterprise Plan offers users premium support, integration consulting, and our team sets up both the environment and product.
When implemented, the template offers the following benefits:
- Get all your fleet data processing in one place;
- Plan a vehicle's diagnostic and forecast maintenance costs;
- Track vehicles in real-time;
- Plan routes and drivers workload;
- Analyze business revenue and calculate financial statistics.
To sum up
In 2020, the fleet management market grew to $19.9 billion, and the market is expected to reach 33.9 billion by just 2026, at a CAGR of 10.5% during the forecast period. Such rapid growth can be attributed to the increasing government regulations and affordable prices of such software. Besides, in light of the pandemic, transport, and logistics providers across the globe are seeking ways to reduce operational costs. The adoption of a robust fleet management system provides analytical information that improves the bottom line of a T&L business in a short time. Such management systems grant you a deeper look at the operational activities of your fleet so you can see areas that leave room for hidden expenses.
A. Cost reduction: cut costs related to fuel spending, maintenance, and vehicle purchases.
B. No more accidents: safety is a number one priority. Lower the number of road incidents and keep a close eye on drivers’ behavior.
C. Proper route planning: save fuel, effectively plan routes, and grow your business.
You don’t need a lot of money or hundreds of vehicles to effectively run your business. What you need is the proper technology that will improve the fleet you already have. For the last three years, Akveo has been developing fleet management software that supports logistics companies on a global scale. We assist small and medium fleet operating companies in automating their operations and making data-driven decisions. So far, we have developed more than 10 solutions for the telematics and automotive domain.
Is your organization interested in developing a convenient fleet management solution? No matter what your project’s specifics are, we offer top-notch development and consulting services that cover both technical and business aspects. Visit our fleet management page and contact us.
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