With the rise of Software-as-a-Service (SaaS), mobile apps and subscription-based services, businesses have the option to automate their fleet management operations. Nowadays, sophisticated tools like fleet management systems can minimise a fleet operators time spent on administrative tasks to focus on what’s important, improving efficiency, fleet performance, and managing compliance-related issues in a cost-effective manner.
A fleet management system is the engine for today’s fleet managers, vehicle operators and business owners and this is your complete guide to understanding the benefits of a fleet management system and what to look for when choosing a provider.
Before getting into it, lets recap. Fleet management is the process of managing the operations, safety, compliance and productivity of your vehicles as a whole, the individual vehicles and their drivers.
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How does a fleet management system work?
A fleet management system uses hardware to store and send vehicle data via a telematics device. Each device is installed into the vehicle or asset. For heavy equipment, trucks and assets, the device is hardwired and includes a built-in Global Positioning System (GPS). It provides a satellite-derived location and other data back to a web portal in your computer, via the IoT. Light passenger vehicles, and assets with an OBDII port, can simply plug the hardware, with an embedded SIM, directly into the port.
This data feed from the device includes the tracking of live odo readings, vehicle location, travel routes, trip history and driving behaviour. It also monitors vehicle health. Depending on the provider, it may come with additional features such as service reminders, geofencing, roadside assistance, fringe benefits tax (FBT) management and more.
Who should use a fleet management system?
You may be the OH&S Manager looking to reduce risk and improve driver safety; a CEO or CFO looking to optimise your return on investment, or the Fleet Manager, responsible for the day-to-day operations – no matter the role, a fleet management system benefits all stakeholders.
The most apparent benefit of a fleet management system is that it significantly reduces repetitive and administrative tasks and streamlines the process of managing a fleet.
Why use a fleet management system?
The purpose of a fleet management system is to collect, collate, and make sense of all the data generated by a vehicle. These data insights can then be viewed on a web or mobile app by a user. It can also be shared through an API (An acronym for Application Programming Interface, which is a system intermediary that allows two applications to talk to each other). The API feeds directly into your company’s existing business systems, like a CRM platform or different technology stacks. This system is designed to optimise and automate fleet management processes and programs.
However, there are many more benefits to using a fleet management system.
Complete visibility of your entire fleet