What Are The Important Aspects Of Fleet Management

Jul 08, 2023

What is fleet management and why is it important?

Fleet management refers to the approach that a company takes to oversee, organize, and manage a group of vehicles. The main purpose of this is to attain efficiency while minimizing cost and reducing risk. It also involves adhering to government regulations and monitoring drivers' behavior.

Organizations and businesses that need commercial vehicles for their overall functionality are suggested to implement fleet management because it provides the following benefits:

Real-time visibility: With fleet management software, owners can easily locate their vehicles, such as trucks, cars, and trailers. They can also access historical data that can help them make decisions that can further optimize their operations.
Records the behavior of drivers: Fleet management can also monitor and keep records of driving behaviors like idling, accelerating, speeding, or hard braking. It can also produce reports on the location and time where drivers performed risky behaviors while driving.
Fostering safety and responsible driving: By having a driver performance app, drivers are more inclined to practice safety awareness and be responsible while driving.
Reduce fuel costs: GPS tracking solutions are used in fleet management that enable owners to see the amount of fuel consumed by a specific vehicle. In return, they can decide to decrease fuel usage by tuning up the engines or teaching drivers how to reduce speed to save fuel.
Improved Customer Service: With the aid of a GPS tracking solution, owners can make sure that their drivers adhere to their routes and schedules to make their appointments earlier or on time.
Better Communication: Fleet Management is now equipped with easier tools for communication between owners and drivers. One is the hands-free device that guarantees safety to drivers while providing information and updates to owners and managers.

What does a fleet manager do and what are the challenges faced by fleet managers?

Fleet managers are the ones who are tasked with supervising and managing fleet operations. Their responsibilities are encompassing as they involve HR matters, administrative tasks, and financial concerns. It also extends to ensuring that vehicles and drivers are efficient and effective while being cost-effective and safe. They also tend to adhere to external and internal policies and purchase vehicles that comply with environmental standards.

With their responsibilities and numerous tasks, fleet managers are also faced with challenges like:

Scarcity of Drivers: Through the years, vehicles and the demand for transportation have increased; and this demand is sometimes not met due to a lack of professional and experienced driver applicants. Also, this scarcity is due to hiring inexperienced drivers can be counterproductive, and safety matters.
Fuel Cost: With ever-increasing and fluctuating fuel prices, fleet managers are faced with challenges on how to reduce fuel consumption and costs.
Vehicle maintenance: Fleet managers should guarantee that all vehicles under their management go through maintenance to ensure safety, fuel efficiency, and prolonged value. To do this, they can opt for in-house maintenance services or outsource it.
Health and safety of employees: In case of unexpected emergencies, such as an employee getting involved in a road accident, fleet managers should ensure that they comply with safety guidance. Quick reporting should also be done so that drivers can quickly avail themselves of insurance.

Benefits of outsourcing Fleet management

With the task and time required in fleet management, some companies are now opting to outsource this approach because of its benefits:

Efficient process: Outsourcing fleet management provides the company with assistance from a third-party service provider in performing the numerous tasks entailed with fleet management solutions. These tasks may include managing and hiring drivers, ensuring all vehicles are safe and adhere to environmental guidelines, optimizing routes for faster and more efficient travel, reducing fuel costs, and others. When this happens, a company can focus and allocate their resources to other facets of their business, which can help them economically grow.
Modern fleet technologies: Outsourcing fleet management allows you to get access to sophisticated and advanced tools. These modern tools aim to improve and enhance fleet operations.
Cost-effective: Hiring a third-party service provider enables your business to save more. This is because you don't need to build an in-house team or staff that will be tasked with your fleet management solutions. By doing so, you get to avoid spending on the hiring process, providing them training, ensuring their benefits, purchasing computers and tolls for them, and other expenses that come with hiring new staff. Instead, you get to pay a cost-per-service price for services offered by a third-party service provider that is equipped with well-trained staff, has acquired experience and expertise throughout the years, and owns advanced software in fleet management solutions.

What are the key components of fleet management?

To further discuss fleet management, here are some of its key components:

Global Positioning System (GPS): This is a device that can monitor and track your vehicle and other assets in real time.
Driver tracking: This refers to the feature of fleet management that records and keeps track of risky behavior performed by drivers while driving.
Fleet Security: Examples of these are cameras attached to vehicles that give extra eyes to drivers while they are doing other tasks. This can prevent theft and insurance claims when an asset is stolen or broken. Furthermore, this feat aids in traffic management and accident investigation.
Route Optimization: This feature provides drivers with the most efficient routes to take to travel faster and arrive earlier at their destination. To generate this, they take the driver’s schedule, type of delivery, number of stops, vehicle capacity, and others.
Fuel management: With the cost of fuel, fleet management assigns drivers to locations that are near them. Also, optimized routes are provided to save more fuel, and tools to track fuel-wasting behaviors are available.

As a subsidiary of MPT Mobility, Savvice Corporation has provided clients with fleet management for the past 20 years and continues to do so. Its stellar services include end-to-end operations and maintenance services such as general services, routine maintenance, and roadway systems. Moreover, these services are ISO certified and DOLE accredited, ensuring clients that their services are quality and that their processes are effective and efficient. To learn more, visit https://savvice.com.ph/.