What is fleet management?
What is fleet management?

What is fleet management?

Fleet Management is the management of your fleet’ usage & maintenance. By extension, it also includes employees & drivers management. The term Fleet Management indicates a variety of products and services enabling the productivity improvement of a company, thanks to a rationalisation & optimization of fleet usage. 

Generally, it lies on the utilisation of a fleet management system, composed of two main elements: an on-board computer (fitted into each vehicle of the fleet) and a fleet management software exploiting and analysing the data collected from the equipped vehicles. 

Let’s dive into more details and allow us to share some common information on this solution, which is now fully expanding thanks to the evolution of new technologies. 

Concretely : 

For companies to maintain some level of profitability, an efficient fleet management is needed. Whatever the size of your fleet, and of your company, you need to make sure these assets and the services they offer to your clients are well managed.

Thus, a Fleet Manager needs to handle:

  • Costs monitoring
  • Maintenance and proper functioning of assets 
  • Drivers’ management 

Fleet’s Costs Management

Fuel costs

When breaking down the costs of a fleet, fuel appears as the most important operational expenditure, as it can reach up to 80% of the total cost of an asset.

With constantly moving vehicles and drivers regularly filling up the tank of their car, monitoring your fuel consumption costs is the keystone to calculating the total cost of your fleet.

Some people ascertain a cost of fuel per kilometer thanks to GPS beacons and fuel measuring tubes, and by doing so ensure an efficient monitoring of the consumption.

Here at Fleeti, Marie Rey, responsible for customer care, explains how our plateforme interacts with your technologies to ease your life. 

“Most of the companies use fuel cards, which allows the monitoring of expenditures to be digitised and easy to do. Fuel theft, which previously was a regular practice, is no longer relevant.

In fact, we cross the information we get from the fuel tanks (thanks to our fuel sensors) with the fuel receipts we find on the platform of your fuel supplier. If any anomaly is detected, we are informed about it and directly warn our customer. He also gets notified via the alert system on our platform.”

Fleet telematics and asset tracking

The installation of sensors and tubes can also help fleet managers to track their assets.

In the case of a fleet specialized in last mile delivery, priority is given to on-time delivery. Thus, it is important to anticipate events that may occur on the route (construction, traffic jams) or the final customer experience will suffer. These delays also translate into overtime costs, additional fuel costs and potential lost revenue.

Thanks to fleet management tools, you will have a better visibility of the real time location of your drivers, and you will be able to make quicker decisions when facing an obstacle.

Asset usage 

We know that all high quality vehicles are not cheap (mechanical shovels, heavy trucks, vans, sea port Kalmars…). It becomes essential to pay attention to the amortization, and make sure that the return on investment is maximized.

Like so, it is important to know the amount of kilometers travelled per day and the usage hours to find out if your fleet is optimized. Some of our clients realize that their fleet is too large and make some quick savings by reallocating part of the budget they allocated to the fleet towards activities that bring in more value.

The risk of spending too much on an oversized fleet is then avoided, just like the risk of having an undersized fleet in the case of great demand.

Fleet Reports 

Retrieving data from different sources is not an easy task… But once this is done, the next challenge is to know how to interpret them.

Vehicle fleets that are managed via excel spreadsheets do not allow for an optimal exploitation of operational information. Most of the time is spent collecting and formatting data whose accuracy can many times be questioned.

Imagine that a platform does this work for you, and that in one click you are able to have access to key indicators and specific reports! Less time spent on data collection and report creation, more time available to improve your fleet or other core aspects of your company.

Fleet maintenance management

An out or order asset is a money-losing asset. Maintenance is therefore a crucial task for the fleet manager.

Among our customers, there are two schools of thought: those who outsource maintenance and those who manage it internally.

In both cases, it is important to be able to access the history of interventions & expenses receipts, and to centralize them in a software.

The fleet manager then organizes a preventive maintenance schedule in which he determines the frequency with which assets will be serviced to prevent breakdown. He must be able to know the activity of each vehicle in order to organize the revision at an optimal schedule. 

I hope that we share the same vision on fleet management and that you too are convinced by the advantages of a fleet management software to assist you!

Feel free to check out our other articles on the blog.