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What is Fleet Management?

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Fleet management is a system of technologies and procedures designed to help an organization and fleet managers run at the most efficient capacity, and as companies face growing demand and other industry challenges, fleet management is important to differentiate themselves in a crowded market, improve productivity and safety and positively impact the bottom line.

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Why is fleet management important?

As fleets and companies adopt technology to differentiate themselves in a crowded market and optimize operations, fleet managers are responsible for coordinating an increasing number of systems, technologies, third-party integrations and employees. Companies must handle growing demand and tightening capacity alongside other industry challenges like the driver shortage, rising fuel prices and industry regulations. Being able to manage a fleet in its entirety, from day-to-day tasks to the big picture, is important to keep companies running smoothly and profitably, while creating a safe, comfortable environment for drivers.

With second-by-second details from fleet management solutions about vehicle location and job progress, fleet managers have access to data and insights in one central place to improve processes. Multiple data points delivered to fleet managers from telematics allows them to leverage key metrics, like vehicle usage, driver behavior and idle times, supplying answers to questions about productivity. Fleet managers are then able to make changes or improve processes during the workday and in real-time. A more efficient fleet is a more cost effective fleet; as managers identify and correct for inefficiencies like driver behavior leading to excessive idling or above-average fuel usage, they can incur cost savings.

Safety is a priority for every organization, and fleet management is an important part of building a safety-first company. Telematics allows fleet and safety managers to effectively monitor for dangerous behaviors at the individual and fleet-wide level. Data can be used to develop driver safety programs, and by integrating dashboard camera and safety analytics technology, create personalized, relevant training to coach drivers on safe behavior, creating a safer fleet.

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What are the responsibilities of a fleet manager? What skills do they need?

The responsibilities of a fleet manager are wide-reaching, including (but not limited to) the following:

  • Vehicle dispatch and route optimization (to make dispatch management and routing more efficient)
  • Fuel utilization (including designing and managing programs to decrease fuel usage)
  • Fulfilling orders (ensuring deliveries are on time, orders are met and customers are satisfied)
  • Understanding, managing and communicating compliance (ensuring regulations like the IFTA fuel tax and HOS regulations are followed)
  • Monitoring and improving driver behavior and safety (including supporting corporate and fleet-wide safety initiatives)
  • Setting and tracking against metrics (to keep the entire fleet on track and measure success against agreed upon metrics)
  • Asset acquisition, utilization and care (to ensure assets are in safe condition and save money by preventing unnecessary maintenance or replacement)
  • Findings savings for the bottom line (to improve cost savings for the entire company)

Fleet Managers need to be agile, forward thinking and have strong problem solving capabilities. Here are some of the skills that are most important:

  • Interest in technology - staying on top of digital trends and how they’ll impact a company in all areas
  • Ability to read and understand data - making inferences and building solutions around data insights from technologies like IoT and telematics
  • Adaptability - the ability to multitask and manage deadlines
  • Problem solving - managing drivers’ feedback and concerns and solving for inefficiencies
  • Appetite for knowledge - the ability to stay on top of technology and policy trends, and a willingness to learn new things, in a rapidly changing industry

How is the fleet management role changing?

As fleets grow, bringing on vehicles and managing new regulations to forge ahead in the market, one central change to the role is the adaptation of technology. The successful fleets are those who will integrate technologies and make the most of innovations like IoT, telematics, Artificial Intelligence, Machine Learning and more. In-vehicle telematics are quickly becoming a must-have for commercial vehicles and heavy machinery, and fleet managers must be able to understand the technology, learn how to use it and determine how it fits into their role at a company. It may also require a whole new set of skills, both technical and personal, to manage the capture and analysis of data. It’s also the role of fleet managers to find efficiencies using this technology, meaning they’re more closely involved in finding, selecting and implementing technology, like fleet management software solutions.

How does fleet management technology work?

Fleet management at its most basic level is based on the principal of the Internet of Things (IoT).. IoT connects physical devices, including vehicles or equipment, embedded with electronics, software, sensors and actuators, which allows the connected devices to collect and exchange data. This data, once analyzed, can provide insight into next-steps or actions. In the case of fleet management technology, a telematics device connects to an engine, either on a vehicle or piece of heavy equipment, via its on-board diagnostics (OBD) or CAN-BUS port. The sensors collect data, like engine and driver hours, speed, GPS position, time elapsed since the last maintenance service, which is then viewable in real-time through a software platform so managers have complete visibility into an asset’s location and conditions at all time. As fleets monitor and track against more metrics like safety, maintenance and fuel usage, the more data is available to them. To make data management simple, fleet management solutions providers aggregate data into one central system, making it easier to digest data and examine trends via analytics.


What capabilities does fleet management software provide?

A true fleet management solution gives fleet owners and managers full visibility into fleet performance and mobile resource activity to drive efficiency in one unified platform. This includes visibility at an individual level - from a driver to a single vehicle or piece of equipment - to a high-level view of the entire fleet, including those with thousands of vehicles. One important capability of fleet management software is tracking vehicle safety. Safety analytics solutions are systems that incorporate telematics, combining the GPS tracking data with dashboard camera technology, driver scorecards and analytics measuring the safety of a fleet. At their most simple, safety analytics track unsafe events like speeding, harsh cornering or braking. At their most sophisticated, these solutions integrate cameras so managers have video footage triggered by driving incidents to view a play-by-play of the scenario and view analytics on a single platform.

What types of fleet management software are available?

There are a variety of fleet management software types. Solutions can be used for any on-road fleets, including long-haul trucking, last mile delivery and service fleets, and also for off-road fleets, to heavy equipment and high value assets on construction industry. For over the road fleets, fleet management software ensures fleet compliance with regulations like hours of service (HOS) requirements and the electronic logging device (ELD) mandate by accurate tracking engine hours, drive time and off-duty status. Vehicle location data can be used to optimize route planning and improve customer service, identify patterns in driver behavior and report on trackable metrics (fuel usage, idling, utilization, vehicle use, etc.).

For off-road fleets, fleet management collects data from heavy equipment and other construction assets, measuring equipment location, utilization and maintenance to help construction companies increase productivity, reduce costs and improve overall operations. Telematics can optimize asset utilization (track equipment location, engine hours, mileage and position, idle time, etc.), improve preventative maintenance (create logs, track hours for scheduled maintenance, plan preventative repairs, etc.), enhance operational efficiency (monitor planned progress, payloads, cycle times, daily production targets, etc.), improve safety and driver performance (identify unsafe operations, score drivers and operators, reduce equipment wear and tear, etc.) and manage fuel usage (track idle time and fuel consumption and benchmark fleet-wide fuel usage).

What should fleets look for in fleet management software?

The most important aspect of a fleet management solution is a finding a customizable solution that offers a full, 360-degree view of fleet operations and displays the data in such a way that it helps managers make critical business decisions. When researching software vendors, fleet owners and managers, along with other decision makers, should look into a company’s capabilities in the following areas:

  • Fleet visibility: The ability to monitor a fleet of vehicles from anywhere in real-time. Decision makers should look for a solution that makes tracking driver location, fuel usage and maintenance records easy.
  • Vehicle and trailer tracking: Look for a platform that allows fleet managers to track trailers and assets 24/7 to maintain security and monitor activity. These capabilities can allow fleet owners and managers to assess productivity and implementation procedures to optimize equipment and personnel.
  • Compliance: A top fleet management solution streamline safety and compliance process, eliminate hours of paperwork and avoid costly fines and penalties for compliance with IFTA, ELD and DVIR.
  • Maintenance: Select a fleet management platform that enables a strong preventative maintenance program to properly take care of vehicles and assets and keep them on the road.
  • Fleet safety: Fleet owners and managers should look for a solution with a wide range of safety-specific solutions built into the platform to create a safe environment for drivers and save money on insurance premiums. Features to look for include driver scorecards, safety analytics, event viewers, in-vehicle notifications and in-cab cameras.
    Reporting and analytics: Access information securely and electronically with customizable dashboards, reports and real-time alerts. Fleet managers should look for a solution that offers personalization and functionality when building reports and tracking the most critical KPIs.

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