From vehicle acquisition to storage to maintenance, overseeing a fleet of business vehicles requires extensive planning, monitoring, and optimization. Each vehicle impacts your bottom line, from the smallest of sedans to the largest delivery vans.
But what is fleet management, and will refining your fleet management processes actually improve business performance? (The short answer is yes—and that’s true whether you’re running a car rental business or a local flower shop backed by a fleet of delivery trucks).
While a bigger time commitment in the beginning, fleet management solutions can help keep costs low and streamline business operations. But step number one is making sure you have somewhere to park your fleet vehicles. After all, your fleet vehicles can’t positively impact your business if they’re towed and/or impounded.
Understanding Fleet Management
Whether your business operates with the help of a fleet of semi-trucks, delivery vehicles, marine vessels, or construction vehicles, you’ll need a fleet manager whose sole responsibility is to monitor your fleet’s efficiency — that’s where fleet management comes in.
Fleet management involves a diverse range of tasks, including:
- Vehicle acquisition (Does your business need a semi-truck or more delivery vans to fast-track production?)
- Maintenance (Are all fleet vehicles up to date on oil changes? Do any of the air filters need replacing?)
- Tracking
- Optimization of fleet operations
The ultimate goals of fleet management are to maximize safety, reduce risk, cut costs, and improve efficiency. Fleet management will also ensure your business remains in compliance with local regulations.
What Does a Fleet Manager Do?
A fleet manager typically tracks fuel consumption, vehicle maintenance costs, and driver performance metrics. They also use fleet management software to accurately track and monitor vehicle maintenance, driver safety, and other regulatory requirements.
Fleet managers often use software to plan optimal routes, leading to faster deliveries and reduced fuel consumption.
Other tasks, like finding reliable repair shops and fleet vehicle storage solutions, also typically fall under the purview of a fleet manager.
Key Components of Fleet Management
Breaking down the key components of fleet management makes it easier to understand how this practice can benefit your business and improve overall efficiency.
Vehicle Maintenance and Acquisition
When building a fleet, it’s important to carefully assess your needs to determine the type and quantity of vehicles you’ll need to acquire.
Maintenance is also a critical aspect of fleet management, as it ensures that company vehicles are kept in safe and reliable operating conditions, safeguarding drivers and preserving residual value.
Driver Management and Safety
Fleet managers prioritize driver safety, using tools like dashcams, GPS tracking, and driver training tools to promote a safety-conscious environment. Using these tools allows fleet managers to reduce risk and improve driver behavior.
Fleet managers also play a vital role in enhancing driver retention and satisfaction. They may consider establishing mentorship programs, optimizing workplace conditions, and reinforcing trust between driver and manager to boost driver retention.
Route Planning and Optimization
By optimizing routes, fleet managers can enhance efficiency, decrease fuel use, and minimize travel time.
Route planning and optimization entail:
- Allocating vehicles
- Establishing custom zones
- Assessing missed or disorganized stops
- Comparing theoretical and actual arrival times and stop duration
- Monitoring travel time and time spent in designated zones
Fleet managers can use route analysis to quickly find the optimal route to a destination. This route would take traffic patterns and Google Maps data into account.
Fleet Management Technologies
Telematics and fleet management software are important elements in contemporary fleet management, providing real-time data and insights to support data-driven decision-making. Some key benefits of using fleet management software and telematics include:
- Real-time tracking of vehicles and assets
- Monitoring of driver behavior and safety
- Optimization of routes and fuel efficiency
- Maintenance and repair management
- Compliance with regulations and safety standards
More than three-quarters of fleet managers utilize fleet management software or vehicle telematics to assist with the daily operations of their fleet vehicles.
Telematics in Fleet Management
Telematics uses GPS, sensors, and communication technology to track a fleet’s every move. This means you can see where your vehicles are, how fast they’re going, and even how gently (or not so gently) they’re being driven.
Telematics helps fleet managers make smarter decisions, like optimizing routes to save fuel, scheduling maintenance before a breakdown, and even keeping an eye on driver behavior for safety.
Telematics works hand-in-hand with fleet management software by providing the data the software needs to help you optimize fleet operations.
Fleet Management Software
Fleet management software, like Geotab or Fleetio, makes fleet managers’ jobs easier by providing tools they can use to manage their fleets from anywhere.
These tools let you track and analyze data that you collect with telematics. For example, you can use fleet management software to generate fuel consumption reports that show you how fuel usage is impacted by driving habits or the vehicle model type.
Fleet management software also helps stay on top of vehicle maintenance and repairs by allowing you to create digital work orders, locate local repair shops, and set up reminders for upcoming maintenance tasks.
Integrating fleet management software with other tools, such as human resources, finance, insurance, and other essential stakeholders, automates processes, cuts operational costs, and optimizes data utilization.
Why Do Companies Use Fleet Management?
While cutting costs and increasing productivity are key benefits of fleet management, they aren’t the only reasons companies prioritize this practice.
Applying efficient fleet management strategies, like using fleet management software to track fuel consumption, can yield multiple benefits, such as:
- Improved driver safety
- Increased driver retention rates
- Reduced fuel consumption
- Better customer relationships due to improved delivery times
Businesses can achieve significant cost savings and increased productivity by optimizing routes, reducing idle time, improving maintenance schedules, and implementing technology solutions like GPS tracking and fleet management software.
Challenges in Fleet Management
Most commonly, fleet managers will encounter difficulties while handling vehicle data, adapting to industry shifts, and obtaining approval for enhancements from various departments (and that’s only scratching the surface of issues that will require troubleshooting).
Fleet managers will also need to monitor safety and productivity, implement cost-cutting measures, and respond to fluctuating fuel prices.
Want more insight into the speed bumps fleet managers will need to navigate? Read on.
Managing Vehicle Data
With the increasing amount of data generated by modern fleets, managers must find effective ways to analyze and utilize this information for decision-making.
Managing vehicle data in fleet management involves collecting and analyzing data related to the vehicles in a fleet. From vehicle location tracking to measuring fuel consumption, there are various metrics that can help fleet managers optimize business operations.
By proficiently managing vehicle data, fleet managers can acquire knowledge regarding their operations and make informed decisions.
Adapting to Industry Changes
Fleet managers must stay up-to-date with evolving regulations, technology advancements, and customer needs to ensure continued success.
To adapt to industry changes, fleet managers need to pay attention to industry trends and adopt new technologies as they become available. This, for example, might include utilizing modern fleet management software or implementing sustainable practices, such as acquiring electronic vehicles (EVs) when applicable.
In-House vs. Outsourced Fleet Management
Companies can manage their fleets internally or delegate to a third-party firm based on their needs and resources. In-house fleet management involves managing a company’s fleet of vehicles internally, giving companies greater control over their fleet operations and allowing them to tailor them to their specific needs and requirements.
On the other hand, partnering with a professional fleet management company can provide a range of benefits, such as:
- Decreasing operational expenditures
- Minimizing administrative responsibilities
- Minimizing fleet repair costs
- Guaranteeing the highest level of safety for your personnel.
When assessing a fleet management provider, it is important to inquire about:
- Their client service
- The fleet services they offer
- The contract flexibility they provide
- Their transition plan
- The feedback from their clients
If you’re in the market for a third-party firm, make sure to compare rates and services between multiple providers. Taking the time to compare your options will help you find a provider that meets your needs and offers affordable rates.
Final Thoughts
One crucial yet oft-overlooked aspect of fleet management is storage. Reliable, affordable storage solutions allow you to safely and securely keep track of your fleet vehicles.
To find storage for your vehicle fleet, check out Neighbor or contact local providers to find the best rates on local fleet vehicle storage.
