What is Fleet Management with Track My Truck

What is fleet management?

Fleet management is the management of commercial vehicles and assets.

It refers to the processes and use of technology and software solutions to manage fleet operations, reduce operational costs, and increase profitability.

The most common processes involved in fleet management include vehicle tracking, asset utilization, vehicle maintenance, dispatch, driver management, improving driver safety, being compliant with different regulations, controlling costs, etc.

Because the responsibility of managing a fleet involves a lot of moving parts and variables, fleet managers need reliable fleet management software to assist them with their tasks.

What is fleet management software?

Fleet management software is a broad term for a centralized set of tools that help businesses track and manage a mobile workforce.

A business with commercial vehicles requires visibility into operations. A fleet management software serves that purpose by giving fleet managers the right tools and insights to manage their fleet effectively and efficiently.

Fleet management software is used by a wide range of industries to automate operations, reduce costs, improve performance, increase real-time visibility into operations, and even comply with government regulations.

How does fleet management software work?

Fleet management software uses a small telematics device that connects to a vehicle’s on-board diagnostics port. While installation methods differ, many solutions are “plug-and-play” and do not require a mechanic. The telematics device collects vehicle data such as real-time vehicle location, distance traveled, speed, vehicle fault codes, fuel usage, idling, harsh braking, rapid acceleration, etc.

This data is then sent to an online fleet management dashboard via a cellular connection — where it is organized into a set of tools and reports used to track and manage your business.

Additionally, leading solutions have a mobile application to facilitate driver productivity and efficiency tools. The telematics device sends data to the mobile device via Bluetooth, USB, or a cellular connection. A mobile solution allows fleet managers to manage fleet operations remotely.

Who uses fleet management software?

Fleet management software is used in a wide range of industries, such as trucking, field services, utilities, construction, oil and gas, mining, local delivery, governments, and passenger transit.

Any industry that uses commercial vehicles as part of a mobile workforce can benefit from fleet management software. Additionally, businesses of all sizes and types can use fleet management software — from small family-owned operations to large global enterprises.

Within these businesses, fleet management software is used by a wide range of job functions, including business owners, fleet managers, dispatchers, and safety managers.

However, fleet management systems are mostly used by fleet managers.

Benefits of a fleet management system

Most trucking companies use a fleet management system to improve their operations, increase visibility and efficiency, and aid them with DOT and FMCSA regulation compliance.

This may include proactively catching vehicle maintenance issues, automating IFTA calculation, streamlining dispatching, improving vehicle safety, and more.

Here are some of the major benefits of using a fleet management system.

1. Improved customer service

The customer is king. According to Bain & Company, a 5 percent increase in customer retention produces a 25 percent increase in profits. Additionally, 86-95 percent of consumers read online reviews for local businesses before purchasing.

Fleet management software is increasingly being used to improve the customer experience. Here are a few ways it can help:

Route optimization and planning with location history data for on-time deliveries
Accurate ETAs for customers with real-time asset tracking

2. Automating manual tasks

In business, time is money. Fleet management software can automate many manual, repetitive tasks. As a result, it may reduce administrative burden, minimize operating costs, and allow you to focus more on business growth.

Here are a few examples of how fleet management solutions can help automate tasks by:

Eliminating the need to call drivers for ETAs or status updates and job details
Making it easier to locate assets, trucks, trailers, or equipment with real-time location tracking.
Collecting and centralizing paperwork such as proof of delivery, forms, and fuel receipts
Simplifying vehicle inspection reports, IFTA trip sheets and filings, and Hours of Service management

3. Increasing profitability

Many businesses with mobile workforces require high capital expenditures that can quickly spiral out of control if not managed closely. Fleet management software helps businesses reduce costs and increase profit margins by:

Reducing fuel wastage
Preventing vehicle breakdowns by catching potential fleet maintenance issues early
Avoiding vehicle misuse and moonlighting/side jobs with real-time asset tracking
Optimizing and increasing asset utilization to do more jobs with fewer vehicles and employees

4. Improving safety

For vehicle-dependent businesses, accidents are always a risk. Beyond the duty to keep our roads safe, the financial implications are also significant.

According to the FMCSA, an average accident costs $91,000, and that number rises to $200,000 if there’s an injury.

Additionally, drivers are a moving billboard for your business. Dangerous driving behavior impacts your brand even when no accident occurs. Fleet management software can help you:

Identify your best- and worst-performing drivers
Simplify the process of driver coaching to immediately correct dangerous driving
Document past driving history to track their improvements
Protect your business from litigation and, with dash cam data, help with driver exoneration when they are not at fault.