Top 6 Benefits of a Fleet Management System

What is Fleet Management?

Purchasing a car is easy, but owning one requires a lot of effort. What are some of the basic responsibilities that comes with owning a car? First there are the legal obligations, the owner must pay for license plate registration and renewal, purchase and renew car insurance on an annual basis, and pay for respective taxes. When it comes to usage, the owner needs to first have a place to store the car, bring the car to the service center for periodic inspections and maintenance, change tires and install winter tires as needed, wash the car occasionally, and lastly, fill up the car with fuel or electricity on a weekly, if not daily basis. Now imagine being the owner of a fleet of commercial vehicles. The work required to maintain these vehicles become extremely complex because the responsibilities are likely split between multiple individuals, adding to the complication that the primary driver of each vehicle tend to change over time. This makes a fleet management system necessary for all commercial fleet operators.

As the name suggests, fleet management is the practice of managing a fleet of commercial vehicles, such as cars, trucks, ships, and even delivery robots. It is commonly used by mobility providers such as public transportation companies, carsharing service providers, and delivery firms to ensure that their vehicles are used safely, efficiently, and well-maintained.

In this article, we will introduce six major benefits of using a fleet management system.

What Are the Benefits of a Fleet Management System?

1. Managing Administrative Work

A fleet management system keeps a record of all data regarding the vehicles. This includes every vehicle’s purchasing, financing, and leasing information, registration information, and insurance information. Since oftentimes the vehicles are purchased under different terms and conditions, it can be extremely difficult to keep track of these data and follow these conditions. This often leads to fines, penalties, and expenses that could have been totally avoidable. Using a fleet management system helps the owner manage these administrative works easily without missing any deadlines.

2. Managing Vehicle Maintenance

The biggest challenge of owning and operating a fleet is keeping all the vehicles properly maintained. Since vehicles are one of the most valuable assets for mobility providers, periodic inspections and maintenance help prolong their service life and significantly reduce costs in the long run. A fleet management system allows the fleet manager to track the current condition and maintenance history of every vehicle. Oftentimes, customized notifications can be selected so that the fleet manager can receive warnings on any vehicle issues in real-time. Without a fleet management system, it becomes very challenging and costly to detect and fix problems immediately and keeping vehicles maintained on schedule.

3. Managing Fuel Consumption

Apart from labour and maintenance costs, fuel expense is a major operating expense for mobility providers. Saving a few dollars per day on a vehicle does not seem like a lot, but the aggregate savings of a fleet of vehicles on an annual basis can make a remarkable difference on the financial standings of a company. A fleet management system can help maximize fuel economy by enabling the fleet manager to not only track each vehicle’s real-time mileage and fuel expenses, but also to analyze each driver’s behaviour to identify any wasteful usage patterns, such as excessive acceleration and prolonged idling.

4. Managing EV Range and Charging

For mobility providers that use autonomous and electric vehicles as part of their fleet, tracking their range and having them charged on time becomes a crucial task, because the last thing you want is to have the car run out of power before reaching the passenger’s destination. A fleet management system can make this process seamless and automated, so that vehicles can be dispatched and allocated appropriately.

5. Managing Driver Performance and Safety

It is very hard for mobility providers to establish consistent service quality because it almost entirely depends on the individual driver. A fleet management system can keep track of every vehicle’s activity in real-time, which is a clear reflection of the driver’s driving habit and behaviour. A fleet manager can use the system to set up customized reporting on all kinds of inappropriate behaviours – for instance – driving over 20km/h above the speed limit, sudden acceleration and braking, and prolonged idling during operation hours. This is especially useful for taxi companies, as the drivers could exhibit reckless driving behaviours to beat the clock and compete for business. Hence, using a fleet management system not only helps improve service quality, but also greatly reduces the possibility of road accidents.

6. Service Optimization

The road is a dynamic place. Many external factors can affect the service of a mobility provider, including traffic jams, weather conditions, accidents, constructions, and road closure. A fleet management system can help the mobility provider gain real-time insights on where their vehicles and potential customers are. The fleet manager can then dispatch and direct vehicles to areas where demands are high. The system also improves route planning to minimize travel time. To make this process more automated, an end-user interface is oftentimes accompanied by a fleet management system so that the customers can reserve for services directly on their smartphones.

AutoCrypt FMS, Fleet Management Utilizing Smart Mobility Infrastructure

AutoCrypt FMS is a fleet management system that offers customized services for mobility providers to monitor and manage all their resources in a secured and reliable way. By establishing secured communication with encryption and authentication technologies, AutoCrypt FMS ensures the accuracy and privacy of all data collected and stored in the process. By utilizing big data from other V2X-enabled entities, it offers some of the most advanced benefits of a fleet management system, along with highly comprehensive and secure insights. Click here to learn more about AutoCrypt FMS.

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