What Is The Purpose Of Fleet Management?

Category: B2B News

As a way to start the discussion on the all-important question what is the purpose of fleet management software in a business, we need to point out the growing awareness of how Fleet Management Systems optimize processes and improve efficiency of adopters, the implementation of strict government regulations for transportation companies regarding safety measures and the growing popularity of mobile devices are expected to drive the market at an amazing CAGR of 20% from 2017 to 2025.

While this suggests an overall positive picture for the future of Fleet Management providers, current realities about rising operational costs due to increasing expenditures on maintenance, rising demand for utility vehicles, and the escalation of keeping up with compliance costs cast clouds of doubts over the horizon. Indeed, the fleet management software market has been seeing meager margins for some time, resulting in providers looking at streamlining operations to bring them back to regimes of comfortable profitability in the long run.

As with many industry sectors, such developments may be seen as the birth pangs of businesses and societies marching inexorably to the era of internet of things, when driver and vehicle communicate in more effective ways, and when vehicle-to-vehicle and vehicle-to-infrastructure connectivity is but a foregone conclusion. That kind of future suggests a mind-boggling deluge of new data that would demand a new approach, perhaps from predictive analytics of today to the more widespread application of prescriptive analytics on fleet management of tomorrow.

1. What Is the Purpose of Fleet Management in a Business?

The purpose of Fleet Management in a business is to ensure the work vehicles of a business are operating smoothly, are constantly seeking ways to improve performance, are able to keep operation costs at a minimum, and maintain compliance with government regulations.

2. What Is Fleet Management?

Fleet Management refers to the applications, tools, technologies and practices that help businesses maintain optimal use of their work vehicles from a central platform. In its current form, Fleet Management entails the use of:

  • database information software
  • telematics and GPS tracking software

3. What Are the Benefits of Using Fleet Management?

Companies who have been using Fleet Management agree that it generally allows businesses using it to:

  • Acquire more control over drivers and vehicles.
  • Less time spent on predicting time of departure and arrival, getting hold of traffic updates and road conditions improves productivity.
  • Save on fuel consumption.
  • Prevent delays on deliveries.
  • Reduce road accidents.
  • Improve driving habits.
  • Prevent dubious reporting.
  • Prevent unauthorized use of vehicles.
  • Track and recover lost vehicles.
  • Customer get better service having real-time access about the location of their assets.
  • Lessen driver frustration while on the road, increasing employee satisfaction all around.
  • Reduce cost of insurance
  • Lessen maintenance costs

4. Why Should You Use Fleet Management System?

The use of Fleet Management System ensures that the operation of company vehicles totally align with company goals rather than as source of headache, which typically happens in its absence. The improper use of business vehicles can easily add substantial losses to your business operation, not to mention the time wasted by managers to drivers looking over the issues in search of meaningful ways to address those losses. If your business is directly involved with providing transportation to the public, it may mean the difference between a continuing operations or shutting down if you have accumulated enough grave offences to compliance regulations.

5. How Does Software Tools Optimize Fleet Management?

Fleet Management Software that stores all the vehicles your organization has purchased or leased, their specifications, details of maintenance, service and part histories, drivers and related compliance documents including licenses and tax, fleet insurance, fuel transactions, operating expenses reduces all involved administrative process and makes sense of everything to do with your fleet in terms of operating costs, overall cost of ownership, and all things pertaining to compliance and whether you are still on the legal side of things. The software’s capability to generate reports, alerts and emails, things simply get better and faster for your organization, a thing that is not possible in the fast.

Telematics software gives your company unprecedented real-time tracking of all your vehicles, making it more efficient and easier to dispatch the involved workforce as well. It enables you to determine precisely when vehicle and driver will get to their destination, and how the vehicles are driven and handled by the driver.

Integrating the functions of both software hands any organization a degree of control unheard of in the past, a way to optimally run and manage their fleet of vehicles no matter what size.

What Are Examples of Fleet Management Software Solutions?


Based in the UK with subsidiaries in the US and the EU, GPSWOX provides solutions for GPS fleet management, vehicle and personal tracking applications, allowing its wide use in both personal households and enterprises worldwide. GPSWOX can track anything, from persons, smartphones, bicycles, boats, trucks and any other vehicle. The tracking function is supported by a powerful system of real-time notifications, reports and other information that the user chooses to set up during installation. If you want to see the nitty-gritty details of this system, you can easily do so when you sign up for GPSWOX free demo here.

GPSWOX actively distributes and markets its products anywhere in the world, in the process establishing partnerships with companies to set up their own GPS-based tracking business through the GPSWOX system at affordable prices. GPSWOX experts can be tasked to set up the whole package and see to all the technical aspects required by customers. There is training and technical support for those who request them.

GPSWOX lets companies monitor the safety of vehicles and drivers, identify problem employees, dispatch drivers more efficiently, advise customers of precise delivery arrivals, use its reporting tools to gain more insight about travel history, vehicle speed and fuel consumption.

GPSWOX allows partners to generate their own unique brands to establish their names with their customers through the use of their own logos, unique company names, and use of design choices for the software interface.

2.  NexTraq

A Michelin Group company headquartered in Atlanta, GA, NexTraq is a leading innovator in telematics offering a GPS-based Fleet Management solution for organizations with vehicles ranging from 2 to more than 2,000. In 15 years operation, NexTraq has racked up more than 75,000 satisfied customers 95% of whom report they would be happy to refer the platform to their contacts.

NexTraq’s vehicle tracking service will track the routes and stops drivers take in full detail. It is one of the pioneers in allowing companies to see whether drivers are resorting to harsh acceleration, overspeeding and harsh braking.

You can set up NexTraq to acquire such maintenance information as tire rotation, oil change schedule or necessary repairs, extending the life cycle of your vehicles and ensuring drivers take road-worthy vehicles on the next delivery rounds.

As NexTraq is truly easy to install, you don’t need to spend on professional installers to have the software running. The system is hidden from drivers to prevent tampering.

NexTraq requires a startup fee per unit and a cancellation fee in case you decide to stop using the solution.

3.  Wialon

Available as either server-based or cloud-based SaaS version, multifunctional fleet management solution Wialon is capable of both mobile and stationary asset tracking. More than 950 fleet tracking service providers choose Wialon, accounting for more than 850,000 tracked assets combined. Apart from supporting more than 1,000 GPS hardware tracker devices, Wialon also provides a cartographic server. For robust integration with existing back-office systems, Wialon comes with an Open API feature.

Aside from tracking such devices as automobile controllers, software-based trackers on mobiles and personal GPS trackers, Wialon can also process data from after-market sensors for weight, humidity, temperature, light and others, cameras, tachograph and other supplementary hardware connected to GPS tracking devices.

There is a native multilingual support for both Wialon SaaS and server-based versions. Such powerful features give Wialon clients deep real-time insights into their assets.

Available in more than 130 national markets, Wialon also offers outstanding 24/7 technical support.

4.  GPS-Server

GPS-Server is powerful but easy-to-use GPS tracking system that companies or individuals can use to find the location of vehicles, cargo, boats and people. You can access it via the cloud using just any mobile or GPS compatible device, or you may install it right on your own server. Local server installation allows you to create your own tracking business by connecting any number of devices or vehicles and developing new protocols in order to expand its capabilities. You can make it fully your own by attaching your own company name, logo or domain to the system.

You can set up GPS-Server to track multiple targets in real time, monitor objects by the thousands and present their location on maps right down to street level in your browser of choice. GPS-Server provides direct viewing of historical tracks and notification during important events.

GPS-Server works with hundreds of tracking devices, giving you superior flexibility and coverage. The software is regularly updated, ensuring you get the latest features to improve your own tracking business offerings.

5.  MyRouteOnline

MyRouteOnline is a web-based route-planning solution individuals or companies can use to find the quickest route given multiple addresses and stop duration times. With allowance for multiple map locations, MyRouteOnline makes it easy to plan daily routes and deliveries online while navigating with the app. You thus minimize time on the road, go green and reduce carbon footprints while saving money in the process.

If you or your company regularly deals with service tasks, pickups and deliveries, then MyRouteOnline is just the ideal solution to your requirements. Typical users of the platform include commercial delivery services, technicians, real-estate agents, garbage and recycling collectors, travelers and campers who need efficient travel routes and family members needing to optimize running errands.

MyRouteOnline allows users to import contacts from Excel, text, and CSV, plan up to 350 addresses per run and set specific time for each location. You can use optimization goals like minimizing or balancing distance and time and review the results later on for any need to change stops and the like.

6.  Teletrac Navman Director

Teletrac Navman Director is a fleet management software that allows fleet managers to monitor vehicles in real time. The program’s powerful visibility feature provides critical information such as route, traffic, idle cycles, geofencing and fuel consumption. Fleet managers can easily transmit data to their dispatchers and drivers to give them the best routes to use, saving on fuel costs and time used on the road.

Teletrac Navman Director’s Driver Management tool will track and record incidents of overspeeding, harsh acceleration and braking, cornering and stop-sign violations. The feature ensures drivers are sticking to best practices while on their own along their routes, an important consideration when ensuring compliance with internal regulations and external standards set for fleet management. An Event Viewer ensures drivers fill in accurate reports or the software could just replay the recorded vehicle activities in question. Powerful capabilities like these allow fleet managers to resolve problematic driving habits: drivers either undergo training after reviews call for such actions or they be made to quit the company.

Another feature, Vehicle Analytics, lets drivers to check their vehicles for breaks or lights among others to ensure the vehicles are roadworthy. There is a Director’s Driver Vehicle Inspection Reports electronic module (DVIR), to enable drivers to send status reports for their vehicle and repair updates without the need of doing paperwork. This frees drivers from time-consuming processes and more time to concentrate on the most important aspect of their jobs.

7.  Linxup GPS Tracking

Linxup GPS Tracking is a vehicle, asset and equipment GPS tracking solution for businesses of any size. It helps these businesses improve their operational efficiency while ensuring vehicle and driver safety on the road. Linxup GPS Tracking’s business partners lessen response times to their own customers by determining the best routes and dispatching the vehicles that are best equipped to handle the identified road and traffic conditions.

With Linxup GPS Tracking, companies learn the important things they need to know about their drivers’ habits and work with them to improve behavior on the road, in the process decreasing instances of insurance claims.

Another proven way insurance claims are reduced is theft protection. As Linxup GPS Tracking enables timely location reporting, fleet managers can immediately act if their vehicles are deviating from their target routes.

8.  PeopleNet

PeopleNet is a fleet management software offering end-to-end tracking for fleet performance monitoring, travel logging, navigation routing, safety and insurance. The custom-designed GPS receiver along with strong adherence to vehicle telematics make PeopleNet a great proposition for small to medium sized businesses operating a number of trucks.

PeopleNet ensures instantaneous access to relevant, critical data through professionally managed network of satellites and wireless carriers. The data can be accessed through web-based applications, mobile devices or any third-party device with access arrangement to the PeopleNet API.

PeopleNet monitors all details that matter to your fleet operations: fuel usage, RPM, speed or idle times among others. There’s a Vehicle Management Comparative Dashboard that empowers fleet managers to view all reports side by side and click on a selection of parameters to achieve superior comparison insight.

With no annual maintenance fees and software updates provided on a regular basis, PeopleNet customers remain competitive with the latest features. The platform simply combines mobility, effective communication tools, and real-time analytics that consistently earn acclaim for offering great benchmarks for informed decision making and technology-driven fleet management.

9.  ClearPathGPS

ClearPathGPS is a comprehensive software solution designed to help businesses improve delivery times, have better control over their fleet, as well as simplify the vehicle maintenance process. Intuitive and mobile-ready, this tool is equipped with a wide variety of features including fleet tracking, route mapping, vehicle behavior monitoring, and virtual timecard reporting. Moreover, it records vehicle operation costs and usage so that you can plan for fuel efficiency and vehicle optimization.

Another great thing about ClearPathGPS is that it gives you a real-time overview of driver productivity. With this, you will know the exact location of vehicles, monitor traffic conditions, and check if your drivers are making it to their destinations within respective ETAs. This way, you can pinpoint the causes of inefficiency and boost overall driver performance. Simply put, it allows you to boost your visibility for better business opportunities.

In addition to these, since the platform comes with tracking features that run even after hours, you can be sure that drivers won’t be using your vehicles for personal trips or side jobs.

10.  AUTOsist

Businesses that are looking to graduate from managing their fleet through clunky and error-ridden spreadsheet-based processes can have an easy time with AUTOsist. With this cloud-based fleet maintenance and asset management platform, you will no longer have to rummage through bundles of folders, receipts or various spreadsheet files to acquire the data you need. It allows you to easily transfer pertinent records or automatically import documents for effortless migration to the platform.

It allows users to organize and keep their data up to date on a unified platform, thus allowing for faster data entry and procurement of the latest information. With all data easily available at your disposal, you can make smarter business decisions and provide better care for your fleet in order to maximize its usage.

AUTOsist various various tools to help you manage your fleet. This includes a fuel tracker, maintenance tracker, and reminder notifications, and custom checklists for inspections, among others. Important files such as receipts and invoices can be uploaded to the platform to allow business to tidy the workplace of paper clutter.

7. Who Should Lead the Way in Implementing Fleet Management?

For the adoption of Fleet Management to be successful to your organization, there has to be a level of understanding and support of the solution from the owner to the top executives all the way down to the employees, since all are going to be affected by the implementation of the system.

The task of leading the implementation of Fleet Management should fall on a designated fleet manager. Ideally, the person is at least someone knowledgeable about information systems and comfortable working with them. He or she should be able to connect with counterparts from the vendor of the Fleet Management software as well as all personnel in his/her organization directly involved in the implementation, typically some IT or communications experts, and the drivers and mechanics.

8. How Should I Implement a Fleet Management System?

  • Get every piece of information—every VIN, invoice, purchase record, etc.—organized and at hand at the time of installation.
  • Fleet manager should have other employees understand their specific responsibilities and the expected outcomes that come with them.
  • Encourage driver buy-in: drivers enter more accurate numbers at the exact time of piling up rather than file them in later. Correct information is critical the effective operation of Fleet Management.
  • Focus on right metrics: asking drivers to aim for the best cost per mile figures is already a step in the right direction.

9. What Are Potential Fleet Management Problems?

Getting to the core of managing large number of vehicles, we easily understand the reason organizations ask what is the purpose of fleet management software once they consider using one. Specifically, Fleet Management systems must be careful to address the following typical problems:

  • Preventing information overload
  • Integrating existing software into fleet data
  • Utilizing all asset at optimum level
  • Getting to small problems and addressing them before they get out of hand
  • Overseeing operations across different timelines and regions
  • Balancing the use of very large information data versus specific information
  • Being stuck in solutions that turn out to be unscalable when need to expand arises

10. How To Choose the Best Fleet Management Software?

  • First, any Fleet Management software should allow your organization to achieve the following goals: (1.) Lessen vehicle life cycle costs. (2.) Promote better vehicle replacement planning and budgeting. (3) Provide fully integrated fuel and project management system. (4.) Allow complete repair parts procurement. (5.) Integrate feature that oversee compliance to regulations: specifically ELD compliance. (6.) Dashboard that is fully customizable and supports workflows.
  • Make sure you understand your business requirements and budget.
  • If working on a budget, target essential features and prioritize them.
  • Ask around or look up useful forums in the internet; as much as possible, personally consult fleet management vendors and arrange for demos. If a trial period is allowed, go for that.
  • Get all hidden costs out of the way first time before it becomes a sticking finger in your operations later on.
  • Look for API functionality: it will come handy when you realize you need other programs later on.
  • Keep your ears sharp for the vendor’s customer service reputation. This one could spare you some potential headaches down the road.

11. What Are the Latest Trends in Fleet Management?

  • AI on board: you are probably aware of it, Musk and other software giants promising us we’ll soon be rid of human drivers and looking at robots behind the wheels to deliver humans or goods everywhere on the planet.
  • Beyond simple tracking: The next wave of GPS trackers will not only inform you about the whereabouts of drivers and cars, but also about such seemingly mundane but really critical information like any driver’s habit of attacking the break too hard, doing daredevil stunts on turns, or warming up some lonely outback roads with the attitude of Formula 1 driver.
  • Goodbye spreadsheets, hello cloud and SaaS: Midsize trucking and transportation firms will soon be pushed out of the roads by some newcomers and pretenders—unless they port their operations up the cloud and avail of SaaS fleet management solutions providers.
  • Got space, fill ‘em up: Thanks to Uber, shippers and carriers will intensify their love affair and make sure delivery vehicles are not wasteful getting on the road with space that could be adding profits instead.
  • Look, Ma, I can see through the giant truck! In some countries, drivers trying to overtake humongous trucks ahead are keeping the morgue business alive and contributing to increased mortality rates. Giant screens placed behind the trucks allowing cars behind to see what’s ahead of the truck should give them plenty of reasons to stay on their lanes or press on the accelerator instead.

By Louie Andre

B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. No stranger to small business hiccups and drama, having been involved in a few internet startups. Prior to his for-profit ventures, he has had managed corporate communications for a Kansas City-based Children International unit.

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