Because fleet management is all-encompassing, it is difficult to define. Essentially, fleet management refers to the processes involved in overseeing a fleet of vehicles and related assets, as well as optimizing efficiency while minimizing costs and risk. Thus, fleet managers are responsible for controlling costs, maximizing profitability, and reducing fleet vehicle risks.

The benefits of fleet management are multi-fold. Namely, effective fleet vehicle management yields fuel savings, increases productivity, improves customer service, and provides real-time visibility.

Fleet management provides real-time visibility–Fleet management software provides fleet managers with comprehensive historical data as well as real-time visibility into operations, allowing them to make data-driven decisions to improve safety, reduce costs, and maximize efficiency.
Fleet management reduces fuel costs–According to Verizon Connect, fuel accounts for nearly 40% of fleet ownership. GPS vehicle tracking solutions as part of your fleet management strategy can truck cabsreduce fuel costs by 20%-25%. These tracking solutions alert you to idle time per vehicle and deliver idle time averages across your fleet. They also empower you to monitor fleet performance, track how improvements affect idle time, and help educate drivers about the need to reduce idle times.
GPS tracking solutions also reduce fuel by optimizing routes. Typically, companies that adopt these solutions reduce total miles driven by 5%-10%. Plan more efficient routes with access to maps detailing the location and destination of each fleet vehicle. You also can access driver and vehicle information while monitoring traffic and weather. Best of all, you can improve efficiency by sending the vehicle closest to the destination via the most direct route to improve customer service.

Fleet management increases productivity– Telematics solutions for fleet vehicle management also increase productivity. Robust telematics software features enhance productivity by helping you gauge maintenance, reduce idle time, downsize your fleet, improve your asset tracking and routing, monitor safety, and improve employee efficiency.
One of the best ways that telematics solutions make fleets more productive is in tracking maintenance. Fleets can’t operate when vehicles are in for unscheduled maintenance or break down, and telematics helps you be proactive with preventive maintenance. You’ll know how many hours your vehicles run and get real-time insights into engine hour data to optimize preventive maintenance schedules. You’ll also know exactly when to replace vehicles.

To learn more about fleet preventive maintenance, read our step-by-step guide on how to implement a fleet preventive maintenance plan and it comes with a printable checklist! Also, check out our big list of the best fleet maintenance software systems.

Fleet management improves customer satisfaction– You can use fleet vehicle management to improve customer satisfaction, especially with the aid of a GPS tracking solution. Your asset tracking solution will help ensure driver compliance to routes and schedules to avoid missing or delaying a delivery or appointment. You’ll also improve customer satisfaction by knowing which vehicle is closest to the job to minimize travel time and get drivers to customers more quickly.
Fleet management GPS tracking solutions also help companies get drivers to appointments on time. You deal with new or canceled appointments regularly, but you don’t have to lose productivity because of them. Using real-time locations, you can send drivers to customers on time and serve more customer needs, despite unplanned schedule changes. You’ll also give customers better driver ETAs and avoid frustrating them with vague or inaccurate driver information when you use a GPS tracking solution as part of your fleet management strategy.