With the vehicular industry coming up so rapidly (both commercially and in industries), Fleet management system has been a boon to solitary vehicle and fleet owners alike. With the development in our country gaining momentum, there has been a steep increase in sale of vehicles of all kinds, increasing traffic on the roads, and making transportation in our lives a whole lot easier.
In fact, the industry has become so huge through transportation services that the total revenue released from road transport evolved from 48,387 Cr in 2009-10, to 1,99,660 Cr in 2015-16. In a matter of just five to six years, the industry has increased over 242%, proving itself to be a good investment, and the people of our country have caught up with the trending news.
Let us suppose that you decide upon taking up transportation as a business. You buy a multitude of vehicles, and everything is going on smoothly, income is flowing in well, there’s no problem with the vehicles and no complaints have been registered. But suddenly, one day, two of your major vehicles breakdown.
While hassling and negotiating with an insurance company, you get phone calls with complaints of your drivers who are speeding, and also causing stress to other drivers on the road. Those drivers are ready to report your vehicles to the authorities unless some quick action is taken. Everything seems to be going wrong suddenly.
Here’s where fleet management comes in. Supposing that your company had an in-house fleet management department. They would have reports on vehicle financing, vehicle maintenance, vehicle telematics (tracking and diagnostics), vehicular speed management and much more. They’d be in constant contact with the insurance companies, and claims would be a breeze for you to go through. Not only that, you wouldn’t have to deal with the stress of getting calls. They would be handling that for you.
Even after getting to know these scenarios, it is hard to not take a second opinion. Well, we’ve got a second opinion right here, to clear all your doubts about fleet management and whether it is right for you!
In this article, we tell you all there is to know about fleet management, without boring you with the technical nitty gritty of it.
WHAT IS FLEET MANAGEMENT EXACTLY?
Fleet management is exactly the way it sounds. It’s the management of a fleet of vehicles under a certain company or individual. This management includes a large list of functions and features by means of which businesses could thrive in many situations:
Vehicle Financing – It manages loans, any issues with the bank relating to the vehicle, problems arising through payments for the vehicles and more.
Vehicle Maintenance – Deals with the insurance, maintenance and repair of all vehicles of the fleet.
Vehicle Telematics (tracking and diagnostics) – This domain deals with the proper tracking of vehicles in order to avoid any nefarious work to be done by the employees. A major component of this domain is GPS fleet tracking systems, which properly help the employer keep track of every single vehicle through one device.
Driver Management – Thorough background checks, drug tests, and more which help a company find suitable drivers who are an absolute fit for the organisation.
Speed Management – Speeding is one of the most dangerous things on the clumsy, overcrowded roads of India, and the fleet management systems take in complaints and deal with the problem completely.
Fuel Management – In India, stealing of fuel is a very well heard of phenomenon. And busy employers tend to ignore a small amount of fuel missing from their vehicles, but these small amounts could end up costing them a lot more. However, the fleet management software helps in keeping track of the approximate fuel used daily, and in individual vehicles.
Health and Safety Management – Health and safety are top priorities on the road. Be it one’s own or someone else’s, fleet management departments are known well for their training of the staff, in case any calamity takes place.
And this is just the tip of the iceberg. There are many more intrinsic functions which fleet management lets you take care of and monitor easily. It’s put in place to minimize the the risks associated with vehicle investment, improving efficiency, productivity and reducing their overall transportation and staff costs, providing 100% compliance with government legislation (duty of care) and much more.
HOW DOES IT WORK?
Normally, there are two kinds of fleet management systems: In-house fleet management departments or Out-sourced fleet management departments that are firms of their own based on fleet management facilities. However, the functions executed by both are almost the same.
One of the most important features of fleet management is GPS fleet tracking, which is also why many businesses go for it. The GPS system works on a radio-navigation technology to find the location of a vehicle.
Once vehicle location, direction and speed are determined from the GPS components, the system then transmits this information to a fleet management software, made accessible with an application. Methods for data transmission include both terrestrial and satellite.
Mechanically, the system can automatically connect to any of the fleet’s in built systems to aid during any critical situations. This can also help in bettering the situation with driver management and could be used to keep a check on the drivers.
Fleet security and control includes security of the vehicle while stopped or not in operation and the ability to safely disable a vehicle while in operation. This allows the fleet manager to recover stolen or rogue vehicles while reducing the chance of lost or stolen cargo.
Not only are fleet management facilities limited to this, they also extend to prediction of when vehicles should be replaced, so as to not lose all their resale value in the market, and at the same time not risking any massive vehicular failures.
TIPS FOR BETTER FLEET MANAGEMENT
1. Reducing operational costs
Focusing on improving your fleet’s fuel efficiency should be the first step to reducing overall costs. You will see that your investment in fuel efficiency results in better outcomes in a short time compared to other cost optimizations. Investing in technology that will help keep driver behaviour in check also helps in this.
2. Analyse data well
The main reason for taking up fleet management is to keep track of things going on in your organisation. This includes keeping track of all data in one place, and analysing it at regular intervals of time to stay updated on all on-goings.
3. Choosing well-functioning vehicles for your fleet
Even the best Fleet Management facilities cannot help you, if the vehicles in your fleet are dysfunctional. You’ll be spending a lot more on repairs and maintenance than you would just buying better vehicles.
4. Connecting with your staff
Something that many fleet owners lose track of is a connection with their employees. That includes the staff for management of the fleet, and goes down till the drivers too. A connection with them could help you gain their trust, minimizing any thought of malicious intent.
We hope that this article helped you find all about fleet management systems that there is to know, along with tips to help you take it up.
Fleet management has very rapidly become a part of almost every fleet owner’s lives, and the new technologies just aid in the improvement of it. At this time, safeguarding is the best option there is, and fleet management is the best way to safeguard one’s vehicle, and therefore, one’s business.