What Is Fleet Management? Everything You Need To Know (2024)

Small Business Writer, Managing Editor, SMB

Updated: Feb 2, 2024, 12:23pm

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Fleet management is a broad term that encompasses the many actions and processes that must occur for a fleet of five or more vehicles to run on time, within budget and at maximum efficiency.

This management system is used by a wide variety of both private and public industries, and millions of vehicles all over the world are managed with some sort of centralized software platform.

Why Do Businesses Use Fleet Management?

When you purchase or lease a vehicle, you also need to factor in the many costs that come along with ownership. This includes storage, insurance, gas prices, registration, title and maintenance. Now imagine being responsible for all those components for an entire fleet of vehicles. A fleet management solution allows businesses to view data on all of these expenses within one app, which can take a lot of the headaches out of managing vehicles.

Who Utilizes Fleet Management?

Nearly every company you can think of that provides a service that involves vehicles relies heavily on fleet management to create a structured, methodical workflow. This includes industries such as:

• Food delivery
• Emergency services
• Utility companies
• Construction
• Landscaping
• Public transportation
• Courier and package delivery services

The majority of today’s small business owners should be able to use a fleet management system on their own without specialized training. However, many organizations also choose to hire people to specialize in overseeing their fleets. Fleet management can either be an in-house role, if a company is large enough to warrant that position, or it can be outsourced to a firm that specializes in offering this service.

Either way, a fleet manager will be assigned to organize and run the daily operations, as well as control costs. Their duties include overseeing vehicle acquisition and maintenance, driver management, route planning and safety.

With consumers often expecting instant gratification and next-day delivery, implementing fleet management is essential for companies to maximize their resources and promote growth. Here are some of the top benefits of fleet management:

• Reduce labor and gas costs
• Remain in compliance with state and federal regulations
• Locate and track fleet vehicles
• Manage vehicle maintenance
• Improve fleet and driver safety
• Optimize cost-savings

Fleet management systems provide several ways to track vehicle metrics and manage everything from routine maintenance to new vehicle purchases and even driver management. Some of the more common features found in fleet management systems include:

Vehicle Tracking

Through the use of GPS, fleet managers can track each vehicle, allowing them to monitor performance and any potential maintenance issues. In addition to a GPS system, some companies also adopt a video feature to record their vehicles.

Driving Behavior Analysis

The vehicle tracking system often includes a driving behavior component. Fleet drivers are scored based on their driving habits and behaviors, helping to ensure they are using the vehicles safely.

Fuel Management

Fleet management technology can provide insight into fuel usage, as well as vehicle trends. This feature is also tied into the driver analysis, since it looks at behaviors that affect fuel consumption, such as frequent braking or idling.

Route Monitoring

By monitoring vehicle movement and schedules, fleet managers can plan out routes for optimal efficiency. Mobile apps are being used more frequently to maximize operations and provide real-time vehicle updates.