Why is Fleet Management Important?

Why is Fleet Management Important

Running a fleet can be a risky undertaking, particularly if you do not have access to all the data you need. And even if you do, even the most experienced fleet manager needs an advanced fleet management system to give them a clear picture of the costs of your fleet. With so many unforeseen costs, fleet management provides the opportunity for fleet managers to gain insight into operations and develop an understanding of all the business’ finances. They can see where and how money is being spent and identify the areas that need to be reduced.

The Benefits of Having a Fleet Management System

Having your vehicles fitted with a Geotab telematics device allows you to plan, budget and manage your fleet more effectively. With the vast range of data being populated at your fingertips, you can increase profitability while decreasing operational costs when interpreted correctly.

The benefits that a fleet management system can offer are numerous and they vary depending on the nature and industry of companies. But some major advantages occur for any type of business. They include:

  • Lower fuel cost
  • Improved cost control
  • Improved route planning
  • Important data collection
  • Increased employee productivity

How to Realize All these Benefits Using Telematics

To successfully manage your fleet you need to focus on the following:

1. Keep Tabs on the Health of Your Vehicles

Keep tabs on your vehicle’s health by setting up maintenance reminders via Geotab’s award-winning software, MyGeotab. Knowing when your vehicles need servicing will allow you to plan and budget for these expenses so that you are not caught off guard. Sufficient notice will also provide you with enough time to shop around for the best prices and quality parts.

2. Locate Your Vehicles in Real-time

One of the most important and basic solution that Geotab’s fleet management system offers is the real-time location of the vehicle and the driver. With this information, you can effectively plan your fleet’s journeys to reduce the travel time or distances associated with your fuel management. Also, knowing that your vehicle is in the right place at the right time offers you peace of mind.

3. Know Who is Driving your Vehicle and How are They Driving it

When operating a large fleet, it can become tedious to keep track of who’s driving which vehicle for the day. Through Geotab’s driver tags, you can know who’s driving your vehicles. But why is it important? Well knowing who is driving your vehicles allows you to first connect the vehicle with the correct driver. As such it is easy for you to make contact with the right driver if you need to. Secondly, you can link driver behaviour or allocate tickets to the right driver. Read more on how to use the NFC Driver ID as a tool to both manage and incentivise.

4. Ensure Drivers Comply with Road Speed Limit

Knowing that your drivers are being compliant to road speed limits for the class of vehicle that they are driving is important. According to the Insurance Institute for Highway Safety’s Highway Loss Data Institute, approximately one in ten deaths on American highways are caused by trucks. Therefore, managing your driver’s speed makes the road safer for all users, helps you save fuel, protects your assets and others, while further upholding your company’s reputation.

5. Reduce Costs on Fuel

Based on research conducted by Eqstra, fuel makes up about 40-45% of your fleet’s total operating costs. And without a fleet management system, the cost can be more than that. But using telematics can help you reduce the overall cost of fuel by optimizing routing, managing idling time and acting against speeding. Read more on how to increase fuel efficiency with MyGeotab.

Author: Sugandran Kannigan, Software Support – GEOTAB AFRICA (KZN)

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