5 measurable benefits of optimal vehicle fleet management

The global fleet management market size will reach approximately 30 billion (28.66) US dollars by 2022. At the same time, many companies still struggle with providing an effective system to manage their vehicle fleet. According to the Telematics Benchmark Report, only 23% of fleets use big data analytics to guide strategic-making and the minority of organizations use telematics solutions to track idling (37%), harsh braking (33%), maintenance (32%), and fuel usage (30%).

Apart from the ongoing obstacles, the fleet management industry, just like any other, now has to face the (still imminent) inevitable effects of the COVID-19 pandemic. How can the business find itself in this new reality and keep on providing effective solutions despite the current uncertainties? How to manage the fleet optimally and what benefits can it bring to the company? We’ve gathered 5 benefits of optimal digital fleet management, possible thanks to the use of a suitable system.

Vehicle fleet management struggles

Managing a car or any other vehicle fleet is a challenge. Mounting piles of documents, the necessity of having to keep abreast of monitoring the technical conditions of an individual vehicle, and staying in touch with the drivers, is a complicated task that can be achieved only by using a dedicated system. An ideal car management solution has to cover not only the basic fleet requirements, such as reporting and monitoring of various parameters, but also provide customization possibilities and give the ability to be up to date with the current fleet’s state and problems. What measurable benefits can the implementation of a good management system bring?

Cost savings

The average total cost of ownership for a company car in Europe consists of a couple of components. Which of them is the most cost-consuming? As the Global Fleet Report shows, it’s depreciation, responsible for 41% of all of the fleet spendings. The second biggest slice out of the lifetime of a company car is fuel, consuming approximately 20% of the inclusive costs. The third main cost – maintenance, tires, repair, and roadside assistance – add up to an additional 15% of all spendings. Is it possible to lower these fleet use costs at all?

Logistics is responsible for a large part of the maintenance of the corporate vehicle fleet. It includes manual supervision of the vehicles’ technical condition, ongoing maintenance of contracts, or daily contact with the drivers. Apart from the time that all of these tasks absorb, they are also cost-consuming. Optimal fleet management using a custom managing system is an answer to this problem.

A fleet management system can help in the following areas:

  • preparing contracts and invoices – the fleet manager can always be up to date on the subject of the upcoming end of the leasing contract or insurance and react. Additionally, they also have day-to-day access to any contracts concerning the drivers, users, employees, and vehicles;
  • showing reminders – when we like to work based on clear deadlines, a calendar with reminders will allow us not to forget about upcoming payment dates or signing contracts;
  • tracking all technical services, motor damages, and fuel consumption – the system is constantly monitoring all the data concerning the fleet. Thanks to this, we not only keep an eye on the running vehicle’s exhaustion but can predict the upcoming expenses and mark the areas that can consume more resources in the future;
  • controlling fuel consumption – using a GPS system is a great help for the fleet manager. Monitoring vehicle router allows, firstly, to select the optimal routes, and secondly, to monitor the driving behavior, thanks to which we can ultimately work on lower fuel consumption. What’s more, the fleet of cars management system is also able to indicate the nearest petrol station or auto servicing to the driver, which shortens the search time for the right point and enables the selection of the right, fastest route.
41% depreciation; 20% fuel; 15% repair, maintenance, tires, roadside assistance; 12% interest; 8% insurance; 2% road tax and fees; 2% management fee. Source: Global Fleet (2015).

Saving time

A vehicle fleet management system works well not only for optimal expenditure management but also for time management (which ultimately also translates into lower expenses).

What is a fleet manager schedule filled with, when they’re not using the optimal managing system?

  • supervising fleet maintenance costs,
  • manual planning of vehicle activities – e.g. service inspections, insurance payment dates,
  • communicating with the drivers and clients,
  • managing team members,
  • analyzing fleet data: the expenses, fuel consumption, vehicle costs, charges, etc.,
  • analyzing the operational effectiveness,
  • reporting.

Many of these tasks can be either taken over or at least automated by using a corporate fleet vehicle management system. How can it help with saving time? This kind of system allows optimizing the processes that are crucial for effective fleet management. A good fleet management system should provide such facilitations as: document repository, application for preparing offers and printing mass invoices, automation (also with AI), allowing for assigning a driver to a specific vehicle, technical service monitoring, and many more. In fact, most of the tasks can be either automated or simplified – it’s all a matter of the system which will gather all the fleet information and process it for the employee.

More control = fewer mistakes

Managing a fleet of several cars requires some effort, but is completely viable without a dedicated system. The larger the fleet, the more data we have to observe and the more difficult it becomes to manage it without the help of an appropriate system. The lack of a management program means that we don’t have the possibility to view the current fleet situation from a bird’s eye view. Consequently, it’s difficult to predict the possible upcoming issues or the demand for the vehicles and people.

The right fleet vehicle tracking and management system gives full control of the fleet to its manager. In fact, 72% of businesses consider fleet tracking “very” or “extremely” beneficial, and 96% of fleets using GPS fleet tracking software found it helpful. Monitoring the daily drivers’ behavior allows for drawing appropriate conclusions and access to full fleet data minimalizes the chance to make a mistake with future planning. As a result, we can avoid unnecessary expenses and be able to prepare for the essential ones.

Lightening the workload within a contact center team

Machine parks, car, vehicle, and other transportation rentals, as well as leasing companies, are often overloaded with day-to-day messages and calls concerning fleet issues. The company’s contact center department isn’t an area where we should save or that we should give up on. However, it’s worth knowing how to improve the team’s work and, consequently, relieve employees and allow them to deal with more complex problems.

The contact center employees don’t have to answer the questions about the location of the nearest gas station, auto servicing, or even uncomplicated collisions. All these tasks can be taken over by an application for drivers connected with the fleet management system. The app can help with verifying the route and car data, what enables the contact center employee to easily monitor the driver’s position. Also, the driver receives live notifications, allowing them to have a clear picture of the current situation. Thanks to the application, they can:

  • find out about the vehicle inspection and repair history data,
  • get the notifications about the vehicle damages,
  • search for the nearest petrol stations and vehicle services,
  • generate applications for permits (e.g. for fueling, travel abroad, or holiday),
  • make an emergency call.

What’s more, the driver has easy access to all the vehicle information in the app, they can also rate the services, and check the available fuel cards. This type of application will be irreplaceable, for example, in the long-term rental industry, as well as in the seasonal leasing of vehicles, boats, and cruise yachts. The application user doesn’t have to wait for the answer from the overloaded contact center, and the leasing company’s contact center overburdened with the calls.

Convenience for users

Finally, the implementation of a vehicle fleet management system is not only beneficial for fleet managers but also extremely convenient for users. Without the proper system, the driver can be left unattended in the event of a breakdown. How to avoid that? A car fleet management system with a map of vehicle services shows the driver the closest point. A map with the possibility of navigation and telephone contact with the selected service facilitates quick problem reporting and repairing the damage. It’s also possible to locate the closest tire service compatible with the car tire network.

How can the application help in the event of a road collision? Apart from the possibility to make an emergency call, the driver isn’t left on their own. The outline in the camera shows the user how to properly take a picture of the damage and then sent it to the leasing center or insurance company. The notification of the damage sent may contain photos of the damage to the vehicle made in accordance with the indicated parameters. Finally, the guide for road incidents available in the app allows the driver to find himself in a difficult situation and take appropriate steps even if they’re unable to contact the assistance center.

Cost savings. The system automates the work, controls fuel consumption, and tracks motor damages for you.; 2. Saving time. Analyzing fleet data and planning vehicle activities is faster and easier.; 3. Convenience for users. Push notifications, daily reminders, geolocation of service points, and information about the end of the rental period - all in one app.; 4. More control = fewer mistakes. The system assigns a vehicle to a specific driver and prepares reports of fuel consumption and charges.; 5. Help for a contact center team. The system provides all information to the driver, which relieves the contact center phone lines.

If you’re interested in boosting productivity within your fleet department, our specialists at Deviniti will be happy to help you find the best solution for your enterprise. Read more about our fleet management systems: Car Fleet Management and Mobile Car Management or contact our consultant to find out what we can do together.

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