Advantages of fleet management software – 5 good reasons
The advantages of using a fleet management software are obvious, but many people in charge find it difficult to break away from manual fleet management and take the step to a digitally managed fleet.
The reasons for this are as particular as the fleets themselves – cost, shying away from the complexity of the software or giving up of old, familiar processes, or lack of transparency and explanation from software firms on the benefits of automated fleet management. Why it makes a whole lot of sense for every fleet, regardless of size or organizational structure, to utilize a fleet management software is explained in this post.
Advantage #1: Simplify complex processes with fleet management software
The complexity in vehicle fleets is growing ever greater – pooling, electromobility while decentralized company fleets generate large amounts of data that cannot be managed solely by manual organization using Excel spreadsheets.
In the not too distant future, the vehicle fleet will be digitalized – upcoming inspections, driver’s license checks, leasing and procurement cycle planning, cost recording, fuel data and consumption analysis, coordinating accident prevention driver instruction and driver appointments, organizing pooling, breaking in new employees, etc. – fleet processes are never rigid and require a software solution for efficient management capable of covering and analyzing the entire fleet structure while generating optimization options.
A digital solution supports networking within the individual processes and so shortens coordination processes. What used to require laborious explaining across many stations can now be clarified directly to all those concerned with the use of clearly structured web interfaces. This saves time, long-term costs and enables the fleet to be managed according to individual needs. In addition, fleet software offers the chance to connect third-party systems – data can be migrated, processed and ultimately stored in a centrally controlled system via interfaces. This comes as a great relief, especially for decentralized fleets, since multiple entries and data transfers in different applications becomes a thing of the past.
Advantage #2: Keep fleet costs in view
A vehicle fleet creates costs – and lots of it. Starting with vehicle procurement, extensive evaluations and regular appointments related to respondeat superior liability and up to maintenance and repair orders – all of which are cost-intensive. The right software solution makes comprehensive cost control easier, uncovers savings potentials and shows optimization opportunities. Here, it is irrelevant whether the software is utilized for a small or large vehicle fleet, as it evaluates the data collected to find ways for cost cutting regardless of practically any setup.
It is essential to always keep fleet costs in mind, especially when it comes to pool vehicles, since an unevenly or insufficiently utilized vehicle pool can be unnecessarily costly. The same applies to the monitoring of cost-intensive commercial vehicles. Informative reports facilitate cost, wear-and-tear and consumption outliers to be quickly and objectively identified, so that action can be taken.
Advantage #3: Create transparency
Fleet managers are the central authority in the vehicle fleet and the first contact person in almost all processes. Their direct action though is not always called for. They usually act as the intermediary: passing on information, transferring a request for action to another party or obtaining information from external groups. Lean communication channels, in which fleet managers are not always required to be directly involved, can be handled by fleet software and designed in such a way that in the long run the workload of all those involved is lightened.
Especially when it comes to integrating other departments or external service providers, fleet software that allows role-based work is vital, since it enables all those concerned in fleet management to enter specific data and have access to exactly the information they need. The results are immediately available and data protection is ensured as only the relevant information is displayed. The fleet manager is merely the intermediary that defines the authorization structures and facilitates smooth communication between every party involved.
Advantage #4: Make objective decisions in the fleet
Using up-to-the-minute and continuous data assessment, a fleet software is impartial and can be a good and, above all, objective decision-making aid. With the help of comprehensive reporting, important key figures can also be viewed over an extended period of time. In addition to the current status quo, a fleet solution’s comprehensive reporting can also help the fleet manager to create meaningful forecasts based on possible measures derived from it. In this way, the fleet manager can lay the foundation for more cost efficiency in the upcoming period.
Advantage #5: Promote innovative mobility concepts
Electromobility is on the advance – both for personal use and in the vehicle fleet. But operating E-vehicles requires a driving-range management system: driving and charging times, availability of charging points and much more must be continuously checked and assessed.
There is no getting around for E-vehicle fleets with a focus on pool vehicles to avoid using versatile corporate carsharing software to analyze the fleet, since booking calendars, capacity utilization analysis and reporting are the basis for cost-efficient pooling. In short, anyone who wants to open up to new mobility concepts need to understand and get a handle on the data complexity that comes with it.
Conclusion and summary
Get away from mere administration and move towards optimization. Fleet management requires flexibility; and that by all those concerned. The realization that data is the most important currency today has now also reached many fleets. Large players in particular know about the complexity of their processes and have turned to software solutions. Many smaller fleets though still shy away from such an investment (yes, a good and, above all, comprehensive fleet software is an investment, but its cost-benefit calculation is undisputed), relying instead on Excel spreadsheets or such. The disadvantage of this method quickly becomes apparent – as the fleet grows so do the needs – more data means more personnel and time investment. The same goes for the increased workload and cost spent on data entry and maintenance, while other areas like claims management, procurement and car policy development are neglected.
A fleet software’s automated data management of creates significant time savings and enables the fleet manager to focus on strategic issues, thus optimizing the fleet as a whole. Last not least, the historization of data is an important aspect that speaks for the use of a software. What used to be the knowledge inside employees’ heads is now contained in a well-structured software that can be easily passed on when employees change.