Revisited on 21.07.2022
5 Advantages of Fleet Management Software for Your Company
How digital is your fleet? Are you already using a software solution or is Excel still the only tool you got? Well, here are five reasons why you should go digital.
Fleet software offers a wide range of advantages: easy-to-read display and detailed fleet costs at a glance, every appointment and deadline easily planned and modified, plus much more. Even so, fleet managers are still hesitating to take the leap from manual management to a digitally managed fleet.
Why is that? Reservations regarding software are as individual as the fleets themselves. It might be the initial costs of implementation, fear of increased complexity in day-to-day operations or giving up familiar processes for completely new ones. Yet there are many legitimate reasons that speak in favor of digital fleet management.
Advantage 1: Simplify complex processes using fleet software
The complexity of fleet processes has been rapidly increasing in recent years. Be it the growing use of EVs, corporate carsharing or decentralized company fleets – the volume of data a fleet manager has to keep track of and analyze today is near impossible to handle manually.
Fleet software may not be able to reduce the data volume, but it can bundle and evaluate it in such a way that those responsible can obtain the information needed with just a few clicks, like:
Appointment reminders for upcoming inspections or driver’s license checks
Leasing and procurement cycle c
Expenditure recording and forecasting
Fuel data and consumption analyses
Accident-prevention driver training coordination
Fleet software allows rigid processes to be flexibly designed. This reduces costs and resources in the long run. For example, coordination can be simplified by digital communication, via e-mail, instead of personal contact. Furthermore, fleet software can be designed to link up with third-party systems: Thanks to interfaces, data can be migrated, processed and stored in a centrally controlled system. This is a great timesaver, especially for decentralized fleets; and no more multiple data entry.
Advantage 2: Keeping an eye on fleet costs
The use of a software solution can do away with the need for huge staff overhead since many processes are automated. This goes not only for personnel costs; a software solution keeps a close eye on vehicle expenditure regardless of fleet size. A digital solution evaluates the data collected and facilitates comprehensive cost control. It uncovers potential savings and detects optimization opportunities.
This is especially true if the fleet includes pool vehicles. It is essential to keep a constant eye on costs since an uneven or under-utilized vehicle pool is expensive and wasteful. The same applies to the monitoring of cost-intensive commercial vehicles. Reports will quickly identify outliers and suggest measures for action.
Advantage 3: Create transparency
The fleet manager is the linchpin of a fleet and the first contact person in nearly every process, though their direct action is often not required. Frequently, they are merely the point person who passes on information, transmits a request for action or obtains information from external parties.
Lean communication channels – in which fleet managers do not always need to be directly involved, can be handled by fleet software and designed in such a way that in the long run the workload of every party involved is lightened and personnel resources are conserved. Especially when it comes to integrating other departments or external service providers, a fleet software that allows delegation of tasks is crucial. All those having accessed to the fleet can selectively enter data or access needed information. Results are available 24/7. Data protection is maintained, as only the relevant information is displayed within the application, depending on authorization status, which is determined by the fleet manager.
Advantage 4: Promote innovative mobility concepts
Electromobility is on the rise – both privately and in fleets. EVs require a high degree of digital organization, especially when it comes to range management. This means driving and charging times, and availability of charging stations must be continuously checked and adjusted. If electric cars are part of a vehicle pool, the need for fleet software is even more urgent since vehicle bookings and utilization are the basis for efficient carsharing. In short, if you are in the market for new mobility concepts, you need to understand and manage the associated data complexity.
Which software solution is the right one?
To ensure the new software lightens the load, fleet managers should consider the following questions before purchasing:
- Are you looking for simpler cost capture and analysis?
- Do you want the data collected to serve as a basis for strategic decisions?
- Are there scattered fleet locations and which parties will have direct access to the data?
- How much support do you want to give drivers?
Which departments and external service providers are involved?
- Are there specifications for data protection in the company?
- What services and apps are available to drivers?
- What is important to know before rolling out the software?
Away from mere administration and towards optimization. Successful fleet management requires flexibility, from all parties involved. Understanding that data is the most important currency today has now reached many fleet managers. Big players in particular are aware of the complexity of their processes and have turned to software solutions. Many smaller fleets with limited budgets continue to use manual management techniques. The disadvantage of Excel spreadsheets, and such, quickly becomes evident as the fleet expands and with it the needs – more data means more staffing and so more time expenditure, especially when it comes to data entry and data maintenance. This means that other key areas such as claims management, procurement and car policy development end up taking a back seat.
With fleet software, managers always have an overview of all the vital issues, are given the opportunity to react promptly in the event of a claim or take countermeasures in the event of cost outliers. Whether a small vehicle pool or a large mixed vehicle fleet – digital solutions are the key to optimal corporate mobility.