Fleet management is a key aspect for many companies, as means of transportation are at the heart of their operational mobility. However, managing a group of vehicles is a demanding task that goes far beyond the mere coordination of vehicles. Optimally organized fleet management makes a decisive contribution to reducing fleet costs and increasing fleet efficiency at the same time. The aim is to maintain an overview of costs, maintenance and usage, increase performance and always comply with legal requirements. Digital solutions such as a fleet management system are playing an increasingly important role here, helping to simplify processes and optimally manage the fleet.
In this article, we look at the basics of fleet management, provide an insight into the most important processes in the vehicle fleet and highlight current developments.
Contents
- What is fleet management?
- Fleet management: managing a fleet efficiently
- More efficiency and less effort thanks to digital fleet management
- Digital fleet: The advantages of fleet management software
- The most important fleet management tasks
- Legal regulations in fleet management
- Environmental protection in the vehicle fleet: measures for sustainable fleet management
- From fleet manager to mobility manager: how the role in the fleet is changing
What is Fleet Management?
The term fleet management, also known as vehicle fleet management, describes the efficient management and control of a group of vehicles used by a company or organization for business purposes. A vehicle group can consist of different types of vehicles, including cars, trucks, vans, buses or specialized means of transport.
The main objective of vehicle management is to ensure the smooth running of fleet operations. At the same time, the costs of the vehicle group should be minimized, performance increased and operational requirements met. In addition to data maintenance, fleet management also includes the procurement of new means of transport, the handling of damage, fuel management and compliance with legal requirements.
Successful fleet management relies on modern technologies and well thought-out strategies in order to meet the constantly growing demands of the market and to strengthen the company’s competitiveness in the long term.
Fleet management: Managing a Fleet Efficiently
Careful planning, clear strategies and the use of suitable digital tools are required to ensure that a vehicle fleet is managed efficiently and in a structured manner. A fleet management software enables fleet managers to manage and analyze all relevant data, for example. By automating tasks in fleet management, the administrative workload in the fleet can be significantly reduced and costs saved. If the data is analyzed, well-founded decisions can also be made regarding the strategic management of the transport group.
With clear guidelines for the use of vehicles in the fleet – a so-called car policy – you create a binding set of rules for all employees. Misunderstandings and conflicts can thus be prevented. Among other things, a car policy should define who is authorized to drive company vehicles, whether the vehicles may also be used for private purposes and who is liable in the event of accidents and damage to the vehicle.
And make sure your vehicles are optimally utilized. This can mean a car sharing concept in which the vehicles are shared. This not only increases utilization, but can also help reduce the overall number of vehicles.
A fleet management system is an indispensable tool for optimizing the monitoring of transport vehicles. Most of them enable detailed vehicle tracking in real time, which significantly improves route planning and fleet performance. Automated monitoring of maintenance intervals and operating data reduces downtime and simplifies control, which increases productivity and minimizes costs.
More Efficiency and less Effort thanks to Digital Fleet Management
Digital fleet management is based on the use of digital technologies and software solutions for managing a vehicle fleet. This digital transformation enables companies and organizations to manage their means of transport more effectively, reduce costs and increase fleet safety. Fleet management software also helps to meet possible sustainability targets in the fleet.
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Digital Fleet Management: the Advantages of Fleet Management Software
Fleet management software helps to keep vehicle operations running smoothly and to keep an eye on the status of the transport group. However, it also offers numerous other advantages:
- Cost reduction: By monitoring and analyzing all costs such as maintenance, fuel and consumption, companies can reduce operating costs.
- Compliance and reporting: Digital fleet management facilitates compliance with regulatory and reporting requirements. Companies can, for example, carry out Electronic driver’s license checks and UVV driver training and generate reports based on all the data to ensure that they comply with the applicable regulations.
- Data-driven decisions: The collected data can be used for data-driven decisions, to improve business processes and to comply with the fleet strategy.
- Less effort: Automating fleet management tasks significantly reduces the manual administration effort and improves the accuracy of the data. Digital fleet management solutions also increase fleet performance.
The most Important Fleet Management Tasks
Fleet managers are confronted with a multitude of tasks and processes. After all, the fleet is not only one of the largest cost blocks in the company, it is also crucial for economic success. Management can therefore take up a lot of time, resources and money. Among the central fleet management tasks include the following areas of activity:
Procurement Management
One of the most important processes in fleet management involves the acquisition of new vehicles for the fleet. The selection of the right means of transportation depends on the company’s operational requirements and objectives. And the form of financing – whether purchase, leasing, long-term rental or car subscription – is also determined by economic factors of the company. With the Easy+ company car configurator from Carano, you can conveniently handle the entire procurement process, from the deposit of the car policy to the final order. Drivers can configure their desired vehicle themselves with just a few clicks.
Service and Maintenance
Regular servicing and maintenance of motor vehicles is crucial in order to maintain their reliability and service life for as long as possible and to prevent expensive repairs. An effective maintenance program also helps minimize unplanned downtime. Another important aspect of maintenance is vehicle safety. Regular checks help to identify safety risks such as worn brakes or defective lighting at an early stage. This not only protects the occupants, but also promotes road safety. In addition, complete documentation of maintenance work ensures value retention and supports possible warranty claims. It also increases the confidence of future buyers in the quality of the vehicle.
Fuel Management
The cost of fuel accounts for a significant portion of total fleet spending, and not just since rising fuel prices. Controlling and optimizing fuel consumption in the fleet is therefore all the more important to keep operating costs low and reduce environmental impact. Effective fuel management includes the use of more efficient vehicles, optimized route planning, driver training and the use of telematics systems.
Effective fuel management can not only significantly reduce operating costs, but also contribute to lower CO2 emissions. In addition, the regular review and adjustment of fuel strategies enables continuous optimization of fleet performance and thus contributes to the long-term profitability of the company.
Claims Management
Accidents happen to even the best drivers. However, to minimize downtime and avoid disrupting operations, damage should be dealt with as quickly as possible. This includes working with insurance companies, communicating with drivers, and coordinating repairs. Even the prevention of damage and accidents through regular maintenance and driver training are part of the claims management in the vehicle group.
Insurance Management
Fleet managers need to ensure that all vehicles are adequately insured and that insurance policies are cost-effective and meet the needs of the business. Among the most important insurances are liability insurances and comprehensive insurances. Commercial vehicles often require special insurance compared to passenger vehicles.
Fuel Card Management
The management of fuel cards, which are used by drivers to refuel company vehicles, is also part of the fleet management process. Both the Fuel cards for companies are special credit or debit cards that are usually issued by fleet management companies or petrol station operators. The aim of fuel card management is to streamline the fuel purchasing process, control costs, monitor fuel consumption and ensure accurate billing.
Compliance with Legal Requirements
The Compliance with owner liability in the fleet is a central component of fleet management. This includes regularly checking driver’s licenses for validity and instructing all drivers in the safe use of company vehicles. Modern fleet management systems offer numerous functions, including the automation of driving license checks and the option for digital logbook management. These aspects promote complete documentation and increase efficiency in the management of fleet vehicles.
Legal Regulations in Fleet Management
When managing a fleet, there are a number of legal requirements to be observed, first and foremost the keeper’s liability obligations. This is because anyone who is the owner of a vehicle is liable in the event of damage to property or personal injury. The owner of the fleet is generally the management of a company. However, they can delegate their duties to a suitable person: the fleet manager.
Driver's License Check
On the one hand, this person is responsible for the regular inspection of the driver’s licenses in the fleet, which should be carried out at least every six months. The obligation to driving license check in the vehicle fleet results from §21 of the Road Traffic Act (StVG), which clarifies this:
A custodial sentence not exceeding one year or a monetary penalty shall be imposed on any person who [2] as the owner of a motor vehicle orders or permits someone to drive the vehicle who does not have the required driving license or who is prohibited from driving the vehicle under Section 44 of the Criminal Code or under Section 25 of this Act.
UVV Driver Training
The regular UVV driver training is also part of the owner’s liability obligations. After all, anyone who provides their employees with company vehicles must also train them at least once a year on how to use them safely and what to do in the event of an accident. The UVV driver training is required by law once a year.
This is based on § 12 of the Occupational Health and Safety Act (ArbSchG), which sets out general requirements for the protection of employees from work-related hazards. In addition, driver training must be carried out before every first journey and when changing company cars.
The employer shall provide employees with sufficient and appropriate instruction on occupational safety and health during their working hours. Instruction includes instructions and explanations that are specifically geared to the employee’s job or area of responsibility. […]
Are you still checking or are you already managing? More time thanks to digital holder liability (in german)
Future Fleet Management
Environmental Protection in the Vehicle Fleet: Measures for Sustainable Fleet Management
The transport sector is one of the biggest drivers of climate change. In order to minimize harmful emissions, there are a number of measures for sustainable fleet management:
Electrification of the Fleet
The integration of electric vehicles into the vehicle group can significantly reduce CO2 emissions, as electric vehicles do not produce any emissions while driving. Despite their higher purchase costs compared to a conventional vehicle with a combustion engine, electrically powered cars are characterized by their lower operating costs . E-vehicles require less maintenance because their motors contain fewer parts that are susceptible to wear.
E-cars are also ideal as pool vehicles in a company’s own car-sharing concept in the fleet. Advances in battery technology are extending the ranges of e-vehicles, shortening charging times and reducing purchase costs.
Eco-Driving
Train your drivers regularly in environmentally friendly driving practices, also known as eco-driving. This aims to minimize fuel consumption and thus the environmental impact. A forward-looking driving style such as eco-driving avoids unnecessary braking and acceleration, maintains an optimum speed and upshifts early. In addition to reducing fuel consumption, eco-driving also helps to extend the life of the vehicle, as gentle driving reduces wear and tear on the brakes and engine. Regular training courses help drivers to internalize these techniques, which not only reduces operating costs but also improves the driving experience.
Car Sharing
Ensure that your vehicles are optimally utilized to minimize unnecessary – and expensive – downtime. Corporate car sharing, where the vehicles in the fleet are not assigned to a specific employee but are shared, is ideal for this. This increases the utilization of the vehicles and at the same time the number of vehicles can be reduced. This saves costs in acquisition, maintenance and insurance. A car sharing software simplifies the booking and return of the vehicles as well as the digital Key management in the fleet.
Alternative Fuels
Alternative fuels have great potential when it comes to reducing environmental impact, lowering operating costs and reducing dependence on fossil fuels. Natural gas, biodiesel, electricity, and hydrogen generally have lower or no CO2 emissions compared to traditional fossil fuels such as gasoline or diesel.
However, the introduction of alternative fuels into a transport fleet also brings challenges, such as the availability of refueling or charging facilities, higher acquisition costs for some vehicle types and the need to train and sensitize drivers.
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From Fleet Manager to Mobility Manager: how the Role in the Fleet is Changing
How we get around is changing, and various mobility trends in mobility are already affecting fleet management today. This is because many companies are rethinking their mobility strategies in light of growing concerns about their environmental impact on the transport sector. At the same time, employees’ mobility needs are changing. They want more flexibility, sustainability and individuality.
The classic company car is no longer the only focus of the fleet. Instead, alternative mobility solutions that better meet individual requirements are in demand. Alternatives such as public transport, a mobility budget or sharing offers will play a key role in shaping the mobility mix in companies in order to meet the increasing desire for flexibility.
In response to the changing landscape of mobility and the increasing importance of sustainable and diverse mobility solutions, the role of the fleet manager is therefore changing to that of the mobility manager. This takes a holistic view of mobility in the company and not only focuses on the needs of employees and potential environmental impact, but must also keep an eye on costs and cost-effectiveness.
It is also crucial to actively involve employees in the change process in order to better understand their needs and wishes. Clear communication about the new mobility options also helps to promote acceptance and enthusiasm within the company.
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FAQ - Fleet Management
Fleet management comprises the administration and optimization of a company’s vehicle fleet.
It includes the procurement, maintenance and repair of vehicles as well as the handling of accidents and compliance with legal regulations. Cost control and driver management are also central tasks. Telematics systems support the real-time monitoring and analysis of vehicles in order to increase productivity and safety. The aim is to reduce operating costs and ensure the reliability of the fleet.
A fleet management system automates routine tasks and reduces administrative work. It records data centrally, which enables a better overview and analysis. This allows cost drivers to be identified, maintenance to be planned efficiently and fuel consumption to be reduced through optimized routes. The software also supports compliance with legal regulations, thereby increasing the effectiveness and safety of the fleet.
Science fiction becomes reality. Assistance systems such as adaptive cruise control, automatic emergency braking systems and lane departure warning systems are already contributing to greater safety on the roads. However, reading a book while driving is still a dream of the future for many company car drivers. In the U.S., on the other hand, autonomous trucks are already on the road on intercity highways. Here, the main aim is to counteract the shortage of personnel, as there is currently a shortage of around 80,000 drivers. In Germany, around 100,000 jobs are unfilled – so the technology has great potential here, too.
