Whether you are a freight forwarder, construction company or municipal fleet: fleet management plays a central role for all companies that have vehicles in their fleet. The focus here is on the organization and management of operational mobility. As one of the biggest cost drivers in the company, fleet managers must also manage the fleet efficiently and keep an eye on costs at all times. At the same time, legal requirements must be complied with, claims must be settled and, under certain circumstances, sustainability goals must be met.
Digital fleet management plays a key role in this. By automating processes , fleet managers can minimize costs, identify potential savings and increase safety in the fleet. In this article, you will find out which processes are involved in fleet management and how fleet software can reduce the workload.
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What does fleet management mean?
The term fleet management refers to the organization and management of a vehicle fleet in a company. On the one hand, this includes the procurement and control of vehicles as well as the planning and organization of maintenance and repairs. The handling of damage, fuel management and the administration of contracts and insurance are also areas of fleet management.
In addition, fleet managers must comply with the statutory obligations of owner liability. This includes the driver’s license check, the UVV driver training and the UVV vehicle inspection.
What are the goals of fleet management?
Efficient fleet management means managing the fleet economically and ensuring compliance with legal regulations. Fleet management also plays a key role in optimizing operational mobility. A company can increase efficiency and productivity by having a suitable vehicle fleet that meets the requirements and needs of its employees.
Efficiency & cost control
One of the main objectives of fleet management is to effectively control the fleet and reduce costs. This includes reducing operating costs such as for fuel consumption, maintenance, insurance and vehicle procurement expenses. Through efficient use of resources and cost control, fleet management can help increase the company’s profitability.
Optimization of vehicle utilization
Another aim of fleet management is to optimize the fleet with regard to the company’s (mobility) requirements. On the one hand, this includes the right number and type of vehicles to support operations efficiently. It also includes optimizing vehicle utilization and well thought-out route planning in order to minimize empty runs and maximize efficiency.
Achieving sustainability goals
In addition, more and more companies are setting themselves the goal of promoting environmentally friendly practices and minimizing their ecological footprint. Sustainable fleet management aims to reduce environmentally harmful emissions and therefore focuses on more environmentally friendly cars and fuel-efficient driving behavior.
Which areas are important in fleet management?
As already mentioned at the beginning, fleet management is complex and very diverse. Fleet managers have to keep an eye on a large number of processes in the fleet organization. Their area of responsibility includes processes such as schedule management, cost control and procurement, as well as damage and maintenance management. In order to maintain an overview in all areas and meet fleet obligations, fleet managers can digitize fleet management in their company.
You can find out more about the activities and responsibilities in the fleet in our article Fleet management tasks: The 10 most important activities in the fleet. Here we present the most important fleet management tasks and give you tips on how you can optimize processes.
What is digital fleet management?
Digital fleet management is the modern way to manage a fleet efficiently and in a future-oriented manner. The focus here is on the use of digital technologies to create transparency, control and better organization – all crucial factors for smooth operations.
At the heart of digital fleet management are telematics systems, GPS tracking and intelligent software solutions that record and evaluate data in real time. This enables fleet managers to keep an eye on the status of the vehicles at all times, analyze important key figures such as fuel consumption or mileage and identify maintenance requirements at an early stage. This data-based way of working not only makes the entire fleet more efficient, but also future-proof and easier to plan.
In addition, digital platforms facilitate the central coordination of drivers and vehicles. They make it possible to plan journeys precisely, comply with legal requirements such as driving and rest periods and automate processes. This saves valuable time and resources while creating a legally secure basis for day-to-day operations.
Another major advantage is cost efficiency. Automated reports and intelligent analyses uncover potential for optimization, be it in route planning, vehicle utilization or the reduction of empty kilometers. This allows operating costs to be reduced, while at the same time protecting the environment by using the fleet in a more resource-efficient manner.
The digitalization of the fleet not only means greater efficiency, but also more flexibility to respond to changes. Companies that rely on digital fleet management benefit from a clear overview, well-founded decisions and a way of working that makes them competitive in the long term. It is far more than just a technical upgrade – it is an investment in the future and in sustainable success.
What needs to be considered in digital fleet management?
- Ensure data security: The protection of sensitive data, such as vehicle locations or logbooks, is essential. Secure systems and encryption technologies should be used.
Legally compliant - Use: Compliance with data protection guidelines, such as the GDPR, as well as the correct implementation of regulations on driving and rest times is crucial.
- Check individual adaptability: It must be possible to adapt the solution to the specific requirements and size of the fleet.
- Regular updates and maintenance: To ensure the efficiency and security of the systems, software solutions should be regularly updated and checked.
What is a fleet management system?
A fleet management system, also known as fleet software, is a specialized software solution that facilitates the management and organization of vehicles. It is used to record and manage all vehicle and driver data in one place. Comprehensive reporting capabilities give fleet managers valuable insight into fleet performance and enable them to make informed decisions to increase efficiency and reduce costs.
In most cases, fleet software such as Fleet+ can be supplemented with various add-ons. These can be used, for example, to carry out electronic driver’s license checks or driver training in accordance with accident prevention regulations.
What advantages does a fleet management system offer?
The use of fleet software offers numerous advantages in fleet management. It simplifies the complex processes in the fleet and creates structured workflows, reducing the workload for fleet managers. It also ensures transparency in the fleet and helps to monitor and reduce costs.
Automation of processes
Fleet software automates many processes in fleet management that are time-consuming and error-prone in Excel. By digitizing tasks such as data import, calculations, reminders and reporting, it saves valuable time and resources that can be used for strategic management of the fleet.
Centralization of data
Digital fleet management helps to centrally record and manage all relevant data relating to vehicles and drivers, including vehicle information, maintenance logs, driver data, insurance documents, fuel consumption and much more. This also facilitates access to information for other stakeholders, such as accounting or HR, while maintaining data integrity through individual access permissions.
Reporting and cost control
Digital fleet management can be used to create maintenance and repair schedules, monitor appointments and generate reminders for maintenance work. This ensures that vehicles are kept in optimum condition, downtime is minimized and costly repairs are avoided.
Maintenance management
Digital fleet management can be used to create maintenance and repair schedules, monitor appointments and generate reminders for maintenance work. This ensures that vehicles are kept in optimum condition, downtime is minimized and costly repairs are avoided.
Digital claims management
Digital fleet management also simplifies the handling of claims. In addition to the electronic documentation of damage, software also simplifies the tracking of the damage process – from reporting to repair. Automatic notifications and automated communication between drivers, insurance companies and repair shops speed up claims processing. In addition, the software provides comprehensive reports and analysis to identify loss patterns and take preventive action to reduce losses.
Compliance with the keeper's liability obligations
Digital fleet management also offers appropriate solutions for compliance with the legally prescribed owner liability obligations. The Checking driving licenses conveniently via smartphone app while on the move. The driver instruction according to UVV can be carried out flexibly online as an e-learning course, no matter where the driver happens to be. This is not only very convenient for employees, but also relieves fleet managers of time-consuming appointment organization and driver communication. All tests and test results are documented and stored in a traceable manner.
Integration with other systems
A digital solution can be integrated with other business systems, such as accounting software, human resources management, and order management. This allows information to be exchanged seamlessly and processes to be automated to improve the efficiency and accuracy of data collection and processing.
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Who is responsible for fleet management in the company?
Responsibility for fleet management can be organized differently in companies. In small and medium-sized companies, employees often take on fleet management activities in addition to their actual tasks, such as purchasing or accounting.
Companies with large fleets typically have a fleet manager as the central person responsible for overall fleet management. In some cases, companies also decide to outsource fleet management to external service providers. What are the advantages and disadvantages of fleet outsourcing, you will learn later in the article.
What does Total Cost of Ownership mean in fleet management?
The total cost of ownership (TCO for short) describes the total costs associated with the ownership and use of vehicles in the fleet. This takes into account not only the acquisition costs, but all expenses incurred over the life of a vehicle. TCO therefore includes all costs around the:
- Acquisition and financing (such as interest or leasing fees)
- Ongoing costs for fuel, maintenance, repairs or tire changes
- Insurances
- Taxes and fees
- Depreciation
- Residual value
A careful analysis of the total cost of ownership shows the true cost of a vehicle in the fleet and helps to make informed decisions. It provides a basis for decision-making when it comes to making the most economical vehicle selection, determining the optimum time for vehicle renewal or planning maintenance strategies.
What are the legal requirements to be observed in the vehicle fleet?
In fleet management, there are a number of legal requirements and official regulations to be observed:
- The Working Hours Act (ArbZG) regulates the working hours of drivers and contains provisions on driving and rest times, break regulations and maximum working hours for driving personnel in commercial goods and passenger transport.
- The Occupational Health and SafetyAct (ArbSchG) also applies to fleet management and sets out general requirements for the protection of employees from work-related hazards. It is intended to ensure the safety and health of employees and provides the basis for regular driver training in accordance with accident prevention regulations.
- The obligation to check driving licenses in the vehicle fleet arises from the Road Traffic Act (StVG). This contains provisions on liability in road traffic and regulates aspects such as issuing driving licenses, vehicle registration, traffic regulations and penalties for traffic violations.
Are you still checking or are you already managing? More time thanks to digital holder liability (in german)
Fleet management: in-house vs. outsourcing
The decision as to whether fleet management should be handled in-house or outsourced to an external fleet service provider(fleet management outsourcing) depends on various factors and can vary from company to company. Here are some points to consider when making a decision:
Advantages
Inhouse
- Independence from external service provider and direct influence on workflows and processes
- Building internal expertise
- Support through digital fleet solutions
Outsourcing
- Know-how and better purchasing conditions
- Increased efficiency as employees focus on core tasks
- Investments for IT and further training of employees can be minimized
Disadvantages
Inhouse
- High expenditure of time and resources
- Difficulty in keeping up with latest technological developments
Outsourcing
- Often higher costs
- Loss of internal knowledge and control
- Dependence on external service provider and less flexibility
Companies often decide to outsource certain areas, whereby the operational processes are transferred to a fleet service provider and the strategic decision-making power remains within the company. If fleet management is operated in-house, digital solutions help with the organization of the vehicles and all associated issues.
Which trend topics should fleet managers keep an eye on?
Fleet managers should keep an eye on certain trending topics. This enables them to adapt their strategies to new developments and better meet the requirements of the changing mobility sector.
Car subscription
In contrast to long-term leasing contracts or vehicle purchases, car subscriptions such as those from Fleethouse often offer a shorter term, sometimes as little as one month. This gives companies the opportunity to flexibly adapt their vehicle fleet to changing requirements, bridge long delivery times for company cars or test the suitability of alternative drive systems for the fleet.
The monthly rate covers all costs including insurance, maintenance and taxes. Only the refueling and charging costs are not included. This enables better cost control and planning capability for fleet management.
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Online vehicle procurement
The online procurement of vehicles is also an important topic in fleet management. In recent years, the vehicle procurement process has changed significantly and many fleet managers are increasingly using online platforms to purchase vehicles for their fleet. This allows fleet managers to quickly and efficiently compare a variety of models, brands and trim levels, check prices and obtain quotes without having to physically travel to different dealerships. Our Easy+ company car configurator offers you precisely these options.
Online procurement enables fleet managers to handle the entire fleet procurement process electronically, including signing contracts and exchanging documents. This speeds up the process and reduces the administrative burden. Integrations with fleet management software allow procurement data to be seamlessly transferred.
Corporate car sharing
What has already become established in private use is also playing an increasingly important role in vehicle fleets: corporate car sharing can reduce fleet costs. Instead of providing each employee with their own vehicle, vehicles are shared and used as needed. This can reduce the number of vehicles required and increase utilization. This results in savings of up to 30 percent on purchase, insurance, maintenance and servicing.
Complete package for car sharing in your fleet
From vehicle booking and flexible vehicle access to compliance with legal requirements, our corporate car sharing software allows you to manage your pool vehicles efficiently.
Electromobility
Electromobility is becoming increasingly important in fleet management. Many companies are setting targets for the electrification of their fleets and investing in electric vehicles to achieve their sustainability goals and reduce costs.
Although electric vehicles are often still more expensive to purchase than conventional combustion vehicles, they can lead to long-term cost savings in the fleet. Electric vehicles have lower operating costs per mile because electricity is cheaper compared to gasoline or diesel, and maintenance costs are generally lower. In addition, electric vehicles produce no direct emissions and thus contribute to the reduction of air pollutants and greenhouse gases.
FAQ - Fleet management
Fleet management encompasses all activities related to the planning, administration and optimization of the operation of company vehicles. The aim is to use vehicles as efficiently as possible, reduce costs and comply with legal regulations.
Fleet management is crucial for the profitability and safety of companies that have vehicles in their fleet. The collection and analysis of data improves transparency and control in the fleet and provides valuable insights into the optimization potential of the fleet.
Efficient fuel management and regular maintenance help to reduce operating costs and avoid unnecessary expenditure. In addition, a central task in fleet management is to comply with legal regulations and document the relevant evidence. In terms of sustainability, there are also many factors to consider in fleet management in order to minimize environmentally harmful emissions – for example by reducing fuel consumption, using more environmentally friendly drives or more sustainable mobility concepts such as car sharing.
There is no legally prescribed training for the profession of fleet manager. A degree in a relevant field such as logistics, business administration or automotive engineering already provides a solid knowledge base for working in fleet management. Qualification as a fleet manager then takes place as part of qualified further training. These are offered, for example, by DEKRA, TÜV Rheinland or the Chamber of Industry and Commerce.
Thanks to a digital solution, fleet management tasks can be automated and data can be recorded and processed centrally. It also facilitates appointment management, cost control and claims management. This saves a lot of time in the fleet and relieves fleet managers in their day-to-day business.
Further articles on the topic of fleet management
Fleet management tasks: The 10 most important fleet activities
Fleet analysis: Analyzing the fleet step by step
Car Policy: Significance and advantages of a company car policy in the vehicle fleet
Fuel cards for companies: Efficient management of fuel costs in the fleet
Sustainable Fleet: Measures for more Environmental and Climate Protection in the Fleet
Helpful templates for fleet management
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