Fleet management systems organize company vehicles, provide tracking capabilities, maintenance schedules, and fuel management. They can also track mileage and depreciation, and offer vehicle financing and marketing. The system connects to a computer installed in the vehicle and transmits information via satellite communication.
A business may need a large fleet of vehicles, but it can be difficult to maintain that fleet. This is the primary function of a fleet management system, taking company vehicles and organizing them to give the company vehicle tracking capabilities, maintenance schedules, and other basic fleet needs. Fleet management systems can also provide the vehicles for the company if the company does not want to buy yours.
The most important facet of a fleet management system is vehicle tracking. These systems track the vehicle’s actual location, fuel economy, average speed, and Estimated Time of Arrival (ETA). They also know which company employee has the vehicle, when, and sometimes why; Ensuring that a vehicle is available when an employee needs it is another key function. This information is compiled and analyzed by the fleet management system, which can then make suggestions on how to improve efficiency or fuel economy. This system can also track a vehicle if it is stolen, but it can also be used as a GPS to track the driver.
Fleet management systems are sometimes responsible for scheduling and approving vehicle fuel, maintenance, and repairs based on the company’s budget. These companies issue a small card or booklet listing scheduled maintenance and approved repairs. Typically, these fleet management systems will have a fixed dollar amount for repairs that is pre-approved and does not require any authorization. A fleet management system can also issue a credit card for employees to use to purchase fuel from approved vendors.
Over time, all vehicles depreciate in value. Part of the fleet management system’s responsibilities include calculating this depreciation over the year and determining when it’s time to purge that vehicle from the fleet. Fleet management systems often have connections with car manufacturers to market the vehicles in the fleet and add new vehicles to the fleet at a reduced price; They may also offer vehicle financing for the company.
In companies where driving is part of the daily routine, many employees are reimbursed for their trips at a per-mile rate. The fleet management system becomes responsible for tracking this mileage. This eliminates the need for the employee to worry about a company cutting their mileage due to a lost logbook entry. This also keeps track of the miles driven per year to help calculate depreciation on the vehicle.
The fleet management system often tracks these vehicles through a special computer installed in the vehicle. This computer connects to the fleet management computers via satellite communication and transmits all relevant information. Proper use of the information provided to the fleet management system will help the company save money and streamline the management of its large fleet of vehicles.
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