Enterprise Fleet Management: Everything You Need to Know

enterprise-fleet-management

Did you know that according to a survey by US Cellular for Business, respondents who use fleet management indicate a rapid ROI, with 55% reporting ROI in 18 months or less? This means that that fleet management leads to cost-effectiveness within a short duration.

One of our clients recognized this potential for his transport business and approached us to develop a complete transportation solution. We developed One-8: enterprise fleet management system for his logistics company, automating most of his business operations. We decided to help shipping, delivery, vehicle rentals, and every business that requires enterprise fleet service. We are writing this blog to share what we have learned about enterprise fleet management during our experience.

What is Enterprise Fleet Management?

Various enterprise businesses require transportation on a daily basis, which in turn requires vehicles. Along with managing all the business operations, handling fleet is equally important. This process of managing this fleet is usually done by fleet managers. The process consists of managing the fleet along with handling asset information- from acquisition through to disposal. The purpose of enterprise fleet management is to reduce fuel and transport costs, improve productivity, and make the entire transport part of the business smoother.

Which Industries Require Fleet Management?

Every business that deals with transport require fleet management. Here are some of the most common industries that use fleet management process to improve their efficiency.

industries-enterprise-fleet-management

1) Logistics
If your business is to commercially transport goods from one place to another, the fleet is the most crucial part of your business. You need to make sure the goods reach the destination on time and without any damage. The entire process from receiving a delivery request, to shipping and delivery can be easily managed by the fleet management process.

2) Food delivery
Whether you own a restaurant or catering services, you will need real-time vehicle tracking. The owners, as well as the customers, need to know whether the order will reach on time and where the delivery personnel has reached. You can do this and more by fleet management. We have developed the most downloaded on-demand food and grocery delivery app in Spain- Glovo and alcohol delivery app called Lacy with real-time tracking features.

3) Construction
Your construction business probably requires expensive and heavy equipment and materials. Fleet management becomes very important for safely delivering such items.

4) Cab Aggregators and Vehicle Rentals
We have worked with various cab aggregators and enterprise fleet rental companies. We have also developed taxi booking apps like 2Placez aggregators and car leasing enterprise companies. We have learned that along with fleet management, enterprise leasing companies also need to check the live location of every vehicle. They also need to manage the maintenance of their vehicles and perform fuel management.

5) Package Delivery
As the packages need to be delivered all over the country and even the world, depending upon your scale, fleet management becomes extremely important. We have developed various package delivery apps as well, like Jabrool and Ninja Delivery. In fact, you can also grow your delivery business using route planning apps along with enterprise fleet management app.

6) Educational Institutes
If you’re running a school or college, the safety of the students becomes your concern. When you’re providing transport to the students, you need to manage the fleet as well as their safety. We have developed a school bus tracking app with all enterprise fleet management features called Baloora.

7) Pharmaceuticals
Pharmaceutical companies might need to transport many biological agents and expensive equipment. You need to keep a bird’s eye view on the entire process. This is why even you will need to manage your fleet as closely as possible.

We are sure you will agree that this process is not easy. This is why we will now talk about the challenges most businesses face in fleet management.

What are the Challenges of Enterprise Fleet Management?

According to a report by US Cellular for Business, these are the concerns of most businesses.

Challenges-fleet-management

Source: US Cellular for Business

Well, you know your problems the best. We have had a fair share of clients who used to face a lot of difficulties. They came to us with various issues and we have tried to classify them into the following points. Let’s take a look.

1) Managing Teams
As a logistics company, you might have large teams, and staying on the same page can be made easier. The problem is amplified if your teams are dispersed over a large geographic area. Let’s take an example.

Suppose you are running a package delivery firm that caters to clients worldwide. You will need to communicate with your teams whether on-site or off-site. This is very challenging with conventional systems.

2) Finding Scalable Solutions
Your growing business has changing requirements. It becomes very difficult for businesses to scale their fleet management solution along with the new needs. Suppose you acquire a smaller company and now need to manage the logistics of even more assets You will need to find a solution that can easily adapt to requirements.

3) Unauthorized Use of Company Vehicles
It is not uncommon that employees use company vehicles for their personal use without informing the authorities. This leads to vehicular wear and tear to a greater extent along with higher fuel consumption. Without real-time GPS technology, it becomes almost impossible to keep a check on such activities.

4) Information Overload
Fleet management is just two words but the fleet managers need to perform a lot of tasks. A lot of information keeps adding and managing everything at once becomes a huge task in itself. The fleet managers need to deal with fleet safety, driver hiring process, fuel bills, driver behavior, and so on. You need to find an efficient system for handling every piece of information effectively.

Slowly, there have been developments in the industry that have made the challenges easier or completely eliminated them. Let’s see what is happening in this sector these days.

Fleet Management Statistics

Technology has a Midas touch that has not left the fleet management sector untouched. Businesses are preferring to use mobile apps and software to keep track of their fleet. From e-scooters to trucks and even airplanes, fleet managing software can help you at every step.

  • According to Report Linker, the global market for Fleet Management Systems is projected to reach US$17.8 Billion in the year 2020, after keeping the economic crisis due to COVID-19 in mind.
  • It is estimated that the market will show a compound annual growth of 13.4% over the forecast period of 2020-2017 and reach a size of US$42.9 Billion by 2027.
  • The United States of America accounts for over 27% of Global Market Size in 2020 and its market is valued at US$4.8 Billion in the year 2020.
  • According to Grandview Research, the US smart fleet management will show a growing trend from 2014 to 2025.us-smart-fleet-management-market

Source: Grandview Research

This growth is attributed to the cost benefits that the businesses gain by using cloud-based fleet management solutions.

As you have seen, eFleet Management Solutions are becoming increasingly popular. Do you know why is that? The reason is very simple, these solutions carry out the following functions very easily.

What are the Functions of Enterprise Fleet Management Solution?

There are a lot of functions of enterprise fleet management but we’ll focus on 5 most important of these. Let’s start.

functions-of-enterprise-fleet-management

  1. Track Vehicles: The main purpose of any fleet management software is to track fleets and drivers. GPS technology used in software applications can carry out this task.
  2. Optimize Routes: Another function is planning optimal routes for every trip. This saves a lot of fuel as well as the time required to complete every delivery.
  3. Manage Fuel: Fuel costs are one of the top expenses in the transport sector. Fleet management also deals with monitoring and optimizing fuel consumption.
  4. Vehicle Maintenance: Vehicles are prone to the usual wear and tear. However, over-using a vehicle can lead to additional costs. Fleet management also helps in keep vehicle health in check.
  5. Monitor Driver Behaviour: Not just the vehicles, but you need to monitor the drivers and their driving skills as well. This is also a part of the fleet management process.

Will any fleet managing solution will do for your business? We don’t think so. Every business is unique and requires attention to every aspect of it. The next section will elaborate more on difference between custom and ready-made fleet management solutions.

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Difference Between Custom and Ready-made Software

You will find a lot of ready-made fleet management solutions in the market. They claim to have a lot of features that will take care of your business requirements. However, the truth is that ready-made software solutions are made for general purposes. If you are someone who requires to manage their fleet on an everyday basis, you should go for a custom made fleet management software that is made specifically for your business needs.

If you require certain advanced features in a ready-made solution, it becomes very difficult. Customization is not something that ready-made solutions are known for. Further, you will need to pay subscription fees every month or year while custom-made solutions are just a one-time investment. You won’t even have to deal with bad customer service when it comes to custom solutions.

Here are some differences between ready-made and custom solutions.

Custom Fleet Management SystemReadymade Fleet Management System
  • It is specifically designed keeping all your business needs in mind
  • It caters to all your transport and fleet analysis requirements
  • You don’t have to make multiple payments as it is a one-time investment
  • Such a solution is more affordable in the longer run
  • Customization is very easy. No need to pay for unnecessary features
  • Easily scalable, beneficial for growing businesses
  • All the features are very general and might not cater to your specific needs
  • Such solutions will be missing many features that your business requires
  • You have to buy monthly or annual subscriptions
  • Long term use means you need to pay for as long as you use it making it expensive
  • Customization are not easy, you have to pay extra for the more features
  • Not scalable, causing hindrances to business growth

Finally, let’s take a look at what benefits you’ll acquire once you get the perfect custom made software for your business.

What are the Benefits of Enterprise Fleet Management Solution?

benefits-of-enterprise-fleet-management

1) Customer Retention
With on-time deliveries achieved via optimized routes, your customers will be satisfied. If you integrate a feature with which even your customers can log in to the portal and view their delivery route, they will stay in the loop. This also increases transparency between the parties as well. In fact, we have created a Company Admin in our transport management system- One8. You can check out the portfolio to see all the features in detail.

Happy customers will stay with your company longer.

2) Employee Satisfaction
“Always treat your employees exactly as you want them to treat your best customers.” – Stephen R. Covey

Customers do come first but as the leader, employees matter to you as much. A happy employee will treat the customer better and in turn your business. With improved fleet management and optimized routes, the employees do not have to do over-time to deliver consignments.

Further, their shifts can also be managed effortlessly when you know how much time each delivery will take. This improves employee satisfaction greatly.

3) Improved Productivity
This point is directly related to employee satisfaction as well as process automation. If your employees are happier working with you, they will work with their best capabilities. This will impact the efficiency of the company positively. Next, with automating the processes, many tasks will take lesser time than before. The employees can utilize this saved time in dealing with customer’s queries and work up a repo with them.

4) Expense Management
A lot of paperwork will be reduced. This will save costs on stationery as well as the labor required to do it. When you optimize your routes, you will consume lesser fuel. This will save a ton on fuel costs.

Fleet management software also helps in reducing vehicle maintenance costs. The software keeps a record of how many times a vehicle has been used and if it is time for casual maintenance before there is any major damage done to it. This reduces vehicle repair and maintenance expenses.

5) Process Automation
Instead of spending time and resources on manual labor, a lot of processes like record-keeping and contract renewals can be automated. This will reduce paperwork as well. You can basically take your business on a digital platform and get rid of the traditional systems that hindered the growth of your business. Further, manual errors will be reduced to a great extent.

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Let’s take a look at the most commonly asked questions and their answers.

FAQs

1) Which are the best enterprise fleet management software?

Following are some of the best enterprise fleet management software:

  • Route4me
  • Badger Maps
  • MyRouteOnline
  • RAM Tracking
  • Service Assistant

2) Where can I find fleet management developers?

You can find a lot of software and app developers on the internet. Websites like Clutch and Upwork are great places to look into. However, you must make sure that these developers have experience in developing such solutions. This is useful as the previous experience will make the development process easier and less prone to errors. We have already developed such software like One-8, Baloora, 2Placez, and Braxi.

3) How much does it cost to develop a fleet management system?

The average cost of developing a fleet management system is around $16000. The cost is calculated considering the features you need in your solution, time to develop it, and the developer’s hourly charge. It took us about 400 hours to develop One-8 and we charge $40 per hour. 

We use a simple formula to calculate the total cost: Time Required X Hourly Charge= Total Cost

This means the entire designing, development, testing, and deployment process can be done for $16000. However, if you need an MVP solution, the cost will be less.

Conclusion

We hope that now you know everything you need to know about enterprise fleet managing solutions. Still, if you have any questions related to fleet management software, feel free to contact us. As we have a dedicated team for the custom fleet management solution development, we would be more than happy to answer your questions and validate your idea with free consultation.

We are a leading app and software development company. We have worked on over 3500 projects for Android, iOS, Web, and Cloud platforms. In fact, Upwork recently awarded us Top Rated Plus badge as we have successfully delivered enterprise-level projects on time.

Also Read:

The Complete Guide to Vehicle Tracking Solution [Benefits+Features+Costs]

This page was last edited on July 22nd, 2020, at 2:53.

Author Bio

Bhaval Patel

Bhaval Patel

Designation: Director (Operations)

Bhaval Patel is the Director (Operations) at Space-O Technologies. He has over 15 years of experience in business management and sales. He has expertise in the taxi booking app solution and on-demand applications. Under his guidance, Space-O has developed 50+ Uber-like taxi apps on both iOS and Android platforms.

 
 

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