Fleet asset management is about overseeing and efficiently managing all the assets in your fleet. It can streamline your processes and give you a holistic view of your assets’ lifecycles from acquisition to usage and resale.
A well-thought-out fleet asset management plan can help you get more mileage out of your fleet assets and increase productivity.
It allows you to build a more sustainable and efficient business by maximizing your assets’ capability to generate profits.
In this guide, we’ll cover all that goes into fleet asset management.
What is fleet asset management?
Fleet asset management is about overseeing and efficiently managing all the assets associated with your fleet operations. It streamlines your processes and gives you a holistic view of your assets’ lifecycles from acquisition to usage and resale.
Companies with commercial vehicles often use asset management software to modernize their business processes. The software enables teams to work efficiently and companies to oversee and review their fleet assets, including vehicles, equipment, facilities, tools, and even people, from a central hub.
Using a fleet asset management software helps you:
- Monitor all fleet assets.
- Manage assets seamlessly from multiple locations.
- Plan against operational, legal, and financial risks.
- Organize fleet asset portfolio.
- Improve time management.
- Track fleet performance to establish more efficient operations.
- Measure and monitor fleet asset life cycle costs.
The importance of fleet asset tracking
Having an established fleet asset tracking system helps you better manage your vehicles and other fleet assets.
It gives you the information and processes you need to develop a centralized system where you can organize your fleet operations.
Some of the primary benefits of fleet asset tracking include:
1. Simplified asset maintenance
Managing your assets doesn’t have to be time-consuming and resource-heavy.
For instance, using a field service asset tracking platform allows you to capture and monitor your fleet asset’s service history, condition, engine hours, and miles traveled (among others) through an online platform.
This information can help you establish effective maintenance programs and routines to ensure your fleet of vehicles gets the necessary service without disrupting your schedules and operations.
2. Improved visibility on operations
Mobile fleet asset tracking software gives you real-time data and updates to help you efficiently manage assets that are on the move.
It can also improve staff accountability since you can easily track and determine if drivers are using your fleet assets after work hours. It also shows unauthorized stops or when a vehicle passes through the prescribed route.
3. Lowered overhead costs
A fleet asset management solution can lower overhead costs in several ways. Because it automates your business processes, you can hire fewer employees and your staff can put in fewer working hours. As a result, you can increase your efficiency and productivity and reduce your operational and workforce-related expenses.
4. More asset utilization
A reliable fleet asset tracking tool can show the location of your commercial vehicles at all times, whether they’re in the yard, en route, or in detention. This makes it easy to go over asset usage, balance workloads to avoid underusing (or overusing) your fleet vehicles, equipment, and tools, and seamlessly redirect assets to job sites.
5. Higher productivity
Asset tracking and management tools give you better visibility and control over your fleet vehicle’s condition and location.
The tools allow you to accomplish more tasks since you can avoid chasing others about the status of your assets. Plus, automated fleet asset tracking solutions can monitor and flag unproductive activity and prompt individuals to complete their assigned tasks.
6. Stronger asset protection and theft reduction
GPS deters vehicle theft and equipment loss by tracking asset locations in real time. GPS can also monitor and catch unusual movement, allowing you to quickly prevent these incidents or increase your chances of recovering your assets.
Features of an effective fleet and asset management system
Consider the features when setting up a high-performing fleet asset management system.
A fleet and asset management system must have a centralized hub where your team can track assets, view task statuses, and see assignment histories in one place.
Your fleet asset management system should allow quick-and-easy file uploads, which can include accident reports, warranty documentation, and multiple asset photos.
The system should also enable managers and admin staff to quickly access, store, organize, and extract the required documentation on fleet assets for supervising operations.
An effective fleet asset management system generates the data you need to assess your fleet operations and costs, keep your employees informed, and uncover actionable insights for optimal fleet operation.
The data points can be used to track asset durability and reliability and maximize your asset utilization.
Monitoring the total cost of owning your assets is another must-have feature in a fleet asset management solution. The system tracks all your fleet’s expenses, from parking violations to oil changes.
With the data obtained from your asset management system, you can tell how much your company is spending on maintenance, fuel, incidents, registration and taxes, and other expenses.
Choose an asset management system that enables you to easily assign assets to operators and commercial drivers.
The system should include a cloud-based fleet asset management software so you can assign vehicles and update information anytime, anywhere.
The fleet asset management system must also give you scheduling insights and utilization reporting so you can optimize your fleet operations and asset usage.
Essential factors in a fleet asset management plan
Consider these factors when developing your asset management plan:
Your asset management objectives should align with your business goals.
The key performance indicators (KPIs) you choose for your asset management should directly impact your business objectives.
For example, if your target for the upcoming quarter is cost reduction, your asset management KPIs should include several cost metrics, such as cost-per-stop, engine idle time, etc.
Proper planning will help you identify the steps, tools, and strategies you need to accomplish your asset management goals.
Start by auditing your existing assets and updating your inventory. This gives you a clear picture of your assets’ current condition, remaining lifespan, and value.
Setting up your service levels, applying cost-effective management, and achieving your financial goals are the next logical steps you can pursue when you’re done auditing.
Monitor and review
A fleet asset management plan captures the data that will give you a better understanding of the cost-effectiveness and efficiency of your assets.
You can use your data to make better decisions, such as when to invest in new vehicles, amend or update fleet asset maintenance policies, and when to allocate funds for upgrades.
The primary role of a fleet asset manager
A fleet asset manager’s primary function is to monitor and maintain your fleet assets.
An asset manager will also develop (or contribute to) an effective fleet asset management plan to efficiently and cost-effectively operate, maintain, upgrade, and dispose of your assets.
Invest in fleet asset management
The positive effects of having an established fleet asset management system are far-reaching: Easily deploy your vehicles, improve your productivity, and grow your bottom line.