What is a Fleet Management Company?
Fleet management companies usually provide software and/or hardware to help commercial fleets improve safety, efficiency, and productivity. Learn more about them and how to choose a fleet management company.
A lot of work and attention is dedicated to developing and overseeing a high-performing fleet.
You need to stay on top of your fleet maintenance, driver safety, fuel cost, and the profitability of your commercial fleet’s operations, among other things.
If you need help running your fleet and improving the efficacy of your operations, you should consider working with a fleet management company.
This guide covers what a fleet management company is, what it does, and how to choose the best one for your business.
What is a fleet management company?
A fleet management company uses proprietary or in-house hardware/software solutions to help companies manage their commercial fleets.
Services offered can range from helping businesses monitor the status and whereabouts of their vehicles to transporting/delivering goods faster, improving the longevity of their commercial vehicles, and reinforcing driver safety — all intended to improve the bottom line.
What do fleet management companies do?
Fleet management companies offer software and tools to facilitate efficient delivery and transport of goods and services.
They accommodate a variety of businesses no matter the industry or fleet size — whether it’s agriculture, construction, food and beverage, passenger transit, etc.
Fleet management companies also use automation to streamline or eliminate administrative work.
How top fleet management companies can help boost your performance
There are several ways fleet management companies can bolster your fleet’s performance. They can:
- Reduce fuel costs. Fleet management companies can give you a consolidated view of your vehicles’ fuel consumption. They can tell you what’s hurting your fuel efficiencies by tracking idle times, notifying maintenance of clogged air filters, and rerouting drivers to avoid traffic.
- Increase fleet safety. The safety of your vehicles and drivers can be improved with the help of fleet management companies. They track and monitor performance data and develop relevant training programs. Their software informs you of better ways to comply with transportation laws and enforce measures to reduce accidents. For example, some fleet management solutions automatically alert your drivers when it detects engine fault codes so drivers can report and address the issues before they become costly repairs.
- Boost operational productivity. Fleet management companies can modernize your operations by reducing manual work and enhancing productivity through automation. Their tools can track and analyze vehicle- and driver-related metrics and minimize issues that lead to avoidable downtimes.
- Offer access to innovative technologies. Top fleet management companies offer state-of-the-art software with powerful features like automatic fleet activities, global positioning systems (GPS), and artificial intelligence (AI) that detects dangerous driving behaviors and forecasts potential dangers, among many others.
- Develop a robust fleet management plan. With data and insights from fleet management companies, you can create comprehensive fleet management strategies that minimize risk, govern resources sustainably, and provide tangible value. Fleet management tools will help you integrate all facets of fleet supervision — including admin and human resources — to achieve overall operational cost efficiency, profitability, and other targets.
Solutions offered by the best fleet management companies
The largest fleet management companies offer all-in-one solutions supporting several fleet-related functions. These may include:
- Vehicle insurance applications
- Accident resolution and insurance claims
- Preservation of roadway and interstate compliance
- Fleet maintenance (whether preventive or predictive) and repairs
- Delivery and logistics management
- Vehicle diagnostics
- Driver and vehicle dispatch and GPS location tracking
- Telematics
- Fuel consumption monitoring, price control, budget, and expense strategy
- Driver safety and training
- Fleet performance monitoring and reporting
How to choose a fleet management company
Consider these factors when selecting a fleet management corporation for your business.
1. They have a proven reputation and track record
Truck fleet management companies that are worth their salt will have numerous positive reviews on third-party software review sites such as G2 Crowd, Capterra, etc.
Take note of the recurring positive and negative feedback given by their existing client base to get a better feel of what you can expect should you decide to work with them.
2. Their tools are feature-packed and customizable
Not all fleet management tools are created equal. Some offer a limited set of features while others offer a long list of functionalities that can address their users’ needs.
If you can install that one tool and be able to operate efficiently, you can avoid the hassle of onboarding multiple tools and making them work together. You can also avoid paying additional subscription fees.
3. They listen to your needs
The right fleet management company will listen intently to your business needs and explain how their solution can (or can’t) address your requirements.
They won’t treat you as a mere cash cow. Instead, they’ll partner with you and find the best ways to assist and improve your operations. They make your success their primary concern and consistently strive to improve their services.
4. They put a premium on software updates
The best fleet management companies are constantly investing in improving their software.
They can keep up with modern-day fleet challenges, compliance requirements, and even technological innovations.
By staying current, they respond to new demands in the marketplace and develop new features and products that you need to stay competitive.
An added upside of a fleet management company that keeps their software up to date is they’re more capable of withstanding a cyberattack. They also have fewer vulnerabilities that cybercriminals can exploit.
5. They match your insurance company requirements
The data and output your fleet management software produces should match the requirements of your insurance application and claim requests.
For instance, if you’re involved in an accident, will a written incident report certified by law enforcement suffice in claiming insurance coverage? Or will the firm also require dashcam footage?
If the latter, your fleet management software should have reliable dashboard cameras as part of the package and robust event-recording features.
6. They provide top-notch customer service
Choose a company with 24/7 customer support and multiple support channels such as email, live chat, and operators standing by.
When you can easily and quickly connect with your fleet management support teams, you can minimize experiencing technical issues that will hamper your operations.
The sooner you connect with your fleet management company’s support team, the shorter your downtimes become.
Also, choose a fleet management corporation that can give sufficient software as a service (SaaS) training to your drivers, administrative staff, and other relevant personnel, so you can reduce the time between onboarding to full adoption.
The company should also provide you with easy-to-understand how-to guides, tutorial videos, and other educational resources.
7. Their interface is user-friendly
When your commercial vehicle drivers are equipped with software that’s intuitive and with easy-to-use features, their user experience improves.
The impact of integrating intuitive software in your operations is far-reaching. It can improve driver safety, reduce employee turnover, and grow your bottom line.
Find your ideal fleet management company
The role fleet management companies play is crucial to the success of your business.
Depending on the fleet management software you’re using, you can:
- Reduce your fuel cost.
- Improve your profitability.
- Bolster the safety of your drivers and company assets.
- Reduce workforce hours.
- Send productivity skyrocketing.
Don’t pull punches during the screening process. After all, this is your business and you’re paying for their services. When you find the ideal fleet management company, the time and effort you invested will yield amazing results.