What is Fleet Management? How It Works, Benefits & More

Fleet management is the overarching process that helps fleets coordinate routes, analyze driver performance, improve safety, and more. With strong fleet management in place, fleet managers, drivers, and customers can all benefit.

In this post, we’ll take a closer look at fleet management, how it works, and how your business can benefit from implementing fleet management software.

In this article:

• What is Fleet Management?
• How Fleet Management Works
• Benefits of Fleet Management
• What Industries Use Fleet Management?
• Incorporating Fleet Management Software into Your Business Operations
• Frequently Asked Questions

What is Fleet Management?

Fleet management entails manual and automated tasks that make fleets run more smoothly. With a sophisticated fleet management process in place, businesses can ensure timely and reliable deliveries, save money on vehicle repairs, and reduce the risk of accidents.

How Fleet Management Works

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The numerous daily activities that fleet management incorporates generally fall into the following categories:

Route Planning, Tracking, and Dispatching

Fleet managers oversee driver routes, track current deliveries, and dispatch drivers where they need to go to meet current demands. Fleet managers must have excellent adaptability and problem-solving skills, allowing them to pivot when needed to assign new routes and monitor delivery bottlenecks, like traffic.

Driver Performance and Safety Management

From verifying drivers’ licenses and credentials to training drivers on proper safety measures, fleet management handles everything that keeps drivers performing efficiently and safely on the road. Fleet management software can also help with this process by analyzing driver performance to highlight potential issues like speeding, route deviations, or unbalanced task volumes.

Vehicle Performance and Safety Management

Fleet management is also responsible for overseeing the safety and performance of fleet vehicles. Fleet managers are typically tasked with locating and buying fleet vehicles as well as staying up-to-date with maintenance, inspections, and repairs.

Benefits of Fleet Management

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Small businesses may be able to operate without a full-fledged fleet management system in place. However, the benefits of fleet management are innumerable for companies using multiple vehicles on a daily basis. Some of the top benefits of fleet management include:

• Developing safe drivers: Fleet management helps train drivers properly so that they know how to stay safe on the road. The right training and development can improve driver satisfaction, potentially resulting in increased driver retention.
• Tracking vehicles: Fleet management keeps an eye on vehicles at all times, allowing managers to get an idea of when vehicles will make it to their final destination or wrap up for the day.
• Reducing costs: Fleet management can pinpoint problem areas that could affect costs, like fuel waste or driving behaviors that reduce efficiency, like veering off planned routes. Keeping vehicles current with maintenance and inspections through fleet management oversight can also reduce insurance costs.
• Getting the right fleet vehicles: Fleet managers know their fleets so well that they understand when, where, and how to buy the right fleet vehicles to enhance their fleets.
• Improving efficiency: Route planning and adjusting are primary responsibilities of fleet managers. By tracking routes and monitoring for potential routing issues, fleet managers can understand what routes might need to be modified to improve delivery times and update driver routes to balance workloads.
• Assisting with compliance: Fleet management keeps everyone on the same page with laws and regulations in every area a fleet drives. The process helps avoid potential issues like drivers being on the road for more time than they’re allowed by law or not completing the proper inspections during transport.

What Industries Use Fleet Management?

Any business with transportation as a large portion of its business model can likely benefit from fleet management. Engineering, construction, public transport, security, and utilities are just a few industries that utilize fleet management.

For example, food service companies rely on trucks to transport their ingredients, and city departments typically own several types of vehicles to meet the needs of the community. These types of businesses can use fleet management to oversee deliveries, dispatching, and more.

Incorporating Fleet Management Software into Your Business Operations

Tune in to our latest Feature Spotlight to discover how simplified route visualizations and real-time fleet visibility optimize your last-mile. Schedule a demo with us today to learn more about Dispatcher from Wise Systems here!  https://t.co/dMPjyYSEZv pic.twitter.com/u1kpYbKkd6

— Wise Systems (@goWiseSystems) April 17, 2023

Fleet management software like the Wise Systems delivery automation platform can enhance the best fleet management systems. The software integrates with your current workflow to automate tasks, like route planning and dispatching, and analyze your fleet’s performance.

The Wise Systems platform includes a suite of tools for every stage of the delivery process, including a Mobile Manager app that streamlines communication—a vital component of effective fleet management—and a Strategic Planner, which enables you to create the most effective route and territory plans, among other tools.

Request a demo to learn how our fleet management software can benefit your last-mile delivery processes.

Frequently Asked Questions

What does a fleet manager do?

A fleet manager is responsible for overseeing the fleet management process. The typical daily tasks for a fleet manager include hiring and training fleet workers, ensuring regulation compliance, managing safety programs, buying fleet vehicles, and looking for ways to maximize efficiency and reduce costs.

Who needs fleet management?

Virtually any business that relies heavily on transportation in some way needs fleet management. Law enforcement agencies, utility companies, and vehicle leasing agencies are a few types of businesses with fleet management in place, but several others, like healthcare organizations, oil and gas companies, and food service companies, can also benefit.

Are there apps for fleet management?

Yes, fleet management software has become more commonplace in businesses with heavy transportation needs. Apps for fleet management can automate several processes, like delivery tracking, route coordination, and real-time alerts, to help fleet managers oversee the vehicles and routes they’re responsible for. Wise Systems’ fleet management software is a good example of how technology can enhance fleet management.