What is Fleet Management in Logistics?

What Is Fleet Management In Logistics

Fleet Management is the Management of:

  • Commercial motor vehicles such as cars, vans, trucks, specialist vehicles (such as mobile construction machinery), forklifts, and also trailers
  • Private vehicles used for work purposes (the ‘grey fleet’)
  • Aviation machinery such as aircraft (planes and helicopters)
  • Ships
  • Rail cars

Non-powered assets such as generators, containers, transmissions, dumpsters, shipping containers, trailers, excavators, and also other equipment that can’t operate on its power

Fleet management can consist of a series of features, such as vehicle leasing and financing, vehicle maintenance, licensing, supply chain management, issue management as well as subrogation, vehicle telematics (monitoring and diagnostics), driver management, speed management, gas management, health and wellness management, and vehicle re-marketing.

Fleet management is a feature that permits companies that rely upon transportation in business to remove or decrease the threats associated with vehicle financial investment – improving performance, efficiency, and lowering their total transportation and personnel costs, providing 100% compliance with government regulations and more. These features can be handled by either an in-house fleet-management department or a contracted out fleet-management supplier. The number of light-duty vehicles registered in industrial fleets in Europe since 2016 was 15 million, as well as 19.5 million in The United States and Canada Despite these record varieties of registration, light-duty vehicles stand for only 62% of all fleet sales.

Review of Fleet Management Integration

The range of features associated with fleet management is incredibly interrelated and usually integrated. While some services and products can be engaged separately, an overall system that incorporates the data from different functions is necessary for optimum efficiency.

Vehicle tracking systems offer several information factors regarding engine diagnostics, driving behaviors, and also geolocation. However, there are a plethora of various other information points beyond vehicle radar that substantially influence fleet efficiency.

Gas purchase data, upkeep fixing data, private vehicle records such as vehicle registrations, titles, as well as travel permits, supply chain information consisting of the vehicle as well as tools specifications, warranties, build and delivery data, as well as vehicle identification data.

Driver-centric information such as acceptance of fleet policies, completion of required safety and security training, in addition to market information on task types, all contribute to the fleet data universe.

The more specific features a fleet performs, the more systems and data factors are associated with the combination.

Vehicle Tracking System

A crucial part of fleet management systems is the vehicle tracking element. This element is generally GPS-based, yet often it can be based on GLONASS or a cellular triangulation system. Once the GPS elements discover the vehicle place, instructions, and rate, extra monitoring abilities transfer this info to a fleet management software application.

Techniques for information transmission include both earthbound as well as satellite. Satellite monitoring communications, while much more expensive, are vital if vehicle tracking is to work in remote environments without interruption. Individuals can see actual, real-time places of their fleet on a map – this monitoring aids in reacting to events in the field promptly.

A concept of geolocation based on the GPS for the position decision and also the GSM/GPRS or telecommunication satellite network for information transmission.

Mechanical diagnostics

A sophisticated fleet management system (FMS) can attach to the vehicle’s onboard computer system, and also gather data for the user. Data such as mileage and gas usage enter into a global data system.

Driver habits

Highly developed fleet management and vehicle telematics systems gather a full series of data in real-time as well as for transport and also fleet supervisors. By incorporating received information from the vehicle radar as well as the onboard computer system, it is feasible to develop a profile for any offered driver (the regularity of detours, breaks, the severity of maneuvers, choice of gears, etc.). This data is useful to highlight drivers with harmful habits and to suggest restorative training relevant to the problems, or to make sure that drivers are satisfying KPIs.


Several fleet management and also vehicle telematics systems make use of geofencing to boost asset safety and security. Geofencing allows any type of internet-enabled device with a GPS or asset tracker application to establish an online border around a particular area making use of mapping technology. It likewise allows individuals to develop activity triggers, such that when a property enters or leaves the pre-defined limitations, users receive an alert – either through text, e-mails, or press alerts.

Fleet management software

Fleet management software allows individuals to achieve a collection of particular jobs in the management of any or all elements associating with a company’s fleet of vehicles. These details incorporate all operations, from vehicle purchase to disposal. Software program, depending on its abilities, allows functions such as taping driver and vehicle details, the monitoring of procurement costs, organizing of upkeep as well as maintenance tasks, import of fuel transactions, route optimization, and also measuring of fleet performance via reports as well as charts.

Fleet safety and control

Recent breakthroughs in fleet management allow for the addition of over-the-air (OTA) safety as well as control of fleet vehicles. Fleet Safety and Control consist of protection of the truck while stalled or not in operation and also the capacity to disable a vehicle while in operation safely. This function allows the fleet manager to recuperate swiped or rogue trucks while decreasing the chance of lost or swiped cargo. The added of Fleet Safety and also control to a fleet management system offers a fleet card manager preventative procedures to address cargo damage and loss.

Remote vehicle disabling systems

Remote vehicle disabling systems provide users at remote places the capacity to stop an engine from starting, prevent motion of the vehicle, as well as to stop or slow down an operating vehicle. Remote disabling allows a dispatcher or other accredited employees to slowly decelerate a vehicle by downshifting, limiting the throttling capability, or bleeding air from the braking system from a remote place. A few of these systems offer development notification to the driver that the vehicle disabling is about to happen. After stalling a truck, some systems will lock the vehicle’s brakes or will not allow the vehicle’s engine to restart within a particular time-frame.

Remote disabling systems can likewise incorporate into a remote panic as well as an emergency alert system. In an emergency, a driver can send out an emergency alert by pushing a panic button on the dashboard, or by utilizing a key-fob panic button if the driver is within distance of the truck. Then, the carrier or other accepted organization can be remotely alerted to permit a dispatcher or various other licensed personnel to review the scenario, interact with the driver, and possibly disable the vehicle.

Fleet replacement and also lifecycle management

The timely replacement of vehicles and tools is a process that requires the capability to predict possession lifecycles based on expense info, application, as well as asset age. Companies prefer to utilize a brand-new fleet as a technique for cost reduction, where the current fleet liquidates so that a brand-new fleet can come in.

Financing needs are likewise a problem because of several companies, especially the federal government, acquisition vehicles with cash. The impromptu nature and typical low funding levels with cash have put several procedures in an aging fleet. This absence of adequate financing for replacement can likewise cause greater upkeep prices because of aged vehicles.

Duty of care

In the UK, in April 2008, the Corporate Manslaughter Act was reinforced to target company supervisors in addition to their drivers in cases of road deaths, including vehicles used on service. The Police have stated they now treat every road fatality as ‘an illegal murder’ as well as have the power to seize company records and also computer systems during their examinations. They will undoubtedly bring prosecutions versus company directors who fail to provide transparent policies as well as assistance for their workers driving at the job.

Sadly, in the UK, a variety of organizations are falling short of satisfying their duty of care. In particular, prosecutions can be made against company supervisors for not working to meet their task of care and enabling HGV driver hours to exceed the legal limits. Failing to follow EU guidelines can result in a repaired penalty of up to ₤ 300, a graduated deposit of as much as ₤ 1500, or you could be summoned to court. Directors and entrepreneurs may not know that privately-owned vehicles made use of for service trips are exactly like company-owned vehicles. Supervisors have an equivalent obligation under the regulation to make sure these vehicles are also roadworthy and appropriately insured.

Every company must have a ‘Driving at Work’ plan in place covering every element of their company vehicle procedure. Every staff member driving for business is needed to enroll in the policy. In this way, the directors can decrease the risk of being prosecuted and a possible custodial sentence.