Fleet management by definition means the oversight and control of a company’s fleet of vehicles. Those vehicles could include cars, trucks, vans, bicycles, ships, buses, and even airplanes. I know of one freight movement company that had a fleet manager for the corporate airplanes.
It is safe to say that any company’s fleet that involves two or more vehicles represents a significant investment. In those companies where delivery and pick-up services are a main part of their business, the coordination of those vehicles is essential. In these situations, knowing where the vehicles are at any point in time can help increase customer satisfaction. If one vehicle is caught in traffic, a nearby vehicle may be able to be diverted to make the pick-up so that the company can meet its commitment to the client.
The capabilities of today’s vehicle tracking systems also help monitor maintenance scheduling. Tracking the mileage of the vehicle can advise when maintenance such as oil changes, filter changes, and various adjustments need to be made. Having this information can save the organization significant expenses by avoiding break-downs (and they always happen at the most disadvantageous time) or keeping the vehicles operating efficiently.
Not only can these devices monitor for maintenance, they can capture information on the speed of the vehicle to highlight dangerous or inefficient vehicle operation by the driver. Under the basic principles of vehicle operation we know that each vehicle has an optimum speed for maximum operational efficiency. So the vehicle tracking devices can help reduce fuel costs by providing information on indicators that aid or limit efficient operation.
When all the functions are compiled and viewed as a composite picture, we can see which drivers know their routes and are being as efficient as possible in selecting the best routing, driving at the right speed and watching the key indicators for the maintenance of their vehicle. Combined these factors will save the company significant amounts of money in efficient routing, vehicle handling, and insurance costs. Drivers not exercising care in their handling of the vehicle are a higher risk for the company and for the insurance company.
Many companies provide vehicles for their sales and support staff as they work the territory. This has been a generally accepted practice for many years. The rules governing the use of these company-owned vehicles has varied widely in the past. However, more recently, the IRS has been clamping down on the personal use of company-owned vehicles, requiring them to withhold income taxes for all miles on the vehicle that are not business miles. This has helped reduce some of the abuse of these vehicles.
To further help reduce the personal use of these vehicles, vehicle tracking devices are able to report on usage regardless of intent. Wherever that vehicle goes, the devices will report the route covered, the miles traveled, the time of the travel and how it was operated. Armed with this information, companies are much better able to control fleet expenses, making solid contributions to the bottom line profit margins.
Because of the impact to the profitability of the organization, effective fleet management using vehicle tracking devices is critical to the success of any company. Effective monitoring of the fleet performance will pay big dividends for the enterprise that pays attention to the follow-on costs related to their investment. The initial investment is only the tip of the iceberg in relation to the on-going costs of fleet operations. Prudent managers will pay particular attention to this natty little detail.
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