According to market research estimates, the fleet management market is quickly growing and will be a major player in the business landscape in the coming years. However, even when the market expands this much, some core competencies will be the same.
Examples include vehicle acquisition, utilization, maintenance, driver management, equipment disposal, and compliance. But things are changing. We live in a world of automation and telematics, so many competencies alone don’t cut it.
Fleet management tools, like Trackunit, are becoming crucial to help managers keep check on their equipment and improve overall job site performance. Every new technology adds a certain mystery to the fleet management industry, requiring companies to update their strategies. But what is a fleet management strategy, and how does it work? Let’s demystify the process.
What is a fleet management strategy?
A fleet management strategy is an approach to effectively managing a company’s vehicles and other related resources. It includes planning, organizing, controlling, monitoring, and optimizing all aspects of a fleet.
Mysteries in fleet management
We’re saying ”mysteries” because these are some recent technologies and techniques that many fleet managers are not familiar with yet. Here are some of them:
ELD (Electronic Logging Device) compliance systems
The ELD regulation is a mandate that requires commercial motor vehicle operators to use an ELD device to record their driving hours. As per this mandate, the government wants to eliminate paper recordkeeping and replace it with an ELD system.
For fleet managers, this means investing in a good ELD compliance system from the get-go.
Autonomous vehicles
The current size of the autonomous vehicle market is $27 billion with millions projected to be sold by 2030. Personal-use vehicles are not the only ones being automated. Autonomous commercial vehicles are already working in the agricultural, mining, construction, and logistics industries.
Off-road and construction project fleet managers will have to account for the influx of autonomous vehicles in their management strategies, too. Unlike driver-vehicles, autonomous vehicles will not need breaks. So, how will a manager prevent overuse?
Maintenance and repair requirements for these vehicles will likely be different. For example, a manager may need to factor in the cost of software updates.
AI dash cams
Think of an AI dash cam as a manager’s continuous eye on the fleet. It can detect and alert for dangerous driving in real time. An AI dash cam will also let the fleet managers see when a driver is out of company policy compliance or if the vehicle is not being used for its designated purpose.
But you cannot sit in the office and look at a computer screen all day. Instead, you’ll need a recording or notification system that can alert you when something is wrong. So, this needs to be a part of a modern fleet manager plan, too.
IoT vehicles
Experts have said that the Internet of Things (IoT) will bring the following changes in fleet management:
- Telematics-based vehicle analytics
- In-vehicle video and artificial intelligence for drive data analytics
- Data analytics for electric vehicles
Since the use of IoT devices is increasing, fleet managers will have to add them to their management strategies, too. Which IoT devices will you use? How will you manage them? You will also have to train drivers to use the devices.
Augmented reality
Augmented reality is expected to rise in popularity in the future, especially in the construction sector. In the fleet management space, AR can assist in training and on-site operations.
As a fleet manager, making augmented reality a part of your plan will soon be a necessity. When everyone else is using it, you don’t want to be the one left behind in the competition.
How to demystify fleet management strategy
The key to demystifying your fleet management strategy is to define clear goals and make a plan to fulfill them Here are some helpful tips:
Define your goals properly
What is your goal? Do you want to be more fuel efficient or reduce repair frequency? Maybe you want to improve safety or focus more on environmental sustainability.
Either way, you must define your goals. By ”defining,” we mean listing out the steps you will take to meet these goals. For example, if you want to reduce repair frequency, you can:
- Schedule periodic maintenance
- Improve driver behavior
- Train your team on preventive maintenance
- Ensure proper vehicle inspections
As you can see, you now have a set of guidelines to follow. Now, break them down even further. For example, for periodic maintenance, determine:
- Which telematics devices will you install in the equipment?
- What is the type of maintenance you will perform?
- How often will you do it?
- Who will perform this maintenance?
- What is the checklist for preventive maintenance?
Notice how you now know what exactly you need to do to meet the goals you’ve set. Now, use the same approach for all your goals.
Assess your fleet using data
Once you’ve installed an integrated telematics system, you’ll have loads of data to work with. For example, you can see fuel usage, vehicle maintenance records, driver behavior, route planning, and more.
You can use this data for multiple purposes. First, the information helps you identify risks and mitigate them. Second, you can use the data to assess your fleet’s performance and see if you are meeting the goals that you’ve set.
Third, the data defines your Key Performance Indicators. Fourth, you can identify areas for saving costs on fuel and repairs, etc.
Choose the right technology
There’s no limit to the kind of technology you can use for fleet management these days. From automation tools to fleet management software, you can use plenty of technologies to improve fleet operations and performance.
Optimize your budget
The budget of your fleet management strategy should account for:
- Technology costs
- Driver/operator training and assistance
- Maintenance costs
- Fuel costs
- Insurance and other related expenses
Remember that the budget likely won’t stay the same for every project and use case. You’ll have to make changes according to the needs and goals of your fleet.
Takeaway
The mystery — or more the confusion — around fleet management is mainly the result of a lack of standard processes. Each fleet is unique, and so are its goals and challenges.
Many managers take a standardized approach and later see it failing. You can prevent this by being proactive from the beginning and being open to changes required for better performance.
