According to MarketsandMarkets, the fleet management market, including GPS tracking and telematics, is expected to grow from € 19,9 billion in 2020 to € 34 billion in 2025, a compound annual growth rate of 11 % during the forecast period. The MarketsandMarkets report suggests that the main reasons for the growth are strict government regulations, an increase in cloud-based solutions used, the increasing use of the Internet of Things (IoT), and the increasing demand for big data analytics.
So what is fleet management and what companies use it?
Simply put, fleet management is the organization and administration involved in coordinating commercial vehicles. The ultimate goal is for companies to be able to control the entire life cycle of the fleet, which in turn would allow them to improve efficiency, reduce costs, increase productivity, reduce risk and reduce risk. ensure compliance with government regulations. Work vehicles are an important part of the economy and are used in one way or another in almost every industry. Businesses with fleets include carriers, couriers, sales, repair and service industries, utilities, mass transit, oil and gas supply, and emergency services. Even if a particular company does not have its own fleet, it is likely that it is dependent on a fleet for part of its supply chain and may outsource it to another company.The components of fleet management
There are many components of a fleet management technology solution. Here we take a look at the main parts: Fleet Monitoring Fleet tracking uses GPS to monitor assets: vehicles, workers or equipment. It uses telematics technology to collect data in real time to immediately deliver actionable insights to fleet managers. In this way, a manager can know which vehicles to send, where a vehicle is located and when it returns, for example. software Fleet management software allows an administrator to have all the information they need about the fleet in one place. It effectively acts as a database, which can help organizations track everything from spending, shipping drivers, sending updates to customers, compliance tasks, and driver behavior. . and fuel consumption. Some of them will require different applications as part of a suite, but the data could be pulled from the overall database, making the administrative process much more efficient and fleet managers more productive. Telematics Telematics are usually black boxes installed inside a vehicle that track its location, performance and also give the fleet manager insight into how the driver is driving. For example, you can tell them if a driver accelerates too hard or brakes hard, leading to additional fuel costs. Operational data collected by telematics systems includes: vehicle speed, miles per gallon, fuel consumption, cargo weight, speed, braking intensity, and driving style. Additionally, some telematics systems can inform the fleet manager if the ignition is on, if a vehicle's doors are open, and if the panic alarm has been activated. Data is sent directly to corporate servers or a provider's server that an organization has access to. Security and protection Security is often built into the solution rather than as a separate application or feature. As the use of technology has increased, cybersecurity risks have increased, making it imperative for a fleet manager to verify software and hardware products before selecting them. Those with policies for encryption, identity and access management, and security validation are more likely to have adequate security in place to protect software. It is also important to know the type of infrastructure they are using and where the data will be stored, as well as the third-party providers being used. Most other safety aspects relate to maintaining the safety of the driver and the vehicle. One of the features available in some solutions is driver identification, so that drivers can identify themselves when using a vehicle using biometrics or a key fob. This will help if there are any speeding tickets or third party insurance claims. Additionally, vehicles can be configured to be started only by authorized drivers, and notifications can be issued when doors are opened and closed, alerting the fleet manager to suspicious activity. Tracking technologies such as telematics and GPS tracking can help detect unsafe driving patterns, anticipate a potential accident, and allow the fleet manager to intervene. They can also help locate remote assets or vehicles to ensure the safety of the content and the asset itself. Maintenance monitoring Since vehicles are one of the most important investments for a fleet manager, a proactive approach to maintenance is essential. Maintenance software, often included in fleet management solutions, allows organizations to plan and track vehicle maintenance and repairs. They can also create purchase orders for parts and suppliers, and send invoices to customers through this platform. Additionally, other documents such as warranties, claims, supplier details and maintenance history can be stored. With GPS fleet tracking, fleet managers can automatically track mileage, fuel consumption and engine hours, so they can receive alerts when a vehicle needs repair or maintenance. It is also a strategic decision, as it can allow them to plan how they will use their assets, budget and staff in the most efficient and profitable way.The difference between active and passive trackers in GPS tracking
When selecting GPS tracking for fleet management, there are two different types: active and passive. Depending on your needs, any of these fleet tracking systems could work for your business. Passive tracking systems can store GPS position, vehicle speed, and other data about driver behavior. Think of them as a data logger: like the GPS trackers in many fitness watches, they can record information and this data can be downloaded and accessed once the vehicle is reconnected to fleet management software. For fleets that want to track mileage and more basic information, without the need for real-time tracking data, passive tracking systems are ideal. Instead of having to manually download and access data, live systems use cellular networks (4G and 5G) to send data directly to the server. This means that companies do not have to connect the device to the server to download the data, instead it is processed and delivered in real time. For fleet managers who want to ensure their drivers receive notifications and alerts wherever they are, better understand real-time location and vehicle information. This allows them to later have more strategic control over their fleet; for example, public transport systems or delivery companies can redirect their drivers in real time to make them more efficient. Businesses that want to set up a geofence, a predetermined area on a map, can do so in active tracking systems. This means that if the vehicle arrives or leaves the geo-fenced area, the fleet manager will be alerted. There are more security measures to active tracking systems as they allow fleet managers to track the location of the vehicle in case of theft. Due to the additional features of active GPS trackers, they are more expensive than passive trackers. However, software vendors will argue that the additional productivity and efficiency gains would make up the difference from being able to access data in real time. In summary, passive trackers are used to record and store important data, which can be downloaded later, while active trackers record and store the same information, but also transmit this information in real time, opening up new possibilities in the market. how fleet managers can act on this data.Main features and benefits of fleet management software, GPS tracking and telematics:
- Many administrative tasks can be simplified or automated, such as quoting, billing, identifying and dispatching drivers, managing expenses, and informing customers.
- Fleet managers can track fuel consumption, check vehicles and drivers for excessive fuel usage, and monitor driver behavior. By doing so, fleet managers can manage fuel prices more effectively. For example, by analyzing driver behavior, managers can gain insight into downtime that can contribute to large fuel costs.
- Fleet management software can be outfitted with workflow automation software, providing managers with regular service and maintenance reminders based on factors such as date, mileage, or time of day. use. By monitoring the maintenance schedule, managers can take action before a vehicle shows signs of malfunction
- Simplification of the management of drivers in the field with an application to communicate with them through messages and commands. In addition, vehicles can provide information about the order and the estimated time of arrival.
- Improved data accuracy: telematics data would help eliminate redundant entries in fleet management databases
- Regulatory and legal compliance can be better monitored as all information is kept up to date and notifications about expiration dates can be used.
- All of the above can help fleet managers become a more strategic part of the overall business, as they can help with budgeting and forecasting, sustainability efforts, and managing big changes (such as managing assets). resulting changes). of the Covid-19 pandemic).
- Fleet management products also integrate with other software vendors, making other tasks more transparent, such as payments, route optimization, and human resource tasks.