All About Fleet Management Systems for Real-Time Tracking in Delivery Business

Regardless of the size of the fleet, the need for maintenance and refueling never goes away. Automatic fleet tracking systems are a must for any business that wants to be efficient. Gathering analytics, usability, alignment with business strategy are just some of the features that will increase your ROI.

So, how to design an effective system for monitoring transport and what should be included in it to get the most benefit.

What is a Fleet Management System?

Fleet management definition: fleet management is the process of managing all information regarding a company's operations. This kind of management helps improve operational efficiency and reduce costs. In addition, it increases the safety of equipment operation and the work of personnel.

In addition to internal processes, fleet management technologies are also influenced by external factors. External factors include changes in the market, changes in legislation, intrigues of competitors, and so on.

Professional commercial vehicle fleet management is simply a must to implement process automation. Business owners can significantly reduce risks, shadow schemes of dishonest employees, and increase profitability.

Fleet Software Market Overview

Reports indicate that the global fleet management software market in 2020 was $ 16.89 billion. COVID-19 negatively impacted this area too, but hopes were pinned on even more intense growth to $ 59.08 billion in 2021.

The market for turnkey solutions for vehicle fleet management processes will reach about USD 22.08 billion by 2026. That is, the annual growth will be 20.07% on average. Fleet management software companies are increasingly resorting to using transport, and this has a significant impact on the growth of the market.

How Fleet Management Software Improves the Delivery Experience

The delivery process can greatly benefit from the implementation of such a system. Logistics tracking software can have different functions depending on the company profile. Reports and diagrams that are generated automatically when using such systems help to improve and optimize processes within the company.

Read also: Automation in Inventory Management: Why You Should Adopt It in Your Business

How Fleet Management Software Can Help

Customer satisfaction and efficiency gains are key aspects that attract business owners. Let's consider the additional benefits of such systems. So, how to manage a fleet of vehicles? 

Improving service

Regardless of whether it is B2B or B2C, being constantly informed about the status of a customer's order is a huge competitive advantage. Online payments, tracking, reporting, and so on - all this is necessary for progress and development.

Improving delivery profitability

Dynamic routing enables employees to manage a large number of shipments at the same time. This saves time and increases the volume of work performed.

Improving Management Efficiency Third Party Logistics

The logistics process can improve significantly with the correct implementation of the 3PL. It will allow you to quickly identify and solve all problems. This applies to both customs issues and document management.

Improving the productivity of intermodal transport

When properly integrated, intermodal transport can strengthen a company's position on the way to its goals. You will get better planning, routing, shipping and billing.

Reaching the ideal order index

The ideal order index is the most important indicator of the efficiency of a truck management company. This is the moment that allows you to quickly and accurately measure the number of orders and the quality of service. You will also be able to set and track KPIs, including for reducing the number of accidents.

Reducing carbon dioxide emissions

Protecting and maintaining a safe environment is a priority for any business. The logistics platform has a direct impact on the environment, so it is important to track fuel consumption and optimize routes regularly. Another aspect is electronic document management.

What Are the Benefits of Fleet Management Software?

Fleet management automation will be the best solution for a business that wants to progress. Let's consider the main benefits of the fleet management system.

1. Improving driver safety

Automatic collection of data on the specifics of driving is an important contribution not only to the health and safety of drivers, but also the ability to predict and guarantee the delivery of goods to the client. As an owner, you can also be confident in your employees by delegating some of the authority to them.

2. Full control of fuel consumption

With a clear understanding of fuel consumption, a business owner can not only optimize its costs, but also test the integrity of its employees. Basic calculations show that even a 10% reduction in fuel costs leads to an increase in profits of almost 30%.

 3. Updates and collection of analytics in real time

GPS technology helps not only track, but also correct routes if necessary. In addition to increasing the efficiency of the fleet operators, it saves a lot of time.

 4. Custom reporting

All kinds of reports that are generated quickly and easily, which means that the response to gaps and problems is also improving. With reports, the team can work together to analyze and predict.

5. Improving maintenance of the vehicle fleet

Fleet preventive maintenance scheduling is an essential part of the logistics process. You will be able to predict costs and get more benefits. To set up a schedule, you will need to collect data on engine hours, fuel consumption and distances.

6.Improving the route

Taking into account traffic congestion, depending on the days of the week, or even taking into account weather conditions - all this can be automated and improved.

Top Key Features

So, if you decide to start developing software in this area, what functions should you pay attention to?

• Fleet GPS: You always have to understand where your vehicle is at the moment.
• Alerts and notifications: delivery status, unforeseen circumstances, technical problem - all of this should be notified as quickly as possible.
• Information about the behavior of drivers: this will allow you to guarantee the quality and reliability of the services you provide, eliminating all shortcomings in time.
• Fuel Management: In order to avoid fuel consumption and seek fuel savings, it is important to understand how much fuel it costs.
• Vehicle maintenance: automatic collection of information about the state of the vehicle fleet will allow you to draw up a clear schedule.
• Trip log and mileage: Tracking routes allows you to optimize routes and reduce costs.
• You can also add various authoring functions based on your needs.

Top 3 Fleet Management Software

Let’s talk about what fleet services are the best examples. Let's look at some examples of solutions for tracking a fleet of vehicles.

Connecteam

Connecteam has GPS and geofencing, which captures everything that happens, helping to identify problems in time and quickly solve them. The system also has the ability to calculate wages and timesheets.

Connecteam automatically calculates: overtime, double shifts, breaks, adding shifts, day limits, automatic shutdown, out-of-office management and more.

GOG

GoG is a solution for collecting data about end users of various enterprises: their habits, location, and interests. It helps to predict user behavior and customer needs, which leads to increased sales and increased audience loyalty.

The application has the ability to track the location and even information about the specifics of driving skills.

Onfleet

With Onfleet, you can efficiently manage and analyze your local shipments. Intuitive routing, real-time tracking, dispatch, analytics, etc.

It is easy to contact the drivers and / or consignees here and the order status is always visible.

How to Select a Fleet Management Software

 When choosing which features to include in your software solution, it is important to start from what you want to get as a benefit.

Let's take a look at a few basic aspects to get started.

• Features: the basic set of functions should cover all the needs of the vehicle fleet and match your resources.
• Flexibility: the solution should be easily scalable and supplemented as needed, in case of changes in workflows.
• Customer support: this will increase customer loyalty and always keep abreast of their main requests to refine the service system.
• Installation: the most popular solutions are always the simplest and most understandable from the client's point of view.

How Much Does It Cost To Make a Fleet Management Solution?

The cost of developing any applications and programs can vary significantly due to the following factors: Complexity of the product Cooperation format with developers Developers country Developers level. The hourly rate can be as low as $ 8 in India or $ 150 in the United States. Focus on the portfolio of the Development Team, and start development by creating an MVP, which is created in a couple of months, after that you can move on to the application or software itself.

Conclusions

Software development is a complex and often lengthy process. Do not forget that before starting work, you will need to conduct research and analysis of the competitors' market, after which you can proceed to search for a project contractor. You must clearly understand what goals the software should fulfill and what exactly do you expect from it. In this case, constant analysis and refinement will be the best solution if you want to improve the quality of service and optimize processes.