Any organization that integrates vehicles for use within their business should strongly consider implementing a fleet management software solution. The purpose of fleet management software helps to provide the fleet manager the ability to comprehensively manage the following:
- Vehicle Acquisition
- Maintenance and Repair
- Fuel Management
- Parts and Inventory
- Budget and Forecasting
The ability to track these components allows the fleet manager to control the entire life-cycle of their vehicles, maximizing their profitability and productivity. Let’s take an in-depth look at how each of these elements can have a positive effect towards contributing to the overall profitability of an organization.
1. Vehicle Acquisition
When acquiring fleet vehicles, there are several considerations that need to be determined prior to purchase. The initial purchase price, maintenance cost and resell value should all factor into one’s decision prior to purchasing. Additional factors include, but are not limited to, insurance, fuel consumption, state and local taxes. These key elements help fleet managers to properly budget the entire life-cycle of a vehicle to maximize its profitability and minimize the downtime of its crucial service vehicles.
2. Maintenance and Repair
Maintenance and repair for vehicles can either be handled internally or outsourced to a third party depending on the size of the fleet and the overall cost-effectiveness. Keeping these vehicles running efficiently and in compliance with state and local regulations all factor into the overall cost of maintaining a fleet vehicle. Fleet management software allows the manager the ability to plan ahead for routine maintenance and inspections to reduce downtime while accounting for unit availability.
3. Fuel Management
Fuel management is probably the largest consideration for fleet managers due to the ever-changing fluctuations in fuel costs. Prior to the adoption of electric and hybrid vehicles, oil prices often had a direct effect on company margins whose fleets consumed massive amounts of fuel. Managers now have the ability to “Go Green” which allows them to seize control of profit margins by becoming less dependent on the volatility of the oil market.
4. Parts and Inventory
In addition to vehicle maintenance, accurately tracking vehicle parts and inventory is a crucial component in maintaining cost effective vehicle management. This process allows the manager the ability to control the part ordering process, maintain part inventory levels and receive notifications for routine maintenance and safety checks.
5. Budget and Forecasting
Cost analysis is an ongoing essential role for any fleet manager with respect to company performance. This process requires managers to identify vehicle performance as it relates to the company’s bottom line. In addition, fleet managers and analysts can use this data to predict changes that will allow proactive reactions to market fluctuations with respect to fuel costs and consumption. The ability to report on these factors allows managers to make informed decisions for future vehicles purchases or minimize the maintenance cost of current fleet vehicles.
Individually, each of these elements are critical aspects of fleet management; to be a “good enough fleet,” you may only have to check the boxes for three of the elements. To be a truly, successful, profitable and inspiring fleet, you must check the boxes for all five elements. How close is your organization to achieving that? Would a fleet management solution help you on your way? An integrated solution, like FleetFocus, provides all of the utility listed above, while also allowing for motor pool and fuel management, fluid management, GPS and Telematics, mobile app solutions and much more.