A fleet management system is essential to effective fulfillment and logistics operations. With this setup, you can maximize the efficiency of their logistics fleets without sacrificing delivery quality or adding extra administrative burdens. Furthermore, it will be helpful to calculate the expected return on investment (ROI) when assessing the costs and benefits. So, let's talk about the main advantages of having a fleet management system.

#1 Accurate GPS tracking

A fleet management system is incomplete without a GPS tracking device. You can track the movement and location of any of your vehicles in real-time once the technician has installed these devices in your fleet. 

A truck management software integrated with a telematics solution can access this data to accurately track your vehicles' location, where they started their journey, where they stopped, and for how long.

Along with boosting productivity, you will also enhance customer service because you can let customers know when their vehicle will arrive. To increase cost savings, the system can also be expanded to include sensors that detect fuel levels, open doors, and other events.

#2 Improved client satisfaction

Customers typically stop buying a brand because of unmatched delivery services. With fleet management software, you can use optimized routing, increase ETA efficiency, and accomplish error-free deliveries. Fleet managers can easily prioritize deliveries to privileged customers because they have real-time updates on the traffic and causes of transit delays.

Additionally, drivers can see their customers' locations on their dashboards and plan their workdays according to the scheduled delivery times. The fleet managers and drivers gain many insights from this practice because it frees them to concentrate on other crucial issues.

#3 Business intelligence

Using advanced reporting to enhance business intelligence is another advantage of fleet management systems. Modern software can creatively display your fleet's data with data visualization, machine learning, and artificial intelligence (AI).

This may also involve using personalized reports that can be distributed to staff, executives, and even clients. Furthermore, a fleet management system can be connected to other software platforms via API integrations or the Internet of Things (IoT) devices to gather more data for better analysis.

#4 Enhanced fleet maintenance

Fleet management systems offer all the tools required to create an effective preventative maintenance schedule for a fleet, assisting you in controlling maintenance costs. Businesses can implement a preventative maintenance plan that could potentially save them a significant amount of time and money in the future by making an initial investment in fleet management software. 

A preventative maintenance schedule can be made using a variety of data points, including miles traveled, engine hours, and fuel consumption. Moreover, fleet managers can monitor vehicle downtime brought on by breakdowns, jumpstarts, tows, and emergency repairs using fleet management software. This can assist in locating potential problem areas and recurring patterns that the maintenance schedule may need to address or modify.

#5 Fewer fuel consumption

Fuel costs are challenging to track and budget for due to their constant fluctuation in price. Although fuel consumption is more complicated than KM/L, a fleet management system provides easy access to the fuel tracking information. Fleet managers can quickly find cost-saving opportunities using this.

Fuel tracking data reports will let you know when a driver is idling excessively, thus allowing fleet managers to spot and fix issues. After identifying the issue, you can instruct drivers on safer driving practices. Recent research found that "just a 10% reduction in fuel costs can result in a 31% increase in profit", which could significantly cut costs.

#6 Boost driver safety

Fleet managers must prioritize driver safety above all else. The feature to receive notifications and alerts about risky driving practices in close to real-time is a key advantage of fleet management software.

For instance, fleet tracking tools like dashboard cameras enable fleet managers to monitor any instances of speeding, hard braking, or sharp turns made by their drivers. Thus it serves the much-needed purpose of increasing road safety.

#7 Timely alerts and alarms

Alarms and alerts are very helpful for businesses to act quickly in any difficult situation. Fortunately, with the help of a fleet management system, you can design custom alarms to suit your requirements.

For instance, an alarm could be set to track speeding or the temperature of heat-sensitive goods. Maintaining cost- and productivity-effective vehicle operation requires being aware of changes.

#8 Updates and insights in real-time

Fleet managers can instantly track their fleet with GPS vehicle tracking software and reroute vehicles as needed. They better understand what is happening in the field by having a clear overview of where vehicles are, their job completion status, and estimated arrival and delivery times.

In addition to increasing dispatchers' productivity, this will enhance customer service and cut down on the amount of time fleet managers spend on phone calls. So, you take a break from contacting drivers constantly for updates.

Fleet management software: How to choose

Most businesses that offer vehicle services rely heavily on fleet management to establish a structured, methodical system. Given the variety of options available, selecting the best software is essential.

Take into account the following factors when choosing the best program for your company:

  1. Total price: Examine the software's purchase price as well as any ongoing costs for extras like licensing or additional features.
  2. Essential choices: Make sure the software features you need are included in the package price because they might be non-negotiable for your company.
  3. Usage simplicity: Select software that offers simple onboarding and customer support for queries or problems.
  4. Software engineering: To ascertain whether the software is the best fit for the nature and scale of your business, look at who else is using it.