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September 10, 2013

Advantages of Fleet Management

Fleet management means managing the company’s vehicle fleet including commercial motor vehicles like trucks and vans, and cars in a way to get the best out of it. It includes functions like vehicle maintenance, vehicle financing, vehicle telematics, speed management, driver management, health and safety management, and fuel management. Thus, fleet management is considered to be a very important function in any organisation for its survival.

Advantages of fleet management:

There are many advantages of fleet management. With high fuel costs and driver shortages, it has become more important than ever to manage fleet properly in order to minimize operational costs, improve driver satisfaction and fleet visibility, while complying with other regulatory requirements. The 5 important advantages of fleet management include

a. Decreased operational cost:
By optimizing fleet’s fuel efficiency, streamlining reporting, better managing driver performance, making efficient use of trailers, and improving routing, organisations can save plenty of money on their operational costs and increase their profitability.

b. Maximise driver security and satisfaction:
With proper fleet management, it is possible to plan journeys and avoid traffic delays, thus cutting out excessive driving and vehicle usage. Thus, it encourages drivers to drive safely in a more fuel efficient way. 
With an efficient fleet management service, drivers are aware that all overtime work is being recorded accurately. In addition, good punctuality can also be noted by managers which often leads to higher levels of driver satisfaction in companies. 

c. Increased efficiency leading to more business:
Fleet management system ensures that the drivers are performing efficiently and thus leaving organisations in no doubt how much work they can take comfortably and deliver well. It also shows organisations, where changes can be made to improve the efficiency of the workforce and where there is room for improvement, thus leading to more business.

d. Fuel management:
By maximizing the efficiency of routes and minimizing excessive idling, hard braking, over-revving, speeding, improper gear changes, organisations can save plenty of money on fuel and repair bills. 

e. Customer retention:
A faster and more accurate arrival time enhances a customer’s experience leading to higher rates of satisfaction. Satisfied customers tend to stay in the business for longer, thus helping organisations grow further. 

Conclusion:

Managing a fleet, big or small can definitely be a challenging task. However, Developing an efficient fleet management system not only helps organisations to reduce costs, but also add value to a business in the long run. 

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