How to Save Money Using Fleet Management Systems

The cost of running, maintaining and operating a fleet of vehicles can eat up a large part of a company's budget. Managing that fleet efficiently is an absolute priority - particularly during an economic recession or period of financial hardship. Fleet management isn't just about incorporating a vehicle tracking system or real time GPS tracking into vehicles. It's about vehicle financing, fuel management, vehicle telematics (tracking and diagnostics), driver management and a whole host of other aspects. With all that responsibility, any tool that makes a fleet manager's life easier has to be a bonus.

Fleet management can be dealt with in-house, or alternatively it can be outsourced to a fleet management provider. Whether you choose to go down the self-management route or bring in a third party to do your fleet management for you, there are a number of tools at your disposal to help you save money. The most obvious is the inclusion of a GPS vehicle tracking system that relays real-time information to a central control, telling you exactly where all your fleet vehicles are at any time. Vehicle tracking systems don't just tell you where your vehicles are - they can also give you diagnostic information regarding speed, fuel consumption and other operational aspects. By analysing this data, fleet managers can work out the most cost-effective routes, reduce fuel consumption due to excessive use of speed and streamline the operation making it more efficient.

Collating the data from the onboard computer and from data fed back to the base station also gives fleet managers the ability to 'profile' their drivers. If a driver is constantly speeding, a fleet manager will be able to chart this behaviour and find out the reason for it. If the driver is rushing to meet deadlines then the manager has the chance to re-plan the driver's route, allowing him or her more time to meet deadlines and reduce fuel consumption as a result. Where fleet management systems have been incorporated into large organisations, a saving of up to 40% on annual fuel bills have been achieved - particularly important when you consider the constantly rising price of fuel.

Vehicle trackers can also help to reduce your fleet's annual insurance costs. Insurance providers reward any attempts by fleet managers to minimise the chances of vehicles being stolen or used inappropriately, so by fitting a vehicle tracking system to your fleet vehicles you can also make considerable savings on your insurance premiums. Real time tracking also means faster recovery of stolen vehicles, minimising the impact to your daily operations and costing less in repairs or even replacing stolen and damaged vehicles.

Fleet management systems are designed to streamline operations, cut costs and increase efficiency. All of these will result in long-term savings to the company as a whole, and while the initial outlay of installing GPS tracking or fleet management system may seem high, the long-term benefits to the company far outweigh the initial expense. It also means that the company is more likely to be fully compliant with any legislation, the duty of care to employees and prove to be a worthwhile investment, no matter how big or small your fleet.