Along with the evolution of logistics of transportation and logistics industries, the role of a fleet manager has evolved, too. The transportation industry has gone under tremendous disruptions after the Covid-19 pandemic–rising fuel rates, snowballing vehicle prices, driver shortage, fleet electrification, etc.
Fleet managers have to change their strategies to address these challenges and ensure business continuity. Hence, they always have to be on their toes. However, it is critical that fleet admins work smartly and improve operations. This includes relying on tech-driven solutions that automate certain aspects of fleet management and give them ample time to focus on strategic business decisions. Enter fleet tracking systems.
What is a Fleet Tracking System?
A fleet tracking system or vehicle tracking system is a technology-based solution that enables businesses to monitor and manage their fleet of vehicles in real-time. It utilises a combination of GPS (Global Positioning System) technology, cellular or satellite communication, and software applications to track individual vehicles’ location, performance, and behaviour within a fleet.
Advancements in cellular network technologies, cloud services, and smart logistics have led to the growing adoption of fleet tracking systems. In fact, the fleet management market was valued at US$ 25.5 billion in 2022 and is expected to reach US$ 52.4 billion by 2027. And one of the vital growth drivers is using telematics data to foster data-driven decision-making.
Deploying fleet management solutions helps fleet managers to reduce operational costs and streamline operations. Large and medium-scale fleet businesses have started adopting fleet tracking systems to gain a comprehensive view of operations and fix issues instantly.
Having said that, many fleet tracking solutions are available in the market, and choosing the right one can be challenging. To help you choose the right one, here are top fleet tracking features to help you embark on the journey of digitization and growth.
Real-time Location Tracking
Tracking vehicle movements and location in real-time is one of the most essential features of a fleet tracking system. By equipping each vehicle with a GPS device, businesses can monitor their fleet’s exact location at any moment. This feature allows fleet managers to have a comprehensive overview of their fleet’s movements, ensuring they are aware of the status and whereabouts of each vehicle.
Real-time tracking also enables businesses to respond quickly to unexpected events such as breakdowns, accidents, or changes in delivery schedules.
Geofence Alerts
This is one of the most critical features of a fleet tracking system, as it ensures an extra layer of safety. In technical terms, geofencing is a virtual geographic boundary characterised by GPS or RFID (Radio-frequency identification) technology. To simplify it, it is a virtual fence around a specific location, and it uses location data and creates an invisible boundary wherever you want in the real world. Imagine it as a fence around your home. So, when you set a geofence around a real-world location, it will alert you when someone leaves or enters the geofenced zone.
For instance, fleet managers don’t have to call their drivers and understand their ETAs. They can set a geofence around their rest stops, loading areas, or warehouses and get detailed automated reports. This helps reduce the administrative burden and improve the efficiency of fleet operations.
Route Optimisation
Keeping costs as low as possible is the utmost priority of every fleet manager. Since fuel takes up the most significant chunk of operational expenses, monitoring fuel usage and avoiding fuel wastage is important. With the route optimization feature of the fleet tracking system, fleet managers can set routes that mitigate traffic, congestion, roadblocks, etc.
Businesses can reduce mileage, save time, and lower fuel costs by optimising routes, resulting in significant operational savings and improved customer service. Further, real-time location details of each vehicle help managers to dispatch the nearest driver to the job site, saving time and fuel costs. It also helps complete more trips in a day and improves customer satisfaction.
Preventive Maintenance
Followed by fuel, vehicle maintenance and repairs take up another big chunk of operational expenses. Nevertheless, fleet managers have to ensure that well-maintained vehicles run on the road. Otherwise, breakdowns can hamper operations, and fleet businesses will have to spend more on repairs. Typically, repair costs of mending such breakdowns are pretty huge.
So, fleet managers should monitor vehicle health and performance to avoid breakdowns. The fleet tracking software can gather data on various parameters, including engine diagnostics, fuel consumption, battery status, tire pressure, etc., and notify fleet managers when the next maintenance is due. By monitoring vehicle health, fleet managers can identify potential issues before they become critical problems, improve vehicle performance and longevity, and minimise downtime.
Monitoring Driving Behaviour
How your drivers perform is also critical for fleet businesses. If they don’t follow schedules, cause delays, or show lousy driving behaviour, it can hamper customer satisfaction. The fleet tracking software monitors their driving behaviour and sends real-time alerts for speeding, hard braking, cornering, etc., to fleet managers. Managers can pinpoint such driving habits and engage drivers in extra training to promote safer and more efficient driving practices.
Moreover, location tracking can help them monitor their whereabouts and movements. This helps to check the routes they follow, their break time, and other details. The tracker notifies if they take any unauthorised routes or stops. Monitoring driver behaviour not only helps to reduce the risk of accidents and lower maintenance costs but also contributes to enhanced fleet productivity and customer satisfaction.
Comprehensive Reporting
If a fleet tracking solution doesn’t support reporting and analytics, you shouldn’t consider buying it. Fleet reports provide valuable insights on key performance indicators (KPIs), such as fuel consumption, mileage, idle time, driving habits, etc. By analysing this data, businesses can identify shortcomings and make adjustments in strategy to optimise fleet operations. Advanced analytics and reporting enable fleet owners to foster data-driven decision-making, track cost-saving initiatives, and improve fleet operations.
Wrapping Up
With such modern features and capabilities, a fleet tracking system enhances efficiency and boosts business growth. Hence, consider the above features before purchasing one. By investing in a comprehensive fleet tracking system, businesses can achieve greater efficiency, maximise productivity, and stay ahead in the competitive landscape of modern fleet management.
