In short, by ‘fleet management’ we mean the management and organisation of a business vehicle fleet. This includes, for example, passenger cars, vans, lorries with or without trailers, as well as agricultural machinery and construction machinery. Managing a fleet effectively is complicated and requires commitment and time. Consequently, more and more fleet managers are using GPS fleet management systems to optimally track, monitor and secure their vehicles. Without a good GPS management system, the fleet manager or hire company misses out on important information. Within the company, the focus is then on routine tasks set out in a weekly or annual planner, such as vehicle maintenance and preparation for hire, the scheduling of equipment and staff, sending invoices and collecting payments.
A GPS fleet management system is a modern approach to management that goes a step further. It is all about improving safety and logistics, and minimising risks and claims costs, with just one aim: to grow the business and generate a profit! The GPS system provides the fleet manager with relevant data that gives them the insights needed to manage the fleet optimally. For example, it is easy to monitor the exact location of vehicles and the driver’s behaviour, as well as to keep track of a vehicle’s maintenance status.
Whenever a limit is exceeded, the fleet manager or hire company receives a notification based on the risk filters they have set up. Examples include exceeding the maximum permitted speed or mileage limit, as well as erratic or reckless driving behaviour, or signs indicating the misuse of vehicles for illegal purposes.
In short, GPS and fleet management go hand in hand for the modern fleet manager, because to measure is to know. This enables the fleet manager to take timely action rather than having to face the consequences later and sort out the problems!
What problems does a GPS management system help to solve?
A good fleet manager is aware of the most common problems that increase risks or claims costs within the company. This enables them to take action at an early stage.
The most common problems encountered across the various sectors are:;
- Lost property & theft
- Non-payments & missed payments
- Damage, excessive, unsafe or rough use, and misuse
- Lack of optimal deployment of staff or equipment
- Inaccurate records of routes, journeys and mileage
- Annoying disputes & breaches of contract
- High fuel costs & high mileage
- Rising insurance premiums or cancellation of cover by the insurer
A choice or a necessity?
It is understandable that a small business with limited risks and low claims costs would choose not to invest in this. When they weigh up the costs against the benefits, the decision is an easy one! Should the business grow in the future, it is certainly worth reconsidering.
Unfortunately, we still see plenty of companies these days who think they can get by without this modern technology, even though it is actually the perfect solution for them! Monitoring their vehicle fleet using a GPS fleet management system seems too time-consuming to them, and/or they want to delay or avoid investing in such a system for as long as possible. In practice, however, it turns out that they have too little insight into the risks and costs of claims facing their business. They keep playing catch-up instead of focusing on their core business! Ultimately, this costs these companies more time, money and energy. Many of these hard-working small businesses ultimately prove unable to sustain the growth they have enjoyed in previous years. Some of them end up making such significant losses that they decide to throw in the towel. It’s a shame – and completely unnecessary!
Fortunately, with the advent of GPS in particular, many hire companies and firms with their own vehicle fleets have been able to make a huge leap forward and have consequently become highly profitable.
What’s stopping you?
This new development naturally requires commitment, as well as some knowledge and skills, from you and your staff. Our advice to companies that are somewhat cautious or hesitant is to start by fitting only a portion of their fleet with track & trace. This gives the fleet manager and the team some time to familiarise themselves with the GPS system. In our experience, companies are quickly convinced of the benefits of our system and become familiar with it, and then make the move to expand the system in no time at all.
To make things easier, we have developed a very user-friendly portal. On our website, you will find various instructional videos which explains quickly and simply how to carry out a particular action on the portal.
We’re also hearing that companies are worried about being tied into a long-term contract. So, for those who are still unsure, we have some good news: Rental Tracker doesn’t tie customers into (long-term) contracts but operates on the basis of customer-friendly subscriptions that can be cancelled at any time. Easy come, easy go!
In our next blog, we’ll explain everything you need to know about what a GPS system should offer and how to find the right GPS system for your sector and your fleet! In short: what should you look out for when purchasing such a system?