Fleet management technology: definition, benefits, and types

Managing a fleet of vehicles involves a lot of moving parts (literally and figuratively). You have to keep track of where each vehicle is at all times, know who's driving what, monitor the state of the vehicle, stay on top of maintenance, and determine the most efficient routes. Accomplishing all of that works much better if you have the right fleet management technology.

What fleet management technology means

Fleet management technology is software that helps fleet managers monitor all vehicles in the fleet, manage the trips and maintenance required, and optimize overall fleet management. A good fleet management technology product can help businesses streamline operations, reduce costs, and enhance fleet efficiency.

Benefits of fleet management technology

This can be a valuable addition to a company’s tech stack for a few reasons:

It helps improve operational efficiency. Fleet management technologies offer features that can automate key tasks like monitoring the location and performance of all vehicles, offering reminders for maintenance needs, and establishing the most efficient routes while factoring in real-time traffic and weather conditions. That takes work off your team’s plate, saving time and labor costs, while introducing efficiencies.

It can reduce costs. Predictive maintenance features can help you avoid costly breakdowns and repairs, which can lead to big savings. Fleet management technology can also look for ways to improve fuel efficiency, such as helping drivers reduce the time spent idling. NACFE research found that even with increases in fuel prices, technology helped the fleets in its survey save an estimated $540 million in fuel costs in 2021. In addition, when vehicle breakdowns or accidents do inevitably occur, real-time monitoring can ensure that the company knows what’s happening faster and can quickly solve the problem and get the driver and vehicle back on the road, further boosting efficiency and cutting costs.

It supports safety and compliance. While efficiency and cost savings are valuable, driver safety is a priority as well. Luckily, fleet management technology offers useful features that support driver safety and help maintain compliance with relevant legislation. Telematics features (learn more below) can offer drivers and managers alike insights on behaviors such as sudden braking and aggressive accelerating. Recognizing when unsafe behaviors occur can help drivers work to improve their driving skills and reduce the risk of accidents. Plus, by monitoring vehicle performance, technology helps you proactively catch and fix potential problems, avoiding the risks of leaving drivers stranded or facing a breakdown in moving traffic.

It enables data-driven decision making. By automatically tracking and collecting data on driver and vehicle performance, fleet management technologies also offer businesses valuable information they can use to make better decisions. That can include deciding to avoid certain routes prone to traffic or accidents, or investing in vehicle maintenance that your data shows will boost fuel efficiency and save more money than it costs.

Key types of fleet management technology

Fleet management software includes a few main categories of technology:

Telematics systems

Telematics technology refers to tech that sends information remotely. In the world of fleet management, that includes technology that monitors vehicle and driver performance and location, then transmits relevant data to a dashboard the fleet manager can use to analyze individual performance and overall fleet trends. Fleet management technology can often include telematics features such as:

GPS (global positioning system) tracking to keep managers informed about where each vehicle is located at all times
Vehicle diagnostics that track things like fuel and oil levels and fleet maintenance needs to improve uptime for all the vehicles in your fleet
Driver behavior monitoring features to help managers get visibility into any unsafe driver behaviors to address

Route optimization software

Route optimization technology analyzes real-time factors like traffic conditions, weather, and delivery schedules to compute the best route for drivers to take. Route optimization features can automatically reroute vehicles based on sudden changes in conditions, like an accident that backs up traffic. As a result, this type of technology can lead to time savings, increased fuel efficiency, and faster delivery times, and can help meet your corporate sustainability goals.

Maintenance management systems

Maintenance management technology can provide automated reminders for routine maintenance and use vehicle diagnostic monitoring to track vehicle performance and predict maintenance needs before they become a problem. By helping you stay on top of vehicle maintenance, this technology can make a big difference in improving fleet reliability and preventing costly unexpected breakdowns.

Driver management systems

Your drivers are a key part of effective fleet management. Their performance directly affects your ability to meet goals, and supporting safe driving habits helps ensure smooth operations and a positive work environment.

Driver management systems monitor driver performance, identifying behavior that can pose greater safety risks, like hard braking, aggressive accelerating, or weaving between lanes. You can use that data to help enhance safety training and advise drivers on specific ways they can improve to help avoid accidents. When an accident does occur, driver management systems can provide data to explain what happened, supporting a clearer understanding of the event.

Some fleet management software will combine multiple fleet management technologies into one product, while others give particular focus to one or 2 of these features. Whether you should look for a comprehensive product or a more specialized one depends on your company’s priorities and goals.

Enhance your fleet operations with Uber for Business

Effective fleet management isn’t exclusively about the vehicles your business owns. Uber for Business can help you improve fleet operations by offering flexible ride options and seamless integration with your existing fleet management systems.

You can help your drivers get home or to a hotel easily after a long day of driving by using Central to arrange rides for them. Having someone else behind the wheel for that extra stretch can help them get needed rest, so they can return to driving refreshed and ready again the next day. With real-time tracking technology, you know where your drivers are during their Uber rides and when they get to their destination. Plus, the Uber for Business platform automates much of the work of expense management and corporate policy compliance, helping you provide a better experience to employees without much extra work on your end.

Fleet management technology can help you improve operations, manage costs, and create a better experience for your employees. Pairing it with Uber for Business offers extra ways to boost efficiency and elevate the employee experience even further. You can learn more and get started with Uber for Business today.

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