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Why Fleet Management Is Important

March 19, 2024


The primary goal of fleet management is to ensure that vehicles are driven efficiently, appropriately maintained, and operated under the correct policies and procedures. This includes everything from acquisition and maintenance to operation, tracking, and optimization of vehicles. 

Many organizations depend on company transportation. To ensure consistent operational effectiveness, it is vital to have a clear fleet management strategy in place. Whether or not there is a full-time fleet manager, managing a fleet of vehicles requires organization and planning. 

With the advances in technology and software solutions, there is an increasing range of automated options to help cut costs, promote driver safety, reduce risks, enhance productivity, and schedule preventive maintenance to minimize downtime. For example, increased access to the 5G network and the development of autonomous vehicles can bring more simplicity and reliability to managing a fleet.

Fleet management software provides real-time visibility and detailed historical data. This allows fleet managers to make data-driven decisions that improve safety, reduce costs, and maximize efficiency. See how Smith360® Telematics allows you to better manage your fleet. 


The Benefits of Effective Fleet Management

The fundamental objective of fleet management is simple. To maintain vehicles, control costs, and reduce risks involving company transportation and those driving. It's the beating heart of business operations and profitability. Without effective fleet management, money might be wasted, operations compromised, and employees and the public in unnecessary danger.

If you’re considering adopting fleet management technology, it's worth considering the spread of benefits it can bring. Some of them might even surprise you.

The Fleet Can Be Managed Remotely

If you are running a fleet across a wide geographical area, it is vital to be able to manage it remotely. Telematics provides real-time data monitoring, customized reporting, and recommendations so that safety training and intervention can efficiently catch and address issues in driver behavior early.

Vehicles Last Longer

GPS mileage tracking provides valuable data for fleet managers to monitor vehicle usage, plan maintenance schedules, and enhance overall operational efficiency. Inefficient driver habits can be more easily identified and rectified through training.

You can track the average uptime of vehicles and take proactive preventive maintenance to avoid time with the fleet off the road. Over time, this data allows you to optimize preventive fleet maintenance, servicing, and replacement schedules.

Costs Can Be Tracked and Managed

Fleet management software can also inform more cost-effective fleet acquisition and replacement decisions. Reports can include valuable data about each vehicle's long-term performance and cost.

Tracking can also highlight potential fuel cost reduction, which accounts for around 40% of fleet expenses. Tracking idling averages across drivers and jobs can help pinpoint the focus for training and education.

Increased Customer Satisfaction

Not only does digital fleet management give the company more insight, but it can also enhance the customer experience with delivery tracking and real-time updating. It can help bring a more personal touch to the experience if the customer knows the driver's name and when to expect them. As with a decal program, this is a great way to build trust and reinforce your organizational reputation. 

Dispatch and Increased Productivity

Technology analyzing the location of fleet vehicles can assist with efficient logistical decision-making and distribution. This means fewer miles traveled and increased savings over time. It can also increase productivity by highlighting opportunities to cut the size of the fleet by making more efficient use of it.

Route Automation and Optimization

Likewise, GPS navigation software can plan and change routes for more efficient journeys. 

Clearer Lines of Communication

While a lot of fleet management means less communication is required (updates and interruptions to check locations and arrival times, etc), technology also enables safer modes of communication when necessary. Notifications and updates can be sent, and managers can see when they are received. This leads to fewer misunderstandings and missed messages, increasing cost savings and employee and client satisfaction.

What Does Fleet Management Look Like in Practice?

This might sound a little daunting. How do you find a system that caters to your needs? Let's start by breaking down a typical fleet management system into its core components:

Management Software

A Fleet Management System is usually built on a software package connecting elements (i.e. trackers, cameras, data collection, etc) and users (drivers, managers, etc).

GPS or Cellular Connection

Vehicles, telematics, and communication devices require connection to transmit and receive fleet data and information.


Telematics devices are attached to fleet vehicles and hooked to the system to transmit and receive. Other devices might include computer and mobile systems that feed into the fleet management systems—for example, portable GPS and delivery devices.


A fleet management system is an operational hub for drivers, engineers, office staff, and managers to coordinate, communicate, and collaborate. Those using the system are an intrinsic part of the system, as is the training required for efficient and effective operations.

Need Help Choosing The Right System For You?

Smith360® Telematics has a wide range of fleet management solutions, no matter the size and scale of your organization. You can reach out to us, and one of our team members will gladly support you in making the right decision for your needs.

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