As we move into the latter part of the first quarter of 2026, businesses operating fleets can expect expenses to increase from the procurement stage through to termination, and this is due to various local and international factors.
This is according to Johan van Niekerk, Fleet Solutions Consultant, FleetDomain, part of the Argility Technology Group, which in turn is a Smollan subsidiary. FleetDomain’s Fleet Management Information System (FMIS) is recognised as industry-leading software, developed and managed by a team of fleet professionals with decades of hands-on fleet management experience.
Van Niekerk highlights Fleet Domain’s FMIS capabilities to address the challenges and risks associated with fleet management on one integrated platform.
“We advise businesses operating fleets to invest time and effort in developing long-term strategies through the implementation of policies that aim to reduce costs on a sustainable platform,” says Van Niekerk.
FleetDomain recommends focusing on the following areas:
This must be comprehensive and include consideration of appropriate brands and models for the job in hand, areas of operation, distances to be covered and actual job function. Vehicle specifications such as engine size, gearbox, tyres and fuel will influence costs. Setting rules in place to manage time and kilometre usage through to the replacement date will prevent vehicles from over-ageing and being kept past their sell-by date. Old vehicles lead to downtime, increased costs and risk, and lower resale prices.
All funding methods should be studied and tested, ranging from cash, hire purchase, financial lease, operating rental and full maintenance leases. In-house financial experts should be tasked with testing all of these options and mapping out the possible impacts in a discounted cash flow (DCF) model that reflects the best long-term return on investment (ROI).
Vehicles need to be maintained by manufacturer-dealer outlets to ensure that service/maintenance plans and warranty stipulations are supported. Third-party vendors offering maintenance and service plans can be considered, but the cost implications and their impact on total cost of ownership (TCO) and cents per kilometre (CPK) must be carefully evaluated.
A further option is a third-party service provider who will handle maintenance management, taking on the risk on your behalf as required by time and kilometre usage. The inherent risk of this product is the risk of restructures, excess kilometres, usage, and early termination penalties.
The use of managed maintenance cards (MMC) as offered by banks is a fair option. Monthly expenses are managed and captured, rendering reports for a nominal admin fee. However, this method does not necessarily yield the lowest-cost option.
Passenger, light commercial vehicles (LCVs) and commercial vehicles (CVs) all have different requirements and applications. Each should be understood and catered for.
One example is that low-profile tyres are more expensive than higher ones and are more susceptible to road conditions. The load capacity and regular load weight onto LCVs and CVs, as well as the area of operation, can have a detrimental cost effect if not selected correctly. Tyre size, rating and pressure are vital to lower tyre costs.
Selecting a petrol, diesel or electric/hybrid vehicle is a matter of choice and should be selected based on the best CPK value and TCO. Service intervals and maintenance costs must be evaluated over the lifetime of a vehicle.
Considering a hybrid or electric vehicle should be well investigated and analysed, taking all points into consideration. Fuel can be managed by filling up with cash or using fuel cards supplied by banks.
GPS/tracking units fitted to all vehicles are part of the company's safety and risk policies. A GPS/tracking unit is not a fleet management tool. It is a driver behaviour and vehicle location tool that provides information to help improve driver behaviour, which in turn can result in cost savings.
GPS/tracking devices, along with supplementary products such as dash cams, need to be carefully selected based on how well they meet a company’s reporting requirements.
With the AARTO demerit system of fines back on the map, companies must prepare to manage driver and vehicle fines. It is extremely important to manage fleet drivers’ demerit status. Companies will have to put risk-mitigating policies in place to address potential loss of licences and other risks. Human resource (HR) departments should be involved in planning for this.
There are various insurance options available in the market. Companies should evaluate all options and select the best policy applicable to their operational requirements. Policies regarding accidents and the aftermath involving vehicles, drivers, passengers, third parties, and family members must be put in place.
Jai Kalyan, Managing Director, FleetDomain, highlights the importance of communicating company policies to staff in a way that ensures both their understanding and acceptance. “Personnel buy-in is essential, which in turn will drive good corporate governance, safety and risk mitigation for all. Our FMIS provides a holistic solution that covers all areas of fleet management and delivers peace of mind in the knowledge that your fleet is being managed optimally,” he concludes.
Source: IT Web | Cybersecurity-now UK | The Profiler | Head Topics | Smart Security Solutions
Contact FleetDomain for more information:
E: info@fleetdomain.net | T: (011) 712-1300
FleetDomain was approached by a major player in South Africa’s mining/logistics arena. The company was seeking a trustworthy, highly experienced supplier capable of helping it to enhance its operational efficiencies. Moreover, it required a supplier with a proven track record. FleetDomain’s successful market record spanning more than two decades, along with software developed and managed by a team of fleet professionals, made it the preferred supplier for this local mining logistics giant.
The highly skilled and experienced FleetDomain team listened with care to the mining logistics company’s requirements and tailored a solution that addressed the organisation’s business challenges.
This major SA mining logistics company supplies products to all power stations located in the Mpumalanga region. The group supplies products mainly to inland clients and industrial companies on the Witwatersrand, but also supplies users as far away as Lesotho and the Cape, as well as small independent buyers.
The customer, a key player in the mining logistics sector, faced significant operational inefficiencies due to its manual processes for fleet maintenance and stock control. Specifically:
FleetDomain’s Job Costing and Stock Modules were deployed to address the substantial challenges the company faced with its legacy manual systems. These solutions can be tailored to synchronise with the customer’s operational procedures.
Since implementing FleetDomain’s modules, the customer has seen major improvements in operational efficiency and cost visibility. The deployment of FleetDomains Job Costing and Stock Modules led to a significant improvement in decision-making, due in large part to the greatly enhanced detailed reports produced by the automated systems. The company now has the ability to record a maintenance history on all vehicles and mining equipment. Repairs to the latter are costly and whereas previously no system of prognosis for possible problems arising was in place, implementation of the automated systems provided the business with the ability to plan.
Automation of vehicle costing was also exponentially improved over the previous manual systems.
Essentially, prior to the deployment of FleetDomain’s Job Costing and Stock Modules, the company did not have a stock control system and had no system of visibility of stock, where it is, what it is and what it can used for. It can now automatically monitor consumables and know precisely what it has in stock, and what has been used for repairs.
Through the spares management system, orders can be attributed to specific departments, vehicles and the staff member responsible for the orders. In this way, the automated systems have also provided complete control over third-party sub-contractors visiting the site to effect repairs.
Enhancing operational efficiencies through automated stock control and asset tracking for any business is essential if costs are to be lowered through streamlining processes and maximising the use of resources. Detailed reports lead to better decision-making.
Essentially, all of this also speaks to increased profitability and the ultimate sustainability of a business.
FleetDomain is a member of the Argility Technology Group – a Level 1 B-BBEE organisation which is part of the Data and Technology cluster arm of global enterprise, Smollan. FleetDomain, operating since 2010, is a recognised market leader in Fleet Management Software across sub-Saharan Africa. In all customer deployments, our aim is to become a technology partner and extension of our customers’ business.
FleetDomain software is developed and managed by a team of fleet professionals with decades of hands-on fleet management expertise. We apply tested and proven best practices. Our Fleet Information and Asset Management software is purpose-built to simplify and automate all aspects of fleet maintenance, management and administration.
Our vehicle management and maintenance software is flexible and covers a range of fleet management use cases. Whether your requirement is for administration, rentals, leasing, finance or sales - we have a web based solution for you.
Source: IT Web
Fleet Domain, part of the Argility Technology Group, has announced best practices aimed at reducing fleet management costs and delivering a successful fleet management programme.
“Cost savings are fundamental to successful fleet management. They impact bottom line, operational efficiency and the ability to remain competitive in the market,” says Johan van Niekerk, Fleet Solutions Consultant, Fleet Domain. “Implementing strategies to control costs while maintaining high-quality services and safety standards is essential for any business that relies on a fleet of vehicles. Fleet cost savings are driven by having enforceable fleet policies in place that govern corporate safety, health and risk issues. Fleet costs are recognised to be managed and reduced by following internationally accepted principles that cover:
Van Niekerk confirms that without having all three of these pillars in place, a company will be unable to manage safety, risk mitigation and operational fleet costs. “All the above are geared to focus on reducing and improving the cents per kilometre (cpk) cost of a fleet.”
"FleetDomain's Online Fleet Management Information System (FMIS) produces comprehensive centralised information reports. These encompass all facets of fleet management, spanning vehicle selection, acquisition, procurement, delivery and termination, as well as tracking integration, accident records and fines. Succinctly put, our FMIS provides the market with cost-effective, innovative and dependable fleet management," Van Niekerk concludes.
For further information, click here to be redirected to the FleetDomain website.
Source: ITWeb | Security Solutions
FleetDomain, part of the Argility Technology Group (ATG), reveals significant growth of the business during the past two years. The company is performing fleet management, maintenance, administration and monitoring of driver behaviour of 25 149 vehicles as at the end of December 2022.
“Over the past four years, FleetDomain has been growing by an approximate 5 000 to 6 000 assets a year,” says Jai Kalyan, Managing Director at Fleet Domain. “This figure reflects both organic growth of current accounts and new business. However, 2022 saw 80% of our growth being new business. Last year we also signed a high-profile corporate enterprise with over 5 000 assets – an exciting addition to our client profile.”
Kalyan attributes the growth and success to various factors including the fact that the FleetDomain software has been designed and managed by a team of fleet professionals with more than 30 years of experience in the industry. This wealth of knowledge and expertise has allowed us to create solutions that are tailored to the unique needs of fleet managers and operators.
“To ensure that our solutions remain current and effective, we keep a close eye on industry trends and legislation. This allows us to adapt our offerings to changing market conditions, providing our customers with the most relevant and up-to-date tools and features. With our deep understanding of the fleet industry and commitment to staying ahead of the curve, customers understand that our proven software solutions have been designed to help them achieve their business goals and stay ahead of the competition."
Kalyan notes market research estimates that the fleet management market will be worth USD 52.50 billion by 2030 at CAGR 10.6%. “So, from a global perspective, this is one of the fastest growing markets in the world and an exciting sector in which to be a dominant SA player. One of the current global trends is around IOT solutions using AI and machine learning to effect predictive maintenance on fleet vehicles. This enables companies to be aware and plan for necessary vehicle maintenance before they break down.”
Kalyan confirms FleetDomain’s order book for 2023 is looking very promising with proposals already being submitted for a total of approximately 8 000 further vehicles.
"Since the onset of the pandemic, there has been a significant increase in interest in fleet management solutions. Industry experts have reported that unmanaged fleets can result in costs that are 10%-15% higher than those with a robust fleet management system in place. As a result, fleet managers are now recognising the immense value that a fleet management system can offer to their businesses. By leveraging a fleet management system that can assist in reducing the total cost of ownership (TCO), companies can significantly improve their return on investment (ROI),” adds Kalyan.
He highlights that FleetDomain understands the importance of effective fleet management in today's market. “Our solutions are designed to address the unique challenges facing fleet managers and operators, helping them to optimise their operations through the implementation of solutions aimed at driving success. Whether companies are looking to reduce costs, improve safety or enhance efficiency, our team of experts is here to provide tailored solutions that meet the market needs and exceed expectations,” concludes Kalyan.
Source: IT Web
The Argility Technology Group
The Argility Technology Group is part of the Data and Technology cluster arm of global enterprise, Smollan.
Argility is a leading innovator and implementer of software and data analytics solutions for retailers and brands. Our unsurpassed experience combined with a depth of proprietary software and skills enables us to address the multitude of challenges facing businesses in today’s era of digital transformation.
Our origins trace back over forty years as a major software developer in the retail sector. Decades of long, prosperous customer relationships bear testament to our customer-centric culture, exceptional service, and innovative thinking. From single systems to the digital transformation of an entire organisation - we have the solutions, skills, and experience.
We solve complex business problems by supplying and supporting various customised software solutions including Data Science (Artificial Intelligence); Retail Management Systems; ERP; Warehouse; Fleet; IoT; Proximity Management and more. We strive to be more than a technology/solutions provider by partnering with our customers to become an extension of their business resources.
The Argility Technology Group is comprised of: Argility; Cquential Solutions; Fleet Domain; Skydata Communications and strategic partner, Ashanti AI. All are foremost technology developers and suppliers of enterprise software solutions for the retail, supply chain and fleet industries as well as a comprehensive IoT framework that enables enterprises around the world, to integrate, manage and optimise their growing IoT ecosystems.
Afrirent has been relying on FleetDomain – part of the Argility Technology Group (ATG) – software for some years, to help it deliver outstanding service to a growing number of clients. Afrirent is a 100% female black-owned fleet management company, servicing clients in the public and private sectors. Afrirent covers assets ranging from cars to heavy construction vehicles. Information is the lifeblood of Afrirent’s business and ATG’s FleetDomain software has become an integral part of its value proposition, says Sivile Mbekeni, Senior Contract Manager, Afrirent.
“For our clients, their fleet represents a major investment and is a key part of their business – they want to be sure it is being properly managed to maximise uptime, and that operating costs are kept under a tight rein,” Mbekeni says. “To do this, we collect an enormous amount of data, and FleetDomain provides the powerful analytics to process all that data accurately and then present it in a way that makes it easy for our clients to make the right business decisions.”
FleetDomain is an end-to-end fleet management system offered as a cloud-based service to clients like Afrirent on a subscription model. Its range of functionality covers the full life cycle of fleet management, including rentals, driver management, maintenance, licensing, fines and accident/incident management, stock and workshop plus compliance management. FleetDomain also integrates with Afritracker, Afrirent’s vehicle tracking, monitoring and recovery system, to provide real-time information on vehicles.
Jai Kalyan, Managing Director at FleetDomain, says for a growing fleet-management company like Afrirent, manual processing of information on thousands of vehicles is simply not viable.
“When you have a few hundred vehicles to manage for clients, it’s possible to get the job done using manual systems and spreadsheets, but when you get into the thousands it’s just not practical – and your information will certainly be full of errors,” says Kalyan. “For Afrirent, automating the whole information life cycle has been a huge benefit, reducing management time and improving data quality. Once the information is in our system, we can present it in any way that suits Afrirent’s clients via a customised, mobile-friendly dashboard that supports decision-making.
“We have more than 30 years’ experience in fleet management, and that intellectual capital has been built into the FleetDomain software – a massive benefit for users,” notes Kalyan.
Afrirent has a broad portfolio customer base that ranges from multinational corporate enterprises to local public sector entities. For example, Argility has worked alongside Afrirent to develop a customised dashboard for one of its biggest clients, the City of Johannesburg. The dashboard allows managers to receive reports that cover key variables important to the City’s massive fleet of vehicles operated by several entities, including City Power and Johannesburg Water.
The business intelligence provided by FleetDomain is used by Afrirent’s account managers to reduce client operating costs, simplify administration and reduce the risks inherent in running a fleet of vehicles.
In addition, FleetDomain has developed a mobile app that streamlines the onboarding of new vehicles into a fleet. Using the app, an employee can scan the vehicle’s licence disk, which the app then uses to draw down details of the vehicle. This eliminates the need for manual (and error-prone) data capture and can save enormous amounts of time for the owners of large fleets.
“Using information from FleetDomain, we can help our clients manage their fleets much more effectively, maximising uptime and reducing costs without creating a huge administrative burden,” adds Mbekeni. “Afrirent’s tremendous growth has been based on our innovative use of technology to deliver excellent service and build strong client relationships, and ATG’s FleetDomain continues to play a key role in our strategy,” he concludes.
Source: IT Web | Hi-tech Security Solutions
The Argility Technology Group
The Argility Technology Group is part of the Data and Technology cluster arm of global enterprise, Smollan.
Argility is a leading innovator and implementer of software and data analytics solutions for retailers and brands. Our unsurpassed experience combined with a depth of proprietary software and skills enables us to address the multitude of challenges facing businesses in today’s era of digital transformation.
Our origins trace back over forty years as a major software developer in the retail sector. Decades of long, prosperous customer relationships bear testament to our customer-centric culture, exceptional service, and innovative thinking. From single systems to the digital transformation of an entire organisation - we have the solutions, skills, and experience.
We solve complex business problems by supplying and supporting various customised software solutions including Data Science (Artificial Intelligence); Retail Management Systems; ERP; Warehouse; Fleet; IoT; Proximity Management and more. We strive to be more than a technology/solutions provider by partnering with our customers to become an extension of their business resources.
The Argility Technology Group is comprised of: Argility; Cquential Solutions; Fleet Domain; Skydata Communications and strategic partner, Ashanti AI. All are foremost technology developers and suppliers of enterprise software solutions for the retail, supply chain and fleet industries as well as a comprehensive IoT framework that enables enterprises around the world, to integrate, manage and optimise their growing IoT ecosystems.
Afrirent Fleet Management
Afrirent Fleet Management provides services related to the management and maintenance of fleets of vehicles for businesses or organizations. These services include purchasing or leasing vehicles, scheduling maintenance and repairs, managing fuel usage, monitoring vehicle usage and driver behaviour, and providing technology solutions for tracking and optimizing fleet operations.
Afrirent Fleet Management is a subsidiary of Afrirent Holdings. Other entities in the stable include Indalo Hotels and Leisure which owns Skukuza Golf Club, The Fountains Hotel in Cape Town and three new hotels under construction; Afrirent Logistics, which has contracts to transport coal, cement, soya and a variety of other commodities throughout South Africa. Other entities are Afrirent Energy (fibre and cable projects), Afrirent Auto (Trailer Repair and Refurbishment), Indalo Investments (Private Equity, Property Investments and Retail Development).
Determination of the precise total cost of ownership (TCO) related to operating fleets has always been difficult. According to Johan van Niekerk, Fleet Solutions Consultant at FleetDomain – an Argility Technology Group company, this is due to various issues including lack of information due to not capturing a holistic view of all vehicle expenses from a central source.
“As South Africa moved out of the full impact of the pandemic, significant cost increases were experienced with regards to vehicle ownership – regardless of whether they related to individual citizens or businesses managing fleets. Inflation of vehicle purchase prices, maintenance, tyres and fuel over the past three years have combined to contribute to a staggering 20% to 30% cost increase for an average passenger and light commercial vehicle,” says Van Niekerk.
According to Van Niekerk, the only way to tackle this spiralling TCO escalation is to implement a fleet management information system (FMIS) as supplied and supported by FleetDomain. “To improve the costs and risks associated with fleet operations, businesses must take an all-inclusive management approach and ensure they have the information necessary regarding accidents, fines, management and personnel.”
Van Niekerk reveals some cost comparison models in the attached table:
Comparing a selection of vehicles purchased in 2019 and 2022
“Examination of the numbers in the attached table shows that expenses must be managed, controlled and reduced in line with, or below, inflation. Unmanaged vehicle expenses can end up incurring 10% to 23% greater costs than necessary. This can be explained when one considers that fixed costs are managed by accounts, and variable costs are managed, in most instances, by fleet operations. The latter can either capture all expenses, or they can implement the use of a maintenance or fuel card. In some instances, maintenance, tyres and fuel are all managed on one card,” he explains.
Van Niekerk says companies often add a GPS/tracking device to enable them to locate assets and monitor driver behaviour. By scrutinising GPS/tracking kilometre usage and comparing it with card kilometre usage, the actual usage per month can be determined.
“It is important to understand that a GPS/tracking device is not a fleet management system. Change in driver behaviour and meaningful savings will not be achieved without relevant information regarding speeding, harsh braking, acceleration, excessive idling and all the other actions performed by drivers that cause increased maintenance, tyre and excessive fuel usage. All of the foregoing can only be achieved with an FMIS.”
Van Niekerk says in post-COVID South Africa, vehicle price increases of between 27% and 32% – dependent on models and country of origin – have contributed significantly to TCO. “However, resale values of some models improved due to the shortage of new vehicles. Maintenance and tyre replacement come in at 17% to 21% of TCO, with the actual percentage increase being manufacturer/supplier dependent. Fuel has been identified as the most changed value, having been measured as a percentage of the overall at 96% to 145% (depending on mileage and application) in the TCO stakes.”
FleetDomain’s FMIS can integrate with finance institutions, maintenance, tyre, fuel and GPS/tracking service providers placing all costs on one platform. “The FleetDomain online FMIS can assist companies to receive and analyse all vehicle-related expenses and in turn aid informed decision-making regarding model selection, driver behaviour, safety and risk management,” he concludes.
Source: IT Web
