Let’s start with: Fleet Management – what exactly is it?
Research figures are said to indicate that the global fleet management market size is expected to grow from US $19.9 billion in 2020 to US $34.0 billion by 2025* at a compound annual growth rate (CAGR) of 11.3% during the forecast period.
These statistics reflect some Fleet Management services but predominately the GPS/tracking and card methodologies – which is not a holistic representation of the full market rather only components of it.
But let’s unpack what is meant by ‘the global fleet management market’. Often statistics like this refer to GPS tracking systems – which are not ‘Fleet Management Information Systems’ (FMIS). The latter is an entirely different matter, and without a return on investment (ROI), is nothing more than a distant dream that will never be achieved and certainly not through deploying GPS tracking only.
FMIS can be defined as a “Set of theories and applications that are combined to produce an end result of a reduction in fleet Total Cost of Ownership (TCO) and an improvement in ROI”.
Moreover, FMIS is the process through which all costs relating to a fleet of vehicles are controlled by applying a specific management discipline with recognised theories and techniques. It covers system setup from procurement through to disposal. Moreover, it encapsulates all data for full fleet management inclusive of; depreciation, maintenance, tyres, fuel, insurance, GPS/tracking, accident management, licence registrations and fines management.
In a nutshell the ‘right’ FMIS solution will provide control over:
- Drivers licences and professional driving permits (PrDP) renewals.
- Vehicle licences renewals, Certificates of Fitness (COF)
- Maintenance and Tyre management, including servicing interval warnings.
- Fuel management, including key exceptions such as overfills, excessive consumption and fuel fraud.
- Integration with GPS/Tracking vendors
- Fines - compliant with the new AARTO legislation.
- Management of Accidents.
- Vehicles Inspections done by smart phone App.
Reporting is an essential part of any system you deploy. For example, standard reports, as well as exception reports, will immediately shine a spotlight on problem areas. These reports can be scheduled to run automatically at pre-set times. Reports can be emailed to selected recipients irrespective of being logged on!
Dashboard Indicators allow you to see the state of your fleet at a glance. Exception s are Flagged which can be drilled down to with immediate report analysis.
- Fully integrated.
- Web based.
- Imports Third-Party Supplier Information.
- Exports to Other Systems.
- A fully integrated management tool.
The deployment of FMIS leads to:
- Improved safety and risk management.
- Manages replacement cycles.
- Reduced finance/replacement costs.
- Improved operating costs.
- Improves ROI.
FMIS also reduces:
- Accident risk.
- HR costs.
- Insurance costs.
- Driver HR costs.
FMIS trends - driver management
The goal of FMIS is to reduce TCO and deliver an improved cents per kilometre (CPK) outcome.
Basically, FMIS provides control over the entire fleet with real-time data, improved operational efficiencies and inevitably better ROI.
It enables businesses to manage, monitor and control their fleet with real-time data; Improved operational efficiency, and better insights that support quicker and informed decision making.
Moreover, to help fleet supervisors leverage their drivers as assets (rather than liabilities), software vendors like Fleet Domain, are incorporating more out-of-the-box features for driver management – this latter is crucial, without the ability to change driver behaviour, there is no ROI.
So, why do you need an FMIS?
The foregoing highlights just some of the positive outcomes, however, despite this some fleet managers continue to question the need for FMIS. Even where executives accept it is essential in a digital age to get the right technology to improve performance and ROI the next step can seem daunting and that is determining which software best meets their fleet management needs.
In my next article I will explain why you need a FMIS.
Brief Biography: Johan van Niekerk Johan van Niekerk, Consultant, Fleet Domain – a member of the Argility Group.
Johan van Niekerk boasts 34 years’ experience in fleet management, sales training, and consulting. His skills include fleet data analytics, reporting, and financial expertise. He has a profound understanding of the fleet industry including funding options, safety, and risk assessment plus the development of safety, driver, and vehicle policies.
Over the years he has gained experience conducting fleet evaluations and audits plus providing fleet management training to executive and various levels of management personnel. He has also conducted fleet sales training courses for manufacturers, automotive groups, and dealerships.
Johan places improvement of ROI in corporate enterprises and parastatal organisations through fleet optimisation – as his main business objective. He also assists businesses with budget development, scenario analysis, forecasting and ultimately the entire management spectrum of corporate fleets from procurement through to disposal.