Fleet management entails all procedures for running a fleet efficiently, on schedule, and within budget. Fleet managers use these processes to ensure their fleets operate effectively while making vehicle acquisition or disposal decisions.
Fleet management systems aim to maximize efficiency within state or business organizations with integrated GPS, geofencing, and AI technologies. Fleet management software helps in fraud reduction, digitalization, tax compliance reporting and route optimization, among other functions.
10 Commercial Fleet Management Trends for 2023
What are the most critical trends in commercial fleet management to be aware of? The list of trends is familiar, and many have existed for some time. However, their influence on the fleet industry has continued to grow.
Continued Adoption Of Electric Vehicles In Commercial fleets
Both the automotive industry and consumers are beginning to take electric vehicles seriously. Naturally, commercial fleets would start to use electric vehicles as technology improves. This particular trend is not without its obstacles, including:
- Battery recharge times for electric vehicles are long. It can take up to 30 minutes or more for an electric vehicle battery to charge (and even longer with standard outlets).
- Costs to replace fleet vehicles are high. Electric vehicles are more expensive than gasoline-powered vehicles.
- Electric vehicles have limited driving ranges. The 2023 Lucid Air Dream Edition R with all-wheel-drive ranges approximately 520 miles. This vehicle is prohibitively costly at $169k and has a sedan-like form factor, which could be better for commercial use. The range of larger vehicles is usually shorter.
The positives and negatives are weighed against each other.
- Lower fuel costs. Gas prices in the USA are expected to average $3.48 per gallon by February 11th, 2023 (source: AAA). The average cost per kWh of electricity in the USA is about $0.15. (Source: BLS). The average electric vehicle will use about 180 kWh to travel 540 km, which costs about $27. (180 x 0.15=27). A vehicle with 25 miles per gallon consumes 21.6 gallons, which costs $75.17. (520/25= 21.6; 21.6 x 348 = 75.168).
- Reduction in Maintenance Costs. Basic maintenance operational costs, such as oil changes, are another major factor in vehicle fleet costs savings. A purely electrical drive has the advantage that oil changes are unnecessary (nor do any other moving parts like those found in engines powered by fossil fuels). It helps reduce maintenance costs over time. In reality, EVs are 31% cheaper to maintain over their first three years than gas-powered cars (Source: business insider).
Autonomous vehicles: Expanded use
Autonomous Vehicles (AVs), another technology, have been extensively tested over many years. In 2019, Tulare in California made its inaugural commercial autonomous freight journey between Tulare in California and Quakertown, Pennsylvania of Pennsylvania USA, in an AV freight shipment journey of 244 miles.
TuSimple successfully completed its maiden voyage of autonomous trucking on public roads in 2021. FedEx also uses autonomous vehicles; however, each one remains fitted with an additional driver who monitors driving performance and intervenes if needed. Autonomous trucking offers significant potential productivity increases to businesses; bills like the SELF Drive Act actively encourage the deployment of these autonomous trucks by commercial fleets.
Want More Information About Our Services? Talk to Our Consultants!
Increased Use Of Remote Fleet Management Technology
Many companies invested in remote technology well before COVID-19 forced the global closure of offices to enable key employees to work from home and reduce stress while improving productivity. Since its outbreak, remote working has only increased, prompting an upsurge in adopting fleet management software, allowing managers to monitor fleet data from smartphones and receive essential alerts instantly, thereby improving response times for emergencies.
Increased Dependence on 5G technology
The introduction of 5G networks, which improve the speed and stability of mobile device connections, has further boosted the trend of mobile fleet management. This technology will be rolled out across the country in 2023. This new technology is already having an impact.
- Routers are more efficient. The fleet manager will be able to alert drivers of emergency road conditions and reroute them using their fleet management software without any delays. AI (artificial intelligence) is also available to assist.
- Responsive Networks It will enhance fleet communication among drivers, managers and customers.
- Improved sensors. Internet of Things sensors (IoTs) will increase safety for drivers by helping to avoid accidents, keeping them in their lane, and calling 911 automatically if an accident occurs.
- She improved Vehicle Maintenance. The 5G network will allow faster data transmissions between software and vehicle components. This allows real-time diagnosis.
- Real-time V2V Applications. The apps can reduce crashes and their severity. Each fleet vehicle can share information on traffic patterns, routes and speeds.
Mobile technology will become even more helpful in the future, leading to greater adoption of technologies of all types in fleets.
Dash Cams and Other Vehicle Cameras are Increasingly Popular
The National Highway Traffic Safety Administration (NHTSA) estimates that despite the fact there are fewer people on the roads in 2020 and early 2021 due to pandemics, "about 38,680 deaths in motor vehicle crashes were projected--the highest number since 2007."
Many crashes are caused by distracted driving. It can be anything from:
- Eat and drink
- Personal grooming
- Watching videos
- Conversations with Passengers
Fleet managers bear an enormous responsibility to prevent accidents from occurring. Distracted drivers can cause immense reputational harm and incur billions in legal and insurance expenses for companies, so companies and governments seek ways to combat distracted driving through various means, with dash cameras providing one such method - keeping drivers accountable while safeguarding other road users simultaneously. Arion ERP offers in-cab and out-cab monitoring cameras designed to combat distracted driving behaviors.
Read Also: Assistance of Arion ERP in Fleet Management
Supply Chains for Fleet Management: More Attention on Redundancy
COVID-19 caused massive disruptions to global supply chains due to business closures and subsequent flooding of the Suez Canal by Ever Given container vessels, which held up $9.4 Billion worth of international trade until cleaned and reflagged again.
Fleet managers were under increasing pressure to deliver replacement parts on time due to business closures and disruptions on international trade routes, forcing many fleet managers to find alternative sources for vehicle parts and supplies to combat an unstable situation. If one vendor runs out, fleet managers would still have access to an alternative supplier and be able to maintain their fleet vehicle's condition without disruptions in supplies from either vendor.
Increased Security For Commercial Fleet Vehicles
Even with insurance covering theft, lost productivity can harm a business's bottom line. Preventive measures, like GPS tracking devices, are utilized to mitigate risks related to auto theft. Arion ERP provides numerous fleet management features, including custom mapping features. You'll receive text or email alerts if a car enters or leaves certain zones, while alerts from Arion ERP alert you when each one enters or leaves specific zones - law enforcement can also use this data when investigating stolen fleet vehicles.
Arion ERP fleet tracking devices feature the starter turn-off feature as an extra safeguard to safeguard their fleet vehicles from theft when taken from storage, rest stops, or being driven on highways and byways. Fleet managers can turn the vehicle starter off and then on again when starting it if the engine is running but stop when the ignition switch is pressed, preventing thefts during engine running times or stopping over rest stops on highways and byways. It prevents vehicles from being stolen from storage or rest stops along highways/highways etc.
Increased Focus On Recruitment Efforts
"Good Help Is Hard to Find" has become an unspoken truth of today's labor market, as evidenced by its responses to COVID-19 epidemic-linked closure of businesses across various industries and the "Great Resignation", in which four million American employees left their positions.
Due to an unprecedented loss of talented individuals, fleet managers have begun prioritizing recruitment efforts more heavily than before. According to data, America created an incredible 6.4 million new jobs during 2023 alone - which marked an incredible rebound after such severe job losses last year.
Improved Access to Fleet Data and Analytics
For years, fleet management software has been used to improve vehicle and driver performance visibility. This cost-effective approach is highly beneficial to fleet managers, providing a wealth of information. Commercial fleet management software provides data on driver performance, route optimization and seatbelt usage. It also offers analytics and data on lane deviations.
Increased Use Of Application Programming Interfaces To Integrate Disparate Software Platforms
Many fleet managers utilize custom software APIs to connect various tools that were never meant to interact, including databases outside the fleet tracking system, with one another and provide a deeper analysis of fleet vehicles and drivers. Fleet managers can participate in daily fleet operations through various integration platforms available, allowing for daily involvement as well as performing various tasks, including:
- Send messages to the driver directly.
- Fuel cards allow users to track their daily expenditure on fuel.
- You can track a driver's time by punching them in and out of the vehicle.
What Features Do You Need the Most?
As we've already covered, each feature may be of equal or more significance to you; how can you decide which features will be most significant to your business? Consider your customers and external providers like suppliers or insurers when making this determination. By understanding each individual requirement, you can optimize the support of your offering efficiently.
Your users will benefit from separate solutions designed to address user access to shared modules, data sharing and operations support. To enhance security and limit some features' access, client, supplier, and driver portals should offer all features required of each.
Fleet Management Features
Let's now look at the features of every fleet management system that must be present.
Live Tracking
Locating vehicles is essential. GPS monitoring of vehicles is an indispensable element of vehicle management systems. It provides managers with invaluable data that allows them to monitor several vehicles simultaneously, identify routes taken, and stop times made at each stop point and duration, thus helping reduce costs while avoiding accidents. Live fleet tracking solution allows managers to see these changes immediately so changes may be implemented that can reduce expenses while increasing safety measures including driver accountability, fleet efficiency, vehicle performance and helps to gain customer satisfaction.
Fuel Monitoring
Fuel consumption reporting and monitoring is an essential feature of fleet management systems. This is very useful for optimizing and regulating fuel costs. It also allows you to spot dangerous driving behaviors and fuel theft. Vehicle management systems can quickly produce these reports, which include all the information about fuel purchases and usage. You can control the use of fuel to avoid fuel mismanagement.
Emergency Alerts
The fleet must be kept 'healthy.' You must be aware that any fleet vehicle may have an emergency so you can react as soon as possible. Reliable and best fleet management software can help you to handle minor issues quickly and prevent them from becoming more serious. It is crucial to have a fleet management system when delivering fragile items and if you need to meet short deadlines.
Monitoring and Planning Routes
Are your vehicles moving as efficiently as possible? Route monitoring allows you to monitor how they travel using features like route planning and monitoring, which helps determine if their current route is the most cost-efficient or if there may be alternate means of reaching their destinations. After creating optimized fleet-wide routes that save both time and fuel consumption - your clients will appreciate improved services with shorter waiting times too.
Driver Behavior Notifications
It is one of fleet management's key features. This helps to ensure that drivers drive safely. Driver behavior reports can be used to track how drivers are driving. The system basically tracks and analyzes driver behavior and then produces scorecards. Scorecards for drivers are especially useful in identifying dangerous driving behaviors, like abrupt braking or rapid acceleration. Using these reports, you can address any problematic behaviors and take appropriate action.
Trip Logging
A trip log is essential for fleet businesses because it tracks each journey and collects data automatically. The trip log function collects information in real-time, so you don't need to use spreadsheets or logbooks. You can reduce personnel and business costs and allow fleet managers to spend more time on essential tasks like expanding business or attracting new clients.
Calculate your Mileage
Calculating mileage can be beneficial to tax calculations, compliance and deductions. The software calculates the mileage of both fleet vehicles as a group and individual to help optimize business performance while taking maximum advantage of tax deductions while cutting fuel costs. Intricate calculations allow accountants and fleet managers to access mileage reports that contain all pertinent details. This invaluable service contributes directly to overall company activity.
Automatic Vehicle Maintenance
Fleet management software protects vehicles against future severe damage, saving time and money by eliminating urgent repairs. Modern fleet management solutions should include alert systems to detect fleet of vehicle maintenance needs as soon as they arise, providing just-in-time vehicle maintenance through alert systems or notifications; doing so saves both money and customer service, eliminating delivery delays due to improperly maintained fleet vehicles.
Digital Records
Electronic document management is an indispensable feature in fleet management. Drivers can exchange documents like receipts, proofs of delivery and client signatures using digital document management systems; managers and fleet administrators can then centralize and update key documents while adding relevant data into system databases. Electronic records allow you to store documents safely and refer back to them for reference as needed or modify or delete them as desired.
Reporting and Analytics
The reporting and analytics feature of fleet management software is essential because it will allow you to gather the most crucial real-time information. It can analyze the real-time data and provide an interpretation. Reports can be generated on driver speed, engine running time, etc. This real-time information will help you improve your business performance and improve the entire process.
IoT and Fleet Management
The Internet of Things (IoT) has quickly become one of the hottest tech trends. Offering all the advantages associated with integrated infrastructures, this trend offers tremendous promise. Already employed by numerous businesses today and expected to connect 75 billion objects by 2025, IoT technology will become particularly beneficial in fleet management applications as its popularity expands in the transportation sector, which utilizes it successfully for fleet management purposes.
Coordination between multiple vehicles once managed manually, is now automated with IoT technology, making business management of fleet assets simpler than ever before. Business owners can easily track repair progress while making informed decisions regarding the health and performance of their fleet. Arion ERP provides customized IoT fleet management solutions designed to increase profitability through optimizing route planning, fuel savings and improving fleet operational efficiency.
Want More Information About Our Services? Talk to Our Consultants!
The conclusion of the Article is:
IoT technology can enormously positively affect many fields, including fleet management. If this industry interests you, consider its applications carefully - most essential features will likely already be covered. Yet, possibilities for expansion remain open to you. For further inquiries about IoT or fleet management software solutions, please get in touch with the best and most reliable software solution for fleet operations.
