What is fleet management, and how is it managed and evaluated?

Fleet management is an essential activity within companies that have vehicles, whether they are used to transport employees or to deliver goods.

It aims to ensure that vehicles are being used in the best way possible, optimize their use and also keep them in good working order.

Therefore, it impacts both logistics and the carrying out of external activities, such as business trips.

What is fleet management?

Fleet management is equivalent to the process of managing and regulating the fleet of company-owned vehicles and which are utilized to perform commercial activities or institutional objectives.

Management is quite comprehensive, as it is necessary from the acquisition of vehicles, to their maintenance and monitoring of their use and performance. Therefore, it is something complex.

Although many believe that a company’s fleet is limited to the trucks used to transport goods, it encompasses other types of vehicles. Any type of transport that belongs to the company is part of it.

Therefore, company vehicles made available to sales representatives, as well as those used for internal supply to branches, also make up the company’s fleet.

In general, fleet management encompasses:

• Route control;
• Location of vehicles;
• Provision of vehicles;
• Need for maintenance;
• Supply;
• Insurance;
• Other expenses related to automobiles.

How important is fleet management?

It is important because it ensures that the company’s resources are used efficiently. This management seeks to minimize operating costs and maximize productivity with regard to the use of vehicles.

Check out the main benefits of having organized fleet management in the items below.

Greater control and visibility

Through effective fleet management, the company gains greater control and visibility over its vehicles, which is important for decision-making, identifying problems, opportunities for improvement, and optimizing fleets and logistics in general.

How to manage fleets?

There are several tools on the market that facilitate fleet management, such as tools focused on time management and productivity , which provide important information about the fleet.

This management encompasses different needs and tasks. Therefore, learn about the main ones and the steps for implementation.

Preventive maintenance

One of the requirements for fleets is that they should be maintained. Therefore, it is necessary to implement preventive maintenance programs.

It can occur with mechanical checks, as well as periodic oil, tire, brakes and other equipment inspections.

Furthermore, the company must have a policy that encourages drivers or employees who have access to vehicles to report any type of anomaly in their operation.

Monitoring and tracking

Fleet management finds great allies in tracking systems. They are useful for monitoring the location of vehicles in real time and even driver behavior, such as speed, possible traffic violations, etc.

With this, the manager can improve safety, optimize routes and reduce vehicle downtime.

Fuel management

Fuel consumption is part of fleet management tasks. This includes choosing the ideal fuel, policies that combat practices that lead to faster fuel consumption, refueling locations, etc.

Data Analysis and Reporting

Use statistics to assist in the management of fleets. Statistics on mileage, fuel usage and maintenance, vehicle routes and working times can yield valuable information to the manager.

For instance, risk factors and trends. Also, where are the areas of problems and how can improvements be made.

Driver management

Management should also focus on drivers, especially in promoting safety policies and procedures. Training, driving tests, and drug testing can be part of these.

Online time tracking is a tool that allows you to monitor drivers’ journeys, according to the route and their employment contract model.

Route optimization

Using routing and route planning software is crucial to successful fleet management. It allows you to optimize vehicle usage, minimize distances traveled and travel time.

How to measure the effectiveness of fleet management?

There are several indicators that can help analyze the effectiveness of fleets and their management. They are important because they provide clues about problems or actions that do not deliver the expected results and points for changes and improvements.

Performance KPIs

And among the main indicators, we can highlight:

• Total Cost of Operation (TCO): This KPI measures the total cost associated with operating each vehicle, including acquisition, maintenance, fuel, insurance and other variable costs;
• Fuel consumption: assesses the amount of fuel used per distance traveled, helping to identify opportunities to improve fuel efficiency through better driving practices or improved maintenance;
• Preventive maintenance index: measures the proportion of preventive maintenance in relation to corrective maintenance;
• Fines and infractions rate: measures the frequency of fines and traffic violations committed by drivers. This KPI helps evaluate the effectiveness of safety policies and driver training;
• Routing efficiency: evaluates the effectiveness of planned routes compared to the routes actually traveled. Good route planning reduces distances traveled and delivery times, as well as saving fuel.

From them it is also possible to develop goals so that there is a constant improvement of the indicators.

Data comparison

Comparing fleet performance data over time is a fundamental practice for improving fleet management, as it allows you to identify trends, patterns and areas that require intervention or improvement.

To do this, you need to ensure that you are collecting consistent and accurate data on critical variables such as fuel consumption, mileage, maintenance, operating costs, downtime, accidents and traffic violations.

These data must be collected systematically and regularly.

Then, define the time periods for the comparison. This can be monthly, quarterly or yearly, depending on the data availability and the operational dynamics of the fleet.

Customer satisfaction

Customer satisfaction in fleet management is a vital indicator that reflects the quality and efficiency of the service provided by the fleet, especially in operations that involve the delivery of products or services directly to customers.

To do this, conduct post-interaction surveys to collect direct feedback from customers. Include questions about the punctuality of delivery, the condition of the products upon arrival, the courtesy and professionalism of the drivers, and the ease of interaction with the company.