What is meant by fleet management?

What is Fleet management?

Fleet management is a transport software application used by carriers to better manage their fleet. A fleet management system (FMS) automates the logistical management processes, thus helping carriers maximise the productivity of these processes while saving costs. The on-board computers is the mobile data supplier for the fleet management system. By linking the FMS to a transport management system (TMS), files and planning are automatically updated with real-time data about the fleet.

Fleet management optimises the logistics process and cuts transport costs

Fleet management systems help automatically process data like driving, resting and service times, waiting hours, trip reports, axial load or status information. Based on this information, carriers can calculate the profitability of their activities and optimise the logistics planning. In addition, fleet management systems provide useful data for payroll administration and increase transparency when working with subcontractors.

Fleet management and the on-board computer

Fleet management systems usually work in tandem with an on-board computer, besides working with a database and back office software. An on-board computer is a terminal fitted into the truck cab, where drivers can enter data and receive information and instructions from the back office. Key features of the on-board computer include: trip planning, trip and time registration, tracking & tracing, fuel consumption registration, message communication and measuring the driving style. Thanks to GPRS data communication, the back office can monitor vehicles on the road and communicate with the drivers, at a relatively low fixed cost. Thanks to the connection of the on-board computer to GPS, fleet management enables carriers to provide extra customer services, such as proactively informing clients of the expected time of arrival (ETA).

Fleet management (FMS) and Transport management (TMS)

The fleet management system is an executing module that distributes data to other software applications, such as the transport management system (TMS). This software provides carrriers’ planners with up-to-date data, directly from the trucks, which significantly increases the productivity and accuracy in the back office. Trailer management helps carriers maximise the use of their trailers and optimise their maintenance.