What is fleet management

Fleet management literally means “managing a fleet” (of vehicles, in our case). It’s a function that lets companies using vehicles in business eliminate or minimise the risks of investing in vehicles, increasing efficiency and cutting transport and staff costs.

What fleet management covers

It can include vehicle leasing and financing, maintenance, licensing and compliance, supply-chain management, accident management, telematics (tracking and diagnostics), driver, speed and fuel management, and vehicle remarketing. These are performed either by an in-house department or a third-party provider.

Who uses it

Leasing companies have gone the furthest — they must care for vehicles they own but the client operates. IT companies offer FMS (fleet management systems): from parts and fuel accounting to route work and telemetry installed on vehicles. This allows quality record-keeping and direct influence on the cost of ownership.

Why a service station

Interestingly, service stations today are not fleet-management providers, and clients don’t ask. Historically the rule “the worse, the better” applies: the more neglected the car, the more you can earn. For owners the rule is “ON/OFF”: while the car runs, all is fine; when it stops, it’s towed in.

We’re convinced that the companies servicing cars should become fleet-management operators and help owners cut costs and avoid downtime. There are masters who know your car best and a manager who handles the paperwork. The ideal model is a monthly subscription for service, like insured medicine: there’s a budget and you can’t exceed it — that’s the incentive to do it well and for the long term.

Summary

Most small and mid-size business fleets are in poor shape for various reasons. Insufficient care leads to critical, costly failures that could have been avoided. The client, in turn, must understand: you can’t delay repairs to the last — cars need scheduled inspections.