The Cost and Liability of Not Using a Fleet Management System

Fleet competitions are at their prime in all industries and businesses. Industries worldwide strive hard to attain higher efficiency and profitability, yielding output that keeps them feasible and increases the growth rate.

For instance, transportation of goods and services and people are likely to be managed by various types of fleets. If fleets are not maintained properly, then the equipment, drivers, vehicle devices, etc may become liabilities. There comes the role of the drag reduction system and fleet management system. It is a savior to all fleet-based industries.

Fleet management systems are being adopted by service organizations and are becoming an inevitable tool to organize the workforce and even change the style of fleet operations.

Even though fleet managers have proven benefits from the fleet management system, some mistakenly believe it only has a single benefit, that of real-time updates and insights. However, the fleet management system also has several other advantages that contribute to improving the company’s bottom line.

Companies who are not opting for this innovative technology may fall behind their competition. Professional fleet owners should be aware of the cost and liabilities if they are not using fleet management systems.

Disadvantages of not using fleet management system in vehicles

The service industries that are managing without fleet management softwares are likely to face many disadvantages than those who are adopting it. They stand behind in the industrial race when compared to those industries with advanced technologies. Some of the major drawbacks of not adopting fleet management systems and drag reduction systems are as follows. 

The cost and liability of not using a fleet management system

1.Slacking drivers

Employees need some regular breaks for a better outcome. But long and unscheduled breaks can lead to discontent customers. An organization cannot go behind every driver to identify the slackers. Fleet professionals can back their claim by disclosing proper data so that no driver can deny it. It might be an authentic issue rather than sheer slacking. 

The Fleet management systems assist to pinpoint the slacking divers who escalate the paychecks by entering pad hours. Fleet management systems give enough data for fleet directors to easily track the drivers’ reporting time, when they start and end their day, stops they made, and even the time duration of stops. Without advanced technologies, fleet managers may easily be thwarted by timesheet disputes, entering falsifying hours or long-lunch hours taken, and payout for unproductive time spent.



2.Driver accountability

Fleet managers are usually well acquainted with the behavior of fleet drivers. But their features may vary in front of the officers and on the road. Fleet directors have no idea of what they are paying for, without a feasible way to monitor the driver’s activities throughout the day at work. They are unaware of the employee activities on the field. It is impractical for fleet directors to drive along with each employee to monitor them. There comes the hand of the fleet management system to assist the administrators to make their work so effortless. 

If drivers are aware that their activities are being monitored, the drivers deliver a better outcome, try to practice regulated driving habits, reduce personal jobs, and eventually less waste of time during working hours. Driver accountability can be made better by implementing a fleet management system to reduce the cost and liability of the organization.

3.Fuel expenses

Fuel expense is one of the major expenditures in the service fleets. Monitoring these data manually can show a higher fuel cost than the service provided. With no proper monitoring records by fleet management systems, the fleet directors have lesser ways to know why fuel expenses are so high.

The main reason for service vehicles to look into advanced technologies like fleet management systems is to track and reduce fuel costs. Fleet management solutions assist to reduce the fuel cost by lowering the idle time of the vehicle, eliminating unauthorized usage, minimizing speed, eliminating gas card fraud, and increasing vehicle route optimization.

4.Maintenance expenses

Following the fuel cost is the maintenance cost, which is much higher. Manually monitoring each vehicle’s maintenance ends up in time consuming and lacking accuracy. Due to manual error, tracking the odometer readings and logging services are the most important maintenance tasks that might be overlooked. It leads to expensive repairs or even ends up in acquiring a new vehicle sooner unnecessarily. 

 

To minimize the inefficiencies and maintenance cost of the fleets are likely to adopt a fleet management system that schedules the preventive maintenance reminders like oil changes, tire rotations, engine conditions, and other maintenance equipment. Maintenance records are also available in fleet management technologies to monitor the associated cost of each vehicle in the service fleets. 

5.Productivity and efficiency

Since service fleet industries are expanding each day and are becoming more competitive, service fleets should be more effective and efficient to attract customers when they need them. By implementing a fleet management system, vehicles are more productive and efficient across the board. It also assists to improve driver accountability, maximize dispatch efficiencies, and paves ways to finish multiple jobs per day. 

Through the use of advanced technologies, service fleets can eliminate the need for traditional paperwork to collect field data. The Fleet management systems provide real-time data instantaneously to the fleet directors to manage the service fleet more efficiently. With the point of service, fleet managers can quickly make wise decisions to adapt to the real-time environment.

Tips to choose the fleet management system to reduce the cost and liabilities

If you are a fleet professional looking to improve the efficiency of the fleets by implementing a fleet management system and drag reduction system, then you should be aware that there are plenty of options available in the market. You should be very clear about what your fleets need to improve their productivity and efficiency. Here are some tips on choosing a fleet management system that will reduce the company’s costs and liability.

 

  • Analyze your service fleet requirements and budget.
  • Prioritize the features you need in your fleet management system
  • Talk to the fleet management system suppliers in person
  • Pinpoint all the hidden costs of the system
  • A Detailed review of the system maintenance options

Final thoughts

Without proper fleet management, service fleets are likely to fall behind in the competition. Companies without a proper fleet management software are liable to slower growth.To run faster and stay on track is more important to keep the fleet business alive. To prevent losing to the other competitors and to be more efficient and productive, fleet professionals should adopt a quality fleet management system that can provide satisfying services to their customers and keep them happy.  






Team VAMOSYS have been into GPS business since 2014 and have good experience on GPS Vehicle Tracking, Fuel Monitoring, Fleet Management and GPS Tracker Devices. Writes article on various topics to share the industry experiences and knowledge.

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