One of the most important developments in logistics is the fleet management software. With this technology, fleet companies are better equipped with solutions to handle day-to-day operations. They get to enjoy specific benefits, such as fuel conservation, driver safety and route optimisation. However, some companies have yet to integrate this system into their business operations. These companies face certain risks, such as:
1. Unscrupulous driver activity
One of the main functions of a fleet accident management system is to prevent employees from engaging in unauthorised activity. With this system, companies can monitor where their drivers are, whether they are adhering to their schedule and what expenses they are incurring during their drive.
Fleet managers will have a much harder time monitoring driver activity and behaviour without a fleet management system, making it almost impossible to assess driver compliance and expenses.
2. Poor driving
A company without a fleet management system is also at risk of accidents due to aggressive driving. A fleet management system with a telematics feature can detect improper driving habits, such as jackhammer braking, swerving and speeding. If a company fails to identify and address these driving behaviours, these can lead to accidents, injuries and damage to the vehicle and the contents within.
3. Excess fuel expenses
Fuel reduction is another vital function of fleet management software. Through GPS tracking, fleet managers can pick the most efficient routes for their drivers and identify vehicles that are consuming too much fuel (possibly due to poor maintenance). They can also monitor drivers who are engaging in fuel-wasting activities (e.g. excessive idling, aggressive driving and sudden braking). All of these functions help your company save on fuel.
4. Poor vehicle maintenance
Proper and regular vehicle maintenance is crucial for a fleet’s efficiency and safety. But without a fleet management system, it can be ten times harder for managers to monitor maintenance activities, determine repair and replacement needs and control maintenance costs. As a result, driver safety is put at risk and vehicle safety compliance may not be followed thoroughly.
5. Decreased efficiency and productivity
A fleet management system is, perhaps, the most effective tool in optimising fleet tasks. For instance, a system can help managers schedule routes easily, making sure drivers are not overworked to maintain safety and efficiency.
If a company does not use a fleet management system, it can result in poor efficiency and employee productivity, which can translate into less profit for the company.
As you can probably already tell, a fleet management system is more of a necessity than an optional luxury now, especially for medium to large-scale operations. These are just some of the risks that companies can face without proper fleet management software. You should also worry about the increased risk of vehicle theft, asset mismanagement, decreased driver health and poorly managed fines.
To avoid all of these risks and more, look into a fleet management system today. Narrow down your options by finding systems with features that best suit your requirements and budget.
