What Does Fleet Management Include?
Fleet management is the system a company creates to manage its fleet of vehicles, whether these be cars, trucks or vans. Fleet management can include many different aspects including;
- vehicle tracking
- vehicle financing
- maintenance of vehicle
- driver management
- compliance with health and safety legislation, and
- environmental issues
Companies can either manage their fleet in house, or they can employ a company who specialise in fleet management to do the work for them. Fleet management systems work by fitting the vehicles with either a GPS or RFID tracking system. The trackers then relay information to the software which uses the information to carry out various analysis and tasks.
Cost of Fleet Management Systems
The cost of a fleet management system in the UK varies, depending upon the type of system chosen, and how you purchase the system. Basic GPS trackers which show the location of a vehicle can be purchased from around one hundred and £150 per tracker, with the price increasing for more sophisticated trackers.
Many companies choose to lease trackers this will create an on-going cost for the company, but it does allow the flexibility for companies to upgrade their systems as the business develops. A basic fleet management system can start from under a pound per vehicle per day, including trackers and software.
All additional options such as the ability to stop vehicles making unauthorised journeys through remote disablement and messaging systems add to the price. RFID fleet management systems track vehicles using radio signals. These signals are stronger and more exact than a GPS signal but RFID systems require greater set up investment. To get an exact price for your fleet of vehicles, you will need to contact suppliers for a quote. There can be large variations in price, so shopping around will help you get the best deal.
Investing in a fleet management system can result in cost savings for a business which will need to be included in the calculation of any business comparing costs. The main cost savings are in reduced insurance costs as the likelihood of theft decreases, and any assets stolen are much more likely to be recovered.
Another significant cost saving is on fuel cost as fleet management systems can help you plan the most effective routes for your drivers. Other cost savings include repairs due to regularly scheduling maintenance and tax as you will be able to demonstrate to HMRC that there is no benefit in kind to the employee through using the vehicle for their own purposes.