Fleet management software: what you need to know

As the fleet sector becomes increasingly digitised with connected and online services, decision-makers have never been more awash with data.

Information flows freely from sources such as telematics, driver licence checking companies, HR, leasing companies, insurers, accident management suppliers, and SMR providers, with the vast quantity leaving many fleet operators feeling swamped.

However, this data cannot be ignored: it is vital to ensure a fleet is safe and compliant, as well as allowing the decision-maker to identify potential efficiencies and savings.

This is why implementing and operating a good fleet management software package is so important.

The traditional way of storing fleet information has been on paper files and documents stored locally on a device and this is still relatively commonplace, particularly among small-to-medium enterprises (SMEs) operating just a handful of vehicles.

Fleet management software allows fleet decision-makers to centralise fragmented data, which may otherwise be stored locally on paper files or on multiple spreadsheets on a computer, and use a single platform to see telematics data, fuel card transactions, maintenance history and reminders in one place and in a standardised format.

Measurable efficiencies are created by being able to organise digitised data according to location, driver, vehicle and more.

Fleet management software displays this information in customisable dashboards, with the data sorted, for example, by category, driver, vehicle and more.

This can be displayed in tiles, graphs or charts, with critical data highlighted – often using a traffic light system – to ensure it is prioritised by the fleet decision-maker.

A dashboard gives a useful overview, but it allows fleet managers to drill down and go deeper into the data if they need to.

Exception notifications can be built in, removing the need for calendar or paper reminders and bringing greater clarity and efficiency.

For example, they can be set up to indicate when a programme is breached; if a fleet’s mileage policy is to replace vehicles every three years or 60,000 miles, but a rogue vehicle is heading for twice that mileage in three years, the fleet manager will receive an alert when it reaches the threshold.

Alerts can be set either by the fleet or by regulation, for example licence inspection, road tax. But if a fleet wants to be reminded one month before an MOT due date, for example, a notification is predicated on that.

Consolidating data gives excellent management information (MI), which not only allows fleet managers to see where they can make savings, but also facilitates compliance management so they can ensue drivers are operating in a safe and lawful manner, enabling them to take quick action where they are not.

The convenience and confidence that comes with centralisation is notable, while it also saves an enormous amount of time: fleet management software provider Samsara gives the example of its US customer American Cementing, which ditched 13,000 pieces of paper and saved more than 1,600 hours per year in administrative time when its 400-strong fleet become paperless.

Choosing the right software package

Fleet management software tends to be either cloud-based or legacy systems.

Legacy systems are so called because they are typically located on on-site hardware such as hard drives, services or use installable software, and need to be maintained and manually updated.

This means they become outdated and cannot interact with newer integrations but are still integral to business practices.

Cloud-based systems, also called software-as-a-service (SaaS), are not limited to a specific computer where the software is installed; it can be accessed by multiple users, on multiple devices as needed through a web browser or mobile app.

Cloud-based software can sync directly to its mobile app to share information in real time, so details can be accessed anytime, from anywhere.

Product, feature and general software updates can all be pushed through instantly and automatically, ensuring the user always has the latest version of the product.

Companies can choose whether to host the cloud-based software themselves or access it on the supplier’s servers. If buyers host it, they must ensure it meets data security standard ISO 20001.

As well as choosing the best type of system for their fleet, an organisation should determine what it wants the software package to do.

For many organisations, a standard, off-the-shelf system may be fine. For others, a more tailored approach may be more suitable.

Many suppliers offer a modular system, allowing a fleet to build the best system for their requirements without having to pay for functions it does not want or need.

In addition, those running a large fleet may need customisable tools that allow them to create workflows, approval processes, key performance indicators and the like, and that can be developed to respond to the growth or changes in the fleet, company or industry.

Highlighting specific requirements can also often lead to a supplier creating specific functions. For example, North Yorkshire Police worked with Civica to develop a module to increase the usage of under-utilised vehicles.

They were re-classed as pool cars, making them available to anyone in the force. This enabled the organisation to save £33,000 in the first 12 months of the initiative and cut CO2 through reducing the use of higher-emitting grey fleet vehicles.

Preparing a tender

When drawing up a list of requirements, it is also worth considering if any future changes to a fleet operation will affect what is required from the software package.

A well-written tender document ensures that all parties end up satisfied with the outcome: fleet managers have the software and back-up services they need to run their vehicles efficiently, with a good return on investment, the highest compliance and the best practice.

Equally, the supplier has the opportunity to provide technology in the most appropriate format to give clients greatest efficiencies of time, operation and cost.

In addition, only specific questions elicit specific answers and, to ensure buyers fully understand what various modules do, questions should be clearly defined.

However, there has to be a balance between requirements that are too narrowly defined and those not narrow enough.

The most common mistake is for a fleet to have a specific checklist of must-haves, or software features organisations think will solve an issue, without properly identifying and stating the problems they are trying to resolve.

Standard tenders are definitely not the answer because so little in them is relevant.

Although procurement departments might say it is all about price, there is a risk of false economies if a company does not have a system that provides appropriate data to give good management information.

It is also important to assess what third-party software the fleet management tools will need to integrate with, such as finance, HR, payroll, external supplier systems, the DVLA, fuel and maintenance card providers, electronic purchase transactions from suppliers, telematics and HMRC.

Failure in any of these areas can leave fleets vulnerable to cost, compliance and administration failings.

Other factors to consider when selecting software includes how data is stored, whether data conversion is required, the quality of data to be transferred, size and complexity of the fleet, the number of locations and people that require access to the information, who – if anyone – is allocated to drive the implementation and the approach to be taken to training system users.

Failing to prepare carefully compromises the fleet manager’s ability to write a tender document which allows potential suppliers to understand exactly what is required. This may lead to a mismatch of software and fleet.

Having narrowed down potential suppliers to a manageable number and defined the specification, a fleet manager should send the vendor a request for information (RFI) containing specific questions: what services are provided, what service level is relevant and what it covers.

SLAs should also be appropriate to the risk to the business if something goes wrong with the software.

A supplier should also be asked to compile a timeframe for implementation. Introducing a fleet software package is not an overnight process.

Software also needs to be able to integrate with existing company software such as those used for HR and finance.

 

Questions to consider

Web-based or web-enabled?

• Is your system web-based or web-enabled?
• How do the speeds of the different systems compare?
• Which would suit your requirements more?

Cost of investment

• How does the cost of the software break down?
• Are there any extra charges?
• How and when are payments made?
• Is hardware paid for upfront?

Implementation process

• What happens during implementation phase?
• How long is it likely to take
• Who will be involved in implementation?
• Is there an implementation fee?

Contract terms

• Am I locked into a contract?
• How long does it last?
• How do I terminate that contract early?

Training

• What training is provided as standard?
• How long is the training likely to take?
• Does the training invlve only the fleet manager, or every staff member who will use it?

Service support

• What happens if the system crashes?
• Is there a back-up server?
• Do you pay an additional/monthly fee for service support?

Software updates

• How often will updates be necessary?
• How often will it be necessary to build a whole new system?
• How are mini-updates carried out – remotely or in-house?
• What will the updating process consist of?

Security and data

• What security measures are in place?
• Who owns the data? Will it be lost if you change provider?
• Can the system pull in data from other sources?
• What systems will it integrate with?
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Apps

Fleet management software providers often offer apps that make daily tasks easily manageable, often through shortcut to important actions such as starting a vehicle examination.

Drivers can access the app via a password, which ensures fleet managers know who is doing what and when.

This enables them to audit vehicle checks because anything logged by a driver automatically appears on the central system, becoming instantly available to the fleet manager.

These sit alongside other reports such as preventative maintenance schedules, logs and vehicle status, so mechanics can prioritise the most urgent items and sign off the inspection to meet regulatory standards.

The popularity of smartphones – increasingly provided by companies for job-need driver – means staff can now access information and also carry out remote vehicle inspections.

The app can also be customised to their vehicle with the information relayed to the fleet or transport manager, highlighting any defects or compliance issues.

The fleet manager can then take the decision whether to remove the vehicle from the road for repair.

Photographs can also be loaded into apps, providing vital evidence in the event of a collision.

Apps guide drivers through the necessary protocols/form filling to ensure all corners are covered from photographic record to witness details, all of hich is then instantly relayed to the fleet manager, who can give the insurance company prompt first notification of loss (FNOL).

The same is true of video footage from dashcams, whose live feeds are sent automatically to the fleet management system for instant viewing, obviating the need for managers to retrieve the camera so they can download the recording.