Six must-have features of modern fleet management systems

The market for fleet management systems is huge. Transport and logistics companies that want to modernise and further digitise their fleet management are often spoilt for choice. Volodymyr Zavadko, Delivery Director at Intellias, has over 20 years of experience developing solutions for transport and logistics companies.

He provides an overview and shows which functional areas modern fleet management systems should cover. There is no shortage in the fleet management systems (FMS) market. While in the mid-2000s it was mainly stand-alone products for various tasks such as GPS tracking, remote monitoring of trucks or driver navigation that came onto the market, which perfectly digitised a workflow, FMS providers soon offered supplementary products for planning, maintaining and optimising the fleet as they became more widespread.

Modern fleet management software is usually designed as a cloud-based platform: a collection of integrated modules and sub-products that can be used separately or together. Such platform-based fleet management systems allow companies to utilise various available modules, integrate third-party data streams and entire applications, create custom connections to other enterprise systems, enable connectivity with IoT devices and other hardware, and create fully custom modules that work with the platform’s core offering. General market developments such as the shift away from fossil fuels, the trend towards e-mobility and IT innovations are driving the further development of fleet management systems.

At the same time, IT managers responsible for fleet management are often faced with the challenge of combining new technologies and solutions with existing systems in their day-to-day work so that they work together smoothly and actively support business processes relating to transportation and fleet management. For logistics and transport companies that want to digitalise further and modernise their fleet management, it is advisable to choose a fleet management platform that covers their requirements well but at the same time provides open API interfaces so that integration with existing business applications as well as with systems or modules which add powerful fleet management functions. The following functional aspects are essential for a fleet management system to meet future requirements.

1 Vehicle tracking

Vehicle tracking systems provide fleet managers with location-based insights into the positions and movements of vehicles.

Such a software module aggregates fleet telematics data from onboard hardware such as GPS tracking devices, OBD-II units and IoT-based telematics systems. It performs real-time vehicle tracking, ETA estimations, geofencing, fuel tank level monitoring, live map overlays, reefer container monitoring, automatic mileage registration and consolidated reporting. Fleet tracking systems depend on telematics data to provide accurate insights.

Some providers sell hardware for this purpose, while others offer native integrations with popular telematics service providers (TSPs). Overall, the telematics market is fragmented: In Europe alone, over 30 TSPs dominate the market. Nevertheless, OEMs are also pushing into this product segment by offering factory-installed telematics units with the latest truck models.

OEMs are expected to catch up with telematics service providers regarding market penetration by 2030. This dynamic makes the introduction of fleet management software more complex. After all, if the selected provider can support data exchange with OEM telematics systems, companies will benefit from valuable information.

Fleet management IT managers should, therefore, identify and assess compatibility with other systems – in terms of adopted TSP telematics hardware, OEM-specific telematics hardware that may be under consideration and in-cab video telematics systems. Companies should check whether a platform has native or pre-built interfaces to these systems. In most cases, it is necessary to implement custom hardware integrations to enable real-time data collection and aggregation.

In most cases, data management must then be adapted to allow for secure data cleansing, conversion and processing of location information.

2 Fleet scheduling

A fleet scheduling system supports dispatchers in the dynamic planning of routes, and driver shifts to utilise all resources as efficiently as possible. First-class route planning can significantly reduce fleet operating costs through lower fuel consumption, shorter driving times and optimised driver shifts. A fleet scheduling solution can significantly improve vehicle utilisation, drastically reducing idle time.

Such a system includes the following functions: Route planning based on actual road conditions, creation of point-to-point, multi-stop and on-demand routes, multimodal route planning, dynamic route optimisation, driver performance analysis, driver identification without touching and automated document uploads. Fleet scheduling software usually consists of two components: an app for the dispatcher and an app for the drivers. Driver apps help employees keep up with dynamic changes to route planning, pick-up sequences and scheduled delivery times.

Dispatchers, in turn, can control all dispatching workflows via a single interface. They can also track real-time deliveries and access consolidated insights from reporting dashboards.

3 Fleet maintenance

A fleet maintenance module helps companies improve their fleet efficiency through predictive maintenance. The aim is to carry out planned maintenance repairs on the vehicle before it breaks down and causes significant business damage.

This minimises operational downtime due to unexpected maintenance, avoids scheduling conflicts and reduces the risk of vehicle breakdowns. A fleet maintenance system provides vehicle condition analysis, real-time alerts for vehicle malfunctions, customised maintenance reminders, integrated parts and tyre ordering, detailed asset utilisation reports, tachograph data analysis and automatic DVIR generation for compliance. Modern fleet monitoring systems also have a predictive component that informs the company of the likelihood of performance issues before an urgent maintenance need arises.

Predictive fleet maintenance systems collect data from in-vehicle telematics devices and other vehicle electronic control units. They can also configure data collection from custom IoT devices such as temperature, pressure, engine knock and other sensors. A series of machine learning algorithms then correlates these data points to identify points of failure and suggest follow-up steps – such as scheduling an inspection or ordering new parts.

4 Driver workflow management

A companion driver application facilitates real-time coordination with on-the-ground staff.

This tool informs employees about important operational decisions such as route changes or additional stops. Such apps can also replace older ELD (Electronic Logging Device) software for recording driving times and automatically summarise HOS (Hours of Service) findings for compliance management. This enables companies to improve fleet safety.

Workflow management apps for drivers include the following functions: Real-time navigation, in-app messaging, driver safety assessments, digital document submission, driver HOS management and new driver onboarding. Given the global driver shortage, a pleasant driving experience can be a powerful lever to prevent driver churn. Comparison apps can cover many standard driver workflows – from automatic identification and convenient route planning to proactive behavioural training.

The latter can even form the backbone of a driver incentive program, where companies reward safe driving, high CSAT scores, accurate route adherence and other positive behaviours with additional financial incentives. At the same time, the onboarding process for drivers can be digitised. It can also save time and resources for processing manual forms by processing documents via an app and providing the driver with a personalised list of transport orders.

5 Video telematics

Video telematics uses dashcams and vehicle sensors to capture real-time driver behaviour.

Unlike standard telematics systems, video systems have separate hardware and software components. Data from in-cab cameras, truck sensors and onboard devices is transmitted to the cloud (or processed locally) to detect events such as distracted driving, speeding, hard acceleration and aggressive braking. Drivers are then automatically notified of behaviours that endanger road safety.

The collected data can also be forwarded to the fleet management system, where managers can check the safety and performance values of the drivers. Video telematics performs tasks such as in-cab driver assistance, HD video recording from cameras, vehicle video live streams, driver recognition, automated driver coaching, driver evaluation and reporting.

6 EV fleet management

Although electric vans and trucks account for only a tiny proportion of total EV sales, this is expected to change soon. Heavy-duty vehicles are expected to come under more stringent regulatory scrutiny in the second half of the 2020s as governments push for further transport decarbonisation.

Rising fuel prices will reinforce this, while electric vehicles will become more attractive because they are significantly cheaper to run than combustion engines. Electrification is, therefore, an essential aspect for fleet managers worldwide. EV fleet management software traditionally covers all standard workflows but is particularly geared towards electric vehicle characteristics, such as different ranges, charging patterns, or specific maintenance requirements.

Its functionality includes the EV vehicle routing system, a range prediction module, advanced vehicle tracking, charging activity monitoring, EV battery analytics, and EV maintenance. So far, few commercially available fleet management systems offer the functionality required for efficient EVs. Companies that want to convert their fleet to e-mobility should, therefore, add an EV fleet management module to their platform in good time to provide active support during the transition phase, for example, by providing data on the range of the various EV models, charging costs and general service life.

In this way, companies can make more informed decisions about expanding their fleet and gradually switching to climate-neutral operations.