The Benefits of a Digital Fleet Management System


March 2023

Following the transition from a command and control to an information-driven organization, fleet managers need the right information and technologies at their disposal to make smart decisions. This can be challenging when there are so many competing demands on budgets, time, and resources.


Many companies buy their heavy machinery equipment beyond the age of 4-5 years. This is due to multiple reasons, but one of the main ones is the lack of a high-tech fleet management software solution. The thing is that it can be expensive for companies to invest in new machinery as it requires a lot of money, which also includes training and maintenance costs. 


In addition to this, there are a lot of things to consider, such as service costs, getting vehicles from all over the world, and adding them to the fleet, not knowing in advance what kind of vehicles you will have, etc. However, a digital fleet management system can help solve all those issues and help companies focus on growing their business while they save money.

What is a Fleet Management System?

Every vehicle has a location and every location has a history. A fleet management system is just one of many tools that can help your business streamline its logistics operations. The software connects to in-vehicle GPS tracking systems and onboard diagnostic devices (OBD) to provide a regular stream of telematics data. 


This will allow you to optimize your fleet without compromising delivery quality or creating administrative distractions. When successful, this system should add value by streamlining existing practices to generate greater efficiency. In short, a digital fleet management system will help you create a polished history and seamless future for every one of your vehicles.

How to Create a Fleet Management System?

Fleet Management System is software that helps a company to manage its vehicles. It helps the company in many ways like reducing fuel consumption, reducing maintenance costs, and increasing efficiency.

Here are some steps which you can follow to create your own Fleet Management System:

  • Choose a platform for your application. This could be anything from an open-source platform like WordPress or Drupal to something more proprietary like Salesforce or Microsoft Dynamics 365
  • Create an interface that will allow you to add new vehicles, edit existing ones and also update their details if needed.
  • Add functionality to send notifications when vehicles need maintenance or when they are due for servicing.
  • Add functionality to calculate fuel consumption, distance traveled, and other useful data related to vehicle operations.
  • Use an existing software package that has been designed specifically for your needs (this is usually recommended if there isn't much customization needed). Develop your own software package using an open-source or proprietary framework (this can be very time-consuming but could lead to greater flexibility).

How Does a Fleet Management System Work?

A fleet management system is software that helps you track the location and status of vehicles in your fleet. It can also provide data about fuel consumption, maintenance history, and more.


Fleet management systems are typically used by businesses with fleets of vehicles, such as delivery companies, taxi services or rental car agencies. They can also be used by organizations that have multiple work locations, such as construction firms or utility companies. All you need is a viable fleet management strategy and you are good to go!

Here's How It Works!

  1. The system tracks where each vehicle is located at all times. This allows you to see where your vehicles are at any given moment and how long they've been there. You'll also be able to monitor your driver's speed and fuel consumption. This can help you spot potential issues before they become problems!
  2. The system keeps track of which parts need to be replaced or repaired on each vehicle so that you always have an accurate inventory of what's available for use at any moment in time.
  3. The system provides reports on key metrics such as mileage per gallon (MPG), the average cost per mile driven (ACM), the total cost per mile driven (TCM), and more so that you can make informed decisions about how much money each vehicle is costing you over time - based on actual data.

Why is Digital Fleet Management Important? 

The world is changing and so is the way businesses operate. As a result, the need to digitize your fleet management systems has become more important than ever before.


What exactly does it mean to digitize your fleet management system? It means replacing manual processes with automated digital ones that allow you to manage your fleet more efficiently and effectively.

  • Streamline your Work with Large Data Sets

Fleet management software helps companies organize, manage, and keep track of their motor vehicle fleets. This can include cars, trucks, buses, bicycles, scooters, or any other vehicle that your company might need for business purposes. The goal of a fleet management system is to help you make sure your fleet is safe and efficient, but also to help you identify ways to be more environmentally responsible.


For instance, It can tell you when it's time to replace parts of your vehicles or how many miles each vehicle has driven in a given period. It's important to have a well-thought-out plan for digital systems orchestration before implementing a fleet management system. This will ensure the system is intuitive and easy for users.

  • Manage your Operations from a Unified Platform

Using a fleet management solution will help you make faster, more informed decisions. The system is usually powered by artificial intelligence (AI) which means that you can get even more data-driven insights for short- and long-term business decisions and operations.

Importance of Fleet Management Software for Small Businesses

Fleet management is a crucial part of running a small business. When you’re managing a fleet, you need to keep track of all the vehicles that are on the road and make sure they are taken care of properly. This means having the right tools in place to do so. 


Fleet management software is one tool that can help you manage your fleet more easily than if you did it manually. This software allows you to track each vehicle and its location, mileage, fuel usage, maintenance needs, and more. It also has functionality that allows you to assign tasks to different people within your organization based on their specific skill sets or area of responsibility.


When seeking a fleet management software provider, small business owners should start by doing a thorough analysis of potential vendors. Here’s how a fleet management process flow looks after it has passed through the developmental phases. 

Digital Fleet Management Software development companies like ARFASOFTECH can help you discover the right fleet management strategy, starting with your business goals and ending with a custom-built, efficient software solution that helps you achieve those goals.

Benefits of a Digital Fleet Management System

Your business is growing, and you're ready to take on more opportunities. But how can you do that if your fleet of vehicles is stuck in the past?

Let's take a look at the top 6 benefits that a digital fleet management system can bring to your business.

  • Minimal Operational Costs

The greatest benefit provided by a fleet management system is reduced costs throughout your logistics operation. 


This is accomplished in several ways, including monitoring real-time vehicle data to optimize routes. By finding more efficient routes for each trip, it may be possible to minimize the idle time and the overall length that must be traveled.


A fleet management software solution also identifies the best times and places for refueling. By keeping detailed records and streamlining workflow automation you'll have immediate access to all cost information.

  • Readiness for Compliance

Fleet management systems provide an excellent way to store and access all your fleet data. This includes information related to vehicle maintenance, repairs, inspections, and certifications. Having this information all digitized makes it very easy to find important reference materials when they are needed.


Electronic inspections in many cases allow your field team to quickly verify truck performance from anywhere; a complete audit trail provides especially important support for maintaining compliance with local, state, and federal regulations.

  • Regular Maintenance and Wear-out Control

Predictive maintenance and the fleet management app are a match made in heaven.


The system collects and analyzes data regarding repairs, planned services, and other vehicle-related information. With the help of predictive maintenance, you can be notified when a certain spare part will need repair or replacement. This helps to prevent downtime, outwear, and costly repairs.


You can also set up the periods of vehicle maintenance control based on mileage, time of use, load utilization, driving behavior, and road quality. All of this is tracked automatically so you will never have to worry about missing deadlines again!


By taking advantage of predictive maintenance and using artificial intelligence, a digital fleet management application can become even more useful. It can also suggest when a certain spare part will need a repair or replacement, and it can notify the Fleet Manager in advance to prevent downtime, outwears, and costly repairs.

  • Fleet Data Gathered and Analyzed in Real-Time

One of the most important benefits of Fleet management systems is that they allow users to stay up-to-date and monitor certain aspects of their trucks (for example, where a truck is located right now or how many deliveries have already been completed). To streamline data flows and provide access points for relevant information, the company integrates several systems into a single digital ecosystem. 


The commercial vehicle provides an enormous amount of telematics data; reporting tools enable higher-level visibility as well as the ability to drill down to the relevant details of each fleet vehicle and each completed order. Thus, providing real-time gathering and analyzing of data to ensure new opportunities for improvements.

  • Improved Safety Considerations for Fleet Vehicles

Many fleet management systems are integrated directly with your trucks or vans to provide real-time driving data. This can be a great advantage to fleet managers, who can set up alerts to notify them in the event of any driving hazards or traffic disruptions.


Fleet management systems can track a vehicle's entire lifecycle, from the time it is purchased to the time it is retired. A well-rounded maintenance program that keeps track of hardware installed within each vehicle can help you optimize your fleet performance, increase truck uptime and maximize fleet utilization.

  • Implementing Business Intelligence to Fleet Management

Business intelligence is the collection, enrichment, and analysis of data to help your organization make smart business-focused decisions. One additional benefit of fleet management systems is their ability to generate advanced reports that can help you identify new ways to measure performance.


Today’s software can use data visualization, machine learning, and artificial intelligence (AI) to display your fleet information in new ways. These reports can be shared with staff, executives, and even customers. They can also be used to improve business intelligence by identifying better ways to measure performance. 


A fleet management system can also be connected to other software platforms through API integrations or connected to Internet-of-Things (IoT) devices to collect additional data points.

Key Takeaways

When your trucking company is running smoothly, it's easy to get bogged down day-to-day. That's why you shouldn't overlook the benefits of a digital fleet management system (DFMS). DFMS solutions are designed for order tracking, routing, and even fuel efficiency analysis to help companies with fleets of vehicles work more efficiently and effectively. 


There's genuinely no substitute for human intuition when it comes to driving, but a DFMS takes some of the burdens off of stressed drivers and dispatchers alike by taking some guesswork out of the equation.


Whether you're looking for more business or just want to maintain the fleet you already have, our team is always willing to lend advice to anyone who needs help integrating it with their current tech stack. ARFASOFTECH can help you increase control and manage costs while staying compliant with all applicable legislative requirements. Contact us for a free consultation today!


Frequently Asked Questions

  • What does a fleet management system do?

A fleet management system is a software solution that helps businesses manage their vehicle fleets. It can be used to track the location of each vehicle in the fleet, as well as monitor its speed, distance traveled, and fuel consumption. It can also help you schedule maintenance and repairs for your vehicles, track driver behavior, and manage company policies regarding breaks and shift work.

  • What are the types of fleet management?

There are several types of fleet management.


The first is in-house fleet management, which is when a company hires staff to manage its fleet. This allows companies to keep costs low by cutting out the middleman and ensuring that all of their vehicles are being used as efficiently as possible.


Another type is outsourced fleet management, which involves hiring a third party to manage the company's vehicles. This can be beneficial for companies that do not have the resources to hire staff or keep track of their vehicles themselves, but it does come with an additional cost.


Finally, there are shared fleets, where multiple businesses share one set of vehicles. This can be done through partnerships or services like Uber and Lyft.

  • What are the challenges in fleet management?

Fleet management is a tricky business. You have to balance the need for efficiency, safety, and cost. With so many factors at play, it's easy to get lost in the weeds.


Here are some of the challenges you might face when managing a fleet:

  • The complexity of the task itself can be overwhelming, especially if you're new to it.
  • You may not have enough resources available (e.g., time, money) to get everything done properly.
  • It can be difficult to find qualified employees who understand what's expected from them and how things should be done.
  • What makes a good fleet management system?

A good fleet management system should be able to:

  • Track all of your vehicles, including their location and history.
  • Make it easy to schedule maintenance and repairs, or deliver parts directly to your drivers.
  • Easily manage fuel consumption and costs.
  • Analyze and report on the performance of each vehicle, so that you know exactly how many miles each car has driven, which routes they've taken, and how long they've been in service.
  • A user-friendly interface that allows you to easily view your fleet and its location
  • The ability to integrate with other software solutions that you use in your business

Fahad Ali, Author

Fahad is PM at ARFASOFTECH but has a knack for writing. He enjoys writing about the latest technologies and evolving trends. Most of his writings revolve around trending technologies and their integration into operations.

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