Over the next six years, the fleet management industry is projected to grow by 20% as more businesses look to further evolve their vehicle strategies. While this can be attributed partly to decreasing private car ownership trends it also reflects the significant opportunities that are being created in this space by new regulations, technology and business models.
With growth comes competition, with many OEMs entering, or re-entering the multi-brand fleet management market, or expanding operations. For fleet managers and providers, staying relevant and competitive will require a new approach based on technology, data and agility, delivered through modern fleet management software. Here are five reasons why upgrading your systems should be an urgent priority.
With the increasing ubiquity of in-car analytics, fleet managers can now access more insights than ever about how vehicles are performing and how well they’re being used. In this data-driven world, fleet managers have the opportunity to radically improve fleet efficiency and reduce total cost of mobility.
However, this requires the ability to use this data to benchmark performance, create strategies and, ultimately, deliver savings. To be usable, information needs to be gathered at scale, centralised in teams and analysed.
Legacy solutions lack the flexibility to integrate the data output of modern vehicles, leaving fleet managers in the dark about the best way to improve their processes. Cloud fleet management solutions enable managers to track cars and data in real time, moving information between systems via API integrations to ensure maximum visibility and utility.
The Evolution of Vehicles
While electric vehicles still only make up 3.4% of the market overall their recent growth has been significant, with 30X more electric vehicles on the road now than eight years ago. What’s more, registrations for electric vehicles have more than doubled in recent months as consumers think long-term in their vehicle choices. While this is great news for the environment, it brings a new set of challenges for fleet management systems.
Traditional fleet management software is based on a fixed model of vehicle operation, built around matching vehicles and drivers and monitoring life cycles through certain stages. Electric vehicles add new complexity, with considerations such as charge management, battery life monitoring and managing batteries between vehicles.
As vehicles evolve, fleet management systems will need to keep up. For legacy software platforms, sustained innovation is slower and more expensive due to technical debt, legacy code-bases and fixed business models. Modern, cloud-based systems are able to move faster, deploying new features and capabilities quicker, or integrating with new solutions to add functionality where necessary, to keep you ahead.
There is increasing pressure on individuals, businesses and fleets to travel sustainably, coming in the form of legislation, local initiatives and downward pressure on electric vehicle prices. There is also significant evidence that green driving strategies reduce costs.
As sustainability rises in social and commercial importance, fleet managers will need to integrate strategies to track and reduce emissions, monitor green performance, as well as managing the transition from traditional vehicles to the next generation.
Achieving this will require new KPIs around carbon output, driving efficiency and route management, as well as optimising maintenance processes to minimise unnecessary emissions. In order to track and prove the effects of sustainability initiatives, fleet managers will have to rely heavily on data and analytics integrated with their fleet management systems.
In a fast-evolving world of mobility, fleet managers and providers have a huge opportunity to build stronger, value-driven relationships with business clients. Instead of focusing solely on providing vehicles, fleet managers can provide advice, strategies and guidance on how to maximise fleet ROI.
In order to achieve this, fleet management companies will need to work in tandem with clients to provide the support they need to improve their performance, while also proving this value with data. Cloud fleet management platforms create a significant advantage in this.
Firstly, cloud data hosting enables firms and clients to see the same up-to-date information at the same time, improving communication and visibility. They are also more adaptable, able to integrate with different solutions depending on the specific needs of your customers, so fleet managers can create bespoke offerings to suit clients’ needs.
As businesses look to drive maximum value from their fleets, many are moving from a one-driver-one-vehicle model to embrace mobility-as-a-service. In this new system, vehicles change from static assets to become flexible tools that can be deployed strategically to fulfill specific needs, alongside other transport options.
Whereas traditional metrics largely focused on maintaining the vehicle itself, via maintenance, accident rates, fuel usage and parts, new metrics will need to focus on optimising the role of each vehicle as part of a holistic fleet. These include KPIs such as journey success rates, timings, attendance rates and annual cost
This will also require a more flexible fleet management system, tracking different vehicles, routes and modes, across various users, to track and manage total cost of mobility and optimise processes.
Investing in the Future
As the mobility market changes fast, fleet management systems will need to become increasingly agile to keep up with changes in technology, regulations and business models. In the new data-driven world of mobility, the firms who adapt faster will be able to reduce costs, improve client ROI and scale more effectively, gaining long term competitive advantage.
For firms still operating legacy fleet management systems, upgrading to a cloud fleet management system is a key step to creating a future-ready business.
QV Systems are proven experts as driving digital transformation for forward-thinking auto-leasing and fleet services businesses. We help firms find opportunities, create solutions and develop strategies that drive measurable results for you and your customers. Our cloud fleet management software platform is custom-built to keep you agile and informed, giving you the data and tools you need to help your clients, while our industry experts help you stay ahead.
To find out how QV Systems can position your business for the future of mobility, get in touch with one of our experts today.Back to blog