The Global Fleet Management System Market is growing at a CAGR of 25.94 percent as a direct result of rising operational costs in the trucking industry, and the need to collect data to better manage fleets.
These systems help monitor operational costs, improve driver safety, ensure government regulations are followed, handle mixed fleets, and assist in case of hazardous driving conditions, vehicle breakdown, and congested roads.
An increase in the price of fuel and vehicles has led to a drastic rise in operational costs over the last few years, which is directly affecting profit margins in the logistics and cab industry. In response, fleet operators are adopting defensive strategies like cost cutting and expenditure reduction to enhance operational efficiency and help increase profit margins.
However, fleet management systems are far from a perfect solution to dropping profits. Installation of the systems in all fleet vehicles is an incredibly costly process, with fleet operators bearing the brunt of set up costs. And once the systems are in place, they are still subject to human error. Information provided by fleet workers such as the number of hours clocked is often inaccurate, which can cause huge losses.
Some critics are pointing out that the goal of fleet management systems (increased profits) is actually at odds with the implementation of the technology. This disparity is causing some tension between managers and the drivers themselves.
This is problematic because no matter how many fancy systems a company has in place, getting goods from point A to point B still requires a driver, no ifs ands or buts. Many trucking companies are crying for drivers but finding it difficult to fill vacant positions, due to overregulation in the industry.
From a fleet operator standpoint, closely monitoring the fleet vehicles and the behavioral patterns of drivers is essential. Governments also insist on increasing the monitoring of fleet vehicles to ensure increased safety and reduction in the number of accidents, which generally occur as a result of the negligence of drivers.
From a driver standpoint, tougher regulation on hours of work translates to less pay in an already very demanding industry. According to an article on Fleet Owner Blog, in 2012 the industry was short about 113,000 drivers per year and this number is expected to reach 323,000 by next year.
So while market projections point to more and more uptake of these fleet management systems over the forecast period, fleet managers need to look at their people, and not just their numbers in order to ensure effective operations in the coming years.
