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Fleet Management 101: Myths vs Facts

The global fleet management software market is estimated to hit over $50 Billion in the next few years with a compound annual growth rate (CAGR) of up to 16.8%. It is not wrong to state that the market is evolving and growing rapidly, however, the whole process does include some misconceptions too. Even though fleet management systems are becoming immensely popular due to an array of operational benefits, yet there are still so myths surrounding the fleet management software market. Here are some of the most common myths that people believe in:

Myth 1: Fleet Management System and GPS tracker are the same things 

Fact 1: They are two widely different entities

Many fleet owners think that fleet management system is merely about GPS vehicle tracking, however, GPS tracking is one of the components and FMS (fleet management system) involves various other components such as fuel and tyre management, real-time tracking, route planning, driver management, trip management, history, reports and so on.

Myth 2:  Fleet Management System is an additional cost

Fact 2: Fleet Management System actually reduces expenses

It is a popular opinion of many that digitized fleet management tools are very costly, but the opposite is in fact true. Fleet management system doesn’t add to charges in the longer run. By using a fleet management software, you can select better routes, check fuel usage and plan out everything else which eventually reduces the expenses.

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Myth 3: All Fleet Management Systems are the same

Fact 3: Different Fleet Management Systems have unique features

This is not true at all. There are quite a few types of fleet management solutions available in the market. They might have overlapping functions, yet they are very different from one another. For instance, Facebook, TikTok, and Instagram are all social media applications however each of them has its own unique features. Similarly, different fleet management softwares have their own selling points.

Myth 4: Fleet Management Solutions are very difficult to understand

Fact 4: Fleet Management Solutions are actually quite simple and easy-to-use

Another common misconception people have in their mind is that the software is very hard to understand. This just sounds like an excuse especially when we are living in a digital era where everyone has a smartphone. The fleet management software is no different than any other software you are using on your smartphone. The fleet management software usually has a simple interface that is very easy-to-understand and easy-to-use. Moreover, fleet management companies sometimes provide training and manuals to their clients as well.

Myth 5: A Fleet Management System is not beneficial for small fleet business

Fact 5: Benefits of a Fleet Management System are applicable to both small and large businesses

This is completely false as the fleet management system is beneficial for both small and large fleet owners. Small fleet owners might think that they can easily manage the fleets manually, however this usually impacts their productivity and eventually the revenue. It is important to invest in a good fleet management solution if small fleet owners want to expand their business as doing things manually takes a lot of time and affects the productivity and efficiency of the business. Thus, to stay ahead of the competition, both large and small fleet owners should invest in a fleet management software.

Myth 6: Fleet Management System is only for getting location updates 

Fact 6: Fleet Management System provides the user with a plethora of information, including location updates

Fleet management system is not meant only for location updates. This is probably the biggest misconception out there. There’s much more a fleet management system can help you with besides giving location updates about different vehicles’ fleets. You can keep track of fuel usage, time slot movement, temperature monitoring, journey schedule, etc. All of this information is very crucial when it comes to effective fleet management.

Myth 7: Fleet Management System invade the privacy of drivers

Fact 7: Fleet Management System keeps an eye on the vehicle and driver performance, not the driver

This is a huge misunderstanding that your employees and drivers can have in their mind. So, it becomes important for fleet managers to explain to the drivers how fleet management solutions are only implemented to improve the efficiency of the entire process and not to invade someone’s privacy. For example, truck fleets can be protected from theft with a fleet management system.

Myth 8: Implementation of a Fleet Management System is very time consuming

Fact 8: Most of Fleet Management Systems are Plug-and-Play

The installation of the fleet management system can take some time, apart from that, everything else does not usually consume much time. These days a lot of fleet management systems come as plug and play: the GPS device is installed into the vehicles, the fleet management software is integrated with the company’s interface and the fleet managers can automatically start using it from that moment on. The software has a very simple user interface and anyone can use it. Moreover, fleet management systems are created to save your time, hence you should not believe in this myth at all.

Quick Read: The 5E Model of Fleet Optimisation

Quick Read: How To Streamline Your Business With Fleet Management

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