The transformation of the fleet management industry over the last decade is indeed phenomenal — today, this solution is a lifeline for corporations of all sizes! Logistics enterprises can manage their assets, employees and overall workflow, enhancing the efficiency of delivery services. A survey, conducted by ABI Research, shows that almost 50% of fleet managers believe that fleet management technology is advantageous to their businesses. Whereas 56% of respondents argue that implementing this software helped them notably improve customer service.

 

Considering that the global fleet management market will reach $55 billion by 2030, the industry's future is indeed tremendous and bright. Yet, is it worth trying to contribute to it with your custom solution? This detailed guide will show you the advantages of creating bespoke fleet management and GPS tracking software, its features and the total development cost. In addition, you will swiftly go through the step-by-step process of creating fleet-tracking software and decide whether your business really needs it.

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Contents

What is Fleet Management Software?

Fleet management software is a solution for coordinating enterprise vehicles, drivers and the overall transportation process. With its help, companies can ensure the effectiveness and quality of their workflow performance. Being in the capable hands of fleet managers, this software is an incredible tool for operating various tasks. Aside from simply procuring and sustaining transport facilities, fleet management can locate vehicles, examine drivers’ performance, reduce fuel consumption, and assign jobs to drivers.

Fleet management software is powered by artificial intelligence, including satellite communication networks and navigation applications. Therefore, fleet managers can quickly and safely access all the data related to operational activities and transport movements in real-time. This system allows companies to run their businesses more efficiently since it provides route optimization, schedule creation, regulations compliance and other useful management tools that help significantly increase productivity.

Types of fleet management software

Before considering fleet management software development, you need to know all three available application types. And spoiler alert: you can mix them to get a perfect match that will meet all your business needs!

GPS fleet tracking apps. This is probably the first option that comes to mind when considering enhancing fleet performance. This type of fleet management application offers everything a logistics company needs. That includes tracking locations, estimating the arrival time, finding the most optimal routes, storing data about previous drives and providing in-depth analysis.

Video recording apps. Apart from filming UFOs or any other paranormal activity, a built-in camera plays a pivotal role in case of experiencing possible car accidents and violating traffic rules. Such features are usually cloud-based so that all the media files are automatically saved, minimizing the chance of disappearance. Furthermore, since such videos are broadcast in real-time, intelligent features can instantly notify about any risky behaviors or violations.

Fuel management apps. For those concerned about environmental pollution, their tight budget or both — fuel consumption optimization seems like a great option. By tracking drivers’ driving behavior, route choices, and many other factors, a business can notably reduce its fuel expenses. Additionally, such applications provide a detailed analysis of vehicle sensor parameters and petrol tracking.

What Companies Need a FMS?

A fleet management system (FMS) is a valuable tool for various companies that operate vehicles or mobile assets through logistics:

  • Transportation and logistics companies. This is perhaps the most common industry, including trucking companies, courier services, or shipping businesses. FMS helps them with route optimization, fuel management, and tracking vehicle maintenance to reduce costs and ensure timely deliveries.
  • Public transportation. Public bus and train systems use FMS to manage their fleets and schedules, ensuring service efficiency and reliability.
  • Taxi services. Taxi companies rely on FMS for dispatching vehicles, tracking drivers, and ensuring passenger safety.
  • Manufacturing and construction. These businesses use FMS to manage the transportation of raw materials and finished products. This way, they ensure timely supply chain operations.
  • Airlines. International airlines use FMS to coordinate flight schedules, ground operations, and cargo management.
  • Field service companies. These businesses include repair and maintenance services. They use FMS for scheduling, dispatching, and tracking their service vehicles, optimizing service routes, and enhancing customer satisfaction.
  • Fleet rental services. Companies that rent out vehicles, such as car rental agencies, can use FMS to monitor the usage and condition of their fleet.
  • Delivery and courier services. These businesses rely on FMS for efficient delivery route planning, cargo optimization, and ensuring timely deliveries.
  • Financial institutions. Financial institutions like banks use FMS to manage cash-in-transit (CIT) vehicles, ensuring the security of money transport.
  • Construction and heavy equipment rental. Companies dealing with heavy machinery and construction equipment track their assets, monitor maintenance schedules, and optimize equipment deployment.
  • Service-based businesses. Any business that relies on a fleet of vehicles to provide services, such as plumbing, electrical, or pest control services, can benefit from FMS. Use it for scheduling, dispatching, and monitoring field service operations.

Implementing a fleet management system equips your company with critical data that influences decision-making at all levels. It leads to enhancements in daily operational efficiency and contributes to overall financial success.

Ready-Made vs. Custom FMS

When it comes to FMS software, you have two primary options. You can opt for pre-built FMS solutions from various providers or collaborate with a software company to create a bespoke FMS. We’ll walk you through the pros and cons of both types of fleet management software.

Advantages and Disadvantages of a Ready-Made FMS

In most cases, a Fleet Management System comprises both hardware and software components. Core functionalities typically involve route optimization, driver profiles, and safety measures. Also, you may require integrating dashcams, setting up geofencing parameters, and implementing employee time management for streamlined payroll processing.

If your business needs quick system implementation, has straightforward processes, or operates within a budget constraint, off-the-shelf FMS solutions can be a suitable choice.

Advantages of a ready-made FMS

Opting for a ready-made fleet management solution offers several advantages:

  • Constant updates. Ready-made fleet management software solutions are continually updated by the software provider. These updates introduce new features, enhancements, and bug fixes so your system remains current and competitive.
  • Lower costs. With ready-made FMS, users don’t build platforms from scratch and typically pay for the hardware upfront and the software on a monthly or annual basis. The cost is often based on the number of vehicles and the size of your fleet.
  • Easy integration. Ready-made solutions are designed to be easily integrated. Also, providers often offer training and support to help FMS users seamlessly incorporate the system into their operations.
  • Software as a Service (SaaS). Cloud-based SaaS solutions have become increasingly popular, partly due to regulatory mandates like the Electronic Logging Device (ELD). They also allow users to access business data from anywhere through desktop computers or mobile apps.
  • Suitable for general purposes. Ready-made FMS packages come equipped with standard features applied across various industries. If your company’s budget doesn’t allow for building a custom solution, you can adapt your business processes to align with the features of the generic software.

Disadvantages of a ready-made FMS

While ready-made fleet management solutions offer several advantages, they also come with limitations:

  • Lack of flexibility. You are confined to the features that come with the software package. If your business requires something different to meet specific needs, you’ll have to wait for the software provider to develop and integrate those changes. 
  • Security risks. Detecting security vulnerabilities in devices, software, and updates can be challenging. It’s crucial to closely monitor encryption policies, security validation processes, and the overall system infrastructure to mitigate these risks.
  • Support and customer service. Not all providers offer 24/7/365 support services. This limited availability can delay resolving problems or addressing urgent concerns, potentially affecting your fleet’s efficiency and operations.

Advantages and disadvantages of building a custom FMS

Many automotive software development companies offer off-the-shelf solutions suitable for general-purpose operations. However, if you have an in-depth understanding of every aspect of your business and recognize the complexity of your operations, you may need more. In such cases, developing custom fleet management software is the optimal solution.

A custom FMS is tailored to address your needs and align with unique business processes. With this approach, there’s no need to overhaul your existing working routines, methods, or strategies to accommodate a new management system. On the contrary, this solution will amplify the advantages of your well-established processes.

Advantages of a custom FMS

Here are some of the major benefits of fleet management and GPS tracking software development you should keep in mind:

The benefits of building custom fleet management and tracking solution

  • Increased productivity. Building a fleet management app that contains all fleet-related data in a single platform saves you plenty of resources. Fleet managers can access operational insights, like tracking idle time, drivers’ availability, route planning, etc. This solution will help decrease fuel costs, boost employee efficiency and satisfaction and even reduce the company’s carbon footprint.
  • Simpler scalability. As your enterprise grows, scalability is required for a prosperous and stable solution that can handle an increased workload flawlessly. You can add extra features and new functionalities to significantly improve your company’s performance and adjust its capacity depending on your current state.
  • Reduced costs. Automating manual processes allows companies to save tons of resources — first of all, financial ones. With the help of GPS tracking, automated reminders, in-depth reports, and other valuable tools, they can significantly reap the benefits of fleet management software. Profound insights can improve a company’s workflow and minimize the probability of hazardous accidents and money wasting.
  • Better fleet safety. A fleet management application provides an advanced monitoring system for ensuring driver safety, along with passengers, vehicles, and all available assets. It allows fleet managers to monitor the remaining speed of the transport, its conditions, and other vital factors that might provoke fatal accidents.

Discover more: How to make on demand delivery app?

Disadvantages of a сustom FMS

While there are a range of advantages, it’s essential to carefully consider the potential drawbacks of custom fleet management systems:

  • High cost. Tailoring the software to align with your specific requirements often involves more development work, resulting in a higher price tag. Costs may include not only the development itself but also ongoing maintenance and support.
  • Time. Unlike off-the-shelf solutions ready for immediate use, custom software is built from the ground up, considering your unique needs, business processes, and existing systems and infrastructure. The development, testing, and implementation phases can extend the timeline significantly.

Must-Have Features of Fleet Management Systems

Any off-the-shelf software provides solutions to the most common issues for logistic companies rather than fully covering their specific needs. However, to create a fleet management app, you must include some of the peculiar vital features to make it one. So, let’s review some of the applications’ fundamental and pro functions that would notably enhance the enterprise’s fleet tracking:

Basic and advanced features of fleet management software

For management

Managers can maintain a firm grip on fleet operations by continuously monitoring vital information about their staff, vehicles, and equipment.

Dispatching, scheduling, and routing

The dispatching feature involves selecting the most suitable vehicle and driver for a given task. Dispatchers can make these decisions based on vehicle and driver availability, location, vehicle capacity, and priority.

Scheduling includes setting regular maintenance schedules, assigning specific routes for drivers, or planning shifts and work hours. It provides tools for automating recurring tasks and sending reminders to drivers and maintenance personnel. Effective scheduling ensures that resources are utilized optimally and that vehicle downtime is minimized.

The FMS uses advanced algorithms to calculate optimal routes, considering traffic congestion, road closures, weather conditions, and vehicle-specific limitations (weight, size, etc). This feature helps reduce fuel consumption, lower operating costs, and improve on-time deliveries.

Fuel management

Is it really worth it if you want to build a fleet maintenance app without an automated fuel management feature? Indeed, this function is a must-have for any vehicle tracking solution. With its help, your company can automatically measure fleet fuel levels, calculate the frequency of draining and refueling, and notify you about unusual fuel consumption. Hence, thanks to the IoT tracking solutions, you receive real-time fleet-related updates that will help you save on petrol.

Work order management

Work order management provides a structured process for creating, assigning, and tracking tasks and maintenance activities. It integrates various operational workflows, including purchase orders, equipment inventory, and customer billing tracking. This feature offers a powerful control center that enables you to manage fleet operations more efficiently.

VIN Lookup

This information facilitates the accurate identification of vehicles and aids in replacing assets when necessary, especially as the fleet expands.

For drivers

This module is crucial in ensuring driver safety, compliance with regulations, and overall operational efficiency.

Routing

The routing feature focuses on creating the most efficient and time-effective paths for drivers from their current location to their designated destinations. This feature considers real-time traffic conditions, road closures, and vehicle-specific limitations to ensure timely deliveries and minimize fuel consumption.

GPS tracking

A feature without which you can hardly call it fleet management software. Global positioning system allows fleet managers to monitor vehicles’ location, routes, stops, speed and achieve other crucial information. GPS tracking devices come in handy with fleet mileage tracking, which helps decrease fuel consumption and increase vehicle maintenance. They also manage to estimate trips’ duration, optimize routes and make delivery services more transparent, enhancing customer satisfaction.

Must-Have Features for Fleet Maintenance Systems

Developing fleet maintenance software is the right way to proactively mitigate liabilities and effectively address operational issues. Below, you’ll find the essential functions:

For management

The management module provides a holistic view of the fleet’s performance, resources, and key metrics.

Inventory management

Inventory management ensures you always have crucial components by providing stock-level alerts notifying you when it’s time to reorder. This feature simplifies record-keeping by matching invoices with purchase orders. Seamless supplier integration streamlines reordering for efficient and cost-effective fleet maintenance.

Fleet maintenance

To prolong vehicles’ lifespan, you must constantly ensure they are in proper working conditions. And fleet tracking applications are here to help! This function can gather and analyze diagnostics data to alert about preventive repairs and modifications. This way, companies can avoid costly repairing and replacements since their remaining fleet will serve for a decent amount of time.

Data protection

Since all the information is transmitted through the satellite, the connection can be intercepted by hackers if it’s not adequately protected. And that means cybercriminals can basically hijack the vehicle, control its engine and brakes, and access other remaining information. So, while building a fleet management app, consider implementing anti-hacking tools. That will help make your software extremely secure and robust against cyber threats.

Fraud prevention

Dishonest drivers are the Achilles’ heel of fleet enterprises — they are one of the reasons a business can go bankrupt. The common practice for some drivers is to accidentally “lose” a fuel card and then misuse it. However, such tricks won’t pass with the fraud prevention feature. With the help of artificial intelligence, fleet management software can detect any bad intentions in a matter of minutes and instantly inform fleet managers about such unfortunate incidents.

For drivers

The driver’s module is the hub for driver information, performance monitoring, and safety compliance.

Incident reporting

You can use in-vehicle AI systems to detect incidents, capture essential video footage, and collect critical details such as time and location. They can seamlessly generate incident reports, facilitating dependable claim resolution. The gathered data and documentation are key in minimizing injury costs, mitigating potential liability, and countering baseless claims.

Inspection management

Drivers use a dedicated app or web browser to record inspection results, ensuring that every aspect of the vehicle’s condition is thoroughly checked. Fleet managers can review the inspection reports and schedule necessary repairs promptly. Once the repairs are completed, the driver can mark the issue as resolved, indicating that the vehicle is now safe and compliant for the road.

Essential Elements of the Fleet Management System

These critical components work in harmony to enhance the overall functionality and efficiency of your fleet management software:

Telematics

Telematics is a pivotal software component that continuously records a vehicle’s precise location and speed while in transit. It combines diagnostic sensors with GPS navigation to provide real-time data.

Telematics systems offer advanced insights, such as tailgating alerts and detailed turning and braking behavior metrics. These valuable data points contribute to safer driving and better operational efficiency.

Maintenance planning

The software automates vehicle maintenance schedules and generates service alerts. This way, you prevent unexpected breakdowns and address maintenance needs proactively. Ensure the compliance and longevity of your fleet with maintenance planning.

Parts management and warranty tracking

Efficient parts management is vital, especially for large fleets. The software provides an automated and streamlined approach to tracking replacement parts and their associated warranties. The software simplifies what would otherwise be a labor-intensive process, reducing downtime and operational costs.

Key Stages of the Development Process

Fleet management app development requires proper planning and diligent execution. The process involves the following stages:

  • The vendor gathers the company’s requirements, needs, and goals. 
  • The development team designs the overall system architecture, including database structures and system components.
  • UI/UX designers ensure the software is intuitive and easy to use.
  • Developers write the code for the software, implementing the features, functionalities, and algorithms.
  • They integrate the system with hardware components, such as GPS devices and sensors, to guarantee real-time data collection.
  • QA testing allows specialists to identify and rectify any bugs, errors, or issues in the software.
  • The software is officially implemented, and the fleet management team uses it for day-to-day operations.

Important: You can present a minimum viable product (MVP) of fleet management software with all the necessary features to end-users, receive valuable feedback, and implement it.

Cost of Custom Fleet Management Software Development

To build a custom fleet management and tracking solution, you must be ready to allocate a decent amount of money. Naturally, the overall development cost will vary depending on the application’s complexity, team capacity, technology stack, and included features. Moreover, coding, wireframe, design and system update significantly influence the cost of building a fleet management app.

Obviously, some might emphasize that developing your own fleet management system would cost much more than using ready-made solutions. And as we can see, from-scratch creation is costly indeed. Nevertheless, it’s a one-time payment that will definitely pay off in the future.

In contrast, most fleet management software providers will charge regular fees for using particular features, adding a certain number of fleet, drivers and managers. Building a bespoke fleet maintenance app allows you to have a system with the best functionalities and opportunities rather than continuously searching for the one that would suit your needs.

Inoxoft Provides a Custom Software Development for Logistics

Meet Inoxoft — an international software development company with years of necessary experience in custom software development for logistics. We offer smart software solutions for retailers, logistics, and freight forwarder transportation companies, third-party logistics, trucking service and warehouse providers. Inoxoft’s professional team helps with gathering data for better performance, real-time fleet management, product data and vehicle tracking, barcode scanning, and all kinds of systems for robust and improved supply chain services.

Our company delivers software product development services for startups to implement unique business ideas into top-notch market-ready solutions. You receive bespoke software solutions with cloud capabilities to monitor the supply chain, plan budget and production, manage warehouse and inventory. Inoxoft’s skilled software engineers provide the best software development services in the USA to help you create scalable product solutions that enhance your business.

Consider developing your fleet management software as soon as possible to experience all its benefits. And since logistics app development provision is one of our key directions, we would love to help you create the best solution for your enterprise. Feel free to read the reviews from our clients, and don’t hesitate to contact us to start our cooperation!

Frequently Asked Questions

What benefits can custom fleet management app development bring to your business?

Custom fleet management development allows you to streamline operations, optimize resource allocation, and enhance productivity. It enables you to address unique challenges specific to your fleet, improving cost control and efficiency.

Additionally, customized apps can incorporate advanced features, such as real-time tracking and predictive maintenance, to proactively mitigate risks and ensure compliance.

How much time do you need to develop custom fleet management software?

The required time is based on the complexity of the project. Small-scale solutions may take several months, while more extensive, enterprise-level systems can span a year or more from initial planning to deployment. Efficient project management, well-defined requirements, and a dedicated development team can optimize the timeline.

Is it possible to integrate custom fleet management software with other business systems?

Yes, it is possible and often advantageous to integrate custom fleet management software with other business systems. This facilitates seamless data exchange and enables a holistic view of your operations, improving decision-making and efficiency. Careful planning and the use of standardized APIs and integration tools can make these connections seamless and cost-effective.