The definition of fleet management is the management of a company's vehicles. This can include the management of a fleet of cars, taxi cabs, ships, airplanes, trucks or vans. The term is much more complex than it originally sounds. Fleet management involves not only tracking vehicles, but also driver management, vehicle diagnostics, vehicle maintenance, fuel and speed management, and health and safety tracking. It performs one basic function and that is to minimize the amount of risk that is associated with the management of a fleet of vehicles. It can improve efficiency, productivity, and the cost of operating. A fleet manager can be employed by a company or it can be outsourced to a contractor.



Vehicle trackers are one of the best ways to manage a fleet of vehicles. The whole concept of fleet management will depend on the use of vehicle trackers. The most common type of vehicle tracker chosen today is the Global Positioning System (GPS) unit. Many of today's GPS units now have the capability of connecting right into the vehicles onboard computer to return relevant data to the home office. This data might include a vehicles fuel usage, mileage, speeds, or more. Collecting this type of data is valuable to a fleet manager because it allows them the opportunity to develop a profile for each driver and each vehicle. This is especially valuable for taxi cab companies.

Fleet management software is available that allows companies to perform a variety of functions with the information transmitted from their fleet of vehicles. These functions are very specific and allow a fleet manager to determine the best times to dispose of old vehicles and acquire new ones. The use of the GPS devices allow not only for the profiling of drivers, but also trip profiling, efficiency of vehicle operation, and efficient dispatch. Some of the more expensive and advanced systems allow companies to control the areas that a vehicle can travel, called Geo-fencing and actively disable the vehicle if its movements are in question.

While fleet management is usually only thought of in terms of the management of a fleet of cars or trucks, it can also be used for much larger vessels. Many maritime companies use fleet management to track their ships when they are at sea. In these circumstances, there are large fleet management companies that will handle the operations for many large businesses. These companies are responsible for many functions including staffing the ship, maintenance, and other normal daily operations. This unburdens the shipping company's owners of these responsibilities and allows them to focus on other things like cargo booking and other services.

It is widely accepted that one of the most effective tools that businesses can use are fleet management systems. These systems are great money and time savers, and help companies to be much more efficient. Technology has made fleet management a must have and no company with a fleet of vehicles should be without it.