What is the difference between fleet management and GPS tracking?

Where is my car? When will the customer's order arrive? The order's value is very high, so be careful. We can consider such statements as the concerns and worries of managers in the field of fleet management and their field forces and drivers. Previously, we talked a lot about choosing fleet management software and examined the advantages of these software. In this article, we intend to refer to fleet management using hardware and GPS devices and their advantages.

We will also answer questions such as: the difference between vehicle tracking with hardware and software, the advantages of fleet management and vehicle tracking with hardware. It should be noted that this article has been compiled by examining the needs of Logiico's customers and the questions they had in the field of fleet management and fleet management software.

Vehicle Tracking, a Subset of Fleet Management

The vehicle tracking system, which operates in both software and hardware forms (using GPS devices), receives the exact route and location of the vehicle and sends the necessary information to the executive and operations unit so they can analyze and review the data.

Fleet management on a larger scale manages all processes related to the delivery of goods from loading in the warehouse to delivery to the customer. The information and data cover a wider range and by evaluating and managing the process route, it improves and increases operational efficiency.

Currently, there are many methods and solutions worldwide for managing and improving fleet performance, all revolving around three main modes:

• Reducing time
• Reducing costs
• Increasing productivity

The unfortunate part is that many systems that present themselves as fleet management software are actually vehicle and fleet tracking systems, not fleet management.

Software can assist managers and various businesses in fleet management when, in addition to tracking the fleet, it can help in areas such as:

• Reducing fuel consumption
• Performance evaluation
• Driver behavior analysis
• Creating coordination and communication between related sections
• Evaluation and reporting of process execution

It helps.

Fleet management in businesses dealing with field forces is indirectly considered a significant asset. On the Logiico blog, we talked about e-commerce and businesses in this field and mentioned that the main asset of these businesses is their customers. Therefore, to develop and grow these businesses, it is necessary to consider solutions that increase customer satisfaction more than before and keep customers loyal to a brand.

Fleet management software is one way to achieve this goal. Software that keeps the customer informed about the stages of their order delivery and allows them to see their purchased order on the map using a tracking link, ensuring timely and secure receipt of their purchase.

Vehicle Tracking; Hardware or Software?

Well, this question can have its own complexities at first. For example, as a business manager in today's competitive market, you are bombarded with information from fleet management service providers. Why? Each one, depending on their field of activity, encourages you to use their service. Of course, this is not unusual these days! Given the fluctuations we are witnessing, various businesses are trying to attract more customers and increase their conversion rates.

What was our purpose in raising this question? We intend to help you step back a bit from this information bombardment and answer the question of whether it is better to manage the fleet, drivers, and field forces using hardware and GPS or with fleet management software.

Small Businesses, Don't Spend Too Much!

If you are a startup with a few field forces, such as marketers and drivers, and you don't want to spend too much (which is natural, as you are just starting and need to spend wisely), we suggest you opt for fleet management software instead of hardware. Most businesses in the field of fleet management and field forces have plans for startups and small businesses. For example, Logiico's fleet management software offers up to a 30% discount on its startup-specific package.

Large Organizations Require More Sensitivity.

Developed businesses and large organizations often have more sensitivities regarding their fleet, drivers, and field forces. This increased sensitivity is due to the high capital being moved by their fleet across the city and country. For example, we can mention businesses operating in the oil and gas industry and pharmaceutical distribution fleets.

Valuing the fleet of these businesses is no joke. We are all aware of the importance of the cargo they carry. Therefore, these organizations need something beyond software for fleet management, reporting, etc. Also, consider how much fuel and drug smuggling has increased these days. So, the needs of these organizations, in addition to tracking their vehicles and fleet, also include:

• Monitoring driver behavior while driving: This helps you become aware of unnecessary braking, speeding, and driver behavior while driving. By warning the offending driver, you not only prevent an accident but also significantly reduce the likelihood of damage to your goods and capital. However, be aware that this tracking does not cause dissatisfaction among your drivers!
• Awareness of vehicle status: Using sensors and hardware in fleet management helps you be aware of the technical health of your vehicles and fleet. In this way, if there is a need for technical inspection and repairs, you will be informed sooner rather than later, before incurring heavy costs. To learn more about the troubles of an outdated fleet, we recommend reading the article Worn-out Fleet, Frustrated Manager on the Logiico blog.
• Awareness of tank pressure: This is particularly important for businesses active in the oil and gas industries. Since the pressure of gas tanks and fuel transport tankers is of high importance, using sensors and hardware in this area can be very helpful.
• Cabin door open sensor: This can play a significant role for pharmaceutical distribution companies, food transport, and distribution fleets. Additionally, if the cabin door is opened before the scheduled delivery time, the support unit will be informed and can follow up on the issue.

Advantages and Disadvantages of Fleet Management Using GPS

Well, we examined the differences between software and hardware (GPS) solutions for fleet and field force management. We also somewhat touched on the advantages of hardware solutions with GPS over software and sensors. Perhaps the main advantage that hardware fleet management solutions offer organizations and businesses is that drivers do not need to perform additional activities. What does that mean?

When an organization uses fleet management software to manage and optimize its fleet activities, it is necessary for this software to be installed on the phones of field forces and drivers. The relevant agent needs to log the start of their activity in the software when they begin their mission. Otherwise, management will not be informed of the start of their activity. However, the Logiico support team provides free training for agents and drivers of companies working with Logiico, which solves this problem. But we must not forget that you might hire a new driver, and this issue could arise again.

Although the issue we mentioned is not considered a major problem in small businesses and startups, it can become a dilemma for large organizations and developed businesses. For this reason, our consultants and experts at Logiico recommend using hardware (GPS) for tracking and tracing vehicles in large organizations and businesses. We suggest you refer to the article "7 Important Steps Before Buying a GPS Tracker" for better selection of the GPS your organization needs.

Final Words

Vehicle tracking is considered a subset of fleet management. In general, fleet management software performs its task for us when it assists in various areas from monitoring and reviewing process stages to evaluation and reporting. However, apart from the differences between GPS tracking and sensor-based fleet management software, this is an intelligent solution for reducing costs and achieving more comprehensive and hassle-free management. Besides the topics explained in this article, if you need consultation in this area, our experts are ready to assist you. Just visit the Logiico website at logiico.net and fill out the contact form with the sales department.