With the advancement of technology and the use of many advanced software, there are many organizations that prefer the systematic and up-to-date work method to the traditional method. Regarding the transport affairs department of the organization, it is the AVL system or the fleet management system, which these days with its technology and system has been able to help regularize the organization’s transportation affairs department.
All organizations that need commercial vehicles for their operations need fleet management in some way. The purpose of fleet management is to monitor fleet performance and maintain and repair fleet vehicles in order to increase productivity and organize transportation affairs.
In general, the fleet management system is an optimal tool to reduce costs and increase the efficiency of using the fleet in organizations. Purchasing fleet management software provides businesses and companies with the possibility of improving driver behavior, increasing the efficiency and productivity of fleet use, better management of defined missions and operations, and increasing fleet security by preventing theft.
In this report with our experts in the group Kaushkam Stay with Asia to let you know more about the factors influencing the price of the AVL system.
Brief about transportation fleet management systems and their application
Fleet management is a set of processes that allow organizations to view and manage all information related to their vehicles and other assets from acquisition to end of life. Transportation fleet management has completely changed over the past ten years as businesses have realized that an efficient fleet can have a huge impact on business operations and profitability. The fleet management and transport fleet manager teams are responsible for a wide range of activities including driver management, compliance management, operational efficiency and environmental impact. For this reason, it is necessary to have a system and a strong software to record and check fleet information.
Fleet managers have the following responsibilities with the help of transportation fleet management systems:
- Car maintenance;
- monitoring fuel consumption and fuel costs;
- Management of drivers and their behavior;
- optimal use of the organization’s assets;
- route planning;
- Implementing any program that increases the company’s productivity and reduces time wastage.
The right transportation management software can give fleet managers complete visibility into their fleet operations, helping them streamline day-to-day tasks and identify deeper issues that impact fleet and business performance. This software connects to Car tracker Provides complete and accurate information to the fleet manager.
Why is the price of the transport fleet management system different?
Now that we are familiar with the definition of this system, let’s go to the factors affecting the price Fleet management system Let’s go transport. Fleet management systems, like car trackers, have different prices. The price range of fleet management systems and the price difference between different systems can be very wide because there are many factors that affect the cost and price of fleet management, including:
- the advanced level of the system;
- Whether you decide to buy or rent fleet management system hardware;
- Any additional hardware or features you choose to add to your system;
- Any additional fees that the supplier requests for various services;
- the duration of your contract to receive services;
- Your organization’s fleet size (sometimes, the more tracker units you buy, the cheaper the fleet management system will be).
Now let’s examine these in more detail.
Basic or advanced fleet management and tracking systems and their cost differences
A transport organization can get the right GPS tracker for what they pay. Usually, the more powerful and complex the tracking system, the more expensive it will be. That is why the strategy of buying a cheap fleet management system is not a good option and deprives the transport organization of a strong system.
The important thing to know about purchasing a transportation fleet management system is that your return on investment (ROI) will be valuable when it comes to corporate vehicle tracking and fleet management. Advanced systems in particular can help you reduce fuel costs, reduce and control risky driving behaviors, deliver packages quickly and provide services quickly, repair vehicles on time, plan efficient routes, and more.
But what turns a basic system into a simple system and an advanced system into a high-level system? In fact, the advanced level of a fleet management system comes down to only two things:
- The features it brings;
- How often its data is updated.
1. Features that it brings
Basic and simple systems aim to simply track the routes taken by an organization’s vehicles. Some offer a handful of other simple features, such as trip logs, start and stop logging, basic reporting, and maybe an alert or two – but they often don’t offer much in the way of complex fleet management. For this reason, the price of these transport fleet management systems is cheap.
But the best transport fleet management system can not only do these tasks easily, but also provide many more features to the fleet manager. The most important advantages of the advanced fleet management system are:
- fuel consumption report;
- Close monitoring of the driver’s behavior;
- Vehicle maintenance and troubleshooting alerts;
- Report incidents along the way;
- advanced route planning;
- Theft prevention alerts;
- and many other features.
The goal of these systems is to help the fleet manager gain insight into their fleet’s performance, help reduce unnecessary operating costs, identify and improve fleet weaknesses, and run a more efficient business overall. Sure, advanced fleet management systems are more expensive, but they will have a much higher return on investment.
2. Number of data updates
Any modern fleet management system that is advanced and robust is always on, meaning it automatically sends you data at set intervals throughout the day. But in passive systems, you have to manually transfer data from each device to the computer at the end of the day, which is not so easy.
As you might expect, systems that update and automate your data more often cost more. Why? Well, firstly, these fleet management systems provide a more accurate picture of where vehicles are. There is definitely a difference between the location of the vehicle in 30 seconds and its location 5 minutes ago.
Second, systems that offer faster data updates are usually more advanced in terms of features and customization. Hence, it makes sense that they cost more.
Excess costs of fleet tracking and management
Monthly fees as well as initial hardware costs may not be the only costs you pay for using a fleet management system. Additional costs are also factors affecting the price of the transport fleet management system.
In the case of car GPS tracking systems, the additional costs affecting the price of the fleet management system are two ways:
- Plugins: additional hardware and features you choose to add to your fleet management system;
- extra expenses: Additional fees that the fleet management system service provider charges you for certain services.
1. Additional hardware and additional features
Some fleet management companies offer you the opportunity to add additional hardware and software features to their package for an additional fee, in addition to their basic offering. These plugins may include:
- ELD (Electronic Logging Devices);
- Dash cam: a car camera to record accidents and keep drivers safe;
- Asset and trailer trackers: for when a fleet manager wants to track non-vehicle assets;
- Temperature and humidity monitors or temperature and humidity data loggers: for vehicles carrying temperature-sensitive goods such as food;
- Driver Identification Kits: to enable a system to identify the person driving any vehicle;
- Staff training – to ensure that the fleet manager and drivers know how to use the fleet management system.
It is difficult to provide an accurate estimate of the additional costs you may face because the exact cost depends on how much of your organization’s fleet management system needs to be addressed, as well as what your fleet management system provider has decided on. What services do you charge extra for – what one fleet management company sells as an add-on, another may simply offer for free as part of their service.
2. extra expenses
In addition to the cost of any additional hardware or features you may need, the fleet management system provider may charge the customer the following fees, which will definitely affect the price of the transportation fleet management system:
- Fleet management software installation costs as well as tracker installation
- Customization or custom design costs – for example, if you want your software interface and trackers to be emblazoned with your brand.
- The cost of integrating your fleet management system with other software tools you use for your business – for example, payroll programs, health and safety programs, CRM systems, accounting tools, and more.
- The cost of any outside technical support you may need. If the fleet management system provider does not provide strong support and maintenance services, you may need to pay extra for troubleshooting.
- Any geofencing fees applied by the fleet management system provider. Some suppliers agree with the user for geographic limits (which your vehicles are not supposed to cross) and charge the user if the vehicles exceed those geographic limits.
- Contract termination fees – Some fleet management system providers charge damages in case of early contract termination.
In this article, we thoroughly investigated the factors affecting the price of the transport fleet management system. Companies providing fleet management services play an important role in the costs of this system.
The more advanced and powerful the fleet management system is and the stronger and more professional the company providing its services is, the more expensive the price of the fleet management system will be, and naturally the return on investment will be higher in these cases. Before buying a transport fleet management system, choose the best service provider by researching and checking carefully.
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Kavashcom Asia Group, as one of the pioneers of the telecommunication and information technology industry in the country, was established in 1370 by a number of academic staff members of Sharif University of Technology.
The primary activity of this group was the design and construction of electronic-communication integrated circuits and the export of engineering services, and after that it has been continuously active in providing technical and engineering solutions in the field of electronic telecommunication systems and information and communication technology.
Currently, the services of this group include consulting, design, supply and production, implementation and support in the fields of advanced electronic systems and telecommunication networks. This company takes steps towards its big goals by optimally using the motivation and experience of expert and capable human resources.