5 Ways of Simplifying Fleet Management with An ERP System

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5 Ways of Simplifying Fleet Management with An ERP System
By aditib@ideadunes.com In Lifestyle, Posted 23-06-2017 01:45:39 PM

Whether you own a fleet of 5 or 500 vehicles, an ERP system is especially effective for fleet management. The transportation sector works on razor-thin margins dependent upon fluctuating fuel cost, rising insurance cost, regulatory government rules, mounting workload and loss of productivity due to improper maintenance of vehicles. Profits can be maximised by deploying a fleet management ERP system that helps in reducing operation cost, increasing visibility into key operational areas, reducing downtime due to unexpected break-fix scenarios, monitoring of drivers and tracking moving assets.

An efficient, and robust fleet management ERP system typically comprises the following modules:

  • Fleet operations
  • Lease and rental agreement
  • Reservation management
  • Rate management
  • Chauffeur and fuel management
  • Dispute resolution and management
  • Non-revenue movement
  • Vehicle sales and acquisition
  • Accident management
  • Finance
  • Procurement, sales and inventory
  • Workshop

The major benefits of a fleet management ERP system are:

Better customer relationships

The integrated modules of a fleet management ERP system enable quick response to customers and provision for better service and enhanced relationships. Its multi-dimensional tracking feature helps in monitoring the moving asset. This facilitates speedy reporting and enables clear communication.  It can provide a 360-degree view of your customer behaviour, preferences and issues. It helps you track customer journey throughout, from the initial enquiry stage through to winning new opportunities. 

Improved performance of assets

Asset utilisation can be optimised by monitoring performance of vehicles. By scheduling timely maintenance of the fleet through ERP systems, one can minimise repair expenses and overheads. Loss of productive time due to unforeseen breakdowns can also be reduced and labour costs of technicians, mechanics and drivers can be controlled. Another benefit of timely repair and upgrade of vehicles is meeting the compliance regulations and prevention of legal disputes.

Automated scheduling

Through ERP systems advance and long-term scheduling of resources can be done easily. Drivers can be put on roster and break times can be controlled, improving overall efficiency and reducing cycle times. With advanced ERP tools, automatic scheduling of vehicles can be performed.

Life cycle management

Manage complete Fleet life cycle through Planning, Procurement, Utilisation until it is disposed or sold. Its direct integration with General Ledger, Accounts Payables and Receivables eliminates redundant work and human error. It provides accurate data through integrated processes across all operations within the Organisation.

Cost management

Expense patterns can be deciphered for vehicles or complete fleet. Accordingly, resources can be allocated and costs can be controlled. ERP systems are a boon for fleet operators and transporters. They are not mere scheduling tools but powerful management modules that can give businesses a competitive edge. Versatile ERP encompassing a Robust Fleet Management Solution will enhance end-customer experience and hence aid customer-loyalty retention.


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