How to reduce the cost and risk for your business vehicles?
How to reduce the cost and risk for your business vehicles?
Do you often forget to pay insurance and road tax for your company’s vehicles? Or forget to take your company’s vehicle to repair? Have no idea how to manage drivers’ performance? As a vehicle owner or fleet manager, you must’ve known that it’s not always an easy task to keep up with your vehicles, especially when you’re having more than 3 vehicles.
Don’t worry, all of these problems can be solved by just having a Vehicle Management System (VMS) for your business. In this article, we will give you a clear picture about what is a Vehicle Management System, why we need it, and how VMS can help us to reduce the costs and risks of our business’s vehicles.
What is a VMS?
VMS is stands for Vehicle Management System. It is an automation system which is specifically designed for businesses that owned a large number of vehicles. It helps businesses to manage daily operations of vehicles effectively and minimize any risks related to vehicles. Keeping track of vehicle type list, daily fuel price, service & maintenance record, cost management, vehicle’s number plate and driver’s performance are the essentials function of a Vehicle Management System.
Why do you need VMS?
The Vehicle Management System able to track all aspects of a vehicle, including company’s drivers, fuel and vehicle information. The data from this is very beneficial to the business owner to reduce the cost and mitigate the risk associated with your business vehicles. Below are the main reasons why you need a VMS for your business to improve fleet management, utilize your vehicles efficiently and manage your drivers at the same time.
1. Operational Transparency
As a business owner or a fleet manager, it is extremely important to ensure the deliveries and distributions of goods are made on-time. However, it can be quite risky to leave the vehicles out of your sight as you’re unable to being aware of your vehicles’ location and activities. This could lead to an inefficient delivery process due to difficulty in the monitor system.
With a vehicle management system, you can be able to monitor and track all of your vehicles in real-time and get live updates on their location from a single place.
2. Control Driver’s Performance
A vehicle management system with an extensive function is not only linked to business owner or fleet manager, it can also be linked with the stakeholders, including third party such as customers.
Hence, with the help of connected intelligence, customers can leave a review in the vehicle management system based on the performance & attitude of drivers and their timeliness in delivering the goods. This way, managers are able to monitor, evaluate and correct each driver’s performance by checking on the reviews.
3. Manage Fuel Expenditure
There’s always a major problem for managers when the fuel expenditure of vehicles exceeds the actual fuel consumption, resulting in an increase in the operating costs of the company, which will cause a huge loss of profits to the company.
But with Vehicle Management System, the type of fuel for each type of vehicle and expenses can be monitored. Additionally, you’re able to check back the delivery route’s record of the day from VMS. As a result, you can measure the actual amount of money to spend on fuel and thus, reducing fuel costs. Also, you can prevent the likelihood of overspend on fuel expenses as you can manage fuel expenditure now.
4. Keep Track of Vehicle Maintenance Cost
Regular maintenance of vehicles is necessary. The task includes pre-purchase vehicle inspections, driver daily walk-around checks, and regular maintenance checks and ensuring everything is working well can easily be managed with help of Vehicle Management System.
In addition, Vehicle Management System can help with maintenance costs by giving an all-inclusive view of the car's maintenance history. It can also save the owner money on the purchase of the new car because the system can help them avoid unnecessary repairs.
5. Record Road Tax & Insurance Renewal Date
You can record all of your vehicle information in VMS, including mileage services, road tax, Puspakom and insurance details in the system so you don’t miss the next vehicle services date, road tax and insurance renewal date.
As soon as the expiry date of your road tax and insurance renewal approaches, the Vehicle Maintenance System will show a notification to remind you to renew your road tax and insurance as soon as possible.
Summary
In conclusion, Vehicle Management Systems not only manage the internal health of your vehicle to make sure the vehicle components to work properly, it also brings out the benefits of reduce the costs and risks of your business vehicles, which in turn, maximize the profit to your company.
If you're interested in a VMS to manage your vehicles, you should consider all the benefits that a Vehicle Management System has to offer.
BONUS TIPS: You can take advantage of our self-built PW Tracker App and try out its Vehicle Management System. It is simple yet comprehensive enough to use.
Related Articles:
1. https://www.pacificwise.com.my/pw-smart-tracker-guide-line
2. https://www.pacificwise.com.my/what-is-vms-function-mobile
