Myth vs fact: Common misconceptions about fleet management systems

This feature is the second in a series of weekly articles discussing fleet management and its relevance in the Caribbean context. This series is being authored on behalf of and sponsored by Cylo Tracking Ltd, one of the nation’s foremost solution providers for fleet management services.

This week we will be looking at misconceptions surrounding fleet management systems that often exist among stakeholders within an organisation.

The efforts of fleet management systems champions within an organisation can be thwarted by these preconceived opinions surrounding what fleet management entails, and the benefits that can be derived by the organisation.

So let’s examine some of the more common misconceptions that exist and discuss their relevance to the solutions being offered today.

Myth 1: Fleet management systems just offer GPS tracking of the company’s vehicles .

Fact 1: This is dependent on the solution.

Many fleet owners think fleet management systems (FMS) are simply vehicle-tracking services, mainly because this is the feature that gets the most exposure.

However, GPS tracking is only one of the components of an FMS, and most solutions involve various other benefits, such as fuel and tyre management, vehicular diagnostics check, driver management, route planning and history, reports and more.

If your company is budgeting for such a solution, you would get more bang for your buck by choosing a provider that offers additional features on top of just the tracking service.

Myth 2: My fleet is too small to benefit from an FMS.

Fact 2: Small fleets can definitely benefit from an FMS.

Fuel-expenditure management and the digitisation of administrative tasks are two ways in which small companies can see the most benefit, especially with the removal of the fuel subsidy.

Small fleet owners often waste considerable time trying to handle administrative tasks manually, which in turn affects productivity, efficiency and growth.

It is essential to invest in a good FMS if small fleet owners want to expand their business. The data, reports, alerts and analyses provided by a good FMS frees up managers’ time and allows them to focus on solutions to operational challenges and strategies for improved efficiency and growth.

Myth 3: Fleet management software is a big-ticket item with no direct benefit to our bottom-line.

Fact 3: FMS actually reduce costs and improve operations.

Another common misconception is that an FMS is very costly, but in fact the opposite is true. Most solutions are structured around a subscription pricing model and easily removable hardware devices, which means no heavy upfront costs. This also allows both big and small companies the flexibility of ending the service if it is determined that the solution doesn’t work for them (which is never the case).

Cylo’s solution is just $799 per year, or on average $66 per month. This fee allows the organisation to secure and manage not only their vehicle, which costs around $100,000, but also the daily inventory it transports.

Fuel expenditure is one of the largest costs for any organisation with fleet operations. An FMS, when utilised effectively, can lead to almost immediate cost savings in this area. This and other cost savings grow over time as operational efficiencies are realised.

Myth 4: FMS invades employees’ privacy.

Fact 4: FMS only generates data from the vehicle itself.

This is one of the most common misconceptions that your drivers can have, and can probably pose a challenge to effective implementation. So it can become necessary for fleet managers to explain to their team how an FMS is only implemented to improve the efficiency of the entire process and not to invade someone’s privacy.

Myth 5: FMS’s implementation is lengthy and puts vehicles out of commission during installation.

Fact 5: Most FMS are plug-and-play.

Again, this depends on the solution that your organisation ultimately chooses. However, most of the newer solutions utilise USB dongles which can be installed and tested in any vehicle within a few minutes.

Older solutions would require an electrician who would have to dismantle and install a wired system in each vehicle. A plug-and-play solution afforded by USB dongles means that the vehicle’s driver can still be productive for the majority of that day, as there is now relatively little downtime.

Next Week: What are the different types of fleet management solutions and how do I choose the right provider for my business?

Cylo Tracking Ltd has established itself as one of the premier providers of GPS tracking and fleet management solutions in the country. We provide reliable and cost-effective solutions for residential and commercial customers in the TT and Guyanese markets. We will also soon be expanding operations into other Caribbean markets as well as the North American region.

If you would like further information about our GPS tracking or fleet management solutions, or you’d like to receive a free consultation and "no obligation" trial for your company, please feel free to contact us using the information below.

E-mail: info@cylotracking.com

Phone: +1-868-228-2385 (TT)

+1-592-655-4547 (Guyana)

Website: www.cyclotracking.com

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