An SMB’s Complete Buying Guide for Fleet Management Systems

By Mark Fairlie • September 5, 2024

A fleet management system can cut your company’s fuel costs, reduce vehicle maintenance costs and boost driver safety. Discover how fleet management software works, explore key features and factors to consider when choosing fleet software for your business and learn about six of the best fleet management platforms.

What is a fleet management system?

A fleet management system is software that collects and analyzes vehicle and driver data from GPS trackers, dashcams, fuel cards, vehicle sensors and other sources.

By leveraging these insights, fleet managers and dispatchers can optimize routes, monitor driver behavior, schedule vehicle maintenance and ensure regulatory compliance. On a wider level, a fleet management system can improve business efficiency and productivity and guide decisions on fleet expansion and which vehicles to replace or retire.

Who needs a fleet management system?

Various companies and organizations rely on advanced fleet management solutions to assist with data-driven decisions that boost productivity and lower costs.

Examples of businesses that need fleet management software include the following:

Haulage and logistics providers: Logistics providers and delivery firms use fleet management systems to optimize driver routes, track vehicle positions and monitor fuel consumption. The software helps reduce fuel expenses, ensures timely deliveries and prevents drivers from getting lost or stuck in traffic.
Field services businesses: Field services companies, such as plumbing and electrical firms, use fleet management solutions to provide technicians with the quickest routes to appointments, locate the nearest available technician for emergency calls and offer accurate arrival time estimates to customers. This reduces driving time between jobs, enhances the ability to handle last-minute appointments and improves the overall customer experience.
Construction and engineering firms: Builders rely on fleet management software to allocate heavy equipment efficiently across multiple projects, send the right vehicles to specific building sites and monitor fuel consumption on big projects to control costs. This results in better equipment utilization, improved overall project efficiency and reduced operational expenses.

Many other businesses and entities use fleet management software, including smaller operations. For example, a small-business owner running a landscaping firm with five vans can cut costs, improve efficiency and optimize fleet performance with this software.

How much does a fleet management system cost?

The price of fleet management software depends on the vendor, specific features, the number of vehicles or assets you’re tracking and other factors.

Expect to pay some or all of the following charges:

Monthly subscription fee: Basic plans with simple GPS tracking start around $20 per vehicle per month. More advanced plans featuring extras like artificial intelligence (AI)-powered dashcams can cost $60 or more per vehicle per month.
Hardware costs: Some providers include GPS tracking devices in their monthly fee, while others charge around $30 for basic plug-and-play equipment. More sophisticated equipment with additional capabilities can be much more expensive.
Implementation and training costs: While some providers offer free setup, others charge from a few hundred to several thousand dollars for system implementation. What you pay will depend on the size of your fleet and the level of customization required.
Add-on features: Additional services, such as electronic logging devices, advanced reporting tools, fuel card integration and maintenance scheduling may incur extra charges, typically between $5 and $20 per month. Some systems also offer faster refresh rates for GPS and other data, which may cost more.
Third-party app costs: Access to third-party plugins that add functionality may be free or come with a one-time payment or monthly subscription.
Cellular data costs: Cellular data costs are often included in subscription fees but verify this with the vendor.

It’s worth noting that you may qualify for discounted rates if you meet one or more of the following criteria:

You pay subscription and other fees for 12 months in advance.
You commit to a longer minimum contract.
You have a large fleet.

What are the benefits of a fleet management system?

The right fleet management system can help you significantly improve productivity and efficiency, reduce operating costs and enhance overall fleet performance. Significant benefits include the following:

Optimized route planning: Real-time GPS tracking and advanced algorithms help ensure drivers follow the most efficient routes, reducing fuel consumption and freeing up time for drivers and technicians.
Better dispatch control: Fleet management software gives dispatchers real-time access to critical information such as job details, driver availability and vehicle locations. They can coordinate work more efficiently and assign the most appropriate drivers and vehicles for last-minute work.
Improved vehicle maintenance: Fleet management software automatically monitors vehicle health and helps optimize maintenance schedules. It can alert you to potential issues early, allowing for repairs before minor problems escalate. This proactive approach helps prevent breakdowns, extend vehicle lifespans and reduce costly repairs.
Enhanced driver safety: Fleet management systems use real-time data and analytics to monitor driver behavior, helping to improve safety and prevent accidents. Managers can set alerts for risky behaviors such as speeding and harsh braking, identifying areas for additional training. Many systems also offer safety rankings and reward programs, leveraging competition to encourage safer driving practices.
Increased fuel efficiency: Fleet management systems can spot fuel-wasting behaviors like excessive vehicle idling. When combined with other features such as route optimization, companies can reduce their fuel costs while maintaining their current workload and revenue levels.
Streamlined compliance: Fleet management systems automatically collect data on driver hours, vehicle inspections and fuel tax reporting, ensuring compliance with state and federal regulations. By switching to digital documentation, these systems reduce paperwork and administrative time, helping your company stay compliant with less effort.
Improved customer service: Fleet management systems provide real-time visibility into vehicle locations and movements, offering accurate updates on deliveries and service appointments. Many platforms enable businesses to send text messages with a tracking URL, allowing customers to monitor their deliveries or service vehicles directly, enhancing the overall customer experience.
Better business decision-making: Companies get a 360-degree view of their entire fleet of vehicles and drivers, both present and historic. These insights help companies make informed decisions about fleet expansion, transitioning to electric vehicles (EVs) and finding the right time to replace vehicles.

What are the types of fleet management systems?

Some fleet-management systems use hardwired equipment to transmit GPS and supporting data, while others use plug-and-play devices that easily install into a vehicle’s OBD-II or JBUS port.

Hardwired systems

Hardwired devices are installed below a vehicle’s hood or behind its dashboard. They have several advantages, including the following:

Security: Since these units are hidden, they are less likely to be tampered with or stolen.
Tamper protection: For added security, you can install a tamper seal, which will alert you if anyone tries to access or remove the device.
Enhanced data collection: Hardwired systems generally provide more detailed data than most plug-and-play units.
Driver identification: These systems often allow drivers to sign in using a designated key fob, which enhances visibility and control.

Hardwired systems also have downsides, including the following:

Longer installation time: Hardwired devices take longer to install than plug-and-play units.
Installation costs: These devices may require a specialist for installation, which can increase overall costs.
Transferability: Transferring hardwired systems between vehicles is more complex and time-consuming, potentially leading to additional costs or fleet downtime.

Plug-and-play systems

Plug-and-play system upsides include the following:

Easy installation: Plug-and-play GPS devices are easy to install, requiring minimal effort or technical expertise.
Vehicle flexibility: Unlike their hardwired counterparts, these devices are easy to swap between vehicles, offering greater flexibility.
Diagnostic capabilities: While they may not transmit as much data as hardwired systems, plug-and-play systems excel at receiving and sending vehicle diagnostic information.
Driver training: If driver training is a priority, plug-and-play devices are a good choice. They can be set up to alert drivers to undesirable driving behaviors like hard braking.

Plug-and-play devices have a few disadvantages, including the following:

Easier to tamper with: Plug-and-play devices are more accessible and, therefore, easier for drivers or others to tamper with, potentially compromising data accuracy and security.
Stability: These devices can come loose when the vehicle is in motion, which may lead to interruptions in data transmission or even device failure.
Limited data transmission: Unlike hardwired systems, plug-and-play devices lack external ports. This limits their ability to send back specialized data, such as when a ramp is lifted on a towing truck or when mortar is poured from a cement truck.

What are the key features to look for in a fleet management system?

When choosing a fleet management system for your business, selecting one that addresses your specific needs and challenges is essential. Consider the following key features when shopping for a fleet management system:

Real-time vehicle tracking

The ability to receive continuous updates on your vehicle’s location, status and routes is the core component of every fleet management system. Real-time vehicle tracking can help your business do the following:

Accommodate last-minute jobs: With real-time vehicle tracking, dispatchers can choose the most appropriate vehicle for last-minute jobs, even if all drivers are en route to appointments and drop-offs. Businesses don’t have to turn away work.
Ensure route efficiency: Real-time vehicle tracking allows dispatchers to send drivers on the most efficient routes at all times. This reduces fuel consumption and increases the number of drop-offs, deliveries or appointments a driver can complete daily, boosting productivity.
Set up geofences: You can establish geofences to receive alerts when a vehicle enters or exits a specific area, helping monitor unauthorized vehicle use.
Locate stolen vehicles: Vehicle tracking allows you to locate stolen vehicles quickly and let law enforcement know their locations.

Driver management and safety

Managing your drivers effectively is critical for fleet safety and efficiency. Driver management and safety features to look for include the following:

Driver performance monitoring: If safety is a priority, look for a system that monitors driver performance over time to discern patterns of undesirable behavior, such as sudden acceleration and frequent lane changes. You can use this data to coach drivers, improve safety, save fuel and extend the working life of vehicles in your fleet.
Hours of Service (HoS) tracking: Most systems will include functionality for tracking your drivers’ HoS, which is essential for complying with regulations and preventing driver fatigue.
Video telematics: Devices like dashcams automatically record collisions and other incidents, helping to determine fault in accidents and potentially lowering insurance premiums.

Maintenance scheduling and alerts

The fleet solution you choose will help you maintain your vehicles more efficiently. Thanks to the advanced telematics in modern GPS tracking devices, fleet managers can access a broader view of each vehicle’s performance.

Traditional preventive maintenance relied on engine hours or mileage, but fleet management software uses real-time data to schedule maintenance based on actual vehicle health and usage patterns. This proactive approach is more effective at preventing unexpected breakdowns and extending vehicle lifespans.

Fuel management

Fuel is one of the biggest expenses in fleet operations. Fortunately, fleet management systems can help with fuel management in the following ways:

Identify gas guzzlers: These systems monitor fuel usage across your fleet, helping you identify vehicles with high or unusual fuel consumption due to driver behavior or maintenance issues.
Spot fuel misuse: Managers can remotely monitor fuel levels to detect excessive refueling, drainage or inconsistencies, which may indicate poor driving habits, mechanical issues or fuel theft.
Compare fuel efficiency: Fleet management apps help you compare the fuel efficiency of various vehicles. Managers can choose the most efficient vehicle for each job and evaluate which vehicles might need replacing.
Fuel card integration: Many platforms feature fuel card integration, allowing you to import fuel purchase data to track spending and detect potential fraud.

Reporting and analytics

Fleet management software constantly receives and stores data, allowing business owners to track performance over time against key performance indicators (KPIs) such as fuel efficiency and on-time deliveries. These systems simplify report generation and data analysis. Consider the following reporting functionalities:

Inform senior staff: Fleet managers can set up their system to send regular reports to C-suite executives and other senior staff. This will ensure they always have the latest information to help them make crucial business decisions.
Industry comparisons: Some systems let you compare your performance against other companies in your industry. For example, Motive allows you to compare your fleet performance against the other 700,000 vehicles using the app.
Data for EV transitions: Samsara’s EV Suitability report is another great example of reporting and analytics. It’s ideal for companies making the switch from gas or diesel (ICE) vehicles to EVs. It lets you set criteria to identify which ICE vehicles to replace first. For instance, if you want to switch to an EV when you save at least $25,000 in fuel costs compared to an ICE vehicle, you can set this benchmark, and the platform will indicate when a vehicle meets the criteria.
Customizability: Choose a system that enables you to create custom reports, set alerts and configure dashboards to display the most relevant information for your business.

What factors should you consider when choosing a fleet management system?

Consider the following additional factors when choosing a fleet management system for your business:

Scalability

The system you choose should be able to grow with your business. Consider current needs and what you’ll require if you hit your growth targets.

Systems that meet your needs now might become inefficient as your fleet and driver numbers increase. Replacing a system later due to scalability issues can be disruptive, so opt for a solution that accommodates future growth.

Mobile apps

Driver app: Look for a system with a driver app for logging hours, submitting inspection reports, displaying job routing information and receiving dispatches on the go. The best driver apps also provide offline functionality, so features like mapping and routing continue working in areas with poor or no cellular coverage.
Fleet manager and dispatcher apps: These apps should offer the same level of functionality as the main web-based dashboard. They should allow managers and dispatchers to assign jobs, receive alerts, communicate with drivers and view real-time performance data on their smartphones.

User-friendliness

When choosing your system, consider your fleet manager, dispatcher and the other people in your company who will use the platform. All systems have a learning curve, but some teams are more technical than others and some businesses don’t have information technology or coding specialists. A more intuitive system may help you get up and running faster.

Customer support and training

Vendor support is crucial to implementation and ongoing operations. Look for the following:

Onboarding support: In the early days, you’ll need guidance on using your system’s features to achieve results quickly. Check whether a vendor has a customer success manager or a dedicated support team to help new clients onboard their system.
Online resources: Look for a comprehensive knowledge base on the vendor’s website, including frequently asked questions (FAQs), videos, webinars and how-to guides.
Ongoing support: Beyond implementation, determine the level of support you need. Consider a vendor’s support channels, such as phone, chat and tickets, plus service hours, contact methods and average response times.

App integrations

Many fleet management software packages allow for easy integration with other business apps, streamlining data collection and reporting across your company.

For example, you may want to link your fleet management platform to your accounting software to sync fuel expenses and maintenance costs. Linking it to your enterprise resource planning system can help calculate the true costs of product delivery or service calls based on miles driven and time spent.

Additionally, you can use a platform’s application programming interface (API) to transfer relevant data to other applications that lack prebuilt integrations.

What are the top fleet management system vendors?

Dozens of fleet management systems are available to companies in North America. Here’s a look at six of the best fleet management systems on the market.

Motive

Motive is a comprehensive, intuitive platform that offers fleet managers and dispatchers significant insight and control over their vehicles and drivers. It enhances road safety with a unique driver scoring system that evaluates environmental and vehicle factors. Notably, Motive’s AI-powered dashcams capture incident and accident footage, which is reviewed by video inspectors before being sent to fleet managers. Additionally, Motive offers a broad range of tools for fleet maintenance, route optimization and regulatory compliance.

Azuga

Azuga’s desktop and mobile dashboards boast an uncluttered and minimalist design, so finding and using the features you need is fast and simple. Support is available 24/7 by phone, email and web chat and there’s an extensive online database with guides and documentation to help you make the most of the platform. Standout features on this powerful platform include an extensive vehicle maintenance management suite, road safety training programs and two-way real-time communication with drivers.

Teletrac Navman

Teletrac Navman’s market-leading second-by-second data feed provides real-time information on vehicle locations and conditions. The platform excels in fleet management, enabling managers to set alerts for routine preventive maintenance based on mileage, engine hours and more. It also offers automatic notifications for specific engine diagnostic issues requiring reactive maintenance. Additional features include proof of delivery functionality and AI dashcams that alert drivers to unsafe behavior.

Jobber

If you’re looking for a powerful fleet management platform that is focused on driver safety and vehicle maintenance, then Jobber might not be the best fit. However, for home services businesses seeking a basic fleet management system with customer relationship management-lite features, Jobber could be ideal. Notable features include excellent route optimization for fuel savings and reduced vehicle wear, along with real-time tracking on higher-level service plans. While its fleet management functionality is limited, Jobber excels with additional features like appointment booking, invoicing and Google review management.

Samsara

Samsara stands out for its extensive features and ease of use. The software’s intuitive dashboard and easy on-screen controls flatten the learning curve — the entire fleet team will take to it quickly. But if anyone gets stuck, 24/7 customer support is available to help. Samsara has an array of fleet management and driver safety functionality that provides the data and analysis you need to cut costs, improve safety and increase productivity. You can try out the system for 60 days before committing to see if it’s right for your company.

Verizon Connect

Verizon Connect provides extensive customization and automation options, making it ideal for larger fleets seeking optimal efficiency, improved driver safety and reduced fuel and maintenance costs. Key features include country-wide regulatory compliance, comprehensive performance analytics, preventive maintenance scheduling, driver behavior monitoring, route optimization and real-time tracking. A 30-day free trial is currently available.

Find out more about each of these vendors in our guide to the best fleet management software.

If your small business is utilizing a fleet of vehicles, taking advantage of this type of software has significant benefits. Not only can it help save your business money in the long run, but it can also help improve your drivers’ performance, which benefits you and everyone else on the road.