Fleet management plays an important role in commercial operations, especially when companies are dependent on transportation (e.g., food and beverage distribution) or providing services involving constant travel.
In fact, we are talking about an administrative approach that allows companies to organize and coordinate work vehicles, therefore improving efficiency, reducing costs, and providing compliance with government regulations. In fact, it encompasses the many actions and processes that must occur for a fleet of vehicles to run on time, within budget and at maximum efficiency.
And this can only be done by taking advantage of the most recent IT tools like an ERP customized solution. It represents the backbone of a company's fleet management, which no company can ignore.
According to a report, Grand View Research the global ERP software market size was valued at $54.76 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 11.0% from 2023 to 2030. The growing need for operational efficiency and transparency in business processes is one of the main reasons for this to happen but there are other specific reasons, directly related to fleet management.
What are the benefits of an ERP customized system?
Customization
If your organization goes for the customization of an ERP system, you can be sure that it will make all the difference when it comes to meeting the specific needs of the company (allowing the system to adapt to the company's unique operations). It is also possible to automate and unify reports of all the department’s while helping with information analysis. In fact, it will provide some better performance and, at the same time, a greater scalability.
Cost control
It helps to control and monitor fleet operating costs, including maintenance, replacement or any others that may exist. These tools are designed to assist managers in every step of the fleet planning process, making it all much easier. It also helps to track vehicles in real-time, so managers are able to make informed decisions about routes and schedules, reducing fuel costs and improving delivery times.
Flexibility
Unlike generic solutions, personalized ERP systems can be an asset in that they allow managers to respond quickly to market changes, are capable of scaling, support integration with other technologies and some efficient integration with other company operations. In fact, they can be designed to grow with a business, allowing for easy scalability as the company expands.
Process automation
The ERP system unifies a business's siloed processes, taking down the walls and, at the same time, centralizes data to foster collaboration throughout an organization. There is no doubt that the new, modern ERP systems, may contribute to increase efficiency by using the latest technology to automate time-consuming manual tasks and processes such as equipment maintenance, activity reporting, real-time routing monitoring, among many others.
Data centralization
An ERP centralizes all fleet information in a single place, making it easily accessible to all departments. In addition, knowing exactly what information is relevant makes day-to-day work easier and helps you keep track data, processes or documents. When we talk about data, security is a key consideration, so for greater security, any interaction made in an ERP system is always traced and recorded.
Integration with other systems
A customized ERP solution is easily integrated with other systems to ensure more detailed information, in real time, that will help to improve business. We are talking about GPS systems (helping providing insights into vehicle locations, estimated arrival times, and optimizing route planning), but also other softwares and IT tools in the company.
That been said, it is important to take a close look into some real cases on the application of ERP solutions to fleet management. The development of a fleet claims management software is one of them as the customer, an European company that offers technologies, solutions and services for intelligent transportation systems, needed to develop a web-based software solution that could reduce the claims registration and improve response quality.
Another real case study is the one of as customer that needed to build a brand new software with the standard fleet management features. However, instead of dedicated hardware devices that were mounted on vehicles, the solution should utilize mobile phones as personal GPS trackers. The answer was to implement a simple and clean solution interface universal for all mobile platforms, among some others specifications on the project.
Conclusion
Implementing some customized ERP solutions is a strategic investment that can transform fleet management, assuring a much more successful business. While it is possible for firms to tweak an existing ERP system to include their fleet management requirements, it is hardly the best solution. By choosing a dedicated modern Fleet Management System, it makes the work seamless, and more efficient.
However, the choice of the right partner is crucial when a company decides to walk on this path. Custom ERP specialists not only have the skills and experience necessary to understand the complexity of the business, but also guarantee follow-up, continuous support and a rapid response to challenges. So, before you choose, talk to our teams, as we are more than happy to take all your questions.
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