The way fleets are monitored and the systems used to monitor them are ever-changing. Fleet programs put in place to monitor fleet expenses, and track fuel purchasing and pricing are being adopted by businesses around the globe. A recent MarketsandMarkets study estimates the market for fleet management systems will grow to a colossal $35 billion by 2019, this is more than a $20 billion increase from its current value. This increase in the need for fleet management systems could be a result of CO2 emission control becoming a norm and rising fuel costs. However, the main driving force for these systems remains to be overall smarter and more efficient business practices for the merchants and businesses using them.
The way these fleet systems function is actually quite simple. Merchants implement the card reading technology into their current system of processing. The merchant is then able to accept fleet cards as a form of credit while being established as part of a network of merchants accepting these cards. Businesses that use fleet cards also have a telematics system in place which is then used to track and monitor just about every piece of data they need to monitor their fleet. This helps managers track costs, negotiate pricing and lower fleet overhead by eliminating paper-based reimbursement processes.
At the point of sale, drivers simply enter their specified I.D. number or the transaction cannot be completed. This adds a higher level of security for both the merchant and the business manager.
A recent report from Fleetmatics, a fleet management solution company elaborated on the astonishing effect of telematics. According to Fleetbeat a decrease in fuel consumption by 573 million gallons per year has been attributed to the integration of telematics and fleet programs.
When it comes to acquiring data, the commercial fleet and trucking industries have an advantage over other sectors. Fleets are already equipped with the high-tech telematics hardware and other M2M communications which come standard for many fleets. The challenge isn’t collecting data but making sense of it while truly using it to its highest level.
The use of fleet cards and monitoring systems is ideal for any merchant or businesses. Industry Associations, fuel merchants, and other transportation-focused businesses take advantage of fleet card programs to enhance their service offering to existing clients and attract new fleets and more capital.