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How Asset Management Helps to Overcome Fleet Management Challenges

08 January 2020

How Asset Management Helps to Overcome Fleet Management Challenges

Many companies that depend heavily on their vehicle fleet for business, such as food distributors, utility companies, public transportation organizations, transport agencies, shipping and delivery services, to name a few. Such is the scale of services for these organizations that it becomes imperative for fleet managers to utilize fleet management to manage asset and fleet information. Moreover, the biggest business expense for these companies is costs related to fleet only. Both of these aspects emphatically underline why effective fleet management is crucial for these companies.  

There are many challenges faced in fleet management today such as driver shortages, driver abuse, safety threats, and many more. EAM or Enterprise Asset Management helps fleet managers in overcoming these challenges. 

If you own a business that relies heavily on a fleet of vehicles to stay in business, read on to know more about these challenges and how EAM helps in tackling them: -

Challenges

There are multiple challenges which may result in loss of business because of the various facets of fleet management. These include: -

Driver abuse

Fleet drivers may indulge in privilege abuse or vehicle misuse. So, it is important to know the location of vehicles to keep a track on where the drivers are at a point of time. If you do not take care of such a situation, it may cost you heavily in terms of vehicle wear and tear, staff productivity, and extra consumption of fuel.

Utilization of Assets

If you are not aware of the whereabouts of your vehicle, then you will not be able to extract the maximum use out of them. In such a case, even if you will be making insurance payments and paying your employees, you will not be able to use your vehicles as intended.

Customer Retention and Satisfaction

Customers are counting on you to get their work done on time. However, they will not hesitate in turning to other service providers if your vehicles are not on time. This is a big challenge that businesses need to take into account. 

Safety

If your vehicles are ill-maintained, it will not be safe for drivers, pedestrians, and others.  If at all an accident was to occur, it may cost your business in terms of money and reputation.

How EAM helps overcome these challenges

To fully fathom the performance of your equipment assets, you need to track them from the start to the very finish i.e. it has to be end-to-end. This includes being aware of the crucial information associated with your assets like knowing which of the vehicles are impacting your resources negatively, which of the departments are operating smoothly, when do your assets need replacement or service, etc. An EAM offers help in tracking this vital information. It does so by helping you make certain inventories. Another use of EAM is to keep a track on the service history of an asset which, in turn, tells you when you should replace, retire, or service it. 

Most importantly, the data structure of your EAM system will act as a base for a more useful strategy of maintenance.It goes without saying that the best practices for fleet management are an integral part of an Enterprise Asset Management system. It provides immense help to businesses because of the exhaustive framework it operates on. If efficient fleet management is a priority for your business, you must look for asset management services that provide EAM.

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