Posted on 12th April 2022

How Construction Fleet Management Can Be Beneficial

Fleet of construction vehicals

Managing a construction company can be a hassle because of all the challenges that accompanies it. Some key issues are bad communication, low vehicle visibility, unrealistic forecasting, poor truck fleet tracking capabilities, stalled cash flow, and driver dissatisfaction. Letting these issues persist could be detrimental to the business, but the implementation of effective and trustworthy construction fleet management could turn the situation around.

Construction fleet management involves the planning, coordination, and supervision of construction fleets with a view to improve and optimize all related business operations. A construction fleet includes trucks and other vehicles, dispatchers, operations, drivers, and other key stakeholders. The management of such fleets allows key stakeholders to have insight into the day-to-day operations, and control over operations. This helps them determine the best way to improve all aspects of the business as needs arise.

 

Main Aspects of Construction Fleet Management

Construction fleet management involves route planning, fleet vehicle monitoring, operator direction and supervision, data collection and reporting the status of the vehicles in use and the activities of the operators. Various tools can be used to achieve all this, depending on company preference. However, construction fleet management companies have recently started gravitating towards online solutions.

 

Benefits of Construction Fleet Management

 

Optimization of fleet vehicles and operator performance

To efficiently manage a construction fleet vehicle and operator data has to be collected, stored and analyzed. This data includes mileage, routes, purchase history, records on repair and maintenance, accident history, information on previous drivers, mechanical diagnostics.

This collection of historical data guides fleet managers’ decision making and helps them implement policies that spur growth, increase productivity, and improve daily operations. For instance, the repair of vehicles in construction fleets is expensive but adhering to a well laid-out maintenance schedule will avoid unnecessary breakdowns and costly repairs. Having reliable records of the maintenance of vehicles would help to prepare and update the schedule as time goes on.

This action will keep the vehicles in optimal condition, making sure operators can use them while they are at their peak performance capability. This reduces long-term cost, since the fuel consumption in a well-maintained vehicle is significantly less than the consumption of those not traveling at their maximum efficiency. Regular maintenance will also reduce the potential for safety hazards involving the operators, increasing their job satisfaction levels.

 

Improved Productivity and Increased Workflow

Construction fleet management systems significantly reduce the errors and issues that can cause disruptions in workflow. Fleet managers are meant to have a broad understanding of projects at hand, and by using the historical data gathered from such projects, the managers can map out more effective travel routes, reducing mileage and fuel consumption, and improving the company’s finances.

 

Efficient Invoicing

Construction fleet management facilitates the organized, accurate and trustworthy handling of invoices. Traditionally, payments, billing, ticketing, time tracking, signatures and ticketing have been done manually, but these processes can now be done entirely on secure digital platforms.

Fleet managements that use these electronic methods can have their payment tickets and receipts signed, approved, saved, processed and accessed more easily by managers, operators, drivers, and subcontractors. This speeds up payments and builds trust between all parties involved.
Using digital platforms also makes financial records more organized, safe and accurate. It even facilitates audits since transaction history can easily be traced.

 

Improved Budgeting and Forecasting

The insight gathered by construction fleet management systems paints a clear picture of the aspects of the business that are either gaining profits or losing money. This would make it easier to forecast expenses and revenue. When all business activities are organized, it would be easier to plan budgets and schedule the provision of services to clients, vendors and partners.

 

How Construction Fleet Management Can Be Improved

Traditional fleet management systems improve construction businesses by helping to cut down operational expenses, boosting productivity and enabling safe working conditions if used properly. However, the usage of automated fleet management software based on cloud technology makes it work even better.

This software provides real-time insights on vehicle location, performance and travel path. The truck fleet tracking software also picks up idle behavior, deviation from planned routes, and overspeeding, making it easier for fleet managers to train their drivers on how to drive better. Furthermore, the software can estimate arrival times, and can help determine departure times for the delivery of construction materials.

The tracking software is installed in either the fleet vehicles or smartphones and uses GPS and other integrated technology components to send signals from the vehicles to the company database.

Construction fleet management systems rely on a central integrated network for real-time information of all vehicles in the fleet to be collected, analyzed and stored. It is worth noting that there might be more than one fleet manager needed for the system to work as intended, depending on the size of the construction fleet.

Lastly, construction companies that adopt tracking systems should note that it is important to let drivers know that they are being tracked, and should explain the need for the tracking exercise. Failure to do so might build distrust and dissatisfaction among those employees.

 

Endnote

Construction companies have begun to embrace the concept of fleet management due to the benefits and added convenience it provides. The usage of cloud-based fleet management software makes the work even easier and enables the collection of real-time insight and data used to improve the business.