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Many companies have vehicles for supporting their operations whether in CMMS or otherwise. In some cases some or all vehicles are an essential part of the business such as for service providers. Managing the vehicles manually is time consuming and error prone.

Why Do You Need A Fleet Management System

Therefore, it is important to deploy a system to handle the different facets of fleet management as described below.

Vehicle acquisition and disposition – purchasing or leasing vehicles and also selling and/or returning vehicles is important to be tracked and reported. The system needs to carry the dates, parties involved and the financial transactions.

Vehicle assignment and reassignment to locations and people –  Vehicles are usually assigned to a location and also one or more responsible people.  The system needs to carry this information with each vehicle. Once a vehicle is transferred from a location to another location or from a person to another person, the system needs to update the appropriate information.

Vehicle registration – Vehicles need to be registered with their proper local authorities and registrations need to be renewed in a timely fashion. Payment and necessary paperwork for renewals needs to be sent in on the planned schedule together with any necessary certifications such as smog tests. The system needs to provide reminders and assistance in filing the registration.

Vehicle insurance and claim management – Vehicle insurance may be setup with a single insurance company or separately with different insurance companies. The system needs to facilitate each scenario and keep track of the renewal dates, coverages and certificates. When an accident happens, the system needs to provide an easy to use form for submitting a claim.  The claim submission process needs to follow the necessary workflow for notifications and approvals by management, legal and financial departments.  The claims need to be automatically followed up until they are resolved.

Vehicle roadside assistance management – Vehicles need to have valid roadside assistance subscriptions as needed. The system needs to maintain the dates and activate the renewals in a timely manner.

Vehicle repairs, approvals and payment –  Vehicle repairs may be performed by a single organization, for example, Chevy dealers, or by independent shops. The system needs to manage the service request and the service together with the approvals and payment. A complete history of the services needs to be maintained with the vehicles.

Vehicle preventive maintenance – Each vehicle needs to be setup by the system for the necessary preventive maintenance such as oil changes, tune ups, tire rotations, etc.  The system should issue reminders and generate the necessary work-orders for performing the work.

Vehicle financials and depreciation – The system needs to maintain the complete financial information on the vehicles such as original price, current resale value, replacement value and depreciate the vehicle based on the appropriate depreciation formula.  If the vehicle is leased, the lease term, payments and usage needs to be tracked by the system.

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About the author

Mehdi Khalvati, Ph.D. is the president of Axxerion Inc. Axxerion’s Fleet management module provides a comprehensive set of capabilities as described above. For more information, please contact Axxerion.

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