Blog & News
Fleet management for proprietorships
Fleet management is not a new concept, and large companies in particular have long since realised the advantages of introducing a GPS-based fleet management to their vehicles. It helps them to streamline operations and ensure that their resources, human as well as mechanical, are deployed and used optimally. And this is something for which they have a great need. In a market where the big players are increasingly being pressured on efficiency and prices from smaller but more agile online providers, everything needs to be cut to the bone to ensure competitiveness.
Small providers improve the customer experience and put pressure on the big players
The service levels in many industries is also under pressure. A lot of online providers offer immediate responses to support calls or delivery of their products within an hour. This exceptional customer experience is projected by the customer on to other industries that may not have the same systems or organisational setup to manage the same high level of service. It is slowly changing our perception of the market. Service levels and customer experiences are now more important than the product itself, and the customer chooses the supplier that can provide the best customer experience. Therefore, the small agile provider suddenly becomes a competitor to the big established companies.
When companies implement fleet management today, it is not only to increase efficiency but also to be better able to provide customers with the exceptional customer experience and service levels they have come to expect. Therefore, it is no longer just a tool for big companies with several vehicles and drivers. Fleet management is just as relevant for the small proprietorship that wants to provide the best possible service.
Fleet management eases the administrative burden
The vast majority of the 600,000 strong fleet of Danish business vehicles consists of the work vehicles belonging to craftsmen. This includes the local plumber, carpenter or electrician, for example. When asked, these craftsmen reveal that their biggest headache is the administrative work required to operate their businesses.
Craftsmen are amazing at their trade, but they are often not focused on the accounting aspects of their business or the logbooks for business driving. Yet they all want to provide a good service! Furthermore, even though the craftsman working for themselves in a one-person company does not need the office to track their location on a map, the customers will certainly appreciate being able to do so. They want to know if he or she is on the way, and the estimated time of arrival. They want evidence that the time spent on doing work for them is also the time for which they will be invoiced. They want to know that the delivery will be on time and according to the agreement that has been made.
These are all things that a GPS-based fleet management system can provide. Quite automatically.
An untapped potential for small businesses
Right now, the Scandinavian fleet management market serves about 20% of its intended customers, reflecting the fact that most big companies have equipped their cars with GPS. However, with almost 80% remaining there is a huge untapped potential for all the many small plumbing, carpentry, electrician, etc. businesses.
So why have they not eagerly embraced the technology yet?
This might be because, until recently, it was relatively complicated to get the equipment installed in the vehicle. There have also been concerns such as: Who is the right provider, what GPS should I use, how do I figure out how to use the system, are there complicated contracts and binding periods that are hard to get out of again?
Additionally, the GPS technology is also still associated with myths such as: “Can the neighbour see where I am?” or “Maybe the tax authorities can monitor my movements?”
A lot of people have simply chosen not to seriously consider using GPS. Others have rejected using it outright based on fear or insufficient knowledge.
The fear of GPS technology is accommodated by the companies
Fortunately, there are several fleet management companies that have simplified their solutions and terms and conditions.
Ecofleet is an example of such a company, and it has many years of experience working with fleet management and electronic logbooks. Over the last couple of years, we have completed an extensive overhaul of our products, services and terms and conditions so that today, we are providing a user friendly and simple product that neither requires an installation nor comes with a binding period, and you can get it directly from our website.
We have simplified the acquisition process and made the product available to all those people who might not be as good working with IT. In essence, everything from the purchase, delivery and installation is something that everyone can handle without prior knowledge.
The interest from the market is significant, and as it will gradually dawn on small businesses that fleet management is not a technological mouthful that is hard to swallow, but rather a quicker way to get satisfied customers, we predict a sharp increase in the percentage of companies using fleet management. Who doesn’t want to go head to head with the big boys - and win?