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What is Fleet Management
Fleet management deals with all the processes related to vehicle fleet of a company, this is to say, processes all along the life-cycle of the vehicles (purchase - operation - sale).

Fleet management deals with all the processes related to vehicle fleet of a company, this is to say, processes all along the life-cycle of vehicles (purchase - operation - decommissioning/sale). Besides cars, the subject of fleet management can also be drones and other means of transport, such as ships or aircraft.

Purchase, operation and decommissioning/sale of every vehicle in a company requires some administrative work and maintenance. In order to free the regular employees from having to take care of the vehicles they use, large companies establish a position of a fleet manager, or they hire an external company; this type of services is typically provided by leasing companies.

A fleet is taken care of by a fleet manager. It is similar to other types of machine/devices, for example, company’s computers and laptops are serviced by IT department. The importance of fleet management, of course, is growing with an increasing number of vehicles, such as service cars. Therefore, fleet management is very important in companies with a large number of trucks (companies offering delivery or logistics services) or companies with a large number of, for example, sales representatives (and thus passenger vehicles).

What processes are part of fleet management?

We’re talking about processes related to vehicles throughout their life-cycle (purchase - operation - decommissioning/sale). Typical fleet management activities are:

  • fleet administration
  • day-to-day fleet management - maintenance and repairs
  • routine maintenance
  • replacement of the fleet
  • assisting services
  • fleet optimization
  • vehicle tracking, optimization
  • settlement of claims
  • control, reduction and management of costs
  • purchase and negotiation of discounts on the vehicle purchase or rental
  • vehicle sales
  • dealing with a leasing company
  • ensuring legal compliance

Related terms and methods:

Related profession:

  • Fleet Manager

Related management field:

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Last update: 12.06.2018

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