10 Important Fleet Management Terms that You Should Know

Consider that you are just starting a fleet company and are having trouble managing your complete fleet or that you are unfamiliar with fleet management tools and are having trouble managing your overall fleet operations. To comprehend the commercial jargon employed in the fleet industry, we refer to it as “Fleet language.” Do you have trouble deciding where to begin? Not to worry! We made it simple for you to comprehend. We have combined 10 terms with explanations to help you understand the world of fleet management in this post.

● Fleet Management System

Fleet management is a collection of procedures that enables businesses to view and control all data related to their trucks, cars and other assets, from the time of purchase until the end of their useful lives. With the development of technology, more companies are turning to fleet management software to optimize maintenance scheduling, give better visibility into vehicle and asset use, and lower the total cost of ownership.

● OBD (On-Board Diagnostics)

On-Board Diagnostics, or OBD, is a computer system inside an automobile that monitors and controls performance. This vehicle’s onboard computer system gathers data from a network of sensors, which it then uses to control various automotive systems or notify the driver of potential issues.

● Vehicle Telematics

In order to capture and communicate vehicle data, such as speed, position, maintenance needs, and service, and to compare this data with the internal behavior of the vehicle, vehicle telematics integrates GPS systems, onboard vehicle diagnostics, and wireless telematics devices, and black box technologies. Real-time analysis of this data may be utilized to enhance commercial vehicle performance, cut expenses, and increase overall driver safety.

● Geofencing

In a location-based service called geofencing, a mobile device or RFID tag that enters or exits a virtual boundary created around a specific geographic location, or “geofence,” will cause an app or other software to use GPS, RFID, Wi-Fi, or cellular data to carry out a previously pre-programmed action. A geofence’s configuration can cause push notifications on mobile devices, SMS messages or alerts, targeted social media adverts, tracking of vehicle fleets, the disabling of particular technologies, or the delivery of location-based marketing data. It serves as a great tool for fleet managers in ensuring that vehicles are not misused, and for monitoring vehicle movement, fuel usage and driver working hours.

● Asset Tracking

The process you employ to track your physical assets, whether you scan the barcode labels that are affixed to them or utilize GPS or RFID tags that broadcast their whereabouts, is known as asset tracking, also known as asset management. Because you need to know the location, status, maintenance schedule, and other critical information regarding your company’s physical assets, asset monitoring is just as crucial as inventory management. Fleet management software like Asti Fleet Management (AFM) offer automated asset/vehicle tracking and monitoring in real time.

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● HOS (Hours of Service)

HOS (hours of service) refers to rules that are put into place by administrative traffic organizations. In addition to postal carriers, city and school bus drivers, and truck drivers, these regulations also apply to them. Depending on where the vehicle is going, different municipal rules may also apply to HOS requirements. Hours can be recorded manually or automatically with the help of an electronic monitoring device. Regulations ensure a defined amount of days off throughout a working week as well as timetables that align with advised sleep cycles, ensuring safer driving.

● Vehicle Idling

When a vehicle is not moving, such as when it is stopped at a red light or in traffic, it is said to be idling. Idling is a typical occurrence for most drivers and is a necessary aspect of operating a vehicle. Idling, though, might not be the greatest option for your automobile, your fuel economy, or the environment. Especially now that gas costs are on the rise, cutting down on idle time is an easy approach to maintain and even improve fuel efficiency among fleet vehicles.

● Route Optimization

Finding the most economical route is the process of route optimization. Finding the shortest path between two places isn’t the only challenge. It must contain all pertinent information, such as the number and location of all necessary stops along the route as well as delivery window times and traffic conditions.

● Vehicle Uptime/Downtime

In the trucking sector, uptime is referred to as the vehicle’s readiness to carry out its primary duty. The amount of time that a vehicle is not available is referred to as vehicle downtime. Maintenance, repairs, and replacements—both scheduled and unplanned—could be at blame for this unavailability. Adopting an automated fleet management system helps in reducing unwarranted downtime by keeping track of vehicle health, fuel levels and driving practices.

● Driving Behaviour

The description of a driver’s purposeful and unintentional features and activities while operating a motor vehicle is known as driver behavior. Even the same driver’s capacity to evaluate danger and make judgments while driving might alter depending on the scenario due to these internal and external influences. Driver actions are often categorized on a continuum from safe to dangerous to hostile. Monitoring driver behaviour with the help of fleet management systems like AFM ensures safer fleets and timely delivery of cargo.


Terms like these and more are important to understand so that you can make the most out of Fleet Management. So, we will keep you updated on the same and will bring you more of these interesting terms as we go, directly on our website, so stay tuned for that.

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What is the primary purpose of implementing a Fleet Management System (FMS) for my fleet company?

The primary purpose of a Fleet Management System is to streamline and optimize all aspects of fleet operations, including vehicle monitoring, maintenance scheduling, and cost management. By utilizing FMS software, businesses can improve efficiency, reduce downtime, and enhance overall fleet performance.

How does Vehicle Telematics contribute to improving the safety of my fleet operations?

Vehicle Telematics integrates GPS technology, onboard diagnostics, and wireless communication to capture real-time data on vehicle performance and driver behavior. This information enables fleet managers to identify potential safety risks, monitor driver habits, and implement preventive measures to enhance overall safety standards.

What benefits does Geofencing offer to fleet managers in terms of monitoring vehicle movement and usage?

Geofencing allows fleet managers to set virtual boundaries around specific geographic areas, enabling them to monitor vehicle movement and track usage patterns. This technology helps prevent unauthorized vehicle use, optimize route planning, and enhance fuel efficiency by ensuring vehicles adhere to designated routes and schedules.

How does On-Board Diagnostics (OBD) help fleet managers maintain the health and performance of their vehicles?

On-Board Diagnostics systems installed in vehicles continuously monitor various parameters such as engine performance, emissions, and fuel efficiency. By analyzing OBD data, fleet managers can identify potential issues early, schedule timely maintenance, and optimize vehicle performance to minimize downtime and reduce repair costs.

Why is Asset Tracking essential for fleet companies, and how does it contribute to operational efficiency?

Asset Tracking enables fleet managers to monitor the location, status, and usage of vehicles and other physical assets in real-time. This information facilitates efficient resource allocation, improved inventory management, and proactive maintenance planning, ultimately leading to enhanced operational efficiency and cost savings for the fleet company.

    Quick Read: Why Fleet Management is Important for Logistics Industry?

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