Fleet Management Software Development: Types, Modules, and Development Stages

Let’s discuss what fleet management software is all about and how logistics companies can benefit from fleet management automation.

Fleet management software or FMS is a self-powered app or cloud product that helps businesses track and manage vehicles and technicians from a central platform. Consider it as a centralized dashboard that fleet managers can use to track tons of vehicle data: speed, temperature, fuel level, door opening, geographical location, route direction, and so on.

The fleet management process implies communication between devices and software, which is a pretty complicated sector of the network. After installing a device on the vehicles, the logistics management system software collects information from them using such integral elements as the GPS technology and sensors. This data is displayed on the manager screen that allows users to monitor all their vehicles in real-time, figure out when they get to the destination, and how well the drivers manage them.

The vehicles are connected to the cloud platforms via telematics. This term refers to the use of information technology in remote communications.

Fleet telematics is the built-in onboard system that supports the exchange of information between vehicles in the fleet and central authority. Embedded integration technology for logistics businesses are indispensable here- it’s a device placed under the dashboard and connected to the diagnostics port or the CAN (Controller Area Network) bus port. Using GPS and onboard diagnostics, a telematics device transfers the data from the vehicle to software.

There are different types of fleet management software. We have listed the main ones below for your reference. However, you do not have to opt for any particular type in its pure form. You can always combine several features into one application to maximally benefit from product. To choose a relevant type, contact our certified specialists with your business challenge and we will tell you which type can help you. Each solution is unique and requires its own specific features, they are listed below.

Delivery management. This type of software allows delivery businesses to manage fleets and to automate dispatching operations. Managers can assign tasks to delivery agents based on their schedules and monitor the live location of on-field staff using geofencing technology.

Fleet maintenance. Fleet maintenance software aims at fleet inventory tracking, preventive maintenance, repair logs, order management, and reporting. Users can make custom schedules and work orders based on repair requests or preventive maintenance schedules.

Fuel management. This type of software helps businesses optimize processes related to fuel monitoring, vehicles, and more. Managers can keep fuel receipts, vehicles' maintenance history, and drivers' personal information in a centralized repository and monitor fuel consumption using detailed reports.

Route planning. Its main valuable features include route planning and routing guides. It lets fleet managers enter or upload customer addresses and plan custom routes for cost-efficiency. Managers can also monitor driver progress on routes in real-time and manually move them from one route to another.

Truck dispatch software. Trucking dispatch software is designed for freight brokerage companies. Its features include dispatch and scheduling, GPS tracking, freight brokerage, and rates and quote management. There is also an enterprise-level solution called freight management software that allow transportation companies to improve cargo planning, and simplify the RFP process with carriers.

As a software development company with the required tech expertise in the logistics domain, we’ve pointed out the following ready-made software solutions.

Fleetio is a cloud- and mobile-based fleet platform that covers all aspects of fleet management. It enables managers to monitor their vehicles, auto parts, and drivers. It supports unlimited users, offers both monthly and annual plans, and includes webinars for fleet team onboarding.

Samsara includes real-time GPS tracking, wireless sensors for asset monitoring, and AI-based dash cams to ensure drivers’ safety. Samsara provides separate iOS and Android apps both for drivers and fleet managers. Moreover, the website offers an ROI tool to get an accurate estimate of your investment.

Onfleet is a delivery management software that includes route optimization, delivery analytics, proof-of-delivery tools (barcode, signature, etc.), and auto-dispatching. It provides real-time notifications to customers and enables API integration (e.g., connect the software into online ordering programs).

FleetFocus is a fleet maintenance software that enables the management of every aspect of the vehicle: from purchasing to disposing of vehicles. It aims at avoiding wasteful spending with maintenance schedules, work orders, parts, and inventory tracking. Moreover, it includes integrated fuel management software and a mobile workforce management system.

Avrios is a packaged fleet management solution. The main benefit of Avrios is automated routes. Fleet managers can input a client's address and process this information to determine the cost-effective route. Among that, it keeps the fleet compliant with the latest regulation.

We’re ready to build a similar product or develop a custom solution from scratch. The Cleveroad team will help you transform your business idea into ready project requirements and make a free estimate.

Notice: A ready-built solution lowers the app development time and costs. You can book a meeting with our managers to get the price of your prototype.

Transportation companies tend to use FMS solutions to solve many problems and optimize day-to-day operations. Let’s consider the core challenges the FMS is capable of solving.

In fleet operation, the primary challenge you may face is the need to reduce operation costs. Constantly investing in fuel, maintenance, and repair of the vehicles may be much easier by engaging fleet management system development. Incorporating fleet management software you can make use of multiple useful tools and detailed analytics, allowing for tracking and analyzing costs and developing cost-saving strategies.

A fleet control software can significantly reduce vehicle operating expenses (OPEX). It can improve everything from driving performance to route optimization, cutting down money that would otherwise be lost due to inefficiency. For example, tracking fuel consumption can reduce a company's fuel costs by up to 25%.

Some difficulties may arise while trying to establish real-time visibility of a particular vehicle or a driver's behavior. However, ensuring safety and total compliance with all regulations is vital, otherwise, it may lead to unwanted consequences.

That’s why keeping an eye on driver performance will be worth it. With the help of built-in GPS tracking, managers can track speed, vehicle conditions, driving patterns (sharp braking, idling, or cornering) and, thus, boost drivers’ efficiency. For instance, the drivers will get reward points based on their safety measures, delivery times, car maintenance, etc. All this information can be shared with drivers to encourage them to do better.

Logistics companies have to adjust to many rules to comply with state, local, and federal laws. Therefore, your software should meet the latest industry standards regarding security, usability, and interoperability, such as:

• GDPR compliance
• Regulation (EC) No 561/2006
• Regulation (EEC) No 3821/85
• Regulation (EC) No 2135/98
• Regulation (EU) No 165/2014

A fleet software management can keep your company up-to-the-minute with the ever-changing regulatory landscape, restricting noncompliance issues that could lead to fines. It provides users with real-time regulation data and alerts users about the changes.

Fuel consumption is a key aspect that can significantly influence your performance, customer satisfaction, and financial investments. However, you may face with unpredictable difficulties as a fuel theft and fraud, inaccurate reporting, the way of proper fuel storage, etc.

FMS can offer various solutions to a one single problem. Firstly, FMS is capable of proving you with real time tracking of fuel consumption and vehicle data can minimize the possibility of fraud by providing you with accurate reports. Besides, FMS can facilitate a smooth transition to more eco-friendly vehicles and fuel types, helping to reduce carbon footprint.

For example,nearly 55% of fleets that adopt a fleet management system development stated a significant reduction of the fuel costs, which proves the effectiveness of such solution implementation.

A fleet management system can have a variety of features depending on business-specific tasks. Custom FMS development allows you to pick a set of unique features that align with your business requirement.

The FMS routing module lets fleet managers monitor the vehicle location, miles traveled, and status updates in real-time based on data gathered via a telematics device.

Let’s review the main features of this module:

• Route planning and optimization. Route optimization functionality stands for determining the most fuel-efficient paths between each stop. Besides, the system can timely alert on any road accidents. You can consider route scheduling feature as a part of the fleet management system or go further and build a standalone route optimization software. It will contribute to more accurate and efficient route planning.
• Custom mapping. Clients can create their own business-relevant maps customizing them in terms of views, legends, zone shapes, and sizes.
• Geofencing. This feature lets freight and logistics companies monitor vehicles' whereabouts within geofenced areas: when they depart, when they leave a specific area, operate after hours, and so on.
• Asset tracking. Fleet managers can monitor and review the vehicles in the fleet using a GPS locator beacon installed in the dashboard. A radio frequency identification system ensures tracking in low signal areas like underground or a tunnel.

A fuel management module controls a fuel tank and makes fuel management reports. Thus, fleet managers can plan routes and coordinate drivers efficiently yet cut fuel expenses.

The core fuel management module’s features are:

• Engine idling. Fleet managers can utilize an FMS to set alerts that will send notifications each time a vehicle idles overtime. Real-time engine running reports will also help manage driver behavior to avoid future idling.
• Fuel cards. As a peculiar form of cashless payment, fuel cards help managers maintain cost records and analyze inefficiencies across the fleet.
• Remote fuel tank monitoring. The Engine Control Module (ECM) gathers all types of data about the condition of your vehicle. ECM sends information about miles per liter to the vehicle dashboard. And if the indicator begins to flash, it’s time to fill up.
• Fuel management reports. These include information on every fuel purchase made. Thus, managers can easily find out unauthorized purchases and set limits for each fuel card.
• Fleet emissions. This module allows managers to control the fleet emissions due to an extensive analysis of fuel economy, idling, and emissions for each vehicle.

A vehicle maintenance module aims at scheduled checkups and alerts about the required diagnostics.

This module includes the following features:

• Remote diagnostics. The utilization analysis feature lets fleet managers figure out the vehicles’ execution and which one needs to be replaced. FMS provides users with business insights about the top 10 vehicles due for planned maintenance.
• Vehicle inspection DVIR. Driver Vehicle Inspection Reports (or DVIR) contain comprehensive information about the vehicle operations and safety concerns. Using these reports, managers can quickly identify and track vehicles that require planned or urgent maintenance.
• Service history recording. Fleet software management automatically documents the vehicle’s maintenance history. Managers can use this data to analyze costs, wear tendencies, and abuse to make effective fleet decisions in the future.
• Maintenance alerts. FMS ensures automatic engine diagnostic alerts, monitors service records, and sets reminders for planned maintenance like oil changes or tune-ups.

This module lets you manage human resources effectively by increasing the drivers’ productivity and reducing financial losses related to vehicle security risks.

Let’s look at the primary drivers’ management’s features:

• Driver profiles. FMS stores drivers licensing and medical information up-to-date, structured, and easily accessible from a central location. It lets fleet managers examine if their drivers have valid licenses, need to pass medical tests, etc.
• Behavior monitoring. With the help of a built-in accelerometer, the software scrutinizes driving habits by evaluating drivers’ overloads. Thу telematics device provides feedback based on driving parameters like acceleration, braking, and cornering.
• E-logs for Hours of Service (HOS). Сonnected to a vehicle engine, electronic logging devices (ELDs) automatically file driver working time (HOS). It allows managers to restrain tired and distracted drivers from working.

The shipment management module operates a fleet’s workflow, orders, deliveries, and expenses to decrease rework and boost incomes.

• Delivery scheduling and dispatch. FMS helps the fleet deliver more jobs on time by exaggerating dispatching and increasing schedule productivity.
• Rates and quotes management. In the context of shipment management, FMS helps shippers collect carrier rates and quotes.
• Compliance documents. All documents (licenses, fleet insurance, fuel transactions) are securely stored in FMS. Fleet software lets managers account and pay fuel taxes effortlessly by automatically making and filing their tax reports.
• Cost analysis. FMS optimize administrative processes by helping operate expenses like cost registration, cost/km and cost/hour ratios calculation, etc.
• Cargo optimization. This feature streamlines the cargo space and thus leads to better resource utilization. Based on cargo’s volume, weight, and dimensions, fleet managers can define the max load the vehicle can carry.
• Inventory functionality. The inventory control feature manages recording, tracking, costing, cycle counting, and automatic reordering to provide availability and the right number of parts, thereby trimming vehicle downtime.

Safety management features protect vehicles and drivers by providing emergency roadside support, vehicle theft alerts, and remote tracking. However, it is a must-have feature for mid-sized and large transportation companies with fleets bigger than 50 trucks with 40 or bigger concurrent users.

• Road risk alert. Alerting services provide drivers real-time data about the current state of the road, the weather, or last-minute changes on the route.
• Remote control. Vehicle control mechanisms allow managers to monitor and gradually reduce the speed of an asset. It can be specifically beneficial in finding stolen vehicles.
• Accident detection and reporting. If drivers have an accident, the software allows for capturing necessary data in real-time from the scene to further claims processing, repairs, and risk management.
• Roadside assistance. If drivers meet any roadside issue, they can ask for help through their telematics device with an integrated roadside assistance solution.
• Dash Cam. Dash cam with an integrated telematics device makes photos, videos, and panorama thumbnail views. Thus, you may analyze the incidents and driver behavior.

Note: We've described the most widely-applied modules of fleet management software. You can always extend your solution with advanced elements, such as vehicle leasing, acquisition and remarketing, maintenance services, tolls and compliance services, collision response, garage management, and many others.

There are two approaches to FMS development: out-of-the-box software or custom software.

A ready-made solution is a good choice if you’re limited on budget and want to integrate the software into the business processes as quickly as possible. In turn, custom software provides flexibility in terms of features, design, logic and gives you a competitive advantage.

To build fleet management software from scratch, you should think through the following points:

Firstly, you need to define your product’s requirements and business goals: what type of fleet software you need and what challenges you want to solve. For example, you want to create a fuel management app to reduce fuel costs by 20%. Or you need driver management software to enhance drivers’ skills, minimize vehicle damage, and cut the costs for repair and idle time, respectively. To complete the process of gathering requirements efficiently, we highly recommend you to apply to a competent software development vendor. The team of qualified specialists will research the existing pains and demands of your business to offer the most relevant solutions.

Custom FMS development can be a resource and time-consuming process, so it’s better to hire a dedicated development team with confirmed expertise in building fleet management solutions.

Although, you can consider freelancers and in-house teams' hiring, for fleet management they are not the most optimal. To streamline the fleet management software development flow and get the maximal quality at reasonable costs, consider the following three cooperation models:

• Get a dedicated software development team
• Hire a reliable outsourcing company
• Team augmentation with a competent tech specialist for your project

Let’s consider the peculiarities of all the mentioned options.

Outsourcing companies

You can consider outsourcing app development. In this case, you’ll shorten the time to market and get a high-quality product for a reasonable price.

Values of project outsourcing:

• Outsourcing companies already have a team of experienced specialists you need to build custom fleet management software
• Create project specification based on your requirements
• A detailed estimate made by Business Analysts
• Turnkey testing
• Start with MVP app development to speed up the time to market and collect initial feedback, decreasing your costs
• Guarantee working product delivery on time – all arrangements are documented and comprehensively tracked

Dedicated team

Dedicated Team is a cooperation model that refers to getting an utter team of software development professionals from a service vendor on a long term basis. These tech experts are selected due to your requirements for their professional background and skillsets. To build a project from scratch, you are able to hire a dedicated team, fully focusing on your product and decreasing the need of your involvement.

What are the core benefits of this model?

• Focused approach
• Cost-efficiency
• Team scalability
• Transparency in workflow
• Delegated management

Team augmentation

Staff augmentation implies a type of outsourcing model that uses temporary employees to fill the expertise in short-term job positions within your project. You can augment a professional with a deepened specialization in the technology required for your idea, but missing in your existing team- the efficiency of such an external employee is also guaranteed and controlled by the software development vendor.

Why is it beneficial?

• Efficiently filling the essential expertise
• Proven experience and qualification level
• Boosted performance and efficiency
• Costs reduction
• Flexibility
• Guaranteed service quality
• Decreased recruitment time

After you’ve gone through the research phase and decided on the the techinical partner, it’s time to determine the right direction for a future development process.

The pre-development process is conditionally divided into 3 main steps: First screen with your development team, Solution design stage and Discovery phase.

First contact

This is the primary stage of any cooperation process. After you leave a request on the website of a chosen IT vendor, it goes straight to the Business Development Department. Then a manager with expertise in Logistics contacts you within 24 hours to proceed to the next stage.

Solution design stage

Solution design stage implies you and your IT vendor define the business context, main product’s goals and finally schedule a meeting with your future design team. During the meeting, the team defines the following aspects:

• Potential risks and concerns
• Business goals
• A work scope
• Quality factors

Discovery phase

Discovery phase services are aimed at turning your product’s requirements into a clear specification plan. This stage enables speed up the development process and increases the final quality level. So, to finally form a clear development strategy, The team needs to organize earlier collected aspects like desired functionality, relevant feature set, etc.

The project team also defines the possibility of including particular features, developing the visual concepts, making extensive business analysis , and getting a detailed fleet software cost estimate.

Please remember that if you don't need the development of a fleet system from scratch and require its integration into your business ecosystem instead — the full Discovery phase may not be necessary. This stage can be shortened in terms of time or combined with the Development phase.

The development stage is about designing and developing the fleet management software under the approved requirements, including coding, testing, and deployment.

You can develop an FMS as a standalone solution, or it can be integrated into your existing logistics management system. Note that the engineering approach will differ depending on your case, so let’s overview both options.

If you want to build an autonomous solution, it’s recommended to start with MVP development. MVP (Minimum Viable Product) is a version of a fleet software with a primary feature set to ensure system functioning. This approach allows you to quickly deliver the working product and gather your staff’s feedback to decide on further solution improvements and implementations.

In case you need to integrate an FMS module into your business systems , the software team creates a POC (Proof of Concept) to validate the concept feasibility. POC can help you understand whether the fleet management module has practical potential inside the existing logistics system. It shows how well the integrated technology will interact with other ecosystem’s components and test its compatibility and performance effectiveness.

Regardless of your need, the main goal is still to receive a functional and convenient solution version quickly to prove its value before investing in a full-fledged solution. This approach has significant risk-reducing properties and helps you to establish an efficient resource allocation strategy.

After, the QA engineers run multiple tests to ensure that the software is bug-free and works appropriately against the test plan.

Finally, the team prepares a product demo to let you test the functionality. If the software works the right way, the team proceeds to release the software.

Here, the principle is quite the same: if you’ve delivered an MVP version, you can launch the MVP on target markets to test the whole concept of your project, determine if a solution is user-friendly, identify weak sides, and continue development, making improvement decisions based on users’ requirements. For this, the team of tech experts, a Project Manager, and Business Analysts help assemble and analyze the feedback effectively. Besides, they conduct focus group interviews efficiently.

In the case of an integrated solution, your team has to deploy fleet software in a live product environment. This must be done to monitor and ensure that the implementation process ends successfully. Then your team also has to arrange UAT (User Acceptance Testing) - This will allow you to test software by its intended audience in real-world conditions.

The development process doesn’t stop after the software is built. If you want your product to run for years, you should consider its maintenance.

Usually, project maintenance includes:

• Performance improvements
• Code optimization
• Adding new features
• Supporting the latest versions of third-party services

Please keep in mind, that even though custom software development requires extra time and money, it can save you a lot of money in the long term.

A ready-to-use solution requires the same development stages. The difference is that there already are a set of features necessary for effective fleet management. To achieve the best cost efficiency, you need to compare the app’s functionality with your requirements to define whether the software matches your business goals.

Cleveroad is a logistics software development company that has been delivering digital solutions for logistics and transportation businesses since 2011. Our expertise range includes building custom logistics software of various types: Transportation Management Systems, warehouse management system, Enterprise Resource Planning (ERP), fleet control software, Last-Mile Delivery, and more.

Working with us, you’ll get:

• Cooperation with an IT vendor with practical experience in successful fleet management systems implementation
• A possibility to set up digital systems to define supply chain pain points like inconvenient route planning, cost management issues, and lack of visibility
• Designing a customized multi-functional solution that helps to streamline vehicle tracking and maintenance, speeding up the delivery process, and, as a result, receiving a solid operational cost reduction
• Fast and clear initial project estimation with no hidden costs Guaranteed security of corporate data and Non-Disclosure Agreement (NDA) upon agreement

To demonstrate our expertise in logistics software development, let us introduce our successfully delivered project cases:

MoveUp

Cleveroad team has designed a transportation app the key purpose of which is to link drivers with riders. Besides, the platform optimizes the transportation of disabled individuals or those who have the other medical issues. This P2P ridesharing solution delivers a lift giving service similar to Uber and Lyft, meeting each party's requirements. Within our cooperation, the customer received a sophisticated utter product, reflecting the set business goals. We consider this project to serve as an excellent illustration of the product implementation in the logistics niche, based on the highly positive feedback left by customer on Clutch. Here's the opinion of our client:

Transport management system

Our client is an US-based enterprise that provides warehousing and logistics services. . The company needed a transportation management system and automated route planning software. Besides, it had to be incorporated into already existing business processes. Here, our primary goal was to structurize and optimize employees’ workflow and automate the route planning process.

To address our client's needs, we provided:

• Development of the customizable system that enables automated route planning and handheld edits, as well as management module. Drivers are provided with a mobile app for the efficient navigate
• Building of a turnkey transportation management system to robotize the fleet, management delivery points, as well as the entire supply chain stages
• Transmission of warehouse data from the warehouse management system. Implementation of a "Jobs for delivery" module, its integration with warehouse and client relationship management solutions.

As a result, the client received a full-fledged transportation management system with route planning module, allowing the company to lower total logistic overhead reduction by 27-36%. Besides, the solution was successfully integrated into the existing business platform making it possible for the company to cover all logistics processes within a single system. Also, the company manages to increase the profitability of each vehicle unit, facilitating the rise of an overall gross profit.