Transportation companies remain in continuous investment in managing their fleets. For example, it is expected that the fleet management market will reach $59 billion by 2028 while recording an annual growth rate at a CAGR of 17% from 2021 to 2028. In this context, fleet management software development will be an excellent solution for companies to optimize fleet management processes, maintain competitiveness, and meet customer demands.

Understanding this trend, we have summarized in the article below all the knowledge you need before planning a fleet management app development project. It includes:

• What is fleet management software?
• What a software essentially possess?
• The challenges of fleet management software.
• Well-described steps involved in the development of quality fleet management software.

Read on for details.

What is fleet management software?

Fleet management software is a self-powered application or cloud-based product that helps businesses track and manage technicians and control various types of motor vehicles, including cars, trucks, ships, and airplanes. The system can carry out several functions like vehicle tracking and diagnostics, fuel management, driver management, route and trip optimization, and asset or equipment tracking. Fleet management software works like a display unit where fleet managers will be able to use all the tools required to monitor a vast amount of data.

Today, fleet management software is becoming essential for transportation businesses, especially as more companies shift online and there is increasing demand for advanced delivery services. With the help of this software, fleet coordinators can monitor all processes live from a single location.

The fleet management process involves the communication of several devices on different software systems. Once the devices are installed on vehicles, the system software gathers information from these devices through integrated elements such as sensors or GPS. The gathered data is displayed on the management dashboard, thus enabling managers to monitor all the vehicles in real time.

Fleet management software development is becoming a trend among transportation companies because developing this type of application can address many issues in the logistics business. These include inefficient route planning that increases travel time, low vehicle utilization rates, high fuel costs, maintenance issues, poor driving performance, and inaccurate reporting.

Global fleet management software market

Fleet management in the transportation, logistics, and construction sectors forms an important component of businesses. In a backdrop where every enterprise is striving to enhance operational efficiency, cut costs, and increase productivity, fleet management software development is considered a strategic imperative for companies seeking to rationalize their fleet operations, ensure proper utilization of resources, and undertake route optimization. 

This is a reasonable explanation for expecting the fleet management software market to grow from $23.88 billion in 2023 to $43.5 billion in 2024, reaching approximately $50.36 billion by 2028 at an annual compound growth rate ranging from 16.9% to 20.3%.

North America and Europe are predicted to dominate the market due to significant innovations in fleet management app development, while the Asia-Pacific region will see the fastest growth. Particularly in China and India, rapid adoption and reliance on web-based and mobile business services are key drivers for the expansion of fleet management software development services.

The growth in the market is due to the emergence of international trade as well as the high demand for advanced technologies. Further advancement in the integration of modern technologies such as IoT, artificial intelligence, and machine learning will drive the future growth of the fleet management system development market over the forecast period. These technologies offer more advanced solutions that optimize fleet performance and improve customer service.

Key fleet management software features

Depending on the requirements and goals of a business, vehicle management software development can include a wide range of features. Below are some essential functions that we believe should be included to meet the needs of both managers and drivers.

1. For management

A good fleet management software should enable the management team to maintain tight control over all fleet operations. Here are some essential features that can help achieve this:

• Maintenance schedule: Predict and schedule services such as wheel alignment, oil changes, brake maintenance, and other essential repairs.
• Vehicle tracking: Use GPS technology to monitor the real-time location, speed, and direction of vehicles to optimize routes and reduce fuel consumption.
• Driver management: Track driver behavior to provide feedback, ensure driver safety, and improve service quality.
• Reporting and analytics: Identify trends, monitor performance, and make more informed decisions based on data insights.
• Mobile access: Allow managers and fleet supervisors to access real-time data even while on the go.
• Fuel management: Monitor fuel consumption and help optimize routes to reduce costs.
• Work order management: Streamlines the process of creating, assigning, and tracking tasks or maintenance activities.
• Inventory management: Provide alerts for reordering supplies when necessary.
• Data security: Integrate anti-hacking tools to protect sensitive information, prevent vehicle hijacking, and safeguard access to critical systems like engine and brake controls.

2. For drivers

Fleet management software development not only reduces workload for the management team but also supports drivers. The features below can boost driver productivity while ensuring safety:

• Incident reporting: Detect issues and record videos along with relevant information such as time, location, and other details to prevent liability claims and counter disputes.
• Inspection management: Maintain compliance and improve risk management by allowing drivers to log inspection results within the app, enabling fleet managers to schedule necessary repairs.
• Routing: Generate the most efficient routes by factoring in real-time traffic conditions and vehicle-specific restrictions, saving drivers valuable time.
• GPS tracking: Monitor vehicle locations to estimate travel times, optimize routes, and enhance transparency in delivery services.

What devices are used in Fleet Management Systems?

Fleet management app development requires integrating various devices into a complex network to effectively monitor and manage fleets. Below are some commonly used devices in fleet management systems:

• GPS devices: These are the core components of fleet management systems, utilizing GPS technology to accurately track vehicle location, speed, and direction in real-time, enabling managers to monitor vehicle movements effectively.

• On-board diagnostics (OBD-II) devices: Plugged into the vehicle’s OBD-II port, these devices collect data such as fuel consumption and engine performance, providing detailed insights into vehicle condition and efficiency.

• Telematics systems: Combined with GPS, telematics systems gather comprehensive data on vehicle operations, including speed, acceleration, braking, and engine activity, to analyze driver behavior and optimize routes.

• Electronic logging devices (ELD): These record drivers’ working hours electronically, ensuring compliance with legal regulations and enhancing driver safety.

• Radiofrequency identification (RFID): RFID tags are used to track and identify vehicles, equipment, and cargo, improving asset management and preventing losses.

• Sensors: Temperature, pressure, motion, and other sensors are integrated to monitor environmental conditions and detect maintenance issues.

• Dashcams: Small cameras mounted on the dashboard or windshield record journeys, provide evidence of accidents, and monitor driver behavior.

Challenges for FMS

The purpose of fleet management software development is to help businesses in the logistics industry solve challenges related to optimizing daily operations. Below are some of the core challenges that a fleet management system must address.

1. Cost management

Fleet operators always need to reduce operational costs, and fleet management app development can help optimize expenses for fuel, maintenance, and repairs. By integrating fleet management software into your processes, you can use many useful tools to analyze details, monitor operations, and develop effective cost-saving strategies. The features of fleet management software can improve every aspect, from driver performance to route optimization, thereby reducing waste caused by inefficient management.

2. Monitoring and tracking vehicle performance

Performance monitoring plays a very important role in fleet management to ensure safety and compliance. Fleet management software, with the use of GPS tracking features, permits managers to monitor vehicle speed, condition, and driver behavior which improves driver efficiency. All this information is also shared with drivers so they can work better.

3. Regulatory compliance

Logistics companies have to obey different regions’ regulations, and the development of fleet management software would aim to handle this issue. For that, to develop fleet management software, you need to learn the latest industry standards and regulations. You should also be updating legal information from time to time and notify users if something changes.

4. Fuel management

Fuel consumption can significantly impact performance and determine customer satisfaction. However, fuel theft, improper storage, or inaccurate reporting can cause many difficulties in fleet management. Meanwhile, fleet management system development not only provides real-time fuel consumption data but also minimizes fraud by providing accurate reports. Furthermore, fleet management software helps optimize the transition to more environmentally friendly vehicles and fuels.

How to build fleet management system: Step-by-step

You can either go for ready fleet management software or build a custom one. A ready software would suit those companies that require quick integration and are on a tight budget. A custom one could allow more latitude, from design to features, allowing the business to edge out their competition. Irrespective of that, the following steps would normally be involved in a typical fleet management software development process:

Step 1 – Requirement definition

Before embarking on fleet management app development,  you should define what the product is and what business goals it will achieve. One should answer for themselves what type of fleet management software is needed, what problems one wants to solve, and what makes your fleet management software peculiar in the crowded market.

The best way to complete this requirement definition step is with a capable and reputable fleet management software development services provider. These partner companies will analyze existing solutions on the market, identify their limitations, and at the same time study the challenges and current needs of your business to provide the most suitable advice. They will also provide creative solutions to address specific industry challenges and help your software stand out.

Step 2 – Find a reliable fleet management software development services provider

Fleet management system development is resource- and time-consuming. We propose considering the following 3 cooperation models:

• – Find a dedicated software development team from a long-term service provider.
• – Find a reputable outsourcing company to shorten time-to-market and get a high-quality product at a reasonable price.
• – Contact staffing augmentation services to provide you with additional software developers to fill the necessary expertise for short-term positions in your project.

You can use your in-house team or freelancers. In this case, however, it is not the best option. For you to be able to create a fleet management system with the highest quality and reasonable cost, we suggest that you hire a dedicated team of deep expertise and experience who will build exactly the solution you want.

Step 3 – Solution design

In this stage, you and your IT solution provider will have a meeting with the future design team to discuss the various aspects of vehicle management software development, starting from the associated risks and concerns to the scope of work involving business objectives. Once the design team has understood the unique features you want to integrate into the software and the target audience, they can plan the UX and UI design. 

UX and UI will play a very important role in the software’s effectiveness and user acceptance. Therefore, ensure that your fleet management application is optimized in design to meet functional requirements and be user-friendly.

Step 4 – Discovery phase

The objective of the discovery phase is to turn your product requirements into a plan with clear technical specifications. This stage is going to play a vital role in speeding up the development process and enhancing the quality of the final product. During the discovery phase, the project team will define specific features, develop subjective concepts, and carry out extensive business analysis and cost estimation.

However, this step is only necessary if you want to develop a completely new fleet management software. If you only require the integration of a fleet management system into an existing business ecosystem, the discovery phase is not necessary and can be combined with the development phase. Some tasks that need to be performed in the discovery phase:

• – In-depth analysis of the target audience, competitors, and market needs; identification of the challenges that the industry is facing, with prioritization on the integration of fleet management software features that can address such challenges.

• – Lay out layouts, user interfaces, and software flows; make changes to be presented before development starts.

• – Based on specific requirements, select technology, geospatial coding services, map, and routing providers to ensure efficient and cost-effective functionality.

Step 5 – Development or integration

In this step of the fleet management software development process, developers will design and create the software based on approved requirements. You may develop fleet management software independently or integrate it into your existing ecosystem, depending on your preferences.

If you want to develop a standalone fleet management software, we suggest that you start with the development of an MVP. Thanks to an MVP, you will be able to deploy quickly the essential features that meet your fleet management needs and enable you to collect feedback from users and stakeholders for continuous improvement. On the other hand, use the POC if you intend to integrate the software into an already existing business system. The development of a POC would help the developers assess how a fleet management module would act or perform when integrated in an end-to-end logistics system.

Regardless of the approach you take, the main goal is to provide the fleet management software with functions that can demonstrate its value and minimize risks. Once developed, it goes through rigorous testing by quality assurance professionals to ensure that it has no bugs and is ready for testing. If it passes tests, the software gets deployed into your business environment.

Step 6 – Deployment

The deployment process won’t differ significantly whether you develop a standalone software or integrate a module into a business ecosystem. If you’ve previously developed an MVP, you can launch the MVP into the target market to determine whether the solution is user-friendly and has any bugs, and to continue development and improvement based on user feedback. 

In the case of developing an integrated solution, the fleet management software module will be deployed into your live production environment. This process will be closely monitored to ensure a successful deployment. Your team will also need to conduct user acceptance testing to determine if the module is truly suitable for users in real-world conditions.

Step 7 – Maintenance and support

The fleet management software development process will not stop even after the software has been successfully deployed. If you want your software product and application to run smoothly for many years, you will have to carry out maintenance. Maintenance tasks will typically include code optimization, adding new features, updating to new versions, and more.

How can Luvina help?

Luvina has been in the top IT services providers in Vietnam since 2004 and has been providing businesses with all kinds of logistics and transportation development solutions. Driven by technology, Luvina has supported numerous businesses in setting new milestones. With more than 750 highly experienced and skilled experts, Luvina is committed to delivering outstanding project results with dedication. Working with Luvina, you get:

• – Full-cycle fleet management software development services from design to development and maintenance.
• – Custom IT services such as UX/UI design, software maintenance, software integration, and more.
• – Highest level of security with ISO 27001-certified international standard security infrastructure.
• – Assurance of high-quality software products and services certified with ISO 9001 and CMMI Level 3.

Are you looking for a partner to accompany you in fleet management app development? Contact Luvina today to receive creative and suitable solutions for your business needs.

Conclusion

Fleet management software development is a complex process with many challenges, requiring significant investment of time and effort. With our comprehensive guide above, we trust that you should have gained a clear sense of how you can develop your business-suited fleet management system. If you seek a technology partner for custom software development with you, never hesitate to contact Luvina for advice. We will always be in service!