Fleet Management Software vs. ERP

Though fleet drivers transport a product or service to its final destination, it’s fleet managers who map the journey. Fleet managers are responsible for nearly every facet of a fleet, from daily routes and arrival times to driver safety and vehicle maintenance. When you consider that a fleet manager may also stay on the pulse of supply chain operations and accounting, it’s no wonder why they require top-notch software.

However, with all of the options on the market today, it can be difficult to pinpoint which exact software is best for your fleet’s daily needs. And if you’re a small to mid-size fleet looking to scale or a large fleet trying to keep expenses at a minimum, there can be confusion about which technology can help get you there. Typically, fleet operators can’t decide between fleet management or ERP.

So, what’s the difference between a fleet management system and ERP? Does an ERP system for fleet management have additional capabilities, or is fleet management technology fit for the job? Take a look at exactly what fleet management is, how it stacks up against ERP, and how it can streamline operations for fleet managers

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What is Enterprise Resource Planning (ERP)?

Let’s start with the basics: What is ERP anyway? Short for enterprise resource planning, ERP is the unified management of main business operations, typically completed in real-time and monitored by software and technology. An ERP system for fleet management is a type of software that owners, operators, and managers can use to facilitate daily business activities, including:

Accounting
Compliance
Procurement
Risk management
Project management
Supply chain operations

Overall, ERP systems are beneficial at coordinating various operations across an enterprise. They combine a multitude of processes to enable a flow of data between all facets of the business, eliminating data duplication and improving interoperability across the fleet.

What is Fleet Management Software?

With the meaning of ERP underway, let’s take a look at fleet management software. At its core, fleet management refers to the suite of actions that owners, operators, and managers complete to keep the fleet running efficiently, on schedule, and within budget. Fleet management software helps operators monitor all fleet activities to improve efficiency and reduce costs.

Types of business operations facilitated by fleet management software include:

Compliance
Driver safety
Monitor expenses
Asset management
Dispatch and routing
Vehicle maintenance
Vehicle acquisition
Vehicle disposal

With fleet management software, operators can ensure their fleet is both cost-effective and safe for the road. Combined, these elements can drive down unnecessary costs and even improve both driver and customer satisfaction.

How Does ERP Compare to Fleet Management?

Though ERP has its own suite of benefits for managing company resources, it often falls significantly short in actual fleet management and maintenance. While ERP software can keep a vigilant watch on accounting and supply chain operations, fleet vehicles themselves are often left out of the overall equation. In most cases, this is because fleet operations require dedicated systems to match their needs.

Telematics and GPS

Fleet management software leverages telematics technology and GPS tracking to provide managers with visibility into a fleet’s location and surroundings in real-time. Telematics technology syncs with a vehicle’s internal data to transmit information such as driver speed, driving direction, road conditions, and more. These capabilities can not only improve productivity but also increase overall fleet efficiency and customer service.

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Real-Time Communication

Where an ERP system for fleet management can improve interoperability between software, it falls short of communicating with actual drivers or fleet vehicles. In comparison, fleet management software allows fleet owners to directly monitor and communicate with fleet vehicles in real-time. With fleet management tools, managers receive timely notifications about events or impending dangers straight from telematics software, which can then be relayed to a driver in seconds.

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Safety Monitoring

The advanced communication capabilities of fleet management software also provide operators with enhanced safety monitoring. Though ERP platforms monitor workflow for potential risks in project management, this type of software cannot account for the safety of fleet vehicles in the field. Fleet management software, however, monitors and records risky driving behavior and current road conditions to implement a feedback loop to better safety. Plus, video telematics record in-cab footage to see what occurred before, during, and after an accident.

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Asset Management

When you compare a fleet management system vs. ERP, the true competition lies in asset management. Both can track and account for assets, however, a fleet management system can locate missing assets in real-time. Fleet telematics can also facilitate inventory management, maintenance and service scheduling, and compliance with fleet management and licensing to keep operators in prime shape.

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Overcome Challenges with Fleet Management Solutions

While fleet management solutions aren’t designed to streamline accounting, that doesn’t mean they’re unable to improve costs. On the contrary, fleet management software can help fleet owners and operators make their fleets more cost-efficient and protected against unexpected fees, such as maintenance or replacement costs. With fleet management software, all bases are covered — constantly.

Some of the challenges fleet management solutions can help business owners overcome include:

Rising fuel costs

A GPS tracking solution for fleet vehicles can reduce fuel costs by approximately 10%. With fleet management software, operators can monitor idling across the fleet and identify shorter, more efficient routes to bring down the cost of fuel.
Continuous maintenance costs

Preventative maintenance is the key to reduce maintenance costs over the lifetime of a fleet vehicle, and fleet management software automates the process to send alerts when it's time for a tune-up. Plus, telematics constantly monitor engine diagnostic data to avoid sudden breakdowns.
Security concerns

Fleet management software allows operators to track and locate assets in real-time, preventing potential theft or misuse of company vehicles. With live information streams, trip replays, and even an asset tracker for generators and other tools, all assets are accounted for.
Customer service barriers

If you’re concerned with fleet vehicles arriving at a destination on time, fleet management software leverages GPS tracking to ensure drivers adhere to the most time-efficient schedules and routes. If something goes awry, you can let customers know instantly.

Fleet Management or ERP: An Obvious Choice

At the end of the day, both fleet management software and ERP platforms possess a ton of value for fleet businesses. However, if you were to weigh fleet management vs. ERP, it’s clear the two serve somewhat different purposes. ERP technology will keep paperwork up to date and eliminate manual data entry, where fleet management software will keep company assets safe and cost-efficient.

Whether you choose fleet management software or an ERP solution relies entirely on the needs of your business. If you’re looking for a solution that can drive down costs, improve driver safety, and extend the life of your fleet vehicles, look no further than a trusted fleet management solution.

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