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Fleet Management Guide: Challenges, Technology and Best Practices

This article was published on: 12/30/25 by the Straight North

Costs have ranked as the top concern for fleet managers five years running. In a recent survey, in fact, nearly 80% of managers named increasing costs as their biggest challenge. And it’s easy to understand why. Expenses touch every part of fleet operation, from vehicle selection and driver oversight to compliance, safety and budgeting.

Fortunately, modern fleet management solutions can help. Global Positioning System (GPS) tracking and maintenance software can give managers the visibility they need to control expenses and improve efficiency.

This article covers the core challenges facing fleet managers today, along with the technology and best practices that can help managers overcome these challenges.

Understanding Fleet Management

Fleet management is the coordinated process of acquiring, maintaining and operating vehicles to meet business goals. It encompasses vehicle selection, driver behavior monitoring, compliance, safety and budgeting.

A modern fleet management program typically includes three core components:

  • GPS tracking for real-time vehicle location.
  • Telematics – systems that transmit vehicle data wirelessly – for performance monitoring
  • Maintenance software for scheduling service, tracking vehicle health and predicting issues

These tools work together to replace guesswork with data-driven decisions. Managers can see fuel usage, idle time and route efficiency in ways that weren’t possible a decade ago. That visibility can help control costs across fuel, maintenance and labor.

The benefits add up:

  • Operational efficiency improves as drivers complete more jobs.
  • Preventive maintenance can help catch issues early, reducing downtime.
  • Automated logging and inspection tracking make compliance easier to manage.

Common Fleet Management Challenges and Solutions

Fleet managers face a long list of expenses that can erode margins if left unchecked. Some of the biggest cost drivers include:

  • Fuel – fuel prices, price volatility and inefficient vehicle use
  • Accidents – medical bills, lawsuits, parts, labor, and repairs all rising with inflation
  • Labor – ineffective use of employee time and low productivity
  • Maintenance – the cost of maintaining vehicles (and the hidden costs of neglect)
  • Insurance – premiums rising faster than other costs
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These expenses can add up quickly without the right tools in place.

GPS tracking and telematics can help address these challenges. Fleets using these technologies report significant year-over-year savings:

  • Fuel savings nearly doubled from 9% to 16%.
  • Accident cost savings increased from 7% to 22%.
  • Labor savings increased from 9% to 16%.
  • Maintenance savings reached 16%.
  • Insurance premium savings approached 13%.

The common thread is data.

When managers can identify idling, speeding and harsh braking, they can take action. Preventive maintenance schedules can help catch issues before they become breakdowns. Driver training and coaching can help reinforce better habits behind the wheel.

The investment can pay off quickly.

According to recent data, small fleet and enterprise fleet operators alike see returns on fleet management technology, with 33% of fleets achieving ROI in just one year. For practical guidance on achieving similar results, see our free resource on What Fleet Managers Are Doing Right.

Technology and Telematics in Fleet Management

Telematics systems transmit data from vehicles to cloud-based platforms. They capture speed, acceleration, idle time and location, enabling real-time monitoring and historical reports.

Several device types are available:

  • Hardwired trackers offer permanent installation with constant power.
  • On-Board Diagnostics (OBD) plug-in devices connect to the vehicle’s diagnostic port for easy installation.
  • Battery-powered trackers allow flexible placement with no wiring required.
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Telematics becomes more powerful when paired with other tools. Dashcams, for instance, can complement GPS data; 34% of fleets saw a decrease in insurance premiums after adding video, while 42% reduced accident costs. And fuel card integration can also improve spending visibility and help detect fraud.

Over time, the data reveals patterns. Managers can identify which locations see the most incidents, benchmark driver performance and forecast maintenance needs. And they can intervene appropriately.

Roles and Responsibilities of a Fleet Manager

Fleet managers wear many hats. Their day-to-day work spans operations, compliance, budgeting and people management – often all at once. Core responsibilities typically include:

  • Vehicle procurement – selecting the right fleet vehicles for the job
  • Maintenance scheduling – running preventive programs and tracking repairs
  • Driver oversight – monitoring performance, coaching and training
  • Compliance – meeting regulatory requirements, inspections and logging
  • Budgeting – controlling costs across fuel, maintenance, labor and insurance
  • Safety audits – ensuring vehicles and drivers meet standards

Success in this role requires a mix of skills:

  • Data literacy – interpreting reports and spotting trends
  • Leadership – managing drivers and coordinating teams
  • Communication – working with vendors, executives and field staff
  • Technology adoption – implementing and using fleet software

The best fleet managers tend to share certain traits. They are detail-oriented, catching small issues before they grow. They also make data-driven decisions rather than relying on guesswork. In addition, they stay proactive, anticipating problems instead of just reacting to them. And they remain adaptive, adjusting to market shifts and new regulations as they arise.

Workforce challenges add another layer of complexity. Knowing different ways to manage fleet driver shortages can help you stay ahead of staffing gaps.

Cost Control and Efficiency Strategies

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Fuel is often the largest controllable expense, and understanding how fleet fuel management systems slash fuel costs starts with analyzing idle time. Excessive idling wastes fuel and increases engine wear.

Route optimization offers another lever. Reviewing route history can help find inefficiencies, reduce miles driven and improve on-time delivery rates.

Preventive maintenance can pay for itself over time. Every breakdown means lost productivity. Software alerts can help managers schedule service based on mileage, engine hours or time intervals – catching issues before they sideline a vehicle.

Driver training ties it all together. Poorly trained drivers are more prone to quick acceleration, aggressive braking and speeding. Coaching sessions based on telematics data can help reinforce better habits.

Compliance and Safety in Fleet Management

Fleet managers must navigate several layers of regulation:

  • Hours of Service (HOS) rules limit driving hours to prevent fatigue.
  • Department of Transportation standards cover vehicle safety and driver qualifications.
  • EPA greenhouse gas standards are increasingly pushing for zero-emission fleets, including electric vehicles.

For jurisdiction-specific requirements, consulting legal experts is advisable.

Safety goes hand in hand with compliance. Regular vehicle inspections can catch issues before they cause accidents. Driver training and coaching can help reinforce good habits, and dashcams have become a common tool for both. In fact, 75% of fleets use video to improve driver safety. And in-cab video reportedly increased awareness of distracted driving incidents by 61%.

Trust matters too. Drivers are more likely to buy in when tracking policies are transparent and data retention guidelines are clear. The goal is to balance accountability with privacy and to frame these tools as support rather than surveillance.

Take Control of Your Fleet

The fleet industry continues to face rising costs alongside growing regulatory pressure, sustainability goals and safety demands. The right technology and processes can help control expenses while improving efficiency.

Track Your Truck offers GPS tracking with telematics and maintenance integration for fleets of all sizes. Whether you manage five vehicles or fifty, the same tools can help bring deeper insights and visibility to your operation.

Ready to get started? Request a free, no obligation quote with us today.