Written by Aimee Bradshaw Published on July 31, 2019 Fleet management and the Internet of Things (IoT) – how do they relate to each other, and how can they help your business? Let’s find outAccording to a report by tech giant Ericsson, the number of devices connected to the IoT is expected to reach 16 billion globally by 2021.So what impact does this growth have on the vehicle tracking and fleet management market?The McKinsey Global Institute reports that the total value of the IoT is expected to reach a staggering $6.2 trillion by 2025. The transportation sector will contribute just over $254 billion to that value – that covers the data collected by vehicle trackers, driving sensors, and self-parking cars. So what can you take away from this?The IoT is a lucrative concept, but it’s a simple one that showcases just how valuable data collection can be. It means that fleet management won’t just help you run your fleet more efficiently – it’ll help you to save money and make money. Read on to find out how.Curious to find out how much a fleet management system would cost your business? Fill in our form with a few details about your fleet, and the suppliers that best match your requirements will be in touch! What is the Internet of Things?Let’s start from the beginning. ‘The IoT’ is a term that consistently crops up across the web – but what actually is it?Well… it’s not as abstract as it first seems. Let’s break it up.InternetAs we all know, the internet is a global communication system. Devices can be connected to it via cable, wifi, or cellular network.Things‘Things’ simply refers to the devices that connect to the internet – this includes computers, cell phones, and data collecting devices such as trackers.Put these two terms together, and the IoT is essentially a system that consists of a bunch of devices that are all connected to the internet. It’s as simple as that! What is Fleet Management?A fleet management system is formed of two parts:Fleet management hardwareFleet management softwareFleet management hardware consists of tracking devices that send data back to a software program or data center via the internet. This is how vehicle tracking devices form part of the Internet of Things.Vehicle tracking devices either sit on the dashboard, or plug into the vehicle diagnostics. They then deliver data through the cellular network to your fleet management software, which can be hosted on your computer or cell phone.Fleet management software is usually hosted on drivers’ cell phones, and allows them to input data regarding job completions, vehicle faults, and driving hours.You’ll be able to see all of this data on a central interface, which you’ll usually be able to access using your own cell phone, a tablet, and/or a computer. Indeed, it’s this interface that’ll enable you to make smarter business decisions when it comes to managing your fleet.Find out how fleet management and the Internet of Things work together in the video below: Compare prices and speak to leading fleet management suppliers Get free quotes What are the Benefits of Fleet Management’s Connection to the IoT?Fleet management is all about reaping that ROI. But how can its devices and software help you save money and increase your profits?Gain Data InsightData collected from vehicle trackers and engine diagnostics will help you to make smarter business decisions. The data may reveal that you can reduce fuel costs by training your employees to drive more efficiently, reduce vehicle idle time, or you may even find out your drivers aren’t taking the most direct routes.Improve ProductivityFleet management software will give you the means to input, log, and keep track of jobs or deliveries. Drivers can record when they’ve finished a job, look up job details, and even generate instant quotes or invoices.Any inputted information is relayed back to your central management system via cellular connection. Combined with GPS data, you’ll have all the information you need to assign new jobs, move employees around, and run your business more efficiently day to day.Keep on Top of MaintenanceFleet management devices will continuously collect usage and run-time data from your vehicles, allowing you to set limits and alerts for maintenance checks. For example, you could set up alerts to check tyres and brake discs, or even have the entire vehicle serviced.This proactive approach to vehicle maintenance will lower the chances of you having to pay out extortionate amounts of money to fix issues which may have got out of hand. Eligible for Fleet Management System Quotes? Click your state below to find out AK AL AR AZ CA CO CT DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC ND NE NH NJ NM NV NY OH OK OR PA RI SC SD TN TX UT VA VT WA WI WV WY Active Versus Passive Data CollectionThanks to the Internet of Things, the majority of vehicle tracking data collection is active. This means data is collected in real-time and sent automatically via the internet to your data collection center (your software).This near-instant process makes it easier for you for you to better manage your fleet and make informed business decisions based on what's happening right now. Without the IoT, businesses would have to rely on passive data collection – that’s when data is recorded, saved on a device, then uploaded to a computer.Although passive data collection is useful, you’ll find you’re always one step behind, rather than ahead of the game. Passive vehicle tracking is more suited to smaller companies, where the only data needed is a record of where a vehicle has travelled over a period of time.The only real positive to a passive vehicle tracking system is that you don’t have to pay a monthly fee to use the cellular network. Should You Invest in Fleet Management?A fleet management system really is the perfect solution for any company looking to benefit from a bird’s eye view of its fleet.GPS tracking devices and driver behavior sensors are ideal for all companies, while larger scale systems can include dash cams, rear view cameras, and digital thermometers.With improved customer service, improved productivity, and improved routing at the top of the achievement list, you can see why many businesses start to see a return on investment fairly swiftly.As it happens, it’s compulsory that all commercial vehicles are fitted with an Electronic Logging Device (ELD). This device collects data on driver hours, ensuring that your drivers don’t surpass the maximum amount of time they’re allowed to spend behind the wheel.Most fleet management systems are ELD compliant, which means you don’t need to worry about purchasing a separate device. Thanks to the IoT, an ELD automatically logs and sends data back to your software, which makes it super-easy for you to adhere to the hours of service (HOS) regulations and stay free of fines. .Essentially, the ELD regulation means that fleet owners have no choice but to invest in some kind of fleet management system, whether it be a device that solely tracks working hours, or a more sophisticated system.Industries that benefit from fleet management systemsBelow, we’ve provided you with a case study that showcases just how tailored to an industry a fleet management system can be. FreshDirect’s Fleet Management StoryFreshDirect is a grocery delivery company that needed a fleet management system to help it meet customer demands, monitor driver behavior, and adhere to temperature control regulations.The business asked Verizon to help it meet customer service standards, increase driver safety, and ensure the correct transportation of food.Verizon recommended an innovative IoT solution that included a driver behaviour sensor and a digital thermometer. Both these devices send data back to a central data hub via the cellular network.Thanks to this data, FreshDirect could see where it could improve driver behavior, with the result being a 98% decrease in unsafe driving.And thanks to the thermometer, the company was able to receive frequent temperature readings from its trucks, and even manage trailer temperature in real-time to ensure food is always stored in the correct condition. Which Vehicle Tracking Devices Connect to the IoT?All of the devices below can form part of a fleet management system. They connect to the Internet of Things via the cellular network, then send information back to a data center (your fleet management software). GPS trackers Most fleet management GPS trackers plug directly into the engine management system. These devices will track your drivers’ locations, send you geofence alerts if a vehicle enters or leaves a certain area, and let you view historical locations. On board cameras Thanks to the Internet of Things, dash cam technology is advancing. You can now invest in on board cameras that live stream footage from the cab of your vehicle back to a central viewing platform. This means you can ensure that your field staff are driving safely and efficiently at all times, and be safe in the knowledge that, if a road incident happens, there’ll be footage to prove who’s at fault. Thermostats Thermostats are legally required if you’re transporting temperature-controlled goods, such as food. You can buy digital thermometers that integrate with your fleet management system, sending data via the internet to your software at programmed intervals. Driver behavior sensors Driver behavior sensors monitor things like braking force, acceleration, and speed, then score your drivers based on their performance. You can use this data to work out where someone could drive more efficiently (saving fuel), and how they could drive safer. Cell phones Your cell phone also forms part of a fleet management system. Your staff can download the fleet management app, and use it to record things like job completion and fuel expenditure. View all of your fleet data on the app, and use it to make informed decisions. The Best Fleet Management SystemsWhich suppliers deliver the best fleet management systems? Discover the top three below.1. AMSBest for small fleets AMS supplies innovative fleet management devices that are capable of collecting heaps of vehicle data. This data is sent back via the internet to AMS’ web portal, which you can then use to better manage your fleet. The great thing about AMS is that it’s a contract-free service – ideal for small businesses – and you can install all the hardware yourself. Benefits✔ Collect data on harsh driving✔ Connects to a temperature probe✔ Measures vehicle idle time✔ Can tell when a driver goes above the speed limit2. Verizon ConnectBest for medium-sized fleets Verizon has been a major player in the fleet management sector for over 15 years. It’s developed some smart products that will provide you with a full overview of your fleet, including the whereabouts of your vehicles and driver performance data. Verizon’s fleet management software is intuitive to use, and displays all the data you need to make smarter fleet decisions. Read our full Verizon Connect review Benefits✔ Increase productivity✔ Stay on top of vehicle maintenance✔ Keep tabs on your field staff✔ Analyze fleet performance3. OmnitracsBest for large fleets Omnitracs provides a sophisticated all-in-one solution that covers route planning, navigation, dispatch, and analytics. This fully integrated solution aims to simplify the communication between you and your field team, and centralize all of your fleet data so it's easier to spot trends and make improvements to the way in which you run your fleet. Read our full Omnitracs review Benefits✔ All-in-one solution✔ Good for trucking companies✔ Covers driver management Compare prices from leading fleet management suppliers Get free quotes Expert VerdictThere’s no doubt that the Internet of Things and fleet management are heavily intertwined. Fleet management wouldn’t be half as effective, and the range of solutions would be nowhere near as innovative, without internet connectivity.The wonderful invention of the internet has opened up a whole world of data sharing potential. In an age where we rely heavily on stats and patterns to make decisions, fleet management and the Internet of Things is and will continue to be relied upon for informative decision making.If you believe that your business would benefit from a fleet management system, why not request some quotes to compare? Fill in our form with a few details about your requirements, and our system will match you with the best suppliers. Aimee Bradshaw Writer and researcher Aimee is Expert Market’s resident telephone systems and point of sale go-to. If she’s not writing about business products, you’ll find her daydreaming about dog walking on Dorset beaches.