How to Build Custom Fleet Management Software in 10 Steps

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As long as companies need to transport goods from point A to point B, the demand for commercial transportation services will remain high. Industry professionals understand the challenges of keeping up with ever-changing market trends, new legislation, and rising costs. According to Verizon’s 2024 Fleet Technology Trends Report, inflation has intensified these cost pressures, impacting 79% of US fleet businesses in 2024, up from 44% in 2021.

Fortunately, advanced tools and technologies can help businesses manage risks, reduce costs, and achieve sustainable growth in key areas. Particularly, developing fleet management software can provide a significant competitive advantage. G2 portal reports that 45% of surveyed US fleet managers and executives achieved a positive ROI within 11 months of implementing a tailored fleet management platform .

Want to build a fleet management solution ? In this article, our logistics technology experts will share their professional insights, backed by deep supply chain industry knowledge, to provide you with all the necessary information. Let’s dive in!

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The Benefits of a Fleet Management System Development

Managing a fleet involves many challenges, so many companies choose to streamline the process through automation. If you’re thinking about investing in fleet management, there are 6 ways this solution can benefit your business.

1. Cost savings

By providing valuable insights into fleet health, tools like an automated fleet tracking system and repair notifications can help you reduce overall expenses. Management software reports detail the costs associated with each vehicle, enabling management to make necessary improvements or changes.

2. Optimized fuel consumption

Fleet managers have long struggled with inefficient fuel use, which often overshoots the budget. A fleet management system pinpoints excessive idling and unnecessary stops, so managers can reduce these inefficiencies. Additionally, it can help train drivers to follow patterns that minimize fuel consumption.

3. Better customer satisfaction

Poor delivery service often drives customers away from a company. A fleet management system improves routing, provides more accurate estimated arrival times (ETAs), and ensures error-free deliveries. Moreover, with real-time updates on traffic and transit delays, fleet managers can prioritize deliveries for high-value customers.

4. Improved driver performance

Thorough data analysis can lead to better driver performance, as a fleet management system monitors driving styles, routes, engine idling time, and instances of harsh acceleration. Also, it can help plan optimal routes to avoid traffic jams.

5. Fraud prevention

Driver fraud, such as false claims of lost fuel cards, is a common issue in the fleet industry. A fleet management system can address this problem. AI-powered automation software quickly detects fraud and alerts fleet managers about the vehicle’s current status to help them determine if a fuel card loss claim is legitimate or false.

6. Preventive maintenance

With AI functionality, fleet management apps are even more effective for predictive maintenance. The system gathers and analyzes data on repairs and scheduled services, predicting when a specific spare part will need repair or replacement and notifying you in advance. Maintenance schedules can be based on mileage, usage time and load, driving behavior, and road conditions.

Types of Fleet Management Software

Before considering fleet management software development , you need to know all three available application types. And spoiler alert: you can mix them to get a perfect match that will meet all your business needs!

GPS fleet tracking apps

This is probably the first option that comes to mind when considering enhancing fleet performance. This type of fleet management application offers everything a logistics company needs, for example, it can:

Video recording apps

Apart from filming UFOs or any other paranormal activity, a built-in camera plays a pivotal role in fleet management. These systems:

Maintenance management apps

Keeping your fleet in top condition requires more than just regular check-ups. Advanced maintenance management systems can revolutionize how you handle vehicle upkeep because they:

Route optimization apps

If you think getting from A to B is a straight shot, think again. Route optimization systems are the secret to making sure your drivers always take the best path. These systems:

Fuel management apps

For those concerned about environmental pollution, their tight budget, or both — fuel consumption optimization seems like a great option, because these apps can:

What FMS to Build: Ready-Made or Custom One

When it comes to FMS software, you have two primary options. You can opt for pre-built FMS solutions from various providers or collaborate with a software company to build a fleet management solution from scratch. We’ll walk you through the pros and cons of both types of fleet management software.

Advantages and Disadvantages of a Ready-Made FMS

In most cases, a Fleet Management System comprises both hardware and software components. Core functionalities typically involve route optimization, driver profiles, and safety measures. Also, you may require integrating dashcams, setting up geofencing parameters, and implementing employee time management for streamlined payroll processing.

Off-the-shelf FMS options are typically more suitable for small- and medium-sized logistics businesses that can adapt their processes to existing solutions. They offer quick implementation, handle straightforward processes, and fit within budget constraints pretty well.

Advantages of a ready-made FMS

Opting for a ready-made fleet management solution offers several advantages:

Disadvantages of a ready-made FMS

While ready-made fleet management solutions offer several advantages, they also come with limitations:

Advantages and Disadvantages of Building a Custom FMS

Many logistics software development companies offer off-the-shelf solutions suitable for general-purpose operations. However, if you have an in-depth understanding of every aspect of your business and recognize the complexity of your operations, you may need more. In such cases, developing custom fleet management software is the optimal solution.

A custom FMS is tailored to address your needs and align with unique business processes. With this approach, there’s no need to overhaul your existing working routines, methods, or strategies to accommodate a new management system. On the contrary, this solution will amplify the advantages of your well-established processes.

Advantages of a custom FMS

Here are some of the major benefits of custom fleet tracking and maintenance software development you should keep in mind:

The benefits of building custom fleet management and tracking solution

Disadvantages of a сustom FMS

While there are a range of advantages, it’s essential to carefully consider the potential of a custom vehicle maintenance platform :

Ready-Made VS Custom Fleet Management Software Comparison

Feature

Ready-Made FMS

Custom FMS

Longer development and implementation time

Highly customizable to meet specific needs and optimize workflows

Constant updates provided by the vendor

Updates require coordination with the development team but offer greater control over features and timing

It may require switching to a different plan as your fleet grows

Easily scalable to accommodate a growing fleet without changing core functionalities

The vendor manages security

Requires careful security planning and implementation, but offers greater control over security protocols

Support availability varies by vendor

Customizable support tailored to your specific needs (may incur additional costs)

Designed for easy integration with other systems

May require custom development for integration with existing systems, but ensures seamless integration for optimal data flow

Suitable for general purposes

Ideal for businesses with complex needs or unique workflows, leading to increased efficiency and cost savings

Must-Have Features of Fleet Management Systems

Any off-the-shelf software provides solutions to the most common issues for logistic companies rather than fully covering their specific needs. However, to create a fleet management app, you must include some of the peculiar vital features to make it one.

So, let’s review some of the applications’ fundamental and pro functions that would notably enhance the enterprise’s fleet tracking:

For management

Managers can maintain a firm grip on fleet operations by continuously monitoring vital information about their staff, vehicles, and equipment.

Dispatching, scheduling, and routing

The dispatching feature involves selecting the most suitable vehicle and driver for a given task. Dispatchers can make these decisions based on vehicle and driver availability, location, vehicle capacity, and priority.

Scheduling includes setting regular maintenance schedules, assigning specific routes for drivers, or planning shifts and work hours. It provides tools for automating recurring tasks and sending reminders to drivers and maintenance personnel. Effective scheduling ensures that resources are utilized optimally and that vehicle downtime is minimized.

The FMS uses advanced algorithms to calculate optimal routes, considering traffic congestion, road closures, weather conditions, and vehicle-specific limitations (weight, size, etc). This feature helps reduce fuel consumption, lower operating costs, and improve on-time deliveries.

Fuel management

Is it really worth it if you want to develop a fleet maintenance app without an automated fuel management feature? Indeed, this function is a must-have for any vehicle tracking solution. With its help, your company can automatically measure fleet fuel levels, calculate the frequency of draining and refueling, and notify you about unusual fuel consumption. Hence, thanks to the IoT tracking solutions, you receive real-time fleet-related updates that will help you save on petrol.

Work order management

Work order management provides a structured process for creating, assigning, and tracking tasks and maintenance activities. It integrates various operational workflows, including purchase orders, equipment inventory, and customer billing tracking. This feature offers a powerful control center that enables you to manage fleet operations more efficiently.

VIN Lookup

This information facilitates the accurate identification of vehicles and aids in replacing assets when necessary, especially as the fleet expands.

Inventory management

Inventory management ensures you always have crucial components by providing stock-level alerts notifying you when it’s time to reorder. This feature simplifies record-keeping by matching invoices with purchase orders. Seamless supplier integration streamlines reordering for efficient and cost-effective fleet maintenance.

Fleet maintenance

To prolong vehicles’ lifespan, you must constantly ensure they are in proper working conditions. And fleet tracking applications are here to help! This function can gather and analyze diagnostics data to alert about preventive repairs and modifications. This way, companies can avoid costly repairing and replacements since their remaining fleet will serve for a decent amount of time.

Data protection

Since all the information is transmitted through the satellite, the connection can be intercepted by hackers if it’s not adequately protected. And that means cybercriminals can basically hijack the vehicle, control its engine and brakes, and access other remaining information. So, while building a fleet management app, consider implementing anti-hacking tools. That will help make your software extremely secure and robust against cyber threats.

For drivers

This module is crucial in ensuring driver safety, compliance with regulations, and overall operational efficiency.

Routing

The routing feature focuses on creating the most efficient and time-effective paths for drivers from their current location to their designated destinations. This feature considers real-time traffic conditions, road closures, and vehicle-specific limitations to ensure timely deliveries and minimize fuel consumption.

GPS tracking

A feature without which you can hardly call it fleet management software. Global positioning system allows fleet managers to monitor vehicles’ location, routes, stops, speed and achieve other crucial information. GPS tracking devices come in handy with fleet mileage tracking, which helps decrease fuel consumption and increase vehicle maintenance. They also manage to estimate trips’ duration, optimize routes and make delivery services more transparent, enhancing customer satisfaction.

Incident reporting

You can use in-vehicle AI systems to detect incidents, capture essential video footage, and collect critical details such as time and location. They can seamlessly generate incident reports, facilitating dependable claim resolution. The gathered data and documentation are key in minimizing injury costs, mitigating potential liability, and countering baseless claims.

Inspection management

Drivers use a custom fleet tracking application or web browser to record inspection results, ensuring that every aspect of the vehicle’s condition is thoroughly checked. Fleet managers can review the inspection reports and schedule necessary repairs promptly. Once the repairs are completed, the driver can mark the issue as resolved, indicating that the vehicle is now safe and compliant for the road.

What Modules Are Used for Efficient Fleet Management

These critical components work in harmony to enhance the overall functionality and efficiency of your fleet management software:

Telematics

Telematics is a pivotal software component that continuously records a vehicle’s precise location and speed while in transit. It combines diagnostic sensors with GPS navigation to provide real-time data.

Telematics systems offer advanced insights, such as tailgating alerts and detailed turning and braking behavior metrics. These valuable data points contribute to safer driving and better operational efficiency.

Maintenance planning

The software automates vehicle maintenance schedules and generates service alerts. This way, you prevent unexpected breakdowns and address maintenance needs proactively. Ensure the compliance and longevity of your fleet with maintenance planning.

Parts management and warranty tracking

Efficient parts management is vital, especially for large fleets. The software provides an automated and streamlined approach to tracking replacement parts and their associated warranties. The software simplifies what would otherwise be a labor-intensive process, reducing downtime and operational costs.

10 Steps to Build Fleet Management Software

Now that you understand the benefits and features a custom-made FMS can offer, let’s explore the development workflow. Creating a fleet management app demands careful planning and meticulous execution. Here’s a step-by-step guide to the process:

1. Identifying core functionalities

System development starts by choosing the key features needed for fleet management software. These may include tracking and monitoring modules, maintenance schedules, analytics, and other functionalities tailored to your business needs. The software should also be capable of integrating with your other systems like ERP or CRM for a seamless experience.

If you are unsure about the functionality you need, you can present a minimum viable product (MVP) of the fleet management software to end-users, receive valuable feedback, and then implement the necessary changes.

2. Determining software users

Then, your development team identifies who will use the software and tries to understand their needs. Typical users include dispatchers, drivers, fleet managers, maintenance staff, and administrators.

Dispatchers require tools for route planning and task assignment, drivers need user-friendly interfaces for navigation and logging hours, fleet managers look for comprehensive dashboards, and maintenance staff need alerts and schedules for vehicle servicing.

3. Choosing a technology stack

Selecting the right technology stack is very important to ensure good performance, scalability, and maintainability.

For the front end, consider using technologies like React , Angular, or Vue.js to create a responsive and interactive user interface. For the backend, you might choose Node.js , Django , or Ruby on Rails, which effectively handle business logic and database interactions.

4. Designing system architecture

After the preparation stage, the development team defines how the different components of the software will interact. They choose an architecture pattern, such as monolithic or microservices, and plan the data flow, API design, and strategies for scalability and fault tolerance.

5. Developing UI/UX design

Good performance is not everything; the look of the system will directly impact user adoption of the new technology. The design phase focuses on creating an intuitive and user-friendly interface and developing the wireframes, prototypes, and mockups to visualize the layout and user flow.

6. Planning security measures

Work with your cybersecurity specialists to create fleet management software with robust security algorithms and protect sensitive data like vehicle locations and driver information. Consider using authentication and authorization mechanisms, data encryption, and regulation compliance. Additionally, conduct regular security audits and updates to protect against threats.

7. Development

During development, software engineers code the front end and back end, integrate components, and implement the identified features. You should opt for an iterative approach, continually testing and receiving feedback from your users to ensure the software meets their requirements.

8. Testing

QA specialists conduct extensive testing to ensure the software is reliable and bug-free. The process includes unit tests, integration tests, system tests, and user acceptance tests. Also, think about automated testing tools that can streamline the process and ensure thorough coverage.

9. Deployment

Deployment means setting up the production environment, configuring servers, and deploying the final custom fleet maintenance solution. Make sure your team uses continuous integration and continuous deployment (CI/CD) pipelines to automate the deployment process, allowing for smooth and efficient updates.

10. Maintenance

Ongoing maintenance keeps the software functional and up-to-date. You should monitor the system for issues, apply security patches, update features based on user feedback, and adapt to evolving business needs. Regular maintenance helps prevent downtime and keeps the software valuable for fleet management.

Fleet Management Software Cost

Developing a custom fleet management solution typically asks for a significant initial investment, starting around US$50,000 for small to medium-sized enterprises (SMEs). However, the total cost varies based on factors such as the complexity of the application, team size, technology choices, and specific features needed. This investment also covers expenses for coding, wireframing, design, and ongoing system updates.

For a personalized cost estimate, reach out to Inoxoft to discuss your fleet management software project.

Inoxoft Provides Custom Software Development for Logistics

At Inoxoft we understand that effective fleet management is more than just keeping records. It’s about connecting managers, drivers, owners, vendors, admins, and technicians to minimize downtime and maximize profits.

As a leading fleet maintenance software development company, we have established a strong reputation in retail, trucking services, and warehouse management. We have also successfully tackled numerous challenges in these sectors, gaining in-depth knowledge of each solution, ranging from simple ERP systems to complex fleet control systems.

Our expert development teams use cutting-edge technologies such as AI, ML, and Blockchain to empower businesses in refining their supply chain tracking , simplifying budgeting and production planning, and optimizing warehouse and inventory management to peak efficiency.

Discover more by checking out our case studies for a deeper understanding of our capabilities.

Wrapping Up

Better routes, fuel cost savings, driver performance tracking, and preparation for smart mobility are just a few benefits that fleet software offers. If you want to stay competitive, begin developing your ideal fleet management system now, as postponing this decision could hinder your future success.

Logistics app development is one of our primary focuses and we are eager to assist you in creating the optimal solution for your enterprise. Partnering with Inoxoft you can expect proactive communication, detailed project management, and adherence to industry best practices, guaranteeing a product that aligns perfectly with your business goals.

Feel free to contact us to discover how we can improve your fleet’s efficiency and profitability!

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