The difference between a transport management system and a fleet management system is that:
According to Fynd, the transportation and logistics segment takes up 35% of the global fleet market. Technology is playing a huge role in this growth, and as someone in the industry, you must know which technologies to invest in to stay ahead of your competitors.
Today we compare a fleet management system to a transport management system so you know which one you need for your business.
Yes, there is a difference between transport management and fleet management. Transport management involves arranging the transfer of goods, selecting efficient routes, selecting the best carriers, and managing inventory. Fleet management is about ensuring the vehicles are ready for the road and monitoring things like compliance, fuel expenses, and driver performance.
Here’s a table comparing the two:
A transport management system mainly focuses on the following:
It’s all about moving goods, choosing a mode of transport, and making sure they get to their destinations on time and in good condition.
Here’s a detailed breakdown.
Transport management software gives you full visibility of your cargo, whether by road, air, or sea. The system gives you real-time updates on where your cargo is and helps you align with your suppliers and customers.
Carrier selection refers to choosing the most suitable transport service provider (a carrier) for moving your goods from one point to another. Several factors go into deciding which carrier to go with, like:
Choosing the wrong partner to carry your goods may result in missed deadlines, product damage, and unsatisfied customers.
Load planning refers to making the most out of the available space in a container while adhering to the weight and height restrictions. This is so you can get more things shipped out with fewer vehicles, making your business more efficient.
But it's not as easy as just stuffing everything into the back of a truck and calling it a day. You need to ensure the goods are packed in a way that won’t interfere with the vehicle’s stability while it’s moving & making turns, and that they don’t move too much. You must also ensure that you group similar items.
A transport management system helps with the load planning process, and determines the route each vehicle should take, which brings us to our next point.
After planning the load, you need to choose the most efficient route so you save time and fuel. A transport management system comes with route optimisation software, technology that factors in things like traffic patterns, driver availability, road conditions, and which stops are more urgent.
Route planning also helps with the order in which the goods should be placed. For example, you can place the items for the first few stops closer to the door so they’re easy to reach, making the offloading process quicker.
Freight audit and payment refers to reviewing freight invoices to ensure there are no billing errors so you don’t get overcharged. Transport management software helps you with this by calculating the costs and identifying potential errors. This results in fewer manual entries and discrepancies, saving you a bunch of time.
A fleet management system mainly focuses on the vehicles that transport these goods. It’s about:
A fleet management system ensures the vehicles are safe for use, well-maintained, and cost less to be on the road. It also helps with scheduling the right vehicles and drivers for the job.
Here’s what we mean.
Vehicle upkeep is a very important factor when it comes to running a fleet, and it’s often overlooked. How will your goods reach their destinations on time if the vehicles constantly break down? A fleet management system helps with this by offering vehicle maintenance software. The software helps you detect vehicle faults more quickly, so you can avoid unexpected breakdowns or accidents caused by mechanical failures.
A fleet management system also helps ensure all vehicles adhere to their recommended service dates by giving you reminders and allowing you to import all service-related documents into the software. This way, you’ll schedule trips according to the vehicles that’ll be available on that day.
Fuel costs are forever fluctuating, which makes sticking to the budget difficult. Fuel is also a major expense when it comes to running a fleet, so you need a strategy to reduce costs. A fleet management system helps you with this by giving you fuel management software. Having this helps you get accurate fuel consumption reports so you can manage the cost better and see where fuel is being wasted.
Driver behaviour also plays a big role in fleet operations. You must keep an eye on how your drivers act on the road. Aggressive driving can lead to accidents, which may result in injuries, fatalities, cargo damage, and delays. To avoid all that, you can use a fleet management system, which comes with telematics technology that’ll show you how drivers behave. (For example, you’ll be able to see if drivers are speeding while making deliveries.)
Through a fleet management system, you can also get cameras installed in the vehicles so you can see everything that happens. Some fleet cameras also have AI technology that can identify driver distractions and detect things like blind spots. This enhances driver awareness, helping them avoid accidents. The cameras also help you ensure the cargo is safe.
A fleet management system also helps you locate your vehicles at any time. If a driver is at one spot for too long, you can call to check why. You'll also see if drivers are sticking to planned routes and ensure they’re safe. GPS also helps you give your customers accurate delivery time estimates.
As a fleet manager, you need to ensure your drivers are following the rules and your vehicles are up to industry standards, or else you face heavy penalties. A fleet management system helps you to enforce compliance by helping you monitor drivers and vehicles.
It also digitises driver logs so you can ensure they’re not driving more hours in a day than they should. It helps you ensure vehicles are roadworthy. And it also helps you keep a close eye on carbon emissions, so you adhere to environmental standards.
Like a transport management system, a fleet management system also comes with route optimisation software. This is where the two systems overlap because fleet managers must also plan their routes according to vehicle and driver availability to save fuel costs and live up to customer expectations.
Both fleet management and transport systems are important for the logistics industry, and the one you choose depends on your role in the supply chain. If your role mainly focuses on the goods and dispatch, then a transport management system is for you. If you manage vehicles and drivers, then a fleet management system is what you need.
As a business owner, the best option is to invest in both systems and integrate them so you can have a holistic view of operations.
You can get combined software for fleet and transport management at Cartrack. We’ve got an advanced fleet management system that has features you’d also find in a transport management system, like route optimisation software. Our platform allows you to integrate your other systems, so everything aligns.
If you want to find out more about how we bridge the gap between fleet management and transport management, you can contact us and speak to a fleet consultant.
Learn the difference between a transport management system and a fleet management system. Find out which one you need for your business.
