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Why Small Businesses Don’t Need Managed Services For Fleet Tracking

It might be tempting to use managed services to handle your fleet tracking, but it isn’t necessary. Options exist that can let you handle your fleet tracking and put the data you receive into action. While it may seem like a lot to implement and handle, it doesn’t have to be. A fleet tracking service should be simple to use and beneficial to your fleet. Why would you want to rely on a managed service to handle your fleet?

What is a Managed Service?

You may see a managed service called a managed service provider. These providers are hired to manage the technological solutions used by a business. You can think of it as outsourcing your fleet’s data management. The managed service provider will handle all the interpretation and implementation to make decisions about your fleet. A managed service provider’s goal is to manage daily operations of specialized applications (like your fleet tracking software) to improve operations and cut expenses for the company that hires them.

How Managed Services Handle Fleet Tracking

Fleet tracking is a way that a fleet manager stays on top of their fleet’s daily operations. When a manager doesn’t want to interpret the data compiled on their own, they may hire a managed services provider to handle the data. You may see this more in larger fleets because the amount of data can be overwhelming, but small businesses are even turning to this type of tracking management, which is not necessary.

  • The managed services provider reviews KPI reports – The data collected from your fleet tracking software and devices is compiled into a report and sent to your managed services provider.
  • The managed services provider analyzes your fleet data – The reports are then analyzed by your managed services provider. They will compile their thoughts, ideas, and suggestions based on the information provided to them from the reports.
  • The managed services provider consults with fleet management – The thoughts, ideas, and suggestions are then passed on to the fleet management team in the form of recommendations. These recommendations will use the data collected as a basis and possibly an outlook on how the changes can influence the data.

If you have implemented the managed services provider’s recommendations, and they interpreted your data correctly, you should see an efficiency increase. The process may not be an instant gratification situation and may take several months to obtain optimal results.

While services may vary, the general offerings made by these providers include:

  • Interpretation of driver safety
  • Idling costs with recommendations
  • Device communication and recommendations
  • Driver productivity analysis with recommendations
  • Compliance violations and risk assessments
  • Maintenance analysis and recommendations

How Much Do Managed Services Providers Cost?

You might have noticed that finding pricing for managed services providers online is hidden behind the “get a quote” button. As a fleet manager, you aren’t the first to notice this. Why do they do this?

The truth is that most managed services provider cost about the same, but each one may cater to a different sized fleet or industry entirely. Overall, you might be looking at $100 to $150 per vehicle per month on the low end and as high as $250 per vehicle per month. If you are a small fleet manager, you may only have ten vehicles in your fleet. This could cost you up to $2500 a month just in managed services.

Will there be savings after you pay the managed services provider?

Managed Services Providers – Pros and Cons

There are pros and cons to any decision you make regarding your fleet – there is no perfect answer for anything. We can identify the struggles you encounter as a fleet manager. Let’s look at the pros and cons of using a managed services provider.

The Pros

If you are thinking about using a managed services provider to handle the data compiled from your fleet tracking device, here are the pros you can expect:

  • Visible changes – If the provider is effective, you should see changes and gain insight from their monitoring. The goal is to prevent problems from occurring, which is what you would be paying the provider for. You don’t want to have to fix problems or hire someone else to fix them.
  • Tech included – The data collecting software and fleet tracking is included in your pricing. You won’t be required to purchase additional software to integrate with the service provider.
  • Expertise – You will be paying someone who is an expert in the managed services industry. They should also specialize in the management of business fleets. Your provider should have the ability to effectively handle all of the data that will be thrown at them.
  • Data restoration – If you have never thought about what you would do if all your technical information were lost within your business, it may be a sign that you need to talk to an IT professional or a managed services provider. These providers create a disaster recovery plan for the data they handle.

The Cons

With the good must come the bad. To decide if a managed services provider is right for your small business, you have to weigh the good with the bad.

  • Presence – Most managed services providers are not a local company that just comes to the office when you need help. You are likely to use conference calls to discuss data and recommendations. You may never meet the person handling your data in person.
  • Cost – Depending on the company, you may be looking at implementation fees, monthly fees, device fees, etc. All of these costs, especially upfront, can be hard for a small business to accommodate.
  • Scope – If you choose to use unsupported software instead of one supported by the provider, they may not be able to help you.

What is a Small Business To Do?

The decision to use a managed services provider is not one that can be made lightly, especially with a small business. Many of these managed services providers are built with large fleet management in mind. Before jumping into the deep end of the technology pool, it might be worth looking at other solutions that may better suit small fleets.

Fleetr for Fleet Management Services

Fleet management services don’t have to be complicated. You also don’t have to outsource your data for interpretation and recommendations on how to make your fleet more efficient. There is an option you may not have thought of – You!

Fleetr changes the way that you look at managing your small fleet. In fact, Fleetr was made with smaller fleets in mind. What makes Fleetr different from the rest? Fleetr is affordable and flexible and provides you with the same information a managed services provider would provide you, at your fingertips.

Why Fleetr?

Fleetr is a month-to-month subscription with no contractual obligation. For $12.99 per month per vehicle, you can track your vehicle data and use reports created specifically for your fleet. Fleetr wants your fleet to be efficient and provides you with recommendations from the data it compiles – cutting out the middle man.

Are you interested in saving $100 to $200 per month in fuel costs alone? Fleetr’s efficiency recommendations can help!

Fleetr also provides recommendations on how to make your drivers more efficient and productive. Monitoring idle times and driving habits, you can expect that your reports will indicate which drivers are doing a great job and which ones you need to worry about. Push notifications allow you to be alerted immediately if something dangerous or important occurs with your fleet.

Fleetr for Small Business Fleets

Now that you know what a managed services provider is and how they can (or can’t) benefit your small business think about what Fleetr offers. For a low monthly price, you can be in charge of your fleet’s data and implement the changes required to become more efficient and safe. You know your fleet and what works. A managed services provider only knows the data that they see.

Fleetr is the personal approach to managing your small business fleet’s data and implementing changes. Changes that you can trust and be confident in. The best part, if you aren’t completely satisfied with Fleetr and decide that you need someone else to handle your fleet tracking, just send back your fleet tracking devices. There are no hidden fees or penalties with Fleetr – what you see is what you get, and what you get is greatness!

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