With the increasing number of outsourcing logistics, logistics services provider (LSP) has become an important element in the market who offers a wide range of services to customers. As an LSP, transport can be seen as one of the most important services which require the LSP to have efficient fleet management to establish a high level of customer service. Fleet Management, is a term of management of a wide range of transportation tools including cars, vans, trucks, trailers and another way of transportation like aviation, ships as well as rail cars. It is a function of overseeing, coordinates and facilitates various transport and transport-related activities, not limited in planning, supervision and control of fleet operations based on constraints, but also including operational activities like vehicle financing, maintenance, driver management, speed management, fuel management and health and safety management etc. With the use of fleet management system, the companies can reduce and minimize the overall costs by full utilization of resources such as vehicles, fuel, spare parts etc., and reduce the risk associated with vehicle investment while increasing quality of service to the customers. Fleet management can be divided into several aspects range from identifying needs, acquisition process, insurance for the vehicles, vehicle leasing (internal & external), vehicle management including fleet management systems and vehicle maintenance and upkeep to vehicle life-cycle management and health, safety & security which contains comply with legislature and security requirements as well as driver management. Due to the rapid development on the technology in sensors, communication and networking technologies, as well as a geographic information system, states the Fleet Management Systems (FMS) has evolved into complete enterprise management tools and there is a trend of turning this into planning tools. Currently, the FMS is going toward the direction of real-time or dynamic management focusing on current fleet locations and prediction of planned tasks. The autonomous (self- driving) vehicles have been taken into consideration and a possible structure called smart cyber fleet a management system which includes cyber vehicles drivers with cyber interfaces.
Fleet management when it helps reduce environmental impacts through a combination of cleaner vehicles and fuels, fuel-efficient operation and driving; and by reducing the amount of road traffic it generates is called sustainable fleet management. As such the fleet minimizes fuel and vehicle costs and improves the safety and the welfare of employees while reducing its exposure to the problems of congestion. The strategy will also help you to meet the requirements of other policies within your organization; for example, business efficiency, health and safety, equalities and inclusion, and corporate social responsibility (CSR). Now the businesses are measuring and reporting the carbon emissions, including those arising from their transport activity known as Scope 3 emissions.