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Inspiration to
smart transports

News, trends and experiences within IT and transports from Vehco

Trend 1: Leading transportation companies claims a Fleet Management System is crucial for success

Transport strategy

Most medium- and large sized transportation companies now see FMS as natural to operate efficiently. There are several reasons for this. Firstly, telematics solutions have evolved into an important competitive advantage. Having not yet invested in an FMS can lead to lost revenue or higher operating costs than competitors. Another factor that contributes to the trend is the continued focus on the environmental issue - reducing unnecessary negative environmental impact. Those companies who today use FMS have also begun to realize the importance of choosing the right system. As the number of solutions has grown, it has become more important to choose a system that fits the business based on functional requirements, usability, scalability, OEM-brand independence, openness and system integration capabilities. A FMS has become a natural part of many transport companies’ system environment because it makes a big difference and usually provides a quick return on investment. The question is usually not if you have an FMS, the question is which system can give your company the biggest competitive advantage. The companies that have chosen the right system, and successfully integrated it with their business processes and other systems, often show the best profitability.


FMS seen as standard

During the years 2016 and 2017, the FMS industry grew in both market value and number of vehicles equipped with FMS. And the industry's value, according to experts also continue to increase the coming years. According to the research company Berg Insight, the FMS penetration rate, i.e. the proportion of vehicles with FMS, will doubles until 2021. The more vehicles included in the fleet, the greater the proportion of companies today using FMS. For companies with medium sized fleets (50-100 vehicles) and companies with large fleets (> 100 vehicles), the majority use FMS today.


This increase indicates that more companies begin to understand the meaning of implementing FMS in their operations. The companies using FMS today use the positive benefits to increase their competitive advantages. For those who do not already have a system, it becomes important to investigate whether it's time to invest in an FMS.


" For companies of our size with about 400 vehicles, today it is the standard to have an FMS, at least for order handling. However, the temperature monitoring we use in our refrigerated transports is not standard, in that case we are ahead of the competition. "

Vehco customer in Sweden

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