Fleet Management Software – What are the Cost Components?

August 17, 2023

Fleet management is a difficult task that requires constant monitoring and review. From keeping vehicle and driver records to managing routes, the entire process can be overwhelming. While it is next to impossible to manually manage all tasks, fleet management software is becoming increasingly popular and can automate up to 95% of your company’s logistics operations.

For fleet managers, the workload can be challenging. Fleet managers must track, monitor, and optimize various aspects of their vehicle operations, and the best way to do this is using software typically designed for vehicle tracking, route planning, maintenance scheduling, driver performance analysis, fuel management, and more. We have prepared a guide that will walk you through the component requirements of fleet management software, its cost factors, and how the software project is completed.

What Is Fleet Management Software?

Fleet management software is designed to effectively manage a fleet of vehicles. It can help business owners gain real-time information of the location and status of all fleet vehicles in real time, monitor driver's driving pattern and behavior, confirm regulatory compliance, vehicle safety, and with the right software in place, it can convert human tasks management into software managed tasks that streamline and automate operations.

Factors Affecting The Cost Of Fleet Management Software

Below are some of the cost factors you should consider when approaching a software development company.

Factors Affecting The Cost Of Fleet Management Software
Step#1 Project Complexity: The complexity and scope of your project plays a determining role in the over development cost. Since software development involves many disciplines and technologies, it is critical that you conduct adequate “Discovery” of your project to gain preliminary cost estimates.

Step#2 Time to Develop: Projects at Phoenix Bizz vary anywhere from a few months to several years to develop. Some projects are “sprinted” while others require “waterfall” while others still require both, but regardless of the development method, you must first complete the project scoping phase, and then and only then, will your development company be able to provide you with an accurate, realistic time and cost estimate. This requires a Master Scope Document (MSD). Without it, your project has an 83% chance of failure.

Step#3 User-Interface: A user-friendly interface design with advanced features might demand more development resources, leading to additional costs. Make sure you have predefined UX/UI screens created, validated by your stakeholders and employees, and approved by senior management before the start of any programming work.

Step#4 Integrations: Twenty years ago, there were only a few API integrators around the country. Today, there are tens of thousands of API companies, excluding Artificial Intelligence companies, which as of this writing, are appearing everywhere. As part of your project’s preparations, ensure that all API integrations for the project are predefined and contracted with the third-party developers.

Benefits of Fleet Management Software

Fleet management software development has emerged as an innovative technology that benefits many small fleet management and logistics companies. Companies now prefer automating most of their workflows to increase efficiency and minimize costs. Benefits include:

Benefits of Fleet Management Software

#1 Vehicle safety: Safety is paramount when managing a fleet of vehicles. Fleet management software plays a vital role in promoting safe driving practices. By monitoring driver behavior, such as speed and braking patterns, the software allows fleet managers to identify and address unsafe driving habits. Real-time tracking also helps in emergency situations, enabling quick assistance and ensuring the safety of drivers and valuable assets.

#2 Timely customer service: With fleet management software, businesses can provide better customer service and experience for all. Accurate tracking and route optimization lead to timely deliveries and improved customer satisfaction. Real-time updates on estimated arrival times allow businesses to keep their customers informed, leading to greater transparency and reliability.

#3 Efficiency: Fleet management software can significantly improve efficiency, which is at the heart of successful fleet operations. Fleet managers may monitor the precise location of each vehicle using real-time GPS monitoring, allowing them to make informed decisions on route optimization. Route optimization not only saves time but also reduces fuel consumption, resulting in significant cost savings and greater production.

#4 Reduced costs: One of the most compelling reasons to use fleet management software is the cost savings. Companies can reduce fuel costs by optimizing routes and avoiding unnecessary travel. Regular maintenance schedules keep fleet vehicles, from small vans to large semi-tractor trailers, in healthy condition, reducing the risk of breakdowns and costly repairs. Furthermore, the ability to track fuel use and driver behavior enables firms to conduct fuel-saving programs, lowering operational expenses overall.

#5 Regulatory Compliance: In the heavily regulated transportation industry, fleet management software helps companies remain compliant with various rules and regulations, as directed by the FMSCA, DOT, EPA and OSHA, among others. Fleet Management Software can generate detailed reports on vehicle usage, driver behavior, maintenance history, and more. These reports prove invaluable in demonstrating compliance with industry standards and fulfilling legal requirements, ensuring a smoother and hassle-free operation.

You may also like to read: Understanding "Field Service Management" Software, What It Is And How It Can Streamline Business Operations

Top Features To Include In Your Fleet Management System

Fleet management software with robust and impressive features adds value to your business. It helps streamline operations with enhanced efficiency and better decision making. Here’s a few more features that can add value.

Features To Include In Your Fleet Management System
GPS tracking feature: Any fleet management solution should include real-time GPS tracking. This enables fleet managers to track the exact position of vehicles at any given time. You may use this functionality to track routes, identify deviations, and ensure drivers stay on their designated routes. Real-time tracking also allows for quick response to situations, which contributes to the overall safety of your fleet.

Vehicle maintenance alerts: All vehicle maintenance records are safely stored in the system. You can enable reminder notifications that send timely reminders whenever the vehicle maintenance is due. This will ensure the vehicles stay in maximum operating condition and your company complies with all transportation and safety regulations. The system also saves the maintenance history for future references, reducing unnecessary paperwork and bookkeeping.

Fuel analyzer: Fuel expense is a major cost consideration for any fleet-based business. Fuel management features in your fleet management system monitor fuel consumption, identify fuel-efficient routes, and detect fuel theft or unauthorized usage. By gaining better control over fuel consumption, your business can reduce operating costs and contribute to the company’s overall profitability.

Safety prompts:  When drivers cross the speed limit, safety prompts can notify the driver to reduce their speed.  When developed, your fleet management software should include navigation and route tracking, which also sends prompts to administrators when a driver exceeds the speed limit or runs through an intersection.

Route optimizer: With a GPS system embedded as part of the software, you can suggest better and safer routes to fleet drivers. A route optimization feature will calculate the best route for the driver based on traffic, weather, vehicle capacity, vehicle load, and many other factors. This will help with timely deliveries for better customer satisfaction.

How To Ensure Security Of A Fleet Management System?

We live in a digital age where most business workflows are more efficient and easier than ever, but technology can be misused, posing potential threats to businesses that run on the cloud. To keep your operations safe, whether an Intranet or Internet system, keep these security points in mind in securing your fleet management system.

How To Ensure Security Of A Fleet Management System?

Secure Data Transmission: Use encryption protocols for data transmission between devices and servers.

Role-Based Access: Implement role-based access control to limit user permissions and protect sensitive information.

Regular Updates: Keep the software up to date with the latest security patches and enhancements.

Secure Hosting: Choose a reputable and secure hosting service for data storage.

Penetration Testing: Conduct regular security audits and penetration testing to identify vulnerabilities.

Want to build custom fleet management software


How much do you charge for fleet management software development?

Phoenix Bizz has different pricing models for our software development services. The exact cost of a Fleet management system depends on factors like features and specifications, software size, complexity, etc. You can contact our support team for more information on our pricing structure and be sure to ask us why we require a Master Scope Document (MSD).  You might be stunned by the answer.

How can drivers access the fleet management system?

Mobile apps made available from the Apple Store or Google Play are the most cost-efficient approach to put your technology into the hands of your driver fleet. Mobile apps will give real-time information to the drivers about their waybills, traffic conditions, routes, destination, etc. Mobile apps also fleet managers to track the driver's driving pattern and route for timely delivery.

Can fleet management systems reduce operational costs for my company?

Of course, that’s exactly why companies develop software solutions. Fleet management software comes equipped with various features that help reduce costs. Route optimization will auto-select shorter routes, reducing fuel costs and time of delivery.


Fleet management companies have dynamic interoperability requirements making management challenging, but with the right fleet management software, much of the otherwise required human labor can be dramatically reduced.

Phoenix Bizz is a multi-state, award winning software development company in beautiful Phoenix, Arizona, founded through our parent company, Data Titan, in 2004.  Since our original founding, we have successfully designed and delivered $23MM for hundreds of solutions nationwide, and we have the letters of recommendation and 85,000+ wireframes as proof. From customized features to complex specification requirements, our architects and engineers create software to your exact requirements. To learn more about Phoenix Bizz, or to learn more about our pricing, give us a call at 623-845-2747.

RE:  11622

Share On