Knowing what to outsource within a business is not always easy, and when it comes to fleet tracking software this is something which many in logistics businesses are unsure of. The reality is that there are benefits to both in-house management and to outsourcing fleet management, and this article will explore the benefits of both of these options.

Benefits of In-House Management

One of the key benefits of managing fleet tracking within the business is that you know your business best. This is something which can’t be replicated by a third party company and can allow for quicker recognition of issues in the fleet. Problems such as large amounts of downtime or unusual driver patterns which would be missed by a third party observer, can be easily detected and rectified. It also allows for growth of knowledge around the business and day to day operations, which can be hugely valuable in identifying new opportunities for the business.

However, there are also some disadvantages of managing your fleet tracking in house, such as additional capital costs. Beyond this there are also the difficulties which are presented in hiring skilled staff to monitor the numbers, something companies wouldn’t have to do with outsourcing.

Benefits of Outsourcing Fleet Management

The main reason why outsourcing is a smart idea here is that you’ll gain access to industry specialists. In many cases outsourcing is the easier option for the business, as companies can count on people who live and breathe fleet tracking software. Additionally businesses can greatly reduce any risks associated with failing compliance, giving peace of mind that everything will continue to run smoothly. With this extra time, businesses can then focus on running the day to day operations and leave all the data collation/analytics to the professionals.

In terms of disadvantages, there will be an increase in cost with outsourcing. Another slight disadvantage with working with an external group is that there will always be a period of fine tuning and adjustment initially, where both companies learn to work effectively with one another. However, this can usually be overcome relatively quickly.

Should You Outsource?

There are a couple of questions which you should be asking yourself with regards to whether or not to outsource your company’s fleet management software. The first question is around the number of fleets which you have, as the more that you manage, the smarter it is to outsource. Secondly, you should consider the stress levels of your staff and those managing the fleets. If tensions are running high, then it could be a much better idea to get out and find a professional company to take over. Finally, you ought to consider your customers, and whether or not outsourcing would impact them, positively or negatively.

These are the considerations which you should be making when it comes to whether or not to outsource your fleet tracking software. However, one thing that is for sure is that fleet management software should always be employed by companies within transport and logistics, whether it is managed in-house or outsourced.