A fleet management system comprises optimally planning, supervising, and controlling fleet operations using available resources and information systems. It integrates organizational processes. Key applications include vehicle tracking, health/safety tracking, fuel/speed management, order transmission, route planning, and driver/vehicle management. Route planning algorithms like the traveling salesman problem, vehicle routing problem, and pickup and delivery problem are used to arrange transport orders into optimal vehicle tours. GPS tracking uses satellite signals to track vehicle locations in real-time, improving efficiency, reducing costs, and increasing transparency of transport activities.

1. FLEET MANAGEMENT SYSTEM

2. Contents
 Definition
 Field Of Application
 Route Planning
 GPS Tracking
 Advantages

3. Definition
 Fleet Management comprises the target-oriented,
optimal planning, supervision and control of the fleet
operations based on the available resources, considering
internal and external influencing factors. A special focus is
on the integration of organizational processes with
modern information systems.

4. Fields Of Application
 Object tracking (vehicle tracking)
 Health and safety tracking
 Fuel and speed management
 Sales order transmission
 Route planning
 Driver Management
 Vehicle diagnostics

5. Route Planning
 Route Planning serves to arrange different transport
orders to tours of a vehicle fleet.
 The most known Route Planning problems are:
 The Travelling Salesman Problem (TSP) (only one vehicle)
 the Vehicle Routing Problem (VRP)
 the Pickup and Delivery Problem (PDP)

6. Travelling Salesman Problem (TSP)
Goal:
 Find the shortest way of a circular tour (starting point =
end point) that is as cost effective as possible that visits a
certain amount of customers exactly once.

7. Vehicle Routing Problem (VRP)
 The VRP is an extension of the TSP in which various
vehicles are available at a depot.
 The VRP is therefore a combined assignment- and circular
tour-problem.

8. Pickup and Delivery Problem (PDP)
 In PDP, consignments are picked up at one place and
transported to their destination.
 The PDP is an amplified VRP
 Pick up locations and the destinations have to be in the
same tour
 Full-Truckload PDP

9. Route Planning
DYNAMIC ROUTE PLANNING STATIC ROUTE PLANNING
New data can get known
and already known data can
change
All relevant data is known
before the planning starts
Timely close decisions are
more important than the once
more remote in time
Same importance of decisions
that are close or remote in time
Only little time for verification,
manual correction
and implementation of
changed route plans
Enough time for the creation,
verification and the
implementation of route plans

10. Location-Tracking
 Location-tracking helps companies to
 streamline and control supply chains
 move products to the market faster
 monitor assets
 prevent inventory loss
 track vehicle fleets
 Location tracking is not one, single technology.
 Local Area & Indoor Tracking
 RFID: Small, battery-less microchips is attached to consumer
goods, vehicles, objects to track movements.
 Wide Area Tracking
 GPS: Signals received from Satellites to track movements of objects
moving great distances.

11. Tracking Technologies: GPS Tracking
 Every vehicle must be equipped with a GPS receiver.
 As the vehicle moves around the world, satellites track the
vehicle’s position.
 Positioning can be requested at anytime.

12. Advantages
 Improve efficiency & productivity
 Reduce operating costs
 Speed up logistics activities
 Transparency of all the transport events
 Automatic data transfer from the order entry system
 Optimal order distribution to the tours
(cost-, time and customer optimal)