Fleet Management

30 04 2010

Definition: Fleet management comprises the target-orientated, 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.

Field of applications:

  • Object track (vehicle tracking)
  • Health and safety tracking
  • Fuel and speed management
  • Sales order transmission
  • Route planning
  • Driver management
  • Vehicle diagnostics

Route-Planning-Definition: Route-Planning serve to arrange different transport orders to tours of a vehicle fleet

TSP = Travelling Salesman Problem -> find the shortest way of a circular tour that is as cost effective as possible and that visits a certrain amount of customers exactly once.

VRP = Vehicle routing problem -> the VRP is an extension of the TSP in which various vehicles areconsidered

PDP = pick up and delivery problem -> inPDP consignments are picked up at at one place and transported to their destination

the PDP is an amplified VRP

Kinds of Route Planning:

Static Route Planning: You have static theoretical data used ( not how it is in reality) -> More time to verify and decide

Dynamic Route Planning: Contains real/new data (like weather, traffic jams etc.) -> You have little time to verify a decision


  • Improves efficiency & productivity
  • reduce operating costs
  • speed up logistics activities
  • transparency of all the transport events
  • automatical data transfer from the order entry system
  • optimal order distribution to the tours (cost-, time and customer optimal)

Advantech Fleet Management Solutions

Further information:

PDF concerning the topic

Fleet management in former times was more about buying/selling/repairing of cars. You didn’T buy a car BRAND-new but buying it when it had 20.000 km for example because it’s more cheaper then. There were different policies how/when (in which step of the product lifecycle) you buy your “fleet”.


Incoterms 2000 – Rules at the core of world trade

30 04 2010

What are Incoterms:

  • Abbreviation of International Commerce Terms (Incoterms)
  • Published by International Chamber of Commerce since 1936
  • Define key elemnts of international contracts of sale
  • Reflect the parties agreement to divide costs and risks between parties
  • Provide the buyer and seller instructions regarding the carriage and delivery of goods
  • Can be used for purchasing parts both within the EU and outside the EU
  • Agreement by both parties to use a particular Incoterm does have implications in other parts of the contract (e.g. payments and the use of documentary credits, duty payments in the country of importation)


  • Any mode of transport(EXW, FCA, CPT, CIP, DAF, DDU, DDP)

-> Necessary due to the fact that international transportation is a risky business (standards got defined to handle different cases [who is taking the risk, who is the owner]). These standards defining different cases are called Incoterms, set some ground rules for international transactions and get revised every 10 years.

Usefull Links:
International Chamber of Commerce