How do we manage fleet in Logistics

Fleet management in Logistics and Supply Chain

Fleet management is an essential operation for the efficient functioning of logistics operations. It involves ensuring that the overall costs of transportation, fleet and resource utilization, and regulatory compliance of a fleet are at their optimal. All of these measures are instrumental to improving customer satisfaction, increasing revenues, and bringing agility to a fleet. When it comes to fleet management we need to make sure deliveries arrive at the right destination at the right time. Ensuring your deliveries arrive accurately and on time will help build strong, positive relationships with your customers.

Responsibilities of Fleet Manager

Vehicle maintenance

In Logistics industries vehicles are the prime source for business development, in such cases, vehicle maintenance is very crucial. In most of the logistics sector, trucks and trailers are used for the transportation of goods. Regular maintenance of a vehicle will help your vehicle to perform well and give you a good result. When an organization depends on transportation, the performance of a vehicle should be their key factor. When the fleet is not properly maintained and your vehicle is not in condition for use, you have to spend the excess cost to rent an alternative vehicle or you may lose the business because of the faulty vehicle.

Overseeing fuel consumption and cost

Fuel represents a significant cost for transport companies. If we consider all variable costs in the transport and logistics industry, fuel is by far the most important one. Statistics prove that good fuel management can save up to 10% of fuel costs. Following ways are suggested for fuel efficiency.

Driver behavior

Monitoring the driver behavior of your employees is essential in optimizing your fuel efficiency.

Tires

Correct pressure, tread depth and suitability to the vehicle play an important role in fuel use

Vehicle design

Aerodynamics, engine, weight

Advanced driving skills

Use of cruise and coast, careful acceleration and braking

Minimize idling

Engine of when stopped

Route planning

Choose the most efficient road?

Fuel network

See where you can get the best fuel prices on the road.

Driver management

Drivers play a key role in every transport company. Their task is not limited to the transportation, loading and unloading of goods. They also do paperwork, check their loads and keep a close eye on their journey planning. As the main link between the head office and your customers, drivers also have a direct impact on your company’s image. An effective driver management system leverages fleet data to ensure the safety and productivity of your drivers.

Asset utilization

One of the challenges of companies that rely on driving is achieving the highest possible fleet asset utilization rate. The asset utilization of any supply chain company is a critical factor in decision-making. Understanding how vehicles are being used and where there is imbalance, can help inform your plans to keep your business moving and manage cost. Asset utilization metrics include:

Days driven

Drive time

Mileage

Route Planning

Route planning is the process of computing the most cost-effective route involving maximum number of stops with minimum time taken for delivery of products. Businesses use real time route planning software to determine the best route to execute deliveries. Route planning in Logistics is important as businesses need to accommodate customer delivery requirements, route availability, and vehicle issues to ensure low operational cost and customer satisfaction. An efficient route will help to save fuel, increase safety of vehicles, drivers and reduce overall expenses for business.

Fleet Management technology

Fleet management is a series of processes that allows organizations to see and manage all information associated with their vehicles and other assets, from acquisition through to end of life. As technology has advanced more businesses have turned to fleet management software to provide better visibility into vehicle and asset utilization, improve maintenance planning and manage cost of ownership.

Modern fleet management covers much more than procuring and maintaining vehicles, and fleet management teams are now responsible for a wide range of activities including driver management, compliance management, operational efficiency and environmental impact. Fleet management software provides a wide range of benefits, including real-time visibility into fleet location and performance, cost analysis and improved driver behavior. Modern fleet management software goes beyond location tracking by offering insight into vehicle performance and efficiency, presenting data in a way businesses can easily understand.

Benefits of Fleet Management Software

Many administrative duties such as quoting, invoicing, identifying and dispatching drivers, expense management and keeping customers informed can be simplified or automated.

Fleet managers can track fuel consumption, check vehicles and drivers when there are cases of fuel overuse and monitor driver behavior. By doing so, fleet managers can manage fuel fare more effectively.

Fleet management software can come equipped with workflow automation software, offering managers regular service and maintenance reminders based on factors such as date, mileage or time of use.

Regulatory and legal compliance can be better monitored as all of the information is kept up to date and notifications on expiry dates can be used.

Fleet management products also integrate with other software providers, making other tasks more seamless such as payments, route-optimization, and HR tasks.