How to improve fleet usage?
Fleet usage involves the measurement of fleet performance, but is it really that simple an answer. There is optimum fleet utilization for each location, each type of vehicle at different time windows.
Fleet utilization is a comparison of demand to fleet capacity. Capacity and demand change daily, and hence the approach to manage it varies as well.?
A well-utilized fleet not only improves productivity and reduces costs; it also boosts profitability. Here are the reasons why fleet utilization is important.
Ensure Optimal usage of fleet
Manage Maintenance costs
Right fleet size for operations
4 components of a right-sized fleet
How to maximize fleet utilization?
Focus on crucial fleet metrics?If you are looking to improve fleet utilization, then begin with data. Here are the essential metrics for measuring fleet utilization.?
·??????Miles Traveled:?
·??????Fuel Consumption:
·??????Time utilization
·??????After hours utilization:
·??????Empty running/ Vehicle fill?
·??????Job History?
After having all the essential metrics established, it is easier to spot areas of improvement in the job history. Logistics managers should analyze driver performance,?routing, and then find patterns.?
The only way to assess the original plan and the resulting performance is by analyzing job history. It helps you identify bottlenecks in delivery schedules by improving customer service or speeding up the delivery time. It tells where you lack in terms of meeting customer delivery standards.?
Selecting the right vehicle size?
Fleets cannot find a one-size-fits-all approach to ever-changing customer demands. The right vehicle size for effective fleet operations depend on?
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Loading and Unloading?
It is necessary to make every delivery count. Fleet managers aim to reduce under-utilized space by planning deliveries, load shapes, volume, and height effectively.?
Last-minute re-routing challenges?
The biggest challenge for a delivery company is to manage last-minute changes due to traffic, roadblocks, accidents, breakdowns, etc. It is necessary to optimize route planning so that the last-minute changes are accommodated. This helps them avoid missed or failed deliveries.?
.?How can technology improve fleet utilization?
Beyond workforce and fleet assets, logistics optimization software plays a vital role in improving fleet utilization. Here’s how delivery logistics software benefits fleet utilization.?
Reduces fleet fuel costs?
.Provides optimized delivery routes and schedules?
Enables Contactless deliveries?
COVID-19 has led to?rise in?contactless deliveries?globally.?Electronic Proof of Delivery software?helps field agents to collect delivery notifications without any physical contact with customers. This solution allows logistics companies to reduce fraudulent return costs and failed delivery costs.?
Minimizes fleet maintenance costs?
Focus on crucial KPIs metrics?
If you are looking to improve fleet utilization, then begin with data. Here are the essential metrics for measuring fleet utilization.?
·??????Miles Traveled:?
·??????Fuel Time utilization
·??????After hours utilization:
·??????Empty running/ Vehicle fill?
.?Job History?
After having all the essential metrics established, it is easier to spot areas of improvement in the job history. Logistics managers should analyze driver performance,?routing, and then find patterns.?