The ROI of Fleet Orchestration: Uncovering Hidden Cost Savings & Efficiency Gains
There is an endless list of moving parts within fleet management. Each element must work together cohesively for FMCs to deliver quality and service while optimizing costs. Fleet orchestration makes this possible.
Understanding Fleet Orchestration & ROI
Fleet orchestration integrates fleet management processes into a centralized location where data can be visualized, organized, and analyzed to improve fleet management.
Orchestration tools allow for route optimization, vehicle tracking, fuel management, predictive maintenance, and automated workflows, all of which translate to measurable bottom-line benefits.
Using real-time data and automation, fleet orchestration empowers faster, better-informed decision-making that moves fleet management forward.
Not only does fleet orchestration streamline and optimize fleet management operations, but it also increases efficiency and reduces waste throughout the vehicle lifecycle. The ROI of implementing a fleet orchestration platform is felt instantly and grows exponentially.
Cost Per Mile: The Key Metric for Fleet Efficiency
Vehicle asset costs don’t begin and end with acquisition. Each asset’s cost per mile (CPM) differs according to various factors throughout the vehicle lifecycle, directly affecting an organization’s ROI.
Cost per mile is the total cost of vehicle ownership divided by the miles driven by that vehicle. Every cost of owning and running a vehicle contributes to the CPM:
Fleet orchestration tools allow managers to evaluate the CPM and understand where FMCs are spending to maintain their assets.
Reducing Waste & Improving Efficiency
Fuel usage has a significant effect on an FMC’s operating costs.
Optimizing vehicle use, routing, and delivery reduces fuel usage, reducing waste, improving efficiency, and solidifying profits for the FMC.
Fleet orchestration empowers fleet managers to optimize every gallon of fuel the fleet uses. Through automation and AI-driven planning, fleet managers can maximize fuel usage through the following:
Fleet orchestration tools automatically plan for the most fuel-efficient and time-efficient paths to delivery. These solutions use real-time data and vehicle tracking to allow for agility and real-time route adjustments should a disruption occur.
Extreme weather events, heavy traffic, and even an accident within the fleet can completely upend delivery schedules, causing vehicles to idle or take the long way around to arrive at the destination.
Fleet orchestration that delivers end-to-end visibility instantly reroutes fleets to maintain timelines and reduce or eliminate fuel loss associated with route inefficiency.?
Driver behavior also significantly impacts fuel costs.
Harsh braking, sudden acceleration, unnecessary idling, and other habits that cause wear and tear can increase fuel usage, decreasing profits. Fleet orchestration utilizes GPS tracking and telematics to monitor driver behavior, addressing patterns and tendencies that eat up fuel.
These tools notify fleet managers in real time, allowing them to communicate immediately with drivers to correct these behaviors. Long-term tracking and monitoring also help managers identify patterns that might need intervention and safety training to correct.?
Fuel consumption and usage varies with each vehicle. Routes, vehicle health, load management, and more affect how efficiently a vehicle uses fuel.
Real-time vehicle telematics monitors the health of each asset so managers can ensure every vehicle operates at peak efficiency. Fleet orchestration facilitates AI-powered predictive maintenance to analyze the unique wear and tear and maintenance needs of each asset.
When vehicles are in top working condition and run as they should, they use fuel more efficiently, cutting down on those costs. Additionally, predictive maintenance extends the lifecycle of each vehicle and reduces unplanned downtime, preserving fleet resources from acquisition to remarketing.
Minimizing Idle Time: Reducing Fuel Waste and Wear & Tear
Fleet vehicles idle for various reasons, including
Even 30 minutes of idle time per day can cost thousands of dollars in time and fuel loss. Fleet orchestration platforms monitor idle times and identify the causes so fleet managers can address the issues promptly.
Orchestration tools monitor idle time in real time using GPS and telematics data, helping managers make the best decisions to keep vehicles on the move.
AI-powered route planning helps avoid high-traffic areas and minimize stop-and-go driving conditions. Fleet orchestration empowers dynamic routing to ensure drivers take the most efficient paths, reducing time spent trapped in traffic or idling at congestion points.
Drivers might leave their vehicles idling for various reasons, including comfort (e.g., air conditioning and heating), convenience, or simply out of habit. Fleet orchestration platforms track and analyze driver behavior to identify idling patterns and provide coaching.
Some orchestration systems integrate with vehicles to enable automatic engine shutoff when idling exceeds a set threshold. An automated system turns off the ignition to support fleet ESG goals, save on fuel, and reduce wear and tear on the engine.
The Bottom-Line: Translating Efficiency into Profitability
The more efficient your fleet operations, the more cost-efficient they will become.
The Ridecell fleet orchestration platform streamlines every aspect of fleet management, helping you lower operating expenses, improve profitability, and deliver exceptional service to delight your clients.
Taking a data-driven approach to fleet management ensures managers have the most accurate, relevant, and current data to make the best decisions for the fleet. The end-to-end visibility and automation provided by the Ridecell platform empower FMCs to enhance operations at every stage of the vehicle lifecycle.
Our tools give you the insights required to improve cost per mile for every asset, optimize fuel usage across your fleets, and reduce idle time. Investing in Ridecell fleet orchestration technology delivers both instant and long-term gains that yield an incredible ROI.
Contact us for a free demo and to learn more about the ROI of fleet orchestration and how the Ridecell platform can drive your fleet management company toward growth and greater profits.
At Ridecell, we accelerate the digitization and intelligent automation of fleets to create a more sustainable, safer, and productive future. To help facilitate this vision, we maintain an archive of knowledge and insights to drive increased clarity and better outcomes for the fleet and mobility industries.