A fleet management system does more than just keep track of your fleet, it has other benefits to offer for your vehicles and business (and wallet!) alike.
Companies have to optimize their fleet management to keep up with the supply and delivery needs. This is no problem for new businesses, but as business picks up, fleet management is something you can’t overlook. If delivering your goods across the state is a headache, you can imagine what it must be for companies like Amazon and eBay.
Quite frankly, managing supply and delivery logistics for these companies isn’t as hard as you’d think.
That’s because these companies have robust and comprehensive fleet management systems to do their bidding. So what would otherwise be a monumental is a simple automated process that takes no more than a few clicks to accomplish.
The fleet manager oversees every aspect of delivery, supply, and distribution of products. Companies may decide to outsource their fleet management, which is sometimes a wise move. The fleet management industry is booming and expected to be worth a staggering $34.1 billion by 2025.
In this post, we’ll discuss why your company should consider a fleet management system for all its supply and delivery logistics. If you’ve been mulling over whether to get one, here are a couple of reasons why you should.
1. To Effectively and Efficiently Budget for Fuel
Companies lose a bundle in wasted fuel costs every year. In fact, it’s one of the most challenging aspects of fleet management. You’d be surprised at just how much a proper fleet management system could cut down fuel costs.
Thanks to fleet management software, truck drivers get real-time information on the shortest and best routes for their pickup or delivery. The same software can also give you reports on harsh driving, so you can able to deal with the drivers in questions. Harsh driving is one reason why your company’s fuel costs may be skyrocketing.
If you want to really cut down on fuel costs, don’t purchase new fuel-efficient. A good fleet management software can reduce your fuel expenditure significantly. You should also consider Watchcard nationwide fleet fueling cards to reduce your fuel costs further.
2. For Improved Transparency
Even the best fleet managers aren’t ubiquitous, and they can’t see everything that happens with the fleet. It can be unnerving when a massive delivery is running late, and you can’t locate nor contact the driver. Companies stand to lose a lot because of their inability to track and communicate with their fleets.
A fleet management system gives you better visibility of your fleet. This means you can know the exact location and condition of individual trucks in the fleet. By extension, you also save a lot of money because you don’t have to keep calling the driver for any updates.
Your drivers will also avoid any unnecessary detours when they know you are keeping a close eye on them. You can also act quickly in case of any emergencies like an accident or a robbery. So the second reason why you need a fleet management system is for transparency.
3. For Maximum Profitability
There are tons of ways that a fleet management system can increase your profitability. First is by reducing expenditure on fuel, which probably makes up a huge chunk of your budget. Next is by streamlining supply and delivery operations to make them faster.
Lastly, this system removes all complexities and hurdles normally associated with fleet management. Again this increases efficiency and makes it supply and delivery much faster. Overall, ROI increases quite significantly, and so does profitability when you embrace a fleet management system.
4. To Get the Most Out of Your Fleet
Is your fleet reaching its maximum potential? If you don’t have a fleet management system, then maybe it’s not. A proper fleet management system leverages your entire fleet for maximum profitability and greater coverage.
This system allows you to maximize your entire fleet because it can give comprehensive reports about vehicles in the fleet. That means you can use any vehicles that you would have dismissed as incapable of delivering. Plus with a good fleet management software, you can address any issues with vehicles on the fleet earlier on before they worsen.
These real-time vehicle reports help you get the most out of your fleet, including the longevity of your fleet’s vehicles. Getting the most out of your fleet equals more profits for you.
5. Enhancing Vehicle and Driver Safety
As a business owner, you must prioritize the protection of your assets, which includes the products, vehicles, and drivers. You can never overlook security and security concerns with transport and logistics. This becomes a primary concern, especially if you’re dealing with high-value goods.
Fleet management systems allow you to use geofencing always to keep track of vehicles in your fleet.
You can also get instant alerts in case anything worth your attention happens. This includes any unexpected stops and detours. These stops may be an accident, a police check or god forbid a highway robbery.
A fleet management system is an extra layer of security for your fleet and is crucial for safeguarding your assets during trips.
6. For Insurance Cost reductions
To add to the reduced costs list, you can add reduced insurance costs when you have a fleet management system. Insurance providers gladly offer discounts for companies with robust fleet management systems. That’s because these insurance providers know how fleet management systems enhance road safety and reduce accidents.
7. To Improve Customer Satisfaction
Embracing a fleet management system is one way to send your company ratings through the roof. That’s because these systems help you make more timely deliveries, which translates to happier customers.
Overall, you’ll have great reviews, which in turn attracts more customers to your business.
What to Expect With a Fleet Management System
These fleet management systems are packed with tons of features. However, only the best fleet management software can give you comprehensive features with immense utility. Here are a couple of features you should expect with fleet management systems.
Route optimization is exactly what it sounds like. This is a feature that employs GPS and special sensors to predict the best route available for your travel.
The on-board system analyzes the traffic, road condition, and even weather conditions of a particular route. The software receives real-time updates about these aspects of routes to make sure you’re always on top of everything. This helps you reduce both fuel and time wastage for all your trips.
Again warranty tracking is just what the name sounds. This feature keeps track of the vehicle’s warranty for as long as you own it. It also tracks the warranties of other associated parts to make sure your vehicles are always in tip-top shape.
Any fleet manager knows how stressful following up on vehicle warranties can be. Warranty tracking and monitoring can save you the hassle of following up vehicle warranties. It also prevents car manufacturers from hoodwinking you about your warranty’s expiry.
It’s sometimes very difficult to keep up with every aspect of the fleet to make sure everything runs smoothly. A fleet management system is one way to attain ubiquity over your fleet. That’s because you get real-time updates about the performance of your fleet.
The software also allows you to isolate incidences and clamp down on the root cause of the issue. This makes it easier to solve any underlying issues with the fleet. It also identifies any aspects of the fleet that may be draining your money.
You’ll get comprehensive reports on stuff like the condition of the engines, the ignition mode, and fuel usage. This helps you give you a better picture of your fleet and note don what needs improvement.
Asset tracking is just a fancy term for tracking your products during transit. Depending on what you deal with, you stand to incur heavy losses should you lose your products. You can lose them in an accident, through a robbery, or due to improper storage.
Asset tracking involves tracking your goods from their loading, transportation to their storage. It entails using Google maps, GPS tools, and a few other tools to accomplish this asset tracking.
Some software integrate asset tracking with direct communication links to the authorities. This facilitates a quick response in case of any incident that requires police attention.
You Need a Fleet Management System
A proper fleet management system is more of a necessity than a luxury for any serious company. There’s a lot that you stand to miss out on if you snub a fleet management system. Plus, it’s just what you need to stay ahead of the competition.
Your fleet management system won’t be as effective if you don’t take good care of the vehicles in your fleet. If you want to learn more about vehicles and how to maintain them, then have a look at the other pieces on the site.