The times are changing; so are business, logistics, and fleet management. What was earlier, a luxury has now become an absolute necessity.
Scroll down to explore how a cost-effective fleet management solution is changing the way businesses are conducted and how a dispatch track is saving time and resources, thereby improving the bottom line.
What is Fleet Management Solution?
If you are into a business that requires transport of goods from one place to another, most likely, you require a fleet to transport your goods to the desired location. Fleet Management Solution refers to everything that happens from the time you part with the good to the time it reaches the intended recipient.
A fleet management solution integrates work vehicles and technology to increase the former’s operability, lifespan, and cost-effectiveness.
Fleet management solution generally manages the following four things:
- Tracks vehicles in the fleet
- Keeps track of performance and fuel
- Manages cost
- Take care of government rules and regulations
Simply put, what multiple staff can do in ten days, a fleet management solution can achieve in less than one day.
The fleet management industry was a US$7.76 billion industry in 2015. Allied Market Research published a report in which it stated that fleet management would be a US$34.63 billion industry in 2022, thus growing at a CAGR of around 25%.
The massive numbers show the tremendous growth potential of the fleet management solutions industry. Hence, by shying away from fleet management, you will only risk losing a large chunk of your venture and working capital.
Let us now understand the top-5 reasons why you must consider an effective fleet management solution for your business.
Reason 1 – Save Operating Costs
For a business to thrive and prosper, every penny counts. Many businesses do all they can to save cash, which includes taking drastic measures like lay-offs and postponing new investments. But, while resorting to other ways for conserving cash, businesses often overlook what is simple – reducing expenditure by optimizing vehicular operability and cutting down fuel costs.
If, at this point, you are skeptical about the amount you can save by optimizing vehicular use, here are some facts to startle you.
- 6 billion gallons – the total amount of gasoline and diesel fuel wasted every year by vehicles standing idle at various traffic signals and other places
- US$65 – the amount a business loses when a single truck from its fleet stands idle for just one hour every week
- 80 – For a heavy-duty vehicle, one-hour idling equals engine depreciation of 80 miles
- 22 Pounds – the amount of CO2 generated by burning one-gallon diesel fuel
- 500 Pounds – the amount of CO2 one truck can save every year by reducing the idle time by one hour
By equipping your business with fleet management solution, you can avoid cost overruns, as you can keep a tab on the drivers, thus enabling you to manage driver-associated costs properly.
Reason 2 – Enhanced Driver Safety
A research conducted by the Occupational Safety and Health Administration observed that employers lose approximately US$ 60 billion due to road accidents involving vehicles. This includes everything from the medical care of the driver to repair costs and whatnot.
An accident is more than what meets the eye. An accident causes a dent in the company’s overall profitability, brand image, and throws it into a legal quandary.
A fleet management solution helps you to keep an eye on the driving pattern, speed, and behavior of the driver. As you can monitor the drivers’ actions, you can instantly take action on finding anything amiss.
If you compare a monitored driver with an unmonitored driver, you would see monitored drivers drive better than unmonitored ones. By installing the fleet management system, you not only make your drivers disciplined but also reduce the chances of accidents.
The fleet management system also functions as a tracker, which can send you real-time data in case of a theft or robbery. As you get access to the latest information about your vehicles, you can contact the authorities really fast, should there be a need for it.
Reason 3 – Meet Government Regulations
The federal government is on a mission to make the environment cleaner and greener. In line with its focus, it is taking the necessary steps to realize its goals. One such step is the mandatory transition to Electronic Logging Devices or ELDs, which would rely on electronic logs rather than paper records.
As a business owner, it might get difficult for you to be aware of all such regulations as they appear. A fleet management system helps you to comply with everything related to your business and can help you in case any litigation or claim is arising out of any unforeseen circumstance.
Thus, a fleet management solution offers you more than driver management; it makes you understand the bigger picture and guides you to stay one step ahead than your peers.
Reason 4 – Evaluate Your Business’s Efficiency
A progressive business is one that understands its follies more than its USP. As a fleet management solution is fully online and real-time, you can analyze not only your fleet but also your business model.
A fleet management system gives you detailed report enumerating everything you require to run your business properly. After all, you can take remedial steps only when you are aware of issues like cost overrun, and can plug the loopholes properly.
Reason 5 – Run a Diagnosis
Businesses that haven’t yet installed a fleet management system rely on drivers’ accounts when it comes to mechanical defects. The business owners are compelled to believe what their drivers want them to believe. While it certainly creates better bonding between the owner and drivers, it can take a hit at the bottom line.
A fleet management system’s hallmark dash camera can give you real-time knowledge about the terrain, and the onboard diagnostic tools can enable you to understand what went or might go wrong.
The improved data-based information can help you to conduct timely maintenance of your vehicles and optimize fleet utilization.
Fleet management solution is meant to make business simpler and life easier. By digitizing the entire transportation process, it completely eliminates the chances of human error, thereby saving money and time.