The transport and logistics industry has faced challenging times in recent years, grappling with a range of issues including rising fuel costs, a shortage of drivers, supply chain disruptions, and increasing pressure to cut emissions. On top of that, the industry has seen a surge in ecommerce, which shows no signs of slowing down. Despite these challenges, fleet management has emerged as a key solution to tackle the problems that fleets face today.
We have partnered with MICHELIN Connected Fleet, experts in fleet management solutions, to shed light on how these solutions can help transport and logistics companies reduce costs and improve productivity.
Understanding the total cost of ownership (TCO) is vital for reducing fleet costs. A fleet’s TCO includes all expenditures associated with maintaining it, such as vehicle acquisition, fuel costs, depreciation, and service, maintenance, and repair costs. It’s important to know which vehicles are most suited for your business and to consider leasing or purchasing options. Identifying which models retain their value can also help offset vehicle depreciation costs.
Regular servicing, maintenance, and repairs are also essential in extending a fleet’s lifespan and ensuring driver safety. Fuel costs typically cover around a quarter of overall fleet costs, making it crucial to minimize fuel usage for fleet sustainability and cost-effectiveness.
Keeping productivity at an efficient standard is integral to maximizing a fleet’s capabilities. Fleet productivity is a measure of employee work output relative to resources used in the process. To improve productivity, fleet managers must have a comprehensive view of their fleet and integrate on-board technology and a dashboard interface.
Technology used by fleet managers includes devices installed on each vehicle in a fleet that gather information such as fuel consumption rate, GPS, and whether the vehicle is in need of repair. This information allows fleet managers to adjust driver behavior and arrange repairs before vehicle damage becomes irrevocable.
A dashboard interface provides real-time KPI reports and pre-set historical reports for detailed analysis. It also enables managers to identify the most fuel-efficient routes and alter journeys on the go if necessary.
Besides advanced technology, it’s also beneficial to seek specialist advice from fleet management advisors to maximize productivity and sustainability. Advisors can identify areas for improvement and provide guidance on cost control, vehicle and cargo security, maintenance, and operational efficiency.
In conclusion, despite the challenges that the transport and logistics industry has been facing, it’s possible to adapt and thrive with tailored fleet management solutions. Adopting fleet management solutions can help businesses reduce costs and boost productivity while ensuring a more sustainable future for all.