Even the most observant logistics managers can fail to pinpoint bottom-line-crushing expenses. Such expenses often come in the form of inefficient routes and inadequate vehicular maintenance. Advanced telematics in the form of fleet management services allow companies to perform more deliveries and slash unproductive mileage. This translates into higher revenues.
A Bobit Business Media Survey highlights how fleet management solutions reduce labor costs. Small fleets noticed an average savings of 12%. Survey respondents also enjoyed a 10% to 40% decrease in fuel consumption. They reduced accident costs by 21.2%.
Fleet management companies help businesses operate more profitably. But most importantly, they help them operate more safely. Logistics managers can do what they do best while the fleet manager guarantees all fleet vehicles operate with the utmost efficiency.
But choosing the right fleet management solution can be a tedious task all in itself.
Not all fleet services are one in the same. Your company’s exact needs will determine which solution is best. Use our in-depth Q&A guide to ensure you choose a fleet management solution that increases productivity and reduces operational costs.
What Does a Quality Fleet Management Solution Look Like?
Choose a fleet management company that actively pursues ways to make your fleet more productive and cost-efficient. It should implement a variety of real-time tactics — like driver management and vehicle tracking. This helps you maintain a bird's eye view of your fleet operation at all times.
Ultimately, the fleet solution will reduce the burden of managing your fleet. You'll gain 24-hour access to any and all fleet activities. This includes locations of vehicles, speed of vehicles, necessary repairs and maintenance, and more.
The fleet manager will install data-tracking devices and sensors on all vehicles. These internet-connected devices will transmit data to satellites and store it in cloud-based software. Using analytics, the fleet manager can identify inefficiencies.
Such inefficiencies include unnecessary routes and excessive braking. The fleet manger will also help you create strategic solutions to make your fleet operations more efficient.
Always ask a fleet management company for an overview of the software it uses. Make sure the software supports the following:
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Upholds regulatory compliance
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GPS alerts
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Fully-integrated fuel management system
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Customizable dashboard
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Enhanced planning and budgeting features
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Decreases vehicle life-cycle expenses
What Are Your Company's Requisites?
You can't pick the right fleet solution without first determining your company's requisites. Some fleet solutions focus more on increasing fuel efficiency while others laser-focus on vehicular maintenance and repair needs. Also important is to examine your fleet size. Some solutions aren't available if your fleet size is too big.
Smaller fleets need a fleet management solution that provides real-time GPS tracking and basic features that reduce operational costs. Medium fleets require GPS tracking capabilities along with advanced telematics features.
These features include vehicle diagnostics and driver behavior analytics. For large fleets, the solution should provide GPS tracking and also support the monitoring of engine temperatures, speeding activities, stopover times, and fuel levels. The solution will need a dedicated server to store data collected from the vehicles’ diagnostic devices.
It's important to determine the goals you expect to achieve with a fleet management solution. If you desire to achieve paperless recording, you will need a solution that supports electronic logging devices. Other features to look for when choosing a fleet manager include:
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Fuel analytics
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Threat protection capabilities
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Automated reports
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Vehicle diagnostics using OBD2 devices
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Automated vehicle tracking systems
You'll also want to consider whether you want a cloud-based solution. Ideally, cloud-based solutions prove of more value than non-cloud solutions. Cloud-based fleet management software allows you to access your fleet’s data from anywhere at any time. This improves management capabilities. It also leads to overall better fleet efficiency.
Does the Fleet Management Software Improve Dispatching?
Always choose fleet management software that improves dispatching. A clear overview of driver locations and how much time they have left on their current tasks makes it simple to introduce additional jobs.
You can task drivers with new projects to complete during their current routes and while heading back to their headquarters. This directly increases profit margins and results in better customer satisfaction.
Does the Fleet Management Solution Enhance Driver Safety?
If a solution doesn't enhance the safety of your drivers, continue looking for one that does. A quality fleet management solution puts a heavy focus on driver best practices.
The solution should analyze driver behaviors and generate reports that highlight dangerous habits. You can share these reports with drivers to make them aware of the habits they need to change.
Does the Fleet Management Software Offer Customer Access?
Your clients will benefit from fleet management software, as well. This applies whether you're a B2C or B2B company. Imagine giving each customer access to your fleet management portal. Customers can log in at their own convenience to review their purchases’ shipping histories and monitor expected arrival times.
Fleet management software greatly reduces customer calls relating to order status updates. This form of first-class after-sales service increases brand loyalty. It drives revenue thanks to returning customers, too.
What Does Your Insurance Company Say?
Fleet management solutions provide financial advantages in many ways. They increase profit margins by boosting productivity and decreasing fuel and maintenance expenses. Additionally, they help you secure discounts through your insurance.
It's important to speak with your insurance company to determine the exact features needed to secure discounts. Some insurance companies may offer discounts for the implementation of any fleet management software. Others may require that you utilize a solution with real-time GPS tracking and electronic logging.
What we have discussed is not meant to be a definitive guide on choosing a fleet manager. However, it will certainly assist you in choosing a fleet management company that reduces your logistics expenses, minimizes vehicle downtime, and refines the customer experience.
To learn more about choosing a quality fleet management solution that is custom-tailored to fit your company and propels your fleet forward, contact Wilmar today.
