Fleet Management Software for Small T&L Businesses: Why It Matters.
According to the T&L industry classification, a small fleet is a fleet with fewer than 100 vehicles. However, the adjective “small” shouldn’t be misleading. No matter the actual size, the management of a modern fleet is by no means a trivial assignment. As a fleet manager, you have to constantly monitor fleet performance, not to mention routine daily tasks. Plus, you have to keep up with both ecological and legal requirements, and I can’t stress enough the importance of adhering to regulations in the logistics business. If you do not pay attention to emerging problems in time, then the consequences can be dire, and you will have to catch up at an accelerated pace.
What’s more, the new COVID-influenced reality poses new challenges for fleets of all sizes. Statista claims that the consequences of COVID-19 resulted in a decrease of 6.1% in gross value added by the logistics domain. To efficiently operate under new market conditions, business owners must accelerate the digital transformation of their fleets.
Pandemic or not, the logistics landscape is constantly changing, so it is important to spend funds efficiently to stay on budget. Besides, the competition is tough, and big fleets tend to outpace the smaller ones. Just like in other industries, small players in the market are looking for innovative fleet management solutions to address these challenges. Generally speaking, the use of fleet management software helps to improve such areas as:
- optimization of costs
- supplier and expense management
- strategy and policy implementation
- response to tax and legislative changes
- increased driver satisfaction and safety.
The Impact
The management of a fleet, even if it’s small, is nearly possible without a well-thought-out policy for the use of vehicles. Robust solutions in the market allow fleet managers to monitor the location, movement, parking, and mileage of vehicles in real-time.
Automated route planning. Every day, operators plan, coordinate and check hundreds of routes. It’s not uncommon that many of these routes repeat on a regular basis. For example, daily delivery of groceries to supermarkets, transportation of goods from warehouses to construction sites, regular visits to facilities by service engineers, etc. The creation of the routes takes a lot of time, but automation significantly speeds up the whole process from A to Z.
Increased productivity. Using a fleet management system, fleet managers know the exact location of their fleets. With that info at hand, it gets easier to select the nearest available vehicle for a job and provide the driver with all the specifications and an optimal route for each task through the integrated navigation system.
Proactive maintenance. The management of a corporate vehicle fleet using a fleet management solution reduces accidents and minimizes repair costs due to timely diagnostics. It’s just easier to maintain vehicles in better conditions over time. According to stats, the proactive maintenance practice allows saving up to 40% on fleet insurance and 15% on fuel.
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