Fleet management plays an important role in logistics, as does fleet management software. Fleet management software helps to automate logistical management processes, save costs, identify ways to operate more efficiently, improve compliance, and much more.
What Is the Purpose of Fleet Management?
The purpose of fleet management is to oversee the performance of a fleet of vehicles and all the other fleet-related tasks.
The better managed a fleet is, the greater efficiency and productivity an organisation will see.
It depends on what kind of operations a company is involved in, but generally speaking, companies that implement a robust fleet management process see:
- A reduction in fuel costs
- Improved driver management
- Better asset utilization
- More efficient route planning
- Improved compliance
- Improved health and safety
What Do Logistics Companies Do?
Logistics companies are involved in planning, implementing, and moving goods and services. This can mean their own goods in a B2C format, or it can mean they manage the logistics for a number of other companies.
To carry out effective logistics, companies need to have an accurate way to track the goods being moved. As well as managing inventory, and monitoring all the costs involved in their operations.
Logistics and fleet management go hand-in-hand. To move or transport goods, there are always going to be vehicles involved. This may be trucks, lorries, vans, cars, even boats.
The next step is fleet management software. Fleet management software makes it possible to improve the efficiency of logistics at every stage. We’ll be taking a closer look at how software improves logistic operations throughout this article.
Why Is Fleet Management Important In Logistics?
A major element of logistics is transport or vehicles. Therefore, fleet management forms the backbone of the logistics industry and is invaluable to businesses operating in logistics.
Without proper fleet management, any business with a fleet of vehicles is not going to be able to operate efficiently.
As a fleet manager or business owner, you’ll know that a lack of efficiency means you’re losing money, putting added stress on your workforce, and straining customer relationships to mention just a few drawbacks.
Logistics refers to the overall process of managing how resources are used. Most often, it more accurately refers to how goods are being transported from a-to-b in the most time and cost-efficient manner.
Good fleet management enables a logistics business to save a great deal on transport and employee-related costs, as well as providing a whole host of other benefits.
Telematics and Logistics
Telematics is one of the technologies that play a core role in both fleet management and the logistics industry.
Telematics involves placing a device inside a vehicle to collect a wide range of information. This information is transmitted to a fleet management system, where it can be used to understand the status of the vehicle, its location, how it’s being driven, and many more data points.
Some of the ways telematics help fleet management and logistics include:
Route planning – Route planning is essential for logistics companies. For most companies, the quicker and more efficiently they can transport or deliver goods the more money they’ll see at their bottom line.
There are many challenges that truck drivers face when traveling from one point to another. Something as ‘simple’ as being able to notify a driver in real-time on how to avoid delays can have a huge impact on customer service.
Reduced fuel and maintenance costs – Saving fuel and maintenance costs are a by-product of more efficient route planning. In addition to this, there are other ways telematics data can save you money.
Telematics also provides data around how fast a vehicle is being driven, how erratically, and will even provide mpg usage. This enables you to identify risky or erratic driving behavior so you can do something about it.
Improved compliance and risk management – The importance of risk management when managing a fleet cannot be overstated. Not only can you avoid costly fines, but you’re also going to be able to reduce the number of accidents your drivers are involved in.
This has an obvious impact outside of just financial gain. Using telematics you can know about vehicle issues sooner, identify training needs for drivers,
Regarding vehicle maintenance, you can read about our walkaround daily driver check FleetCheck Driver here.
Who Needs Fleet Management?
Any business that has a fleet of vehicles can benefit from implementing fleet management software and best practices.
Just as any business that relies on logistics will also benefit from fleet management as they use vehicles to operate.
It really doesn’t matter how many vehicles you have in your fleet. There is even an argument for using fleet management best practices for one vehicle, and it certainly becomes beneficial the more vehicles you have.
Want to know how FleetCheck will save you money and improve your logistics operations? Contact a member of our sales team today and we can set you up with a free six-week trial. We’re confident you’ll not want to cancel after seeing the benefits for yourself, but if you do, no hard feelings.
