Three years ago, the survey by Teletrac Navman found that 39% of transport and logistics providers in the US mentioned reducing operational costs as their top business priority. In 2020, logistics companies affected by the pandemic are still seeking ways to cut operational expenses. That’s where technology comes in handy. 

Nowadays, adopting an effective management system translates into accessing analytical information that affects the bottom line of a business directly. The management system allows you to take a deeper look at the operational activities and gain control over the hidden expenses.

If your T&L company’s operating on a tight budget, this digital strategy will certainly require a certain investment on your end which may appear a bit risky during these times. However, what’s important to realize is that the crisis provides opportunities for tech-savvy logistics and delivery businesses. With a clear picture of where your money is going, you’ll take the effectiveness of management to a whole different level. 

If you want to digitally innovate, enter new markets, and have an upper hand over the competition, those investments are worth it. It gets especially obvious with the increasing digitization of the whole automotive sector.

Reducing costs

FMS is becoming an integral element of the logistics industry landscape. Using a fleet management system, the company receives processed information that impacts organizational decisions at all levels. Such solutions help companies plan transportation and create the most profitable schemes based on various specifications. The points below represent three main areas where fleet management software can make a difference straight away.‍

Fuel management‍

Fuel costs are the most expensive running costs for fleet owners. It accounts for about 40% of fleet ownership expenses. Hence, monitoring fuel consumption can ultimately reduce fuel costs by up to 25%. Using fleet management software, managers can:

• monitor information on fuel losses and consumption, fueling locations, and much more
• monitor and report fuel consumption for a vehicle
• plan refueling
• identify suspicious fuel consumption that may indicate fraud or theft.
  

Overall, the fuel management function results in lower fuel costs and an optimized driving experience. Fuel management is especially beneficial for large fleets and long-distance drivers. ‍

Equipment downtime‍

Equipment downtime has a major impact on a transport and logistics company's spendings. A fleet management system monitors the actual progress of maintenance allowing business owners to avoid serious breakdowns and predict the order of spare parts.

• The software controls whether the vehicle is refueled at the recommended gas station network. The use of high-quality fuel increases the chances of long-term operation without repair.
  

• Integrated with a monitoring system, the system allows you to control the actual work in real-time. For example, when the permissible downtime is exceeded, a notification is sent.‍

Route optimization‍

Real-time route planning function using GPS trackers. GPS technology allows fleet operators to know the exact location of each vehicle at any time, efficiently plan routes, send “delay ahead” notifications to drivers, and link the closest vehicle to a job site. In other words, route optimization saves both fuel and driver’s time, thus, the company's money. 

Effective route management also optimizes driver scheduling improving both driver and vehicle safety. Once implemented, the efficient route optimization results in improved customer service through on-time deliveries. Statistics reveal that companies that use a fleet management solution can reduce total miles driven by up to 5-10%.

The solution

Targeted at SME delivery and logistics companies, the Fleet Management Dashboard is a flexible open source template for a fleet management software. Connected to an open-source GPS tracking solution, Fleet Management Template provides a detailed view of business performance. The template includes 5 main modules: 

• Admin Dashboard
• Revenue Analytics
• Vehicles
• Trips
• Maintenance

The dashboard includes a set of integral features making the template a solid foundation for further customizations.

Here at Akveo, we help logistics companies to automate their operations and make data-based decisions using Fleet Management Dashboard. To help you seamlessly integrate our solution, we introduce two new customization plans - Standard and Enterprise. Each plan comes with predefined options to figure out what plan is best for you. Get the full overview of the solution and the customization plans. ‍

To sum up‍

Zion Market Research report claims that the fleet management systems market reached $11.9 billion in 2017 and is expected to account for a whopping $43.5 billion by 2024. The use of fleet management software is growing in the T&L domain and has an impact on the whole automotive industry. Sid Nair, senior director of transport and compliance at Teletrac Navman commented that "facing volatile fuel costs, a driver shortage, and new regulatory challenges, it's not surprising that executives in transportation are doing everything they can to control costs and boost revenue. Companies are investing in technologies to help streamline their workflow and connect drivers to the back office. This is only the beginning of a paradigm shift centered around technology adoption and use."

As a fleet manager, you know that every little aspect of the maintenance process counts. Fleet management software allows you to manage all maintenance activities, track expenses, and make informed decisions based on analytical reports. Is your T&L business interested in adopting a convenient fleet management solution? Regardless of your project’s specifics, we offer top-notch development and consulting services that concern every aspect of the solution. Check out our fleet management template’s page and contact us.