How Fleet Management Software Helps Logistics Companies Reduce Costs

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Fleet Management Software (FMS) has proved so helpful in helping companies, sales, couriers, governments, institutions, and organizations to manage their fleet-related tasks. There are several specific activities involved in managing a fleet of vehicles, all the way from vehicle acquisition to its disposal. The software is a vital tool because fleet management can be overwhelming owing to external forces such as legislative changes, dwindling costs, and uncertainty in the car market, all of which the fleet manager cannot do a thing about. A good FMS supervises the whole life-cycle of commercial vehicles while increasing their efficiency, ascertaining their adherence to set standards, and heightening productivity. So then, how does an FMS prove to be good logistics software solutions in helping the company to achieve cost reduction?

FMS helps with fuel management

Of a fleet’s expenses, fuel consumption is the largest expense with it accounting for 40% of total expenditure. This means that how fuel consumption is managed will directly impact the cost of fleet management. Fuel costs are ever-increasing and some other external influences challenge fleet management. Using an FMS, fuel management becomes easy and both the cost and consumption of a fleet’s fuel are controlled. How so? An FMS has features that allow the fleet manager to conduct a cost-benefit analysis for the available fuel options, and use the results to determine the most suitable fuel and vehicle in the fleet. Telematics, a feature of FMS can be used to track drivers and monitor the driver’s behavior’s effects on fuel consumption. Additionally, vehicles are tracked and routes analyzed to decide on the best routes that ensure sustainable fuel consumption.

FMS for fleet acquisition

The life-cycle of a fleet starts with car manufacturing but fleet management begins with vehicle acquisition. Even at this point, FMS proves important in helping logistics companies reduce costs. With its help, a fleet manager can gauge the suitability of a vehicle against its purpose; analyze the vehicle’s fuel consumption, and negotiate affordable deals with the manufacturing company. In acquiring a vehicle, several factors are considered. The fleet’s insurance cost, its end-life resell value, and customers’ preference all have to be looked into. Honestly, if this was to be done manually, many errors would occur. But with the help of software, a fleet is acquired with errors substantially reduced. Remember that with reduced errors, costs also reduce.

Vehicle maintenance with an FMS

Acquiring a vehicle is like giving birth; you have a whole lifetime to maintain the vehicle for as long it’s still there (the way you’d take care of a baby). In maintaining a fleet, you want to ensure that you strike a balance between quality service and cost to keep your logistics business sustainable. However, this may not always be easy. FMS comes in handy when you use it to conduct a cost-benefit analysis and decide whether to outsource maintenance services or use an internally-owned one. The FMS also helps you have the detected defects rectified. At the end of the day, the maintenance must meet the compliance standards.

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FMS for health and safety

Sometimes accidents occur and drivers are injured. Sadly, the driver may not be helped as fast as possible because of poor insurance policies. FMS helps a fleet manager identify insurance companies that will attend to claims fast and provide the needed compensation. If any repair breakdown, the FMS ensures that it is efficiently handled. Sometimes the accidents occur because the driver had issues unknown to the fleet. FMS keeps the drivers’ records up-to-date and ensures preventable accidents are evaded.

Compliance requirements met with FMS

Every country will have its compliance standards though some policies are applicable across nations. For instance, a driver must have a valid driving license and tag. Insurance, daily checks, defects reporting and rectification, and inspection sheets are required everywhere. Any FMS has a compliance and fleet management tenet that ensures the fleet’s activities comply with the regulations. This makes it possible to have well-arranged and detailed information for auditing and investigations/claims. An FMS is a computerized system, hence it provides real-time information. The legislation will change from time to time but that is no big deal when you have an FMS that is also agile with the changes that are prone to occur. All this reduces cost as the company will not have to pay some hefty fine for non-compliance or be forced to pay claims when the insurance company refuses to help because the fleet company failed to keep at par with the insurance changes.

Controlling costs with FMS

FMS has an independent pillar specifically handling cost control. All businesses want to reduce costs and ensure sustainable operations, and so does fleet management. With the help of an FMS, a fleet manager looks at all aspects of the fleet operations and management and finds out which areas deserve improvement.  It could be routes that need to be analyzed, drivers whose behaviors need monitors, fuel consumption and costs that needing reviewing, or vehicle purchasing costs that need to be cut down.

Information handling with FMS

A logistics company is one big company with constantly streaming information. With such voluminous data, there is the risk of wasting time as you go through all the data, some of which could not be necessary. Apart from wasting time, there are financial implications such as Internet cost. Additionally, most critical information may be overlooked while the less important data given undue attention. To help solve this challenge, use an FMS to filter the streaming data and generate a report on what information you need.

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FMS to complement the expanding manager’s roles

Technology has had amazing advancements which also impact the fleet management of a logistic company. For instance, some countries have flexed their laws to put environmental auditing under fleet management. FMS is there to help accomplish such roles by generating a report on the entire fleet’s operations and their impacts on the environment.

Conclusion Logistics companies are a busy field and require practical logistic software solutions that will help them reduce costs. The industry itself is dynamic, just like any other business that is affected by changes. The laws and regulations of a nation will change, fuel prices will shift uncontrollably, accidents will occur, and massive information will keep streaming into the company’s database, posing a challenge in processing them. It must be overwhelming if a manager was to handle all the tasks manually. However, with the help of proper fleet management software, all the roles can be handled for the smooth running of the company and cost reduction.

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