Fleet Management System in The Logistics Industry

Significance of Fleet Management System in The Logistics Industry

What is the significance of a fleet management system in the logistics industry? Before getting into the importance of a fleet management system, let’s have a quick recap, what is logistics? and the importance of logistics in a business.

Logistics is the detailed process of managing the entire movement of a resource from origin to consumption in an organized way. The logistics division plays its part widely in the many business sectors. Ineffectual logistics processes in a business will impact the bottom line of the company.

How fleet management became a strong part of the logistics industry?

The fleet management system is an evolving IoT trend in the telematics industry, which minimizes the transportation sector’s risk factors.

It is proved that the adoption of fleet management is raised by 8% between 2018 to 2020; it is also believed that the adoption of the fleet management system will be increased in upcoming years.

Why is the fleet management system important to a transport system?

The combination of fleet management and technology brought many outstanding changes in the fleet management system. Today fleet management system made us think without a proper fleet management system; it’s challenging to make a successful transport or logistics business.

1.  Trip Plan and Execution

Scheduling a trip isn’t difficult, right? Yes, planning a trip isn’t difficult when you have 1 or 2 trucks. The fleet management system helps you schedule a complete trip end-end trip plan and execution for n number of vehicles. Using the fleet management system, you can also manage driver and vehicle shortages.

2.  Driver Safety management

Fleet operators or managers can ensure their driver safety inside the organization, but how about outside? Drivers spend most of their time on roads. So, how to ensure your driver’s safety using the fleet management system?

A fleet management system will allow you to monitor aggressive driving behavior like controlling sharp brakes, acceleration which also helps keep a check on vehicle condition, spare part check, seat belt check, and many more, which prevent the driver from accidents.

Driver safety also depends on vehicle maintenance, have regular maintenance to avoid sudden breaks and spare part failures.

3.  Vehicle management

Fleet managers or fleet owners always have a question when a trip starts, where is my vehicle? Is everything okay? Or something happened to my vehicle?

With the fleet management system’s help, fleet managers or owners can monitor the vehicle’s complete progress throughout the trip.

Fleet management system mainly solves a problem called theft, either vehicle or fuel theft. This system provides you with an instant notification alert whenever the engine gets on or off, and also it indicates any activities like fuel fill or fuel drain in the fuel tank.

4.  Vehicle Tracking System

A real-time truck tracking system is one of the important and widely used elements in logistics. The vehicle tracking system will benefit a company in a lot more way.

Increasing and innovative technology brought two methods for tracking; Tracking with a GPS device and tracking without a GPS device.

Wait, what? Do I read it correctly?

Yes! Track your Vehicle without using a GPS device also; it is known to be SIM-based tracking or SIM consent tracking, where you can track your vehicle only with the driver’s mobile phone.

This truck tracking system helps you prevent vehicle theft by alerting you with notifications via e-mail or SMS if any action like engine off or on is performed with the location history and time synchronization.

5.  Document management

Document maintenance for both trucks and drivers is important. But, the fact how many documents can they handle? Every time a fleet manager or owner can’t search for the papers or miss their original copies.

The fleet management system brings an amazing platform to maintain the documents like bills, maintenance bills, POD, proofs, e-bills used for the entire trip.

6.  Fuel Management System

The fuel management system is the process of monitoring & managing fuel consumption, efficiency, and fuel expenses in an organization.

This Fuel management system helps to track the total fuel consumption, vehicle idle hour, fuel reports, mileage reports, and many more.

Drivers or outsiders follow many fuel theft techniques like draining fuel directly from the fuel tank, damaging the odometer, manipulating fuel bills, etc. A fuel management system prevents the organization from fuel fraudulent and saves a vast amount of fuel costs.

Any fuel tank activities like fuel fill or fuel drain are reported or alerted to the concerned person via SMS or e-mail.

7.  Route planning

Route optimization is a factor in a fleet management system where it can control fuel consumption, time, and money. Route optimization follows a certain algorithm called the shortest route method.

Route optimization provides you the shortest paths from origin to destination. Route optimization will profitably run a company by improving fuel efficiency. It is also essential for a fleet manager to ensure the route; some shortest routes are considered as dangerous routes, some long routes are considered as safest routes. So, choose your route wisely.

8.  Expenses management

Expenses management is an important task in an organization.

Business expenses management should have a well-defined policy.

Still, following excel to maintain our business expenses? Is Excel enough for your business?

You may think yes! But the fact is NO! Excel is not the right way to maintain your business expenses though it has a lot of pitfalls. Is there any other way to maintain your fleet expenses?

The fleet management system provides you with a better platform to maintain your fleets and driver expenses. You can also get analytical reports by fleet management software by comparing your previous month and latest expenses. A fleet management system will turn your data into valuable business decisions. 

9.  Transparency

Is transparency an important factor? You may think, why do you want your customers to know your trade secrets?

Transparency is not about letting your trade secrets out. It is all about building trust. The fleet management system lets the users have a complete view of the fleet, freight, and drivers. Fleet management system always brings you a simplified solution for the toughest challenges. That is why the adoption of the fleet management system increases year by year in this logistics industry.

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Christophe Rude

Christophe Rude

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