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Advanced Fleet Management: Industry Challenges & Solutions: Part I

Fleet managers and VPs of Transportation are struggling to manage assets and are experiencing inefficiencies. Here are Top 8 Challenges we face today.
 

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  • fleet management
  • supply chain and logistics

Advanced Fleet Management: Industry Challenges & Solutions: Part I

Posted On: 12 October, 2020
By Suresh Mamunuru

Are you a fleet manager or a VP of Transportation who is struggling to manage assets and is experiencing inefficiencies?

Or are you having trouble deciding whether to implement a fleet management system or not?

Well, with every minute you procrastinate on this decision, you are losing both Time and Money!

A fleet management system (FMS), which was once thought to be a nice-to-have, is now a must-have.

With fleet companies facing increasing demand and other industry challenges, they are starting to realize the incredible advantage of implementing strategic next-generation fleet management solutions. Not only do these solutions help them distinguish themselves in a crowded market, they also help them improve their productivity, while positively impacting their bottom line.

With FMS in place, you can get real-time visibility and control of fleet assets, improved fleet efficiency, and reduced operational costs. It can also help you ensure fleet safety and reliability, mitigate risks, and stay compliant with regulatory standards.

But, before we uncover fleet efficiency opportunities in detail, let's deep dive into the industry challenges first, shall we?
 

INDUSTRY CHALLENGES

In today's volatile market, where technology trends change by the hour and customer expectations escalate at an unprecedented rate, fleet organizations that don't have access to real-time fleet data are unable to make informed decisions.

Fleet organizations, which own a huge number of vehicles and are accountable for many drivers, especially face several fleet management hitches that impact both productivity and profitability.

Here is a round-up of the top 8 biggest challenges of fleet management:

  1. Improving driver behavior
  2. Improving the fuel management process
  3. Reducing the damages and accidents
  4. Improving safety and compliance practices
  5. Optimizing fleet size and utilization
  6. Reducing insurance costs
  7. Controlling vehicle theft
  8. Reducing CO2 emission

 

IMPROVING DRIVER BEHAVIOR

Driver behavior and maintenance needs are strongly connected. Driver behavior such as excessive idling and aggressive driving significantly impact fleet maintenance costs.

  • 20% of large vehicle accidents are due to speeding
  • 80% of vehicle accidents are driver related

 

IMPROVING THE FUEL MANAGEMENT PROCESS

Tracking fuel consumption, checking instances of fuel overuse, and finding ways to save on fuel costs and consumption is always a challenge because of the volatility of fuel costs. Better the fuel economy, the less the money organizations need to spend on fuel across their fleets.

 

REDUCING DAMAGES AND ACCIDENTS

Ensuring fleet security and driver safety is a perennial challenge. Each accident hits businesses where it hurts right on the bottom line. It brings a significant cost to the organization that goes far beyond just repair costs and the insurance claim.

 

IMPROVING SAFETY AND COMPLIANCE PRACTICES

Lack of compliance by drivers with safety policy is also a top challenge. Failing to meet compliance requirements expose fleet owners to:

  • Higher operating costs
  • Higher insurance fees
  • Loss of business
  • Increase in maintenance fees
  • Heavy penalties
  • Late deliveries
  • Bad Compliance, Safety, Accountability (CSA) scores
  • Increase in CO2 emission

 

OPTIMIZING FLEET SIZE AND UTILIZATION

Fleet managers constantly strive to operate more efficiently, and for them right-sizing their fleet and optimizing their utilization is a challenge.

 

REDUCING INSURANCE COSTS

Fleet insurance costs are rising every year and figuring out how to lower these costs is critical for the fleet operators because it causes a hike of almost 14% in the maintenance cost.

 

CONTROLLING VEHICLE THEFT

Monitoring and protecting fleet assets is critical for fleet managers because vehicle theft affects the organization's bottom line directly. It takes significant time to recover the lost vehicle and there is an increased chance of substantial damage to the vehicle.

 

REDUCING CO2 EMISSION

With several global policies in place to restrict CO2 emissions to combat global warming, fleet managers strive to ensure their fleet comply with these policies. This helps their organizations reduce taxes from the government.

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