There is a rise of small fleet operators in the logistics industry across the globe.
According to industry standards, any logistics organization that handles up to 100 vehicles is categorized as small fleets. The small fleet operators are more than 50% of the overall logistics fleet operators in the industry.
Manage the small fleet industry is becoming more critical and crucial for the majority of the small fleet operators.
The best practice to grow the small fleet business is deploying the smart fleet managers, best drivers, leading vehicle maintenance technicians coupled with fleet management software to improve the process, efficiency, and productivity in the small fleet industry.
Here in this article, we will discuss how implementing the fleet management system will revolutionize the logistics operation process for small fleet operators.
Challenges faced by small fleet operators
The small fleet operators face numerous challenges to run successful business operations. We are listing few challenges faced by the small fleet sectors.
- Find good drivers and retaining them
- Increasing operational cost
- Running a business as per government regulations
- Competitive prices offered by competitors
- Client payment issues and so on
Why small fleet operators should invest in technology?
Investing in technology is not an extra expense in the business operations rather it is an extra resource to improve the overall efficiency and productivity of logistics management.
If you are not convinced to invest in technology, we are listing major reasons to invest in technology:
- To reduce operational expenses
- Save time (Fleet manager’s unnecessary manual workload reduction)
- Customer requirements (share ETA using technology)
- Keep up with the growing competition
Best Fleet Management Practices for Small Fleets
As a small fleet operator, you need not implement all the aspects of the fleet management system as it was done by large fleet operators, rather the small fleet operators can focus more on the essential and critical features to improve the business progress.
We are providing some best fleet management practices for small fleet operators in detail here.
Automate the fleet operational process
On onboarding the fleet management system into the small fleet operating company, the fleet manager can reduce the manual work process and automate the workflow with software technology.
The fleet manager can create a trip and assign the trip to the driver using the fleet management software, manage expenses with fleet software, maintain vehicle details, share the ETA to the customers and reduce his/her dependency for updates.
By doing this, the fleet manager can focus precious time on handling new clients and new business opportunities. His only work is over the reports, updates, and data in the fleet management software.
Preventive maintenance using fleet management software
Vehicle health is key to success in the logistics fleet business. In small fleet organizations, it is the heart for running successful business operations.
The best way to achieve preventive maintenance is using advanced fleet management software. The software analyses the vehicle’s vital information such as engine data, speed report, braking report, idling report, battery data, tyre data it indicates the maintenance schedule for a particular vehicle.
The role of the fleet manager would be to plan the trip accordingly and service the vehicle to improve the vehicle’s health and efficiency.
If the fleet operators were able to maintain the vehicle’s health in good condition then there will not be any issues in delivery management. Also, it will reduce downtime, vehicle operational cost and increase work productivity.
Better fuel management
The fleet management software gets the data from the telematics technology and vehicle tracking devices installed on the vehicle. The fleet manager can access the major fuel-related reports from the fleet management software such as fuel filling data, fuel consumption report, vehicle mileage report, and theft alert in case if any diesel theft occurs.
Once the fleet manager is able to get these reports for all vehicles, it will simplify his fuel management system. fuel expenses are one of the major expenses in logistics operations, as a fleet manager, if he/she is able to know where the leakages occur, reasons for extra fuel consumption, why low mileage based on these reports the fleet manager can guide and train the drivers to improve the fuel efficiency of the organization.
Understanding fleet operational cost
The small fleet operators should understand the operational cost that occurred in the logistics sector. Usually, there will be two different kinds of expenses that occur in fleet operations one is fixed expenses and the other are variable expenses.
The fleet operators should understand where the expenses are occurring and the reasons for those expenses. If it is documented and digitized using the fleet management software, the decision-makers can manage the operational cost-efficiently using the technology.
It is always better to adapt to changes than being stagnant in one place, as small fleet operators by using fleet management software, it will help you to scale up your business, improve the process and become a key player in the logistics domain.