February 28, 2021

Fleet Management Software for Small T&L Businesses: Why It Matters

4 min read
According to the T&L industry classification, a small fleet is a fleet with fewer than...

According to the T&L industry classification, a small fleet is a fleet with fewer than 100 vehicles. However, the adjective “small” shouldn’t be misleading. No matter the actual size, the management of a modern fleet is by no means a trivial assignment. As a fleet manager, you have to constantly monitor fleet performance, not to mention routine daily tasks. Plus, you have to keep up with both ecological and legal requirements, and I can’t stress enough the importance of adhering to regulations in the logistics business. If you do not pay attention to emerging problems in time, then the consequences can be dire, and you will have to catch up at an accelerated pace.

What’s more, the new COVID-influenced reality poses new challenges for fleets of all sizes. Statista claims that the consequences of COVID-19 resulted in a decrease of 6.1% in gross value added by the logistics domain. To efficiently operate under new market conditions, business owners must accelerate the digital transformation of their fleets.

Pandemic or not, the logistics landscape is constantly changing, so it is important to spend funds efficiently to stay on budget. Besides, the competition is tough, and big fleets tend to outpace the smaller ones. Just like in other industries, small players in the market are looking for innovative fleet management solutions to address these challenges. Generally speaking, the use of fleet management software helps to improve such areas as:

  • optimization of costs
  • supplier and expense management
  • strategy and policy implementation
  • response to tax and legislative changes
  • increased driver satisfaction and safety.

The Impact

The management of a fleet, even if it’s small, is nearly possible without a well-thought-out policy for the use of vehicles. Robust solutions in the market allow fleet managers to monitor the location, movement, parking, and mileage of vehicles in real-time.

Automated route planning. Every day, operators plan, coordinate and check hundreds of routes. It’s not uncommon that many of these routes repeat on a regular basis. For example, daily delivery of groceries to supermarkets, transportation of goods from warehouses to construction sites, regular visits to facilities by service engineers, etc. The creation of the routes takes a lot of time, but automation significantly speeds up the whole process from A to Z.

Increased productivity. Using a fleet management system, fleet managers know the exact location of their fleets. With that info at hand, it gets easier to select the nearest available vehicle for a job and provide the driver with all the specifications and an optimal route for each task through the integrated navigation system.

Proactive maintenance. The management of a corporate vehicle fleet using a fleet management solution reduces accidents and minimizes repair costs due to timely diagnostics. It’s just easier to maintain vehicles in better conditions over time. According to stats, the proactive maintenance practice allows saving up to 40% on fleet insurance and 15% on fuel.

Cutting Costs. A fleet management system allows managers to keep an eye on the driving behavior of drivers, including parameters such as speed, sudden braking, and acceleration. This information is very useful for improving the driver’s driving behavior. Overall, this practice results in fuel savings and lower maintenance costs.

In all, fleet management software helps manage your fleet costs and improve your budget. The proper analysis of both direct and indirect costs provides a transparent picture of all spendings.

How to Choose

With all the variety of software in the market, the question needs to be asked. How to choose a solution that solves my needs? To see a list of software with features, reviews, and pricing options, take a look at the fleet management software comparison Chart. I hope this chart will help you in making an informed choice.

To Sum Up

In 2021, saving costs remains a high priority for many small and medium fleets. With automation and a proper analysis of a fleet’s data, it’s much easier to make decisions that have a positive impact on the bottom line of your business.

After all, it’s all about costs. New vehicle acquisition costs and fuel consumption are just two of the many factors to consider when calculating fleet costs. To avoid financial difficulties and to prevent unpleasant surprises, it is equally important to take into account indirect costs in advance. The best maintenance, reliable equipment, qualified employees, and optimal fleet management software ensure that there will be no problems with the overall balance of the enterprise in the future.

The pandemic has affected almost every aspect of economic activity around the world. Here at Akveo, we believe that proper fleet management software will make a difference for any T&L business. The development of technologies in the new decade will make it possible to automate routine work as much as possible, speed up business processes, and provide customers with even more additional opportunities. The sooner such a system appears, the more loyal customers and profits you get.

The post Fleet Management Software for Small T&L Businesses: Why It Matters appeared first on InsightsSuccess.

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