Optimising a Fleet Management Business
Operating a logistics and transport business can either be a high intensity prospect or one forged from order and process. Sustainability depends on several key factors revolving around cost reduction, efficiency and a reputation for excellence in dealing with customers. But these elements are the end result of a detailed strategy dealing with both internal and external considerations. Pursuit of the ideals can only end in success if the fundamentals are put in place, so let’s examine a few.
A cornerstone of any logistics business is the technology it is able to leverage to its cause. While autonomous vehicles remain out of reach for mass application, for now, there are other vital advancements which might be brought to bear. Telematics is one such. While the name implies several different levels of reporting, it all comes down to that, feedback. Information from a driver’s performance to the condition and efficiency of a vehicle can all be gauged continuously.
This allows the efficient fleet manager and his operators to make critical judgements which save costs and enhance efficiency. Drivers also stand to gain if excellent performance is rewarded, leading to a more motivated workforce.
Isolating High Yield Routes
Not all deliveries are made equal. Some routes will provide a higher profit than others. One major reason for this is that certain routes and deliveries will result in your vehicle making a return trip with no cargo. A badly run fleet will have its vehicles spend as much as 50% of their time with no cargo onboard, simply running up petrol and maintenance costs. Identify your most profitable routes and scale back on less effective ones.
Ensure that your drivers are given as much advanced training on best practices for your vehicles and have a clear idea of the schedule they need to adhere to. Most in the logistics industry are acutely aware of rising fuel costs and the bad habits of drivers which can compound the problem, and this comes down to training. It is also possibly to reduce overheads on insurance by allocating drivers a specific vehicle.
There are many more considerations to take into account, such as the efficiency of depots and warehouses along specific travel routes. Are some causing bottlenecks? Are there others nearby with better access and more efficient staff? These are the sorts of questions which the experienced fleet manager weights every day.
CEO TSI Central Station
Original Content Source: TSI Central Station
Original Authour: Clifford Blackburn
Original Image Source: Unsplash
More About the Author:
Clifford Blackburn, CEO TSI Central Station
Entrepreneur – Logistics and Supply Chain
Transport & Logistic Specialist, with a focus to cut cost and improve service delivery.
Specialties: Transport – Logistics – Supply Chain: (3PL& 4pl) Fourth Party Logistics Services.
As a company, we look across the entire supply chain, which includes;
Import, Exports, Chain management. If you are doing Cold chain collections and deliveries. Not only in South Africa but Sub-Saharan Africa. Typically, we asses and look at who is doing your Shipping, Forwarding, Clearing Who is doing your Forwarding, your Clearing..No matter the mode of transport, road, air or sea.
Locally looking at Depots, Chain services, logistics, Specialised – Sub-saharan – Import – Depots – Chain services – Logistics business – Chain logistics