When it comes to effectively planning and executing transportation for your business and improving logistics, fleet operations play an integral role. In this blog post, we highlight ways for companies to enhance their fleet operations.
Telematics is a great first step to optimize your fleet operations, and some of the biggest benefits of telematics depend on the type of fleet you have. Some of the common benefits of telematics include:
- Convenience: Fleet managers can access reports any time and from any device connected to the Internet. You don’t need to wait for drivers to self-report.
- Uptime: Tracking vehicle behavior means you can schedule maintenance when the vehicle needs it—as opposed to a generic timeline. Monitoring can also help you avoid unforeseen repairs and breakdowns.
- Accuracy: Get a verified, accurate cost per mile.
- Insurance: Companies have been working out a way to lower insurance payments by proving good driving behavior through telematics.
- Cost savings: With data on how and where a vehicle is driven, fleet managers can find ways to save money. Sometimes savings are as simple as choosing more direct routes, or monitoring and reducing idle times.
- Safety: Data can help find and prevent safety risks. Managers can flag drivers who tend to speed, brake too harshly or don’t wear seat belts.
When implemented properly, telematics can surely benefit how fleet managers conduct their operations as it provides businesses with a complete picture of the performance of the fleet on a daily basis—and in real time.
Integrated Technology and Big Data
Telematics are just part of a larger trend of connectivity. The Internet of Things (IoT), making vehicles continuously “connected,” will help fleet managers automate and optimize various processes and streamline operations, allowing for more fuel efficiency, safer driving behaviors, and higher quality of service to customers.
- Autonomous vehicles: Analysts predict that by 2020, there will be 10 million autonomous vehicles on the road. Already, semi-autonomous features – like blind spot detection and forward collision sensors – available on vehicles today have had a big impact on the industry.
- Mobility as a Service (MaaS): MaaS, transportation services from an on-demand platform, can be applied to the fleet industry in the future. Fleet management companies will have the ability to become MaaS providers themselves or use their expertise to manage fleets for a network of companies that want to use their own vehicles as MaaS.
Reduction in Fuel Costs
Limiting your company’s long-term fuel costs will also help enhance your fleet operations and increase efficiency. By minimizing fuel costs, through various best practice approaches, fleet managers are able to increase the efficiency of their operations.
Below are some best practices that fleet managers can implement for better fuel efficiency:
- Select the right type of vehicle prior to signing a lease: Vehicle selection impacts everything from fuel cost to driver safety, so before you decide to sign a lease, take the time to ensure you’ve made a choice that aligns with your strategies.
- Determine the type of cargo—including elements like weight, distribution and type: A small, lightweight car, for example, will have much better fuel efficiency when compared to a truck or SUV.
- Extend your fleet replacement cycle to decrease costs: In addition to selecting the right vehicle and determining the type of cargo your vehicle will transport, avoiding the trap of irregular replacement cycles is key. Otherwise, not only is the potential resale value of the vehicle affected, but the maintenance cost increases, affecting overall fuel economy.
At Union Leasing, we can help you run a more fuel-efficient program, all while giving your operators the freedom to access fuel locations across North America and the power to establish spending limits and purchase criteria.
In the end, to enhance your fleet operations, it’s important that you stay on top of the latest trends in the industry and implement them accordingly. This is especially true today because the fleet industry is known for being one that embraces new technology and innovation—and successfully improving your fleet operations means staying ahead of the game.