Fleet Utilization: Meet Customer Expectations with reduced operational costs
Trucking volumes have increased by 30% in 2020. - McKinsey study on US freight after COVID-19
The COVID-19 pandemic has made the job of fleet managers tougher. Whether it is minimizing fleet risks, or increasing efficiency, or improving productivity, they have to increasingly focus on fleet utilization.
What is fleet utilization?
Fleet utilization is the measurement of fleet performance or use. It is the comparison of demand and fleet capacity. Fleet capacity and demand changes daily and so does the approach to manage the fleet for each location, time window or class of vehicle.
Why is fleet utilization necessary?
A well-utilized fleet not only improves productivity and reduces costs, it also boosts profitability. Here are the reasons why fleet utilization is important.
Optimal Fleet Usage
Focusing on fleet utilization helps increase revenue potential with fewer resources.
Right fleet size for operations
Focusing on fleet utilization helps companies to right-size its fleet based on quantity, location, class and availability of vehicles.
Why Fleet
Utilization?
Manage maintenance costs
A knowledge of optimum vehicle utilization helps fleet managers to predict and prepare for maintenance related issues.
Multi-pronged strategy to improve fleet productivity
Focusing on a multi-pronged strategy helps companies improve their fleet productivity ranging from driver habits to vehicle capacity.
Optimal Fleet Usage
Focusing on fleet utilization helps increase revenue potential with fewer resources.
Manage maintenance costs
A knowledge of optimum vehicle utilization helps fleet managers to predict and prepare for maintenance related issues.
Right fleet size for operations
Focusing on fleet utilization helps companies to right-size its fleet based on quantity, location, class and availability of vehicles.
Multi-pronged strategy to improve fleet productivity
Focusing on a multi-pronged strategy helps companies improve their fleet productivity ranging from driver habits to vehicle capacity.
How to maximize fleet utilization?
Here is the process to get the most out of the available fleet.
Getting crucial metrics right
Focus and improve on essential metrics of fleet utilization like
- Miles travelled
- Fuel consumption
- Time utilization
- After-hours utilization
- Job history
Right vehicle size
Companies should adapt their fleet operations based on ever-changing customer demands. The right vehicle size for effective fleet operations depend on
- Different-sized vehicles
- Customized fleet requirements
- Under-utilization of vehicle deck
- Volume of deliveries
- Optimal use of extra vehicles
Loading and unloading
Fleet managers have two functions to take care of while loading and unloading
- Reduce under-utilized space by planning for volume, height, etc.
- Balance the time lost in loading and unloading in an optimal manner
Last-minute rerouting challenges
The efficiency of businesses depend on how they handle last-minute routing changes in deliveries. It helps them avoid missed and failed deliveries.
How delivery logistics software improves fleet utilization
Beyond workforce and fleet assets, logistics optimization software plays a vital role in improving fleet utilization. Here’s how delivery logistics software benefits fleet utilization:
Minimizing fleet fuel costs
A delivery logistics software generates useful reports on driving performance, helping businesses to reduce fleet fuel costs.
Optimal delivery routes and schedules
Delivery logistics software provides optimal route plans for drivers. It helps them to execute on-time deliveries.
Contactless deliveries
The Electronic Proof of Delivery software helps fleet managers check on-time delivery status for completed deliveries. It reduces fraudulent return costs and failed delivery costs
Fleet maintenance costs
Delivery logistics software helps fleet managers identify and reduce the miles driven on the road, thus improving fleet utilization.
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