What Most People Fail To Realize About Evaluating Their Fleet Management Procedures
This post was last updated on January 25th, 2024
The term ‘Fleet Management‘ generates both awe as well as suspicion.
For those that know the rules of this fast-changing industry realize how easy fleet management can be if you know the best way to leverage technology while managing your fleet.
However, there is another section of fleet operators who, despite knowing the advantages of ultra-modern fleet telematics, feel wary of upgrading their fleet because of myriad apprehensions.
This article discusses why you need to know about the latest fleet management technologies and where many fleet managers and owners go wrong while evaluating their fleet management procedures.
What is Fleet Management, and Why Do You Need It?
The modern concept of fleet management began in the early 2000s and has been subject to massive upgradation since then. Fleet management is the centralized process of managing a fleet of vehicles to simplify the day-to-day operations of a business, which involves the movement of cargo.
Modern-day businesses rely on a proper fleet management solution as it increases productivity, reduces expenses, improves communication, minimizes downtime, automates compliance, and enhances vehicle lifespan.
Hence, you need a fleet management solution if you want to make your fleet business catapult to the future.
The Common Mistakes Fleet Managers Make While Evaluating Their Fleet Management Procedures
The fleet business is complex. On the one hand, a fleet manager has to coordinate with the drivers, look into vehicle maintenance, manage everyday expenses, and ensure timely delivery of cargo. On the other hand, they have to communicate with customers and handle all their queries.
The following are the critical fleet management procedures that a fleet manager generally oversees, and, incidentally, these are also the areas where most fleet managers fail to evaluate the processes properly.
1. Not Communicating With Stakeholders
A fleet manager typically communicates at three levels – the employer, customer, and drivers.
While communication with the employer and customer is mostly related to the process, communicating with drivers is often the most tricky part. A recent study found that
70 percent of drivers leave the company within one year of joining, and the majority of them leave within the first three months.
Any company spends considerable resources on skilling and upskilling drivers. Retaining such a valuable asset becomes paramount.
To increase the satisfaction level of drivers, you should focus on engaging with them on a personal level, especially during the first three months.
Sometimes, a driver has to perform additional tasks, over and above their allocated duties. While this may make them feel overwhelmed by engaging with them, you can explain why they need to take the additional load.
Another thing you may do is to make them a part of the technology up-gradation process.
Most fleet owners upgrade their fleet with ultra-modern telematics technology, which often creates problems for the drivers, at least during the initial days. By paying heed to their feedback and making them a part of the up-gradation process, you can ensure a seamless transition.
2. Not Prioritizing Training Needs
The fleet industry is one of the most dynamic.
Advanced technologies like IoT, Telematics, Big Data, GPS, and Predictive Modelling are redefining the way the fleet business is being managed.
GPS tracking software enables real-time monitoring and management of vehicles, assets, or individuals through satellite or cellular networks. By utilizing location data, it provides accurate insights into routes, speed, and overall fleet performance, enhancing operational efficiency and security while allowing for precise navigation and logistical planning.
One of the top mistakes that fleet managers fail to realize is the need for a proper training plan for its staff and drivers. The lack of training often leads to miscommunication, decreased productivity, increased overhead expenses, and poor customer satisfaction ratings.
Hence, to avoid the issues that come with a non adequately trained staff, you should have a well-laid-out training strategy that can enable your staff and drivers to handle complex processes with ease.
Having a proper training calendar can benefit you in the following ways:
- Help in improving the corporate brand value
- Increase the safety of your fleet on the road
- Reduce accidents and delays in consignment delivery
- Help in avoiding insurance claims and litigation
- Optimize fleet use by improving mileage
- Lead to better retention of employees, which include staff and drivers
- Simplifies asset management procedures
3. Lack of a Proper Fuel Management Strategy
Managing fuel expenses is always on the list of top challenges for any fleet owner or manager. Fuel is a major contributor to the ever-increasing operating cost of a fleet.
Fuel prices depend on multiple factors like availability, currency exchange rate, political situation, and many other factors. Most of these are external factors that are beyond the control of the fleet manager.
However, by adopting the best practices of managing fuel consumption, the fleet manager can optimize fuel use and improve the bottom line.
Here are the steps you may take to cut fuel bills:
Upgrade your fleet with a telematics system. The telematics system would take in the live feed from on-road vehicles and display it on your dashboard, thereby helping you to identify poor driving habits and take remedial measures.
Keep an eye on vehicle maintenance. Fuel consumption depends on various factors like tire condition, fluids, engine, components, and the likes. By frequently checking the condition of the machine parts, you can optimize vehicle use and decrease fuel cost.
In the US, fuel prices vary based on the location and the nature of the refueling station. Tie up with stations that do not charge a premium. Make sure your entire fleet refuels only from those stations.
Train your drivers to adopt safe driving habits, which will also help in lowering your fuel bills. Train them to maintain a uniform speed, avoid harsh braking, press clutch properly, among other things.
Value your drivers, as they are your prime assets. By interacting with them, you can find out a few fascinating ways to save money.
4. Overlooking the Need for Compliance
In addition to handling everything related to fleet management, a fleet manager also has to look after compliance. And compliance is not an easy task.
The fleet company has to adhere to several rules and regulatory guidelines. Be it inspection sheets, regular driver and equipment checks, defect reporting, insurance, MOT testing, ELD, or HOS, the fleet manager’s dish is always full.
Sometimes, despite their best intentions, fleet managers fail to comply with certain regulations. The legal implications that follow can take a toll on the company’s finances and staff’s health.
The best way you can avoid the hassle is by upgrading your fleet with a fleet management solution that ensures automated compliance, less paperwork, and more ease in fleet operation.
Conclusion
A healthy fleet is a productive fleet. Modern fleet management solutions come equipped with everything you need to operate the fleet.
Be it engine diagnosis, fuel optimization, crew management, or complying with regulatory guidelines; the fleet management solution takes care of everything you need to operate your business with ease.
Ai on the road has allowed businesses to transform their operational efficiency by upgrading their fleet with the latest technology.
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