In the absence of an adequate software solution, fleet management can be challenging and admin intensive. Cost monitoring can also prove challenging as there are so many different aspects to take into consideration, monitor and improve on. For any business that comprises fleet management the following are expected challenges:
One of the most important factors to consider when buying a software solution for fleet management is the degree of integration it will allow in your company. It is crucial to ensure that all data can be integrated and is easily accessible to drivers, managers and clients. To ensure efficient control over business processes all activities should be monitored and fed into a system which could easily display performance and results.
A dispersed workforce
Another challenge of fleet management is the management of a dispersed workforce. As employees cannot be monitored under managements’ watchful eye to ensure that business standards are adhered to, other methods, such as track and trace technology need to be implemented to monitor fleet performance, on-time deliveries and time consumption.
Fleet maintenance is one of the most obvious priorities of any logistics company. Without a properly maintained fleet, breakdowns, additional costs, late deliveries and loss of clients will be a reality. Fleet management software can greatly assist in tracking fleet performance as well as updating and relaying maintenance schedules.
An obvious way to ensure that a business fails is by not monitoring costs. Every aspect of fleet management costs need to be controlled and integrated into a software system, which can assist in monitoring and displaying performance compared to costs. Reductions should also be implemented where possible by increasing efficiencies.
There are many factors to consider when monitoring costs, such as fuel spend, optimal routes, labour costs and overtime, maintenance costs and administration costs. This stresses the need for a fleet management system which can monitor all of these aspects to ensure that each area of the business is performing well and not causing additional expenses owing to inefficiencies.
Asset use control
A big concern for any company is the misuse of assets by employees. Petrol cards, use of company vehicles, internet-and-cellphone use need to be strictly monitored to avoid additional costs. The costs that can be accrued by improper use of company assets should not be underestimated.
Solutions to control the use of company assets by employees are available. For example, petrol cards can be disabled over weekends if a driver does not have a delivery scheduled. In addition, logistics software can be used to integrate and monitor month-to-month expenses which will highlight any red areas to employers.
To read more on the challenges facing commercial fleets click here: Top 5 Challenges Facing Commercial Fleets