Are you looking for ways to ensure that your logistics company has the most up-to-date fleet management system? To do this, you must have taken a lot of steps, including installing fleet management software to working up a cost-benefit analysis.
Well, your struggle for the optimal solution ends here. Below is a list of certain components and positions in the supply chain that are pivotal to success. You can make use of these aspects, see how they work for their company, and come up with the perfect strategy that suits your logistics company the best. Apart from this, you can take a page from the book of the best of companies and learn from their successes and failures, and craft them according to the needs and size of your fleet.
1. Tracking
When it comes to efficiently managing your fleet, it is a given that making use of technology to further a smooth-running fleet is pivotal. This is where fleet tracking comes in. Various devices are used for this process, wherein a device is fitted inside the vehicle, and this helps the owner track the progress of the fleet in real-time or otherwise.
These devices are of mainly two types – cellular and satellite-based. The cellular ones are cheaper and easier to install, but they cannot track the progress of the fleet in real-time. The device that is installed in the vehicle then needs to be plugged into a computer, and the data can be downloaded and viewed. Whereas when it comes to satellite-based trackers that make use of GPS, the owner can track the progress of the fleet live and see where the vehicle is. This tracking will help you effectively plan out your route and thus reduce errors in your process, making it more efficient.
2. Delivery
With the advent of modern technology, the delivery has become very easy. Routes are more comfortable to navigate, and locations are easy to track. However, this is helpful only if the people operating these are well-versed with this technology and the gadgets. If not, this entire process becomes even more complicated than it should be.
Hence, delivery and efficiency are very important. Taking orders to the right place, at the right time is one of the essential factors that ensure customer satisfaction as that is one part of this whole thing that the customer benefits from. As a substantially large company, delivery might be difficult to manage due to the volume of products, but it is always better to invest in a good service that doesn’t affect the progress of your operations. With a smaller fleet, delivery is easy to match, but the trouble begins when you expand your business. That’s when you need to start looking at this aspect more seriously.
3. Compliance Of Laws
Depending on the country and region, there are certain rules that commuters need to adhere to, especially ones that transport goods from time to time across long distances. These could be related to road safety, the number of hours drivers should work, etc. It is always better to bring a professional on board and know exactly what needs to be done. This will help prevent any unnecessary fines or tickets.
Compliance of laws is perhaps the most important factor that will ensure the smooth running of the business. If not, you will have a series of lawsuits and unnecessary expenses that will shell out a considerable chunk of money from your pocket. It is better to have company guidelines that are specific to fleet tracking and in compliance with government rules to hinder any possible trouble that takes place in the supply chain.
4. Cost-Efficiency
Once you start working on the expansion, you will find that the process of taking orders, followed by product packaging, shipping and delivery alone will cost a lot more than you expect. However, working on a large scale can also give you better prices in certain departments and bring down costs.
A large fleet network definitely calls for upgradation in terms of technology that can be exorbitantly expensive too, but some of these costs are inevitable. Hence, companies should try their best to reduce costs wherever they can. Ensuring the proper servicing of fleet vehicles will significantly help lower costs related to repairs and other sundries.
It will also ensure that your fleet is in proper condition and that any other troubles don’t take place. This is one domain where you need to determine and weigh your options properly, as in where you want to use funds, and where to save them. This can be a great opportunity to save money. With proper planning, you can save a huge deal of avoidable costs here.
5. Safety
Since your fleet is on the road at all times, there are chances that accidents and driver-related issues might come up at all times. You must ensure the safety of your drivers and other delivery personnel. This is essential not just from the point of view of a basic responsibility of the company, but also to avoid any other issues.
Safety can mean both physical and financial safety. It is always a good bet to insure your vehicles so that in case of any damage occurs, the costs are recoverable.
Your company policies or union statements (if any) should ensure the welfare of the drivers and ascertain that they are well-rested and not overworked. If not, this will affect the goodwill of your company while also hampering the efficient running of the supply chain. Set up meetings to address complaints and grievances, and stay in touch with your employees at all levels. Safety can also be ensured by putting your employees through proper training and making sure they are safe to travel on the road.
Conclusion
There are a lot of small, minute elements that make up the supply chain and contribute to its smooth running. It is important to cater to the requirements of each to ensure that there are no hindrances on your path. While trying to save costs, ensure that your employees do not take the brunt of the work and are satisfied working at their positions.
However, if all these steps are followed coherently, you can definitely guarantee the smooth running of a well-oiled machine that is your supply chain.
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