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Writer's pictureNour Shawky

The Importance of Technology in Increasing Fleet Efficiency


A Utilized FMCG vehicle

In 2022, Logistics firms are more focused than ever on increasing efficiency and lowering costs. This year, the emphasis will be on achieving high-level resource utilization.

Fleet consumption is the measurement of fleet performance or use. It is a comparison of fleet capacity versus demand. Demand and fleet capacity fluctuate on a regular basis, depending on the fleet management strategy for each vehicle type, location, or time window.

Resource consumption is an important aspect of project and portfolio management that assists organizations in maintaining growth, increasing profitability, increasing productivity, and improving their bottom line. Resource consumption is a key performance indicator (KPI) that tracks performance and effort over time.

WHY IS FLEET UTILIZATION REQUIRED?

A well-utilized fleet not only reduces costs and boosts productivity, but it also boosts profitability.

-Right fleet size:

assists businesses in determining the appropriate fleet size based on vehicle quantity, location, and availability.

-Manage maintenance costs:

Aids fleet managers in preparing for maintenance issues.

-Optimal Fleet Usage:

By focusing on fleet utilization, it is possible to increase revenue potential while using far fewer resources.

A multi-pronged strategy for increasing fleet productivity:

Assists businesses in increasing fleet productivity by monitoring everything from driver behavior to vehicle capacity.


HOW CAN YOU maximize the benefits of YOUR FLEET?

1. Obtaining critical metrics

To maximize fleet utilization, you should focus on improving your fleet utilization essential metrics.

-Consumption of Fuel:

Fuel consumption provides an additional perspective when compared to kilometers traveled. It assists logistics firms in lowering their fuel costs.


-Miles traveled:

Traveling fewer miles reduces the number of journeys while also lowering fuel consumption.

-Time utilization:

The most important statistic in any logistical scenario is time utilization. It includes a vehicle's delayed delivery time, pre-loading and waiting time, loading and unloading time, maintenance repair time, and time spent on the road.


-Running on fumes:

Logistics firms strive to reduce empty travel legs while increasing average weight utilization. It is critical to reduce the time spent loading and unloading in order to achieve this statistic.


- Utilization after hours:

After-hours use can help to reduce traffic congestion, but it is subject to environmental regulations. Fleet managers should investigate after-hour deliveries to see if they are beneficial to their company.


2. The proper vehicle size

To meet the needs of their customers, businesses must modify their fleet operations. The volume of deliveries, customized fleet requirements, optimal use of extra vehicles, underutilization of vehicle deck, and different-sized vehicles all influence the optimal vehicle size for efficient fleet operations.

3.Transporting and unloading

Fleet managers must focus on reducing wasted space while loading and unloading by planning for volume, height, and balancing the time lost in loading and unloading.

4. Last-minute rerouting issues

The efficiency of a business is determined by how it handles last-minute route changes in deliveries. It aids them in avoiding missed and failed deliveries.


HOW DOES TECHNOLOGY AFFECT FLEET UTILIZATION?


1. Route planners powered by AI

Logistics managers can optimize the best possible route and schedules for drivers by using AI-based route planning optimization software. It allows you to complete tasks on time.

2. Software for fleet management

Intelligent fleet management software can provide pertinent statistics on driving performance while also assisting businesses in reducing fleet fuel expenditures. It also helps fleet managers identify and reduce distances traveled on the road, resulting in better fleet utilization.

3. Delivery Control Towers

Delivery management software allows fleet managers to monitor their routes and deliveries in real time-time, and intelligent solutions such as Norma Live use Artificial Intelligence to provide real-time dynamic live routing for express deliveries and fast-moving frequently changing pickup & delivery operations. Norma Live is an auto-pilot that dynamically routes and re-routes drivers on the road based on incoming pickup & delivery orders. Norma Live comes with a backbone optimizer connecting the entire transportation chain with the last mile to provide predictable and reliable deliveries

For more information on how Norma live’ intelligent solutions can help you to enhance your fleet utilization, please visit normalive.ai or contact us now.

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