Fleet management software have now become highly in demand. The industry is growing at a CAGR of more than 10.1% every year. You can learn more about the growth of the fleet management market here. One of the main reasons for the rapid growth of this industry is the multiple benefits that it offers to make online deliveries a success. Other than offering automation, efficiency, cost and time optimization, one of the benefits of this software includes fleet utilization.
What is fleet utilization?
It is the process that involves the measurement of the usage or performance of the delivery fleet. Fleet utilization is in simple terms the comparison of the demand of the fleet with its capacity. It is a highly important factor when it comes to fleet management. This is because it improves productivity and reduces costs. Some of the main benefits of fleet utilization include the following:
- It ensures optimum usage of the delivery fleet
- It makes space for the management of maintenance costs
- It also ensures that the fleet being used for operations is the right size
A wide variety of factors are considered by fleet management software when maximizing fleet utilization. Some of these include the following:
Choosing the Right Sized Vehicles
This is an underrated benefit that most businesses fail to give importance to. The optimum profitability required for the success of business operations can not be achieved with the one sized vehicle approach. There are a number of factors that must be kept in mind when choosing the right sized vehicle. Some of these include the volume of deliveries or orders, optimum usage of the extra vehicles, and more. This is why fleet management software are so helpful.
Reduction in Fleet Fuel Costs
Large vehicles can carry more orders and smaller ones can be used for lesser orders, But, smaller vehicles that can divide the load of orders in different locations will, combined, cost less fuel than one large vehicle that travels different distances. This varies day to day, based on the number of orders and their respective locations.
Keeping in Mind Crucial Fleet Metrics
Fleet utilization is a tricky process with layers of complexities. Some crucial key metrics that must be kept in mind include the fuel consumption, time it would take to travel, empty running vehicles, delay times, and more. Fleet management software make this easy to do through complete automation.
Catering to Last Minute Re-Routing Requirements
Fleet management can take a detour if sudden changes in the expected route occur due to unpredicted changes such as harsh weather or sudden customer change in delivery requests. Re-routing in real time can inform drivers quickly about changes in route before any delays or fuel wastage can take place.
You can learn more about how such software can help in on time delivery success here.
Shipox is a data-driven Fleet Management Software that enables its users across a multitude of diverse industries to avail market competitive features and customer support in order to automate and perfect their delivery process. Shipox users are able to increase the efficiency of their delivery process, optimize their costs effectively, and enhance their customer experiences. To learn more, you can sign up for a quick demo here.