3 efficient methods of fleet management for the logistics industry

Jimi loTJimi loT2021-02-26

How to manage the fleet has always been an eternal topic in the logistics industry, but the essence behind the question is asking: "How can logistics companies achieve cost reduction and efficiency increase through efficient management." Under the influence of the epidemic in 2020, the logistics industry is accelerating digital transformation, and refined management has entered the era of intelligence. Here are three high-efficiency fleet management methods based on the current situation of the industry to help companies reduce costs and increase efficiency.


1.Digital Management


By installing GPS tracking devices, dashcam, and various sensors on the vehicle, it is easy to view the on-the-way status of the fleet, including routes, fuel consumption, mileage, loading rate, real-time load, driving behavior, and other information, combined with a management platform based on big data and AI, managers can easily view various statistical reports, prevent dangerous driving and cargo damage accidents, and reduce financial investment.

Although many logistics companies have adopted intelligent hardware and software systems to realize the digital management of their fleets, but most fleet managers are not very good at using the collected data to analyze fleet problems. Managers need to learn to use data to find out the reasons for high fleet operating costs.

Take fuel consumption as an example. Vehicles of different brands and models run on some routes, the final fuel consumption can be different. Managers should try to best match the vehicle with the route based on data and experience to reduce overall fuel consumption. At the same time, the driving behavior of different drivers also affects the level of fuel consumption. The manager can judge the uneconomical driving behaviors that most affect fuel consumption based on the number of braking, idling, speeding, fatigue driving and other driving behaviors feedback from the platform to train or replace drivers promptly.


2. Asset-Light Model or Asset-Heavy Model


Companies at different stages have different views on asset-light & asset-heavy. To ensure the normal turnover of cash flow, more and more companies have begun to adopt a leasing model to resist uncertainty especially small and medium logistics companies that have experienced the epidemic. 

However, for long-term development, it is not a bad thing for companies to own heavy assets. With management platforms and self-owned fleets, it is easier to adapt to various difficult transportation businesses, which will help enhance the core competencies of the company in the logistics industry.

Fleet managers need to choose asset-light or asset-heavy based on their business conditions.


3. Fleet Management Assessment


To ensure the efficient operation of the fleet, the company's KPI assessment for fleet managers can focus on the four dimensions of fleet safety, cost, efficiency, and service.

For example, in terms of safety, it can be based on the number of accidents per month; in terms of cost, it can be based on vehicle maintenance costs, fuel consumption, etc.; in terms of efficiency, it can be based on vehicle empty driving rate, utilization, etc.; in terms of service, it can be based on punctuality rate and passenger complaint rate.

To reduce vehicle operating costs and accident rates, companies need to assess drivers. Use the KPI assessment system to reward or punish drivers to avoid bad behaviors such as dangerous driving and stealing fuel.


After all, if you want to run a fleet business or optimize your fleet and keep costs down, JIMI fleet management solutions will give you peace of mind.


Please feel free to contact us(info@jimilab.com) if you want to know more about JIMI fleet management solutions.

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