By RAM Tracking on 28 Dec 2022
Another year comes to an end, and fleet managers should be ready to embrace 2023. The complexity of the logistics and transportation industry has put fleet management into the limelight, and it has gained significant traction worldwide. MarketsandMarkets states that global fleet management is valued at US$25.5 billion and is expected to grow to US$52.4 billion by 2027.
Yet, fleet managers had to tackle several challenges, like shortage and retention of drivers, rising fuel costs, fluctuating operating costs, and growing safety issues. Hence, many commercial vehicle businesses adopted fleet management solutions to tackle these challenges and deliver better services.
Technology like cloud and data analytics have played a key role in fleet management, and MarketsandMarkets predicts that telematics will further drive the market’s growth in the future.
2023 will present new challenges and opportunities for the fleet industry, and fleet managers should aim to make operations more efficient than last year and increase business profitability. For this, they should narrow down to critical business priorities and set business new year resolutions.
Resolution No 1: Deal with Supply Chain Issues
- Supply chain issues will continue to prevail, making it difficult for fleet managers to have resources on time that are required to run efficient operations.
- It becomes imperative for them to closely monitor operations and keep track of fleet needs so that they can act quickly and ensure there are no disruptions in fleet operations.
- They can use vehicle tracking software to track vehicle movements, maintenance schedules, inventory, fuel consumption, etc.
- Our fleet tracking software provides insights on driving behaviour, vehicle health, and location details in real-time, helping improve customer delivery and service.
Resolution No 2: Run Safer Fleets
- The number of road accidents is snowballing and can jeopardise people’s lives. Moreover, fleets have to bear high repair costs if accidents take place.
- The shortage of drivers can create more problems if you’re not running a safe fleet.
- Fleet companies can save a lot of money–fewer accidents mean lower insurance and repair costs, reduced employee productivity, and less overtime costs to replace unavailable drivers.
- Also, the fleet can report less wear and tear on vehicles and cut down the overall maintenance budget when they run safer operations.
- All of this can help fleet managers to scale their business effectively.
- Our vehicle tracking software monitors driving behaviour that increases the chances of accidents like speeding, hard braking, cornering, etc., and notifies fleet managers in real-time.
- Fleet managers can also use dash camera footage to monitor drivers’ driving behaviour, pinpoint them, provide extra coaching, and improve driving skills.
Resolution No 3: Keep Fuel Costs Low
- This will be one of the top new year’s resolutions for business owners as fuel costs are not expected to come down.
- To tackle this tricky situation, fleet managers must closely monitor fuel usage and understand areas of fuel wastage.
- Our fleet tracking solution provides complete visibility of fleet operations, including fuel consumption.
- Fleet managers can set efficient routes, eliminate idling, curb bad driving behaviour, reduce vehicle wear and tear, and save fuel costs as much as possible.
- Many fleet businesses are choosing to switch to electric vehicles as they are cheaper than fuel-powered vehicles in terms of mileage, maintenance, and cost of ownership. Plus, they are environment-friendly.
Resolution No 4: Invest in Technology
- While many fleets have adopted telematics and fleet management solutions, innovations like 5G will further introduce advanced capabilities.
- 5G, AI, and IoT will offer more robust connectivity and ensure better precision and accuracy.
- Super-fast speed of 5G will connect several vehicles at once, reduce latency, and help fleet companies achieve an edge.
- Fleet managers should also install dash cameras in all vehicles to foster safety, reduce accidents and false claims, and improve fleet efficiency.
Resolution No 5: Bolster Employee Productivity
- Another critical small business new year’s resolution is driver retention, as the truck driver shortage will continue in the coming years.
- GPS tracking software enables real-time communication with drivers, helping fleet managers know the precise whereabouts of drivers and vehicles.
- They can dispatch the nearest driver to the job site and increase employee productivity.
- Fleet managers can reach out to their drivers during safety-related events as soon as possible and promote safety and accountability.
- They can monitor their driving habits, introduce gamification in fleet management solutions, foster healthy competition, and improve performance.
Cary Burwood, Director at Mulberry Group, states that with the help of RAM’s reports, they have witnessed an increase in employee productivity by at least 80 hours per week.
Being updated with the latest technology and industry trends can help fleet managers prepare for unplanned macroeconomic changes and maintain profitability. Plus, with frequent new software and hardware innovation rollouts, it becomes crucial for fleet managers to stay relevant with industry developments.
Our comprehensive fleet tracking solution provides all the essential insights based on which fleet managers can change their strategies and run smooth operations. Sticking to these new year’s resolutions for business can help cut costs, gain more customers and thrive in the industry.