Since trends keep evolving, conventional methods struggle to cope with them. That is where fleet tracking software appears on the scene. Fleet tracking systems ensure optimal route planning and play a momentous role in enhancing customer service. Let’s examine how a fleet management system can help nail both these targets.
Why Is Route Optimization Important?
Although the answer to the question seems basic there are certain complications involved because the effects of the actions extend far beyond the trucking industry. The transportation industry is the main operational string of the global economy. Every store and company relies on trucking services to transport their goods so the businesses can keep running.
Research analyses also prove that customers readily converge on companies offering quick deliveries even if they demand higher prices. For instance, statistics show that 25% of customers will pay more for same-day delivery. Similarly, most buyers expect their orders to arrive within two business days. [1]
Using reputable fleet tracking software can help select optimal routes, saving fuel costs and reducing the need to hire more drivers (due to inefficient routing). Driver wages have spiked due to the shortage of experienced professionals which can drain the company’s resources.
How Does Fleet Tracking Software Ensure Route Optimization?
Fleet route optimization offers countless benefits, such as preventing unnecessary vehicle downtime and wear, optimal sequencing of stops, and real-time adjustments in transportation plans in case of any unexpected changes. Here is how it is done.
Real-time data And Visibility For Timely Route Adjustments
Fleet tracking systems utilize GPS technology, providing real-time data on the chosen routes. For instance, if you assign a specific route for delivery and, for some unfortunate reason, the route gets congested or there is some maintenance block up, the system will notify you promptly so you can make the necessary changes.
It can also notify you of changing weather conditions, peak traffic hours, etc., in different areas so you can change the route depending on the cargo’s delivery deadline.
Geofencing Alerts To Avoid Deviations
Fleet tracking software always features geofencing alerting functionalities, which are incredibly helpful when you want to ensure that the truck reaches its destination in minimal time. Not many drivers, but in some cases, drivers tend to deviate from the path, which leads to late deliveries and dissatisfied clients.
Geofencing allows you to set designated paths that the driver must follow. The system alerts the managers if this is not the case. This feature ensures that the drivers follow only the assigned path, ensuring timely deliveries.
Better Resource Utilization
One of the major issues the logistics industry faces is vehicle overlap when the workload is heavy. Without the appropriate fleet tracking software, there is a significant chance that two different vehicles will be assigned to a job when the task can be completed by strategically assigning the same vehicle.
Since fleet tracking systems gather all the information about the delivery beforehand, the AI systems incorporated in them can suggest a strategic allocation of vehicles for effective resource utilization. [2]
How Does It Guarantee Fewer Delivery Times?
The second most important aspect of logistics is the quick delivery of cargo. Timely deliveries not only enhance client satisfaction but also ensure better business-buyer relations. Here is how fleet tracking software can help in this regard.
By Prioritizing Time-Sensitive Deliveries
Time-sensitive deliveries are the most complex, especially if the destination is located in some far-off area. However, thanks to modern solutions, the issue is now manageable. Businesses can easily prioritize urgent deliveries by allocating them to the most optimal routes. [3]
The real-time data insights keep you informed about the vehicle’s status. So, if there are any unexpected happenings, you can easily locate the nearest warehouses and get a fresh pair of wheels without running late.
Accurate ETAs
Most buyers can be flexible about their cargo. However, they cannot tolerate the late delivery of the shipment without any prior notice. Fortunately, investing in fleet tracking software can significantly help you. Thanks to the GPS technology employed in these systems, you can get time estimates on when the vehicle will reach the destination.
Communicating the information to the customers can foster trust and strengthen the brand image. This also reduces the client’s uncertainty about whether the delivery will arrive on time.
Real-Time Geographical Data
In most cases, the delivery becomes marked as late because of the lack of parking places for cargo vehicles. According to a study, about 80% of truck drivers had to violate their Hours of Service regulations and search for parking places by deviating from the route (resulting in late deliveries). [4]
With the right fleet tracking in your system, you can find the nearest parking places before the vehicle arrives at the destination to ensure a seamless delivery of goods.
Real-World Applications Where Fleet Tracking Systems Have Made A Difference
Many businesses have invested in fleet tracking softwares worldwide. According to a recent estimate, about 70% of businesses are utilizing fleet tracking [5]. Below are a few examples of successful cases.
E-commerce: The dynamic routing features allow companies to identify the best routes to ensure timely deliveries. Furthermore, things like mobile app integration and real-time tracking improve productivity, reduce driver overworking hours, and prevent bottlenecks in busy months. [3]
Logistics: Most fleet tracking systems employ Machine Learning algorithms, and studies show that such approaches have reduced delivery delays by 25% and boosted customer satisfaction by 30% [6].
Retail: Studies show that a retail company invested in a fleet management system and observed a 20% reduction in fuel expenses and increased delivery efficiency to 15% [6]by providing real-time driver data and optimal route suggestions.
The Bottom Line
Fleet tracking software is truly changing the logistics industry. Its AI and GPS-powered features help attain real-time data insights and ensure optimal route allocation, which increases delivery efficiency.
In addition, they offer countless other benefits, like boosted productivity, fewer risks of vehicle theft, and reduced environmental impact. Simply put, fleet tracking isn’t just a nice to have but a must-have business need. And its strategic implementation can unlock long-term success.
FAQs
- What are the possible factors that lead to late deliveries?
Situations that result in late deliveries often include roadblocks, traffic congestion, accidents, extreme weather conditions, and vehicle breakdowns.
- How does fleet routing in fleet tracking software work?
The software gathers all the delivery requests and passes them to a sequencing algorithm that stacks them based on the selected parameters. Once done, the requests are assigned to vehicles, and real-time monitoring occurs once the vehicle gets on the road.
- Is last-mile delivery also affected by the logistic company’s route selection?
Yes, last-mile delivery is proportional to the logistic company’s route selection. If the shipment arrives late, the courier will automatically run behind the deadline. The best approach is to provide accurate ETAs so they can make the needed preparations promptly.
- Is Google Maps a credible means of route optimization?
Google Maps works best for easier deliveries as you can add only one stop at a time and only 10 stops per route. Furthermore, it cannot track multiple routes either, hence becoming unfit for complex logistical needs.
References:
[1]https://fareye.com/resources/blogs/what-is-fleet-routing
[2]https://www.link-labs.com/blog/how-to-best-use-fleet-tracking-to-overcome-supply-chain-challenges
[4]https://truckerpath.com/blog/trucker-path-releases-2018-truck-parking-report/
[5]https://llcbuddy.com/data/fleet-tracking-statistics/
[6]https://www.uffizio.com/blog/why-is-fleet-route-optimization-important/
