Businesses are experiencing challenges unlike any they have seen in our memory – a raging pandemic that threatens not just lives but businesses as well and a globalized economy that creates competition that many organizations may not be prepared to address.
Although the pandemic will, sooner or later, come under control, the second challenge will remain an issue that businesses have to face for the long term. This translates to a laser-sharp focus on refining and tightening budgets and on being aware of where every dollar is being spent and how to manage and, in fact, optimize that spend.
The answer to this challenge lies in today’s technology that provides the data necessary to make business decisions that will help achieve that company’s goal. One area where data is essential to manage cost and increase customer satisfaction is transportation.
Whether that entails shipping product to a warehouse or getting heavy equipment to a job site, fleets are a major expenditure so any technology that will reduce costs, increase efficiency, and ensure reliability should be utilized.
4 ways to gain control over your fleet spend
At NexTraq, we are well aware that knowing where your vehicles and drivers are, at any time, and where they are going, is always vital information. COVID has made that even more important with the switch of many companies to a remote workforce, where fleet managers, logistics personnel and other employees are working from home. At a time like this, fleet supervisors need to manager their fleets – and their employees – from wherever they are. Telematics has made this possible.
GPS Vehicle tracking
Dependable, reliable and on-time delivery is job #1 for shippers and GPS vehicle tracking is key to making that happen. This technology, which has been around for a long time, is fortunately seeing adoption by more and more fleets. They are employing this technology not just to promote driver accountability, but to increase productivity. This is accomplished by the ability to send drivers and deliveries to the right place at the right time. This optimized routing helps fleets get more done with less. Imagine being able to quickly find addresses so you can dispatch the closest vehicles. All of this decreases overtime and maximizes revenue.
GPS Asset tracking
Knowing where your power units are is essential; however, it’s also important to be able to track where your trailers, generators, forklifts, and more are located as well. In normal times, when facilities like offices, depots and warehouses are fully staffed, this is a straightforward task. But since many of these facilities are observing COVID-19 protocols, many of the staff are working remotely. With that in mind, having visibility into where equipment is matters more than ever. Fleets have found that the ability to monitor mobile assets like trailers, generators, forklifts, pumps and more is important to getting the job done.
Fuel is the largest ongoing expense fleets face. You can’t control the market, but you can control your fleet spend by tracking, monitoring and analyzing your fuel consumption. Right now, fuel costs are low but this is an ever-changing commodity and even with low prices, the potential for abuse and fraud by employees is always present. It’s not just tracking unauthorized fuel purchases; it’s also ensuring that employees don’t spend on food and other items on the company’s dime. The way to combat this is by issuing fuel cards which give you the visibility into that spend and the ability to hold employees accountable. Integrating fuel cards from the major fuel card providers makes fleet managers’ jobs easier, while creating significant savings.
Geofencing & Mapping
To help companies assess where their team stands, from laggard to world-class, Corcentric recently hosted an on-demand webinar, “Addressing the Maturity Gaps in Procurement – Approaches to Improved Sourcing Efficiency and Effectiveness,” in which I was a participant, along with my Corcentric colleagues, David Pastore, Senior Director, Sourcing Operations and Mike Croasdale, Senior Director, Group Purchasing Organization (GPO). We were also fortunate to include The Hackett Group’s Chris Sawchuck, Principal & Global Procurement Advisory Practice Leader and Jonathon Fehring, Director, Procurement & P2P Executive Advisory. When it comes to procurement maturity, the numbers don’t lie. The Hackett Group’s 2020 Procurement Benchmark measured how best-in-class, mature procurement and sourcing organizations stood in contrast to their peers and the results are striking: Best-in-class organizations realized: