How Logistics Companies Can Reduce Transportation Costs?

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How Logistics Companies Can Reduce Transportation Costs

Fleet owners constantly look for ways to cut down their business expenses so that their profit margins can be increased without additional input. Increasing the efficiency of one’s fleet, however, is no easy task when looked upon via a conventional lens. But with the introduction of GPS tracking systems and sophisticated fleet management products, fleet insurance providers, such as Rideshur, have been able to reduce premiums in real-time.

In this article, we’ll share some tips and recommendations that we believe will help you slash your transportation costs without the hassle:

Route Optimization

Route Optimization

This is a fairly recent advance in fleet tracking management – your app will map out the easiest, shortest, and most cost-efficient route for all of your travels. If you have to go from point A to B, why not take the most fuel-efficient course? This way, not only will you save up on your fuel expenses but also on time and effort. Usually, people rely on the experience levels of their drivers for this purpose, but that can only help so much – it is impossible to know if a certain route is jam-packed with traffic on a given day, and a single wrong turn can end up costing you much more than anticipated.

Thus route optimization is more like your eyes in the sky.

Reduce Idling

Reduce Idling

Idling is another major issue that contributes to increased transportation costs, however, even with regular counseling, it is near impossible to control. Or at least, it would’ve been without fleet tracking – these systems notify users whenever there is idling with one of their vehicles. Fleet management software also keeps note of the number of instances of idling, the duration of each, average duration, and estimated volume of fuel wasted. This lets you make important decisions regarding your staff and gives you the data you need to make major improvements.

Timely Maintenance

Timely Maintenance

Maintenance trouble can also increase your travel costs – without on-time maintenance work, your cars will eat up more fuel, and thus cost more to use. Plus, if one of your vehicles breaks down in the middle of the road, the workload will be disrupted, and overall transport costs will go up (repair costs, rerouting, possible cancellations, etc.) However, on-time maintenance is hard to keep up with due to the crammed schedules, but with the constant reminders and alerts given by the business software, this is pretty much done.

Creating A Reward-Based System

Creating A Reward-Based System

Lastly, the type of work environment you create for your workers will also affect how successful you are in your endeavors of cutting down operational costs. If you reward your employees for compliance with your guidelines regarding efficient transport, then this will encourage everyone to follow through with your guidelines with enthusiasm.

Show some leadership to inspire your workers!

Bottom Line

Modern fleet tracking technology has made the business more efficient than it ever was before, and due to this increased cost-effectiveness, one can say that such systems easily pay for themselves. And the best thing about fleet management data is that it is unaltered, and thus perfect for serving as a guide to help you introduce improvements.

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