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Fleet management optimisation

Resources:
Energy, Materials, Carbon
Sector:
All sectors
Cost:
High cost
Annual saving:
7 - 15 % / 10 - 20€
Payback time:
0.5 - 1.5 Year(s)
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Associated cost savings: Raw material:
7 - 15%
Total cost savings:
With the use of fleet management software, total cost savings of up to 15 % can be achieved (case of SGN company reported in Fleet News)
Size of company:
Micro (less than 10), Small (less than 50), Medium (less than 250)
Advancement in applying resource efficiency measures:
Beginner, Intermediate, Advanced
One off investment:
2000 - 10000€
What is in it for you:
Long-term cost reduction; reduced delivery and transportation time; reduced energy cost; increased overall company sustainability; better transparency and higher customer satisfaction.
Descriptive information:

Managing commercial fleets of cars, vans, trucks, trailers and specialised vehicles used for work purposes is a time-consuming and resource-intensive task. Fleet management covers a range of functions, such as vehicle financing, maintenance, telematics (tracking and diagnostics), driver management, speed management, fuel management and health and safety issues. Improving the way a company manages its fleets, especially those relying heavily on transportation, is critical to its bottom line and the environment. Fleet managers are keen to minimise or mitigate the risks associated with vehicle investment, improve efficiency, boost productivity and reduce their overall transportation and staff costs, while fully complying with all relevant legislation. These functions can be dealt with by either an in-house fleet-management department or an outsourced provider.

Fleet managers rely on large amounts of data, sophisticated models and optimisation techniques and modern, powerful information technology to manage fleets efficiently and effectively. Through intelligent fleet management software, it is possible to save resources and deliver energy efficient transportation at the same time. Current technologies include routing and locating systems, powerful onboard computers and instrumentation connected through GSM or related networks.

Benefits include:

  • Increased revenue per distance travelled and trip
  • Reduced vehicle idling and downtime
  • More diverse cargo handling and other equipment
  • Reduced operating costs
  • Scheduling and driver availability oversight
  • Increased quantity of cargo transported per delivery
  • Clearer and more efficient routing and stops
  • Better stock management
  • Documented deliveries (time, signature, etc.)
  • Reduced fuel consumption and faster deliveries
  • And more

Consequently, fleet management software can offer long-term cost benefits while reducing resources (including energy and manpower) and increasing overall corporate sustainability, information, transparency and customer satisfaction.

The cost of optimising a company's fleet management varies depending the measures, size of the company, training needs, capital expenditure and the cost of the software/systems needed. Typically, the savings achieved quickly recuperate the initial outlay.

Sources

Berg Insight, Fleet Management in Europe, http://www.berginsight.com/reportpdf/productsheet/bi-fm8-ps.pdf

 

Descartes Knowledge Centre, Getting the Most out of Fleet Optimization Software, https://www.descartes.com/knowledge-center/getting-most-out-fleet-optimi...

Crainic, T. G., & Laporte, G. (Eds. 20120, Fleet management and logistics, Springer Science & Business Media

Thong, S. T. S., Han, C. T., & Rahman, T. A. (2007), Intelligent fleet management system with concurrent GPS & GSM real-time positioning technology, In Telecommunications, ITST'07, 7th International Conference on ITS (pp. 1-6), IEEE

Rogić, K., Šutić, B., & Kolarić, G.( 2012), Methodology of Introducing Fleet Management System. PROMET-Traffic&Transportation, 20(2), 105-111

 

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