FEATURE FLEET MANAGEMENT
OVERCOMING THE FOUR biggest challenges in logistics
The dramatic growth of e-commerce has placed new pressures on the logistics industry. Derek Bryan of Fleetmatics explains how GPS tracking can help address these concerns
M
oving goods around the UK’s roads is a lifeblood of the economy.
However, the dramatic growth of e-commerce in recent years has placed additional pressures on the performance of the logistics industry, increasing the level of competition and expectations of good service. According to the European Conference of Ministers of Transport: “the number of consignments and delivery addresses will increase and this in turn will lead to more complex distribution systems and more assignments for transportation and logistics companies.” To survive within this highly
competitive and crowded segment customer service must be prioritised, productivity maintained and costs controlled. According to the Road Haulage Association the four major challenges facing the sector are fuel prices, road congestion, vehicle security and efficient vehicle utilisation. A recent survey by Barclays and Moore Stephens found that while pressures on the logistics industry peaked as a result of price competition in the ecommerce sector the outlook for growth in 2015 is positive with renewed investment in fleets, warehouses and technologies on the horizon. In the search for increased efficiency, logistics companies often look for a vehicle tracking system to efficiently route drivers to their next job in order to fulfil same-day services and
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save time by reducing calls to drivers’ mobile phones. Accurate reporting is important for verifying wait times at customer locations. With a GPS system installed logistics
firm Profile Handling has seen significant savings through improved operational efficiencies; productivity has increased to the extent that it is now able to secure additional jobs. The GPS system’s reporting features have enabled Profile Handling to verify payroll hours and customer wait times for accurate billing. “We expect to have saved over £14,500 in our first year with GPS tracking through improved operational efficiencies,” says director Steve Clarke. The ability to accurately despatch
vehicles and efficiently plan routes is only one of the benefits that a GPS tracking system can deliver.
REDUCING OPERATIONAL EXPENSES Simmonds Transport needed a fleet tracking and management tool that would help reduce operational expenses. Managers knew that by reducing transit times and out-of-route mileage they could lower their fuel costs over time. In addition, they needed to eliminate unauthorised vehicle use. Since installing a GPS tracking system the company has made savings in fuel and wage costs. Overtime costs have decreased and personal vehicle use almost eliminated. Productivity has increased as
JULY/AUGUST 2015 | MATERIALS HANDLING & LOGISTICS
Once the system is up and running many users appreciate improvements in safety and customer service
drivers are more accountable. “We have saved over £48,000 in diesel costs and £25,000 in wages in our first year with GPS tracking,” says operations director Jeremy Wilson. With the tools available within the tracking system users can significantly tighten their expenses through a variety of fuel-saving features. Ian Stirling Haulage utilises a Live Map feature to confirm exactly when drivers arrive at a job site and how long it took them. This information helps resolve any routing discrepancies and helps drivers use the quickest route to a job. Despatchers have the ability to locate the vehicles nearest to any job site, further cutting fuel usage. Automated reports allow them to see excessive mileage and unauthorised vehicle usage on off-days. Idling reports help the company identify drivers who waste fuel by running their engines for climate control during hot or cold days. Ian Stirling Haulage effectively used the information to significantly reduce idling times. “We have cut our fuel costs
dramatically,” says Stirling. “They more than cover the costs of the system.” Ensuring that drivers are paid correctly took a lot of time before the system was installed. Now, Stirling can check Live Map to locate every vehicle. Throughout the day he knows exactly when an employee arrives on a site, how long they stay and when they leave. When this is added to data from the Daily Report he can guarantee employees work efficiently during all their required hours without worrying about overtime. His employees now work shorter hours during the day because of their increased productivity. “The system is so accurate, I can see exactly what’s going on at any moment.” An additional advantage that many users discover once the system is up and running is improved safety and customer service. Using functions such a speeding alerts means that Stirling is immediately notified if one of his vehicles exceeds a pre-set speed threshold.
Fleetmatics T: 01189 131468
www.fleetmatics.co.uk
Enter 301 / MATERIALSHANDLINGLOGISTICS
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