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5 Ways Fleet Management Systems Improve Your Competitiveness

5 Ways Fleet Management Systems Improve Your Competitiveness

 

In today’s business environment it’s important for firms to use whatever means are available in order to gain an advantage over the competition. Investing in a fleet management system can help you achieve that competitive edge by cutting your costs and improving your customer service.

A fleet management system can be used by any business regardless of the size of their fleet and any investment made will be recouped quickly through financial savings. Here we look at the five main ways a fleet management system can help you gain that important business advantage.

1. Cutting Your Costs

Today’s consumers often use price as the key deciding factor when it comes to making a purchase and a fleet management system can help you cut your costs, particularly by reducing your fuel expenditure. Installing trackers in your company vehicles reduces fuel usage in a number of ways.

Firstly, a vehicle tracking system helps ensure that your drivers stick to the speed limit. This in itself makes a real impact as driving at only 5mph above the speed limit costs, on average, a further 20 cents for every gallon of fuel used. Additionally, GPS trackers allow for a reduction in the amount of time spent idling and will help eradicate poor route choices made by drivers in charge of deliveries.

The cumulative effects of these savings for the average business stands at around 15% – savings which can be passed directly to your customers, helping make the price you charge as competitive as possible.

2. Improving Your Customer Service

A major complaint from customers is often directed at firms who say, “Your package will arrive sometime between 7am and 5pm”. Non-specific time slots such as these are not only inconvenient, but entirely unnecessary too. With a fleet management system you will always know where your vehicles are and you can plan your routes accordingly.

This will allow you to give the customer a much more specific delivery window and your drivers will be far more likely to arrive within the allotted time. Indeed, firms who have installed fleet management systems report an increase of around 40-50% in the number of drivers arriving within their specified window. Also, if there is a delay, you will be able to update the customer immediately. This improved level of customer service goes a long way towards securing customer loyalty overall.

3. Improve the Image of Your Business

Though it might not be immediately obvious, a fleet management system can also be extremely advantageous when it comes to brand image. Installing the trackers will improve the behavior of your drivers, which in itself brings public respect, and lowering your fuel consumption means your firm be seen as more eco-friendly

Letting customers know how much your CO2 emissions have fallen is an easy way to create a positive image. Additionally, by reducing the risk of drivers creating a poor image for your business by speeding or engaging in other dangerous driving habits, you increase public safety too.

4. Accurate Tracking and Billing

Using a fleet management system will allow you to keep track of packages and confirm when orders have been fulfilled. This means that customer items will be less likely to go astray and any bills sent out will be accurate. This way your firm will gain a reputation for reliability and trustworthiness thereby encouraging customer loyalty, and as it is often much cheaper to retain your existing customers than gain new ones, this in turn helps you keep your competitive edge.

5. Reducing Theft

Vehicles can be some of your company’s biggest assets and, if they are stolen, the consequences can be dire to say the least. Vehicle theft will not only impact on your timely delivery of customer orders, but also on your profit levels, especially if your insurance premiums rise.

Installing trackers will not only ensure that your vehicles much less likely to be stolen in the first place, but if they are, they are far more likely to be recovered. As systems can be set up to identify whenever a vehicle enters an unauthorized area, any problems can be picked up quickly. Of course, this feature can also be used to guard against your employees taking company vehicles on unauthorized journeys – all of which helps in keeping those hidden costs down.

Conclusion?

So whether you have a large national fleet or a few vehicles operating locally, fleet management can make a real difference to your business, meaning you can operate in a far more productive and efficient way. If you have a fleet management system and the competition doesn’t, then your business will gain that important edge. But, if they do, at least you can rest assured you will be operating on a level playing field.

Bio: Ian Wright works with expert market’s fleet management division, which helps companies track their vehicles for less. He also enjoys skydiving and mountain biking in his spare time.

Published by valentine belonwu

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