Updated on
June 25, 2024
by
Alisa Cvilij
All delivery logistics businesses rely on several key components in the supply chain system, one of which is delivery fleet management.
Industry forecast reports show that the global fleet management market is estimated to reach $52.50 billion by 2030, with a CAGR of 10.6%.
Now that almost every business digitalizes and automates most of its operations, we must agree that the delivery logistics industry cannot stay behind.
This blog post discusses 8 tips on delivery fleet management as applicable strategies that all delivery businesses should consider implementing.
If you are eager to learn more about this, follow along until the end!
Table of content
Delivery fleet management refers to the delivery practice (goods or services) that enables companies to manage delivery vehicles and achieve maximum efficiency.
That said, fleet and delivery management must work together as a unit.
As an example, let's take food delivery fleet management. It focuses on managing the vehicles and logistics in delivering food orders; in most (successful) cases, it involves using software solutions to optimize the entire delivery process.
The same applies to courier delivery fleet management and all other delivery businesses with a fleet.
Now that we know what delivery fleet management is let’s mention some of the most prominent aspects of delivery fleet management:
A delivery fleet management software is an advanced software solution designed for delivery companies to help manage their fleet (vehicles) used for deliveries.
These software offer multiple automation features (processes) that enable delivery businesses to track their vehicles in real-time, plan cost-saving routes, schedule maintenance for these vehicles, monitor fuel usage, and manage drivers.
Often, such software sounds too good to be true because delivery businesses don’t believe all the above operations can be offered in just one platform.
It is delivery fleet management software that provides detailed insights and analytics to optimize operations, reduce costs, and keep track of timely deliveries.
Delivery fleet management software is essential for successful delivery businesses because it helps streamline all logistics procedures and improve overall efficiency.
The outcome they get once such software is fully implemented is better customer service and steady profit growth.
Big organizations and delivery companies that deal with all kinds of deliveries typically have fleet managers.
Those managers need all the relevant information they can get on the performance of their fleet. That’s when fleet management software comes in handy, allowing these managers quick access to such data.
Let’s elaborate on what delivery fleet management software does for delivery businesses.
As advanced databases, such software, like Track-POD, for instance, can streamline and manage several processes simultaneously:
In essence, solutions like implementing delivery fleet management software identify risks and look for better ways to mitigate them through inspections, proper maintenance checkups, insurance forms, driver training, etc.
This leads to increased safety and reliability, higher productivity, better driver satisfaction, better cost management, higher return on investment (ROI), and optimized customer service.
Fleet management involves the management and coordination of a company’s vehicle fleet. It encompasses various tasks such as vehicle acquisition, maintenance, fuel management, driver management, and regulation compliance.
On the other hand, delivery logistics cover a broader scope than fleet management. It deals with the planning, implementing, and managing of the storage of goods and the delivery trajectory within a supply chain.
To pinpoint the key differences in the focus areas between fleet management and logistics, we share a table to give you a clearer picture of what they are:
Fleet management |
Logistics |
Driver management - monitoring drivers’ performance, safety, and compliance with regulations |
Transportation management - Overseeing the transportation of goods from point A to point B (suppliers to warehouses and from warehouses to customers) |
Fuel monitoring - monitoring fuel usage to optimize fuel efficiency and reduce costs |
Inventory management - Managing stock levels to ensure that products are available when needed without overstocking. |
Vehicle maintenance - ensuring that all vehicles are kept in good condition, keeps track of regular servicing and repairs |
Warehousing - Efficiently store goods in warehouses and manage warehouse operations. |
Route planning - planning efficient routes to reduce travel time and fuel consumption |
Supply Chain Coordination - coordinating with suppliers, manufacturers, and distributors to ensure smooth operations. |
Tracking and telematics - using GPS and other technologies to track vehicle location and performance |
Managing a fleet delivery doesn’t always have to be complex - it only takes strategic planning and some good tips.
We selected only those that come in handy:
When buying vehicles for your fleet, you must set up concise requirements that align with your company’s objectives. You can centralize the buying process with the fleet manager and be on top of the streamlined process.
The person you assign should know exactly what needs to be procured concerning your fleet.
Also, purchase vehicles with built-in telematics features because this feature allows real-time vehicle information within the truck management system of fleet managers and dispatchers.
Purchasing telematics programs is essential because these programs have built-in GPS fleet tracking software and provide detailed alerts about the vehicles' performance.
Another option is to get delivery management software with a driver app, which will also provide you with tracking and monitoring of the drivers' status.
Using a driver checklist is a MUST.
These lists can ensure whether everything from vehicle brakes to lights is good while tracking when maintenance is needed. With checklists, what’s been inspected and what needs attention is always clear.
After all, fleet delivery management should prioritize keeping fleet wheels rolling safely and efficiently.
Now that your company has several vehicles, it makes perfect sense to spread out their usage so they don’t all wear out simultaneously.
That’s where a system for rotating vehicles comes in handy. You’ll need to plan where each vehicle takes turns going out on job assignments. To do this correctly, you can use automation tools as a secret weapon and track which vehicle is up next.
Also, this system can help you monitor how much mileage these vehicles are clocking and when they need maintenance.
Optimizing your delivery fleet schedule is very important because, in the long run, it will save you time and money.
By planning out when each vehicle is needed for which tasks, you avoid unnecessary downtime and ensure you use every car to its fullest potential.
Knowing how to schedule deliveries is one of the most significant elements in delivery fleet management.
Advanced delivery management software solutions like Track-POD, amongst other things, specialize in features like vehicle schedules and automate that process so you won’t have to do it manually.
If you prioritize preventative maintenance in delivery fleet management, you give your vehicles a VIP treatment. The benefit of this action is that you’ll avoid those big repair bills.
Invest in conducting regular vehicle checkups, such as oil changes and inspections. These things might seem small and unimportant, but they pay off in the long run.
Investing in delivery fleet management software is not just a trend - you need this badly!
It is like having a co-pilot who knows the roads inside out.
Today’s advanced technologies allow us to use tools that automate and streamline everything from dispatch to tracking to maintenance schedules.
A good example of this, so that you can get the whole picture, is doing thousands of phone calls to figure out where drivers are and if they need a route change - the automation software systems can do all of that tedious work,
This is not just about efficiency; these systems will help you reduce fuel costs, reduce downtime, and boost overall productivity by spending more time planning, talking to customers, and thinking about future vehicles.
As your delivery fleet grows, you must monitor its efficiency.
This means you should look for unnecessary trips or errands that might take up mileage. You can clear things up by conducting simple communication or including handy checklists to help everyone stay on track and take accountability for their actions.
Optimizing and monitoring how your fleet is used saves you time and money (cost per mile) while reducing wear and tear.
A code of conduct is crucial to every successful company, so it is for delivery fleet management. It must be comprehensive and include several key elements that promote professionalism, safety, and efficiency, such as:
Establishing the right code of conduct will set clear expectations for your drivers concerning their behavior, vehicle usage, and customer service integrations.
By adhering to these standards, drivers ensure consistent service quality and reliability.
Vehicle fleet optimization is the method of leveraging transportation to improve businesses’ efficiency, productivity, and scalability. From haulers, couriers, sales, service, utilities, and public transport to emergency services, comprehensive fleet management is vital.
Not only can it regulate operational costs, but also maintain a competitive edge over competitors. Like logistics route planning, this involves managing the processes required to run an entire fleet.
Therefore, businesses handle the costs and implement strategies to sustain quality services and consistently maintain customer expectations.
Organizations optimize their vehicle fleet differently. Augmenting an effective fleet optimization strategy is the key to success.
Businesses consistently measure the condition of their vehicles to make sure that everything is well-maintained. Integrating the vehicular diagnostic port to applications like Track-POD allows organizations to monitor their health.
It also produces detailed reports of the vehicles to monitor their current condition. This allows users to receive real-time alerts whenever vehicles require extra care.
Here are the best solutions route planners offer to bolster vehicle fleet optimization:
Another valuable solution to effectively optimizing a fleet of vehicles is to use outsourced services. This allows organizations to access a myriad of advanced tools that they can use to run everything smoothly.
This option can also provide enterprises with valuable insight that they can use to thrive in a competitive market. Having access to industry experts gives the ability to determine any shortcomings and areas for improvement to match against industry standards.
We live at times when tech solutions are forming the bedrock of delivery fleet management.
Fleet managers must stay updated on all industry trends and changes to keep up with the fast-paced delivery fleet management industry —this is the only way to grow their delivery business.
Tips like these offer fleet managers a roadmap for higher efficiency, better overall performance, and reduced costs.
Also, tips like these can be seen as part of a bigger picture (as strategies) to overcome fleet management obstacles and position your delivery business for continuous success in the years to come.
It is time to level up your game because delivery fleet management is evolving!