The freight trucking business in the US is very popular. With each passing year, this industry seems to be gaining more popularity. As a result, this industry is growing bigger and bringing in more and more revenue.
According to IBISWorld, the US general freight trucking industry, measured by revenue, was valued at $91.4 billion as of 2022. It’s a profitable industry but for businesses to get the most out of it, they need to navigate ways to save money. This is where a fleet management system (FMS) can be of help.
Business.com reports that an FMS can help save over $6,000 a month for a trucking business with a fleet size of 20 vehicles. The $20.58 billion, as reported by Fortune Business Insights, FMS industry offers systems and software to monitor large vehicle fleets. These systems allow trucking businesses to have a bird’s eye view of all their vehicles. This includes each vehicle’s location, fuel consumption, maintenance history, and so on.
The question now is, how can an FMS help your trucking business save money? Let’s find out.
One of the primary ways a fleet management system contributes to cost savings is through route optimization. Traditional manual route planning can be time-consuming and inefficient, leading to unnecessary fuel consumption and extended delivery times.
A robust FMS can determine optimal routes by analyzing factors like traffic, weather, and road closures. Doing so will ensure that your trucks consume less fuel, reducing operational costs and enhancing overall efficiency.
Back in May last year, as reported by Fox Business, the price of diesel in the US hit an all-time high. High fuel prices led to an increase in expenses in the trucking industry. As a result, the sector suffered greatly. After all, a good portion of a trucking company’s expenses goes after its fuel costs.
An FMS can help handle fuel management head-on by offering comprehensive fuel management tools. These systems track fuel consumption in real time, identifying trends and anomalies. This data-driven approach enables managers to pinpoint areas of inefficiency and take corrective measures.
Furthermore, FMS can monitor driver behavior. This encourages fuel-efficient driving practices such as smooth acceleration and reduced idling, both of which contribute to lower fuel consumption and ultimately cost savings.
Compliance and Safety
A comprehensive FMS includes features that help ensure your fleet adheres to all relevant regulations, like Hours of Service (HOS) and maintenance standards. By tracking driver hours, conducting regular inspections, and maintaining up-to-date records, you mitigate the risk of violations and their associated costs.
These days, as truck accidents are on the increase across the US, trucking businesses are having to suffer a lot. This is especially applicable when they have to handle the legal side of things.
The availability of various online resources has also made dealing with the legal aspect of these accidents much easier for plaintiffs. They will simply find the best truck accident lawsuit guide online and act accordingly. These guides are very well-composed, which means people have an easy time navigating the legal aspect of filing such lawsuits.
TorHoerman Law reports that truck accident cases can get very complex and require a deep understanding of the specific laws. However, thanks to the availability of guides and other online resources, people can now easily file lawsuits for truck accidents. If these lawsuits end up going in their – the plaintiffs’ – favor, you’ll have to cough up large sums of money as settlement.
Thus comes the need to prevent these accidents from happening in the first place. With the right FMS in place, ensuring this will become much easier for you.
Maintenance and Repairs
Regular maintenance is essential for keeping your fleet in top-notch condition, ensuring both safety and longevity. However, adhering to maintenance schedules can be challenging without proper tools in place.
A fleet management system can help your trucking business save money by providing proactive maintenance alerts based on vehicle usage and mileage. By addressing minor issues before they escalate into major repairs, you not only prevent costly breakdowns but also extend the lifespan of your vehicles. This preventive approach minimizes downtime and avoids the need for expensive emergency repairs.
Data-Driven Decision Making
In the digital age, data has become a powerful asset for informed decision-making. A fleet management system collects and analyzes vast amounts of data related to your fleet’s operations. This data includes information about routes, fuel consumption, driver behavior, maintenance schedules, and more.
Leveraging these insights will help you identify inefficiencies and opportunities for improvement. Data-driven decisions help optimize resource allocation, streamline processes, and identify areas where cost reductions are feasible.
The US is world-famous for its trucking industry. This industry also provides a lot of business and career opportunities. Therefore, if you’re in this business, know that you’re investing your time and money in a sector that has great potential.
Of course, trucking businesses will have their roadblocks, one of which is high expenses. However, with the right fleet management system by your side and watching over your trucks, this roadblock is somewhat manageable.