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  • Writer's pictureYasser Allam

The Role of Technology in Improving Your Fleet Utilization?


A Utilized FMCG vehicle

In 2022, logistics companies are looking to improve efficiency and reduce costs more than ever before. The spotlight this year will be on achieving high-level resource utilization.


The measurement of fleet performance or use is known as fleet utilization. It is a comparison between fleet capacity and demand. Demand and Fleet capacity varies regularly, as the strategy for fleet management for vehicle type, each location, or time window.


Resource utilization is an important aspect of project management and portfolio management that helps organizations sustain growth, boost profitability, enhance productivity, and improve their bottom line. A key performance indicator (KPI) that monitors performance and effort over a certain period is resource utilization.

Why is Fleet Utilization necessary?


A well-utilized fleet not only lowers costs and increases productivity but also increases profitability.

  • Right fleet size: assists businesses in right-sizing their fleet depending on vehicle quantity, location, and availability.

  • Manage maintenance costs: assists fleet managers in preparing for maintenance-related difficulties.

  • Optimal Fleet Usage: Increasing revenue potential with much fewer resources may be accomplished by focusing on fleet utilization.

  • A multi-pronged approach to increasing fleet productivity: helps businesses increase fleet productivity by monitoring everything from driver behavior to vehicle capacity.

How to maximize your Fleet Utilization?

1. Getting critical metrics right

You should focus on improving your fleet utilization essential metrics to maximize fleet utilization.

  • Fuel Consumption:

In comparison to kilometers traveled, fuel consumption gives an extra perspective. It helps logistics companies in reducing their fuel costs.

  • Traveled miles:

Traveling fewer miles minimizes the number of journeys while also reducing fuel usage.

  • Utilization of time:

In any logistical scenario, time utilization is the most important statistic. It includes various features of a vehicle, such as Delayed delivery time, Pre-loading and awaiting departure time, Loading and unloading time, Maintenance repair time, and time spent on the road.

  • Empty running:

Logistics organizations strive to reduce empty travel legs while increasing average weight usage. To get this statistic right, it is critical to reduce the time spent loading and unloading.

  • After-hours utilization:

After-hours utilization can reduce traffic congestion, but it relates to environmental rules. After-hour deliveries should be investigated by fleet managers to see if they are beneficial to their company.

2. Right vehicle size

Companies must change their fleet operations to meet the needs of their customers. The optimal vehicle size for efficient fleet operations is determined by the volume of deliveries, customized fleet requirements, optimal use of extra vehicles, underutilization of vehicle deck, and different sized vehicles.


3. Loading and unloading

While loading and unloading, fleet managers must focus on reducing wasted space by planning for volume, height, and balancing the time lost in loading and unloading.


4. Last-minute rerouting challenges

Businesses' efficiency is determined by how they handle last-minute route adjustments in deliveries. It assists them in avoiding missed and unsuccessful deliveries.


How does Technology improve Fleet Utilization?

1. AI-Based route planners

Using AI-based route planning optimization software like Norma enables logistics managers to optimize the best possible route and schedules for drivers. It enables you to achieve on-time delivery.

2. Fleet management software

An intelligent fleet management software can offer relevant statistics on driving performance and assisting firms in lowering fleet fuel expenditures. Also, it assists fleet managers in identifying and reducing distances traveled on the road, resulting in improved fleet utilization.


3. Delivery Control Towers

Delivery management software enables fleet managers to monitor their routes and deliveries live, and some intelligent solutions like Altair DC provide advanced command & control capabilities and enable logistics managers to verify the status of completed deliveries for on-time delivery and lower the expenses of illegal returns and missed deliveries. For more information on how Softec Technologies’ intelligent solutions can help you to enhance your fleet utilization, please visit softec.ai or contact us now.

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