The success of any logistics company depends largely on the efficiency of its supply chain operations. But the process of producing an efficient supply chain is utterly complicated.
Managing so many moving parts to deliver a product to a client can hit a snag at any stage. That said, the more information about each stage of the supply chain a manager has, the better the service they can deliver.
One proven method of improving the supply chain’s efficiency is to increase the visibility of the fleets and the goods through the use of fleet tracking software. We’ll look into the various ways fleet tracking systems can improve supply chain management. Let’s dive in!
1. Enhancing Operational Efficiency
GPS fleet tracking systems are usually heavily automated.
These systems don’t require constant monitoring as they will automatically send notifications when something needs your attention. This setup eliminates the need to hire additional staff for monitoring operations—thus eliminating errors that result from the human element.
Fleet tracking systems also improve efficiency for drivers and dispatch managers. With a GPS fleet tracker, fleet managers can see vehicle location in real-time. With this info, your team can plan detours to avoid accidents or plan new routes to bypass traffic without wasting any time.
Your drivers will also see information about their routes, such as accidents and traffic data, in real-time. This way, GPS tracking systems enhance their driving experience.
2. Enabling Quick Decision Making
With real-time tracking options, fleet managers can avoid time-consuming paperwork and make timely decisions. They can instantly inquire into any technical difficulties drivers may be experiencing and receive prompt responses.
This information allows fleet managers to make timely decisions regarding maintenance, scheduled delivery, and pickups.
Additionally, most vehicle tracking devices store data on each vehicle. Fleet managers and business owners can use these analytics to determine which vehicle performed the best, what factors contributed to delay, and what can be done to improve service delivery.
3. Improving Transparency
Analytics data from fleet tracking devices help to improve transparency across the supply chain processes. This data is critical for the efficient management of your business.
But how can data help to increase transparency in the supply chain?
Telematics data gives you the ultimate visibility into every supply chain operation and assets. You’ll know exactly where your drivers are, what they are doing, where shipments are located, and the outcome of every process and system.
This information or part of it can be shared with your customers or any other relevant party. When shared with your clients, it leads to customer satisfaction.
4. Improving Cost Efficiency
One of the top challenges logistics companies face is keeping costs under control. For large organizations whose supply chain involves more than one hundred delivery vehicles, the costs of running these vehicles can rise significantly and affect the company’s bottom line.
However, with a GPS fleet tracking device, it’s possible to reduce operational costs significantly. Fleet tracking devices help to keep costs in check through:
- Predictive maintenance
- Route optimization
- Real-time fault code alerts
- Workforce cost reduction
Anyone who has run a transportation or logistics business knows that fuel costs are a significant contributor to a company’s expenses. By optimizing the routes and identifying cost-efficient vehicles using fleet tracker analytics, logistics companies can save big on fuel costs.
The Bottom Line
Fleet tracking devices are the lifeblood of any logistics business. Besides improving efficiency in the supply chain management, they also increase driver safety, reduce vehicle theft, and ensure customers are happy with the delivery processes.
So, if you’re in the logistics industry and aren’t leveraging the power of GPS fleet trackers, you’re slowly steering your business down the path to failure.