How Can Vehicle Tracking Drive Improvements In Supply Chain Logistics

How Can Vehicle Tracking Drive Improvements In Supply Chain Logistics

How Can Vehicle Tracking Drive Improvements In Supply Chain Logistics

VIKRAM KUMAR is Founder & CEO at Letstrack

The GPS technology in logistics business has served as more than just a tool for navigating the drivers from locations. The GPS technology has transformed the logistic industry and provides business-effectual tools required for business and customer needs. If you run a logistic business, it becomes imperative to know the whereabouts of the vehicle at any given time. Tracking not only helps to monitor the vehicle speed, routes, engine on-off, but also tells us whether the vehicle is going in the desired direction, and when it is on halt for a long time. Modern GPS solutions pave the way for a constant two-way communication with the logistics.

Today, every vehicle owner wants to keep track of their vehicles and vehicle tracking can add a new dimension to fleet management by providing 100 % track-ability and transparency – it can aid in cost management, consumer satisfaction and increase the efficiency & profitability of the transport and logistics business.

Vehicle tracking tools are powerful resources that can contribute to the profits and success of a logistics company. Here are seven ways in which GPS vehicle tracking can improve supply chain logistics –

1. Managing the Entire Fleet

Installing and activating a vehicle tracking system enables fleet managers to view the real-time location of each GPS-installed vehicle. Vehicle tracking allows fleet owners to get in touch with the suppliers when the vehicle reaches the destination. Modern app-based vehicle tracking can open a two-way communication avenue for the fleet manager(s) and suppliers. GPS vehicle tracking facilitates informed decision making and data-based management for the entire fleet of vehicles. Your team can plan detours to avoid events or plan new routes to bypass traffic based on the current vehicle location without losing any time.

2. Optimising All Transport And Logistics Resources

GPS tracking and monitoring can help fleet management teams cover deliveries or pick-ups by using the shortest route or by taking uncrowded roads that takes the shortest time. The vehicles can avoid roadblocks and accidents, thanks to the two-way communication system embedded in the vehicle tracking apps. The management can access real-time information from the mobile devices. A professional vehicle tracking software can contribute to the improved operational efficiencies. With vehicle tracking, fleet managers can check which vehicles are sitting idle, or are closest to a pick-up point. If there’s going to be a delay, we can always alert our drivers and customers by following the delivery routes and the day’s traffic. The management can ensure timely delivery and pick-up by minimising the time the vehicle spends waiting in the traffic.

3. Improve driver’s safety and performance

While vehicles are important for every fleet owner, drivers form the backbone of a transport and logistics business. Therefore, there is a need to ensure that they are taking safe routes and following road safety laws. Using a real-time vehicle tracker, one can keep a check on which vehicle is over-speeding or taking unsafe routes. Constant monitoring encourages drivers to drive safely throughout and provides the management with an opportunity to remind drivers when they deviate from the safe practices. A few apps also give the driving pattern of the driver to help you to know the driver’s performances. The company can incentivise the driver by rewarding him or her with bonuses or company perks for the good performance.

4. Enable quick decision-making

With live tracking options, fleet managers can avoid time-consuming paperwork and instantly send out messages to drivers for any kind of technical difficulties and receive prompt responses. Fleet managers can always verify the causes of delay, if any and make timely adjustments for scheduled delivery/pick-ups.

Most vehicle tracking apps store data on each vehicle. Managers can use this data to run analysis on which vehicle has performed the best, what factors may have contributed to delays and how they can improve their services. Conversion of data to easy-to-visualise graphs and charts allows quick decision making. Live tracking with mobile assistance frees up lots of time that entrepreneurs can dedicate to better management of more important matters in the transport and logistics business. It reduces the burden of desk jobs as the managers and admins can receive statistics on their live tracking apps from each vehicle directly.

5. Improve cost-efficiency

One can always check how much fuel each vehicle is consuming by taking a certain route during a certain hour of the day. It will help the owner to predict the cost of pick-up and delivery for an entire week or even a month. Fuel costs are a significant contributor to the company’s expenses. Cutting fuel costs by optimising the use of nearest vehicles or the ones that offer more mileage may help a logistics company to become more cost-efficient. To improve cost-efficiency, one needs to analyse the cost of fuel, maintenance, toll taxes, etc. Tracking can identify which vehicle needs servicing or replacement by monitoring the vehicle health.

6. Minimising the risk of thefts

Every logistics company has to worry about cargo theft or vehicle theft. With the GPS trackers sending constant signals about the vehicle location, the risk of thefts decreases significantly. GPS tracking offers live location of each vehicle, thus giving us access to vehicle registration number and driver details. Many fleets have delivery and pick-ups that require early morning or late-night services. Live vehicle tracking and two-way communication endow higher safety levels to both the driver and the consignment. Minimising risks of the consignment can improve the business reputation during tough times.

7. Increasing customer satisfaction

Timely delivery assisted with smart predictive analysis of the data from live tracking helps improve the customer’s satisfaction level. Improved safety levels, better fleet management, optimising transport and minimising risks, all contribute towards enhanced customer services. Using live GPS tracking of each vehicle allows the owner to share a tracking link with the customer(s) so they can track the parcel.

A logistics company can introduce new solutions as part of their services. For example, your clients can track their shipment and pick them up while it is on the move by meeting the delivery executive.

Vehicle tracking is no longer a luxury and has become a necessity for all transport and logistics businesses that deal with fleets for delivery/pick-up or ride-hailing services. It promotes cost-efficiency, optimisation of resources and quick decision-making on the part of the managing teams. GPS tracking also offers the ultimate transparency, in terms of fleet operations. The simplicity of live tracking apps allows existing fleet management team members to use these efficiently. Higher authorities do not have to worry about outsourcing live tracking jobs to third-party service providers. Therefore it contributes to cost-savings and optimisation of existing resources within the company. Live vehicle tracking is a long-term investment that enables every transport and logistics business owner to manage the existing fleet. It serves as an opportunity that gives entrepreneurs the chance to scale, transform their companies from the inside out, and make them future-proof!